VINCENNES, Ind. - AMBANC Corp. named Fifth Third Bank custodian for trust assets of its two principal affiliates, AmBank Illinois N.A. and AmBank Indiana N.A. The firm replaces Northern Trust Co.
American Skandia Life
SHELTON, Conn. - American Skandia Life Assurance Co. hired four subadvisers to manage five new portfolios for its variable annuity program. The program now offers 28 options managed by 15 external money managers and totals $7.5 billion.
American Century was hired to manage two portfolios, the Twentieth Century International Growth portfolio and the Twentieth Century Strategic Balanced portfolio. Janus Funds will manage the AST Janus Overseas Growth portfolio; Putnam will manage the AST Putnam, Value Growth & Income portfolio; and T. Rowe Price was hired to manage the T. Rowe Price Small Company Value portfolio.
ANNAPOLIS, Md. - Anne Arundel Retirement Systems hired two managers following a rebalancing of the $550 million fund's assets.
Hired were Western Asset Management for a $25 million U.S. bond portfolio and LaSalle Partners for a $15 million real estate portfolio. Assets came from cash and a reduction in the domestic equity portfolio of Aeltus Investment Management. Aeltus will continue to manage $110 million, said Al Warfield, assistant financial officer of the fund.
ANNAPOLIS, Md. - ARINC Inc. hired Thomson, Horstmann and Bryant to manage a $10 million small-cap value domestic equity portfolio for its $240 million pension fund, said David Erculiani, director of pension management. Mr. Erculiani declined to reveal the source of funding.
Legg Mason Consulting assisted.
BARBERTON, Ohio - Barberton Community Foundation hired National City Bank of Cleveland as its custodian. The $75 million foundation, formed in December, interviewed six banks for the job, said John Shannon, consultant at Legacy Strategic Asset Management; he declined to name the other candidates.
YARMOUTHPORT, Mass. - Barnstable County Retirement System hired its first small-cap equity and international equity managers as the result of an asset allocation study, said Debbie Revoir, executive director.
Columbus Circle Investors was awarded $5 million for a domestic small-cap stock portfolio, and The Bank of Ireland will run $5 million in core international equity for the $175 million fund.
Existing manager Putnam also will manage $10 million to $12 million in the fund's first high-yield bond portfolio. Assets will come from a reduction in U.S. Trust's balanced portfolio, but the firm will not be terminated.
BURNABY, British Columbia -BC Telecom Inc. hired its first small-cap Canadian equity manager for its pension fund. Montrusco and Associates will manage roughly C$30 million, said Garnet Andrews, cash and investment manager. The C$860 million (U.S. $627 million fund) will fund the hire from cash reserves and an internally managed index portfolio, he said.
Brockhouse & Cooper assisted.
FORT WORTH, Texas - Burlington Northern Santa Fe Corp. added a small-cap fund option to its new $700 million 401(k) plan formed from the Jan. 1 merger of the Burlington Northern and Santa Fe plans.
The Small Company Growth Fund managed by Norwest Corp. will be added to the eight options offered by Vanguard already in place in the former Santa Fe 401(k) plan. Peregrine Capital Management, a subsidiary of Norwest, will directly manage the fund, said Blaine Mineman, manager of finance. Peregrine already manages a small-cap manager for Burlington's $1.4 billion defined benefit plan.
The search was done in-house.
NEW YORK - The $1.8 billion thrift plan for employees of the Federal Reserve System will add three investment options in March. Paul C. Lipson, chief investment officer, said the plan will add the INVESCO Total Return Fund as a balanced option; the Vanguard Total Stock Market Portfolio as an equity index fund; and the T. Rowe Price International Stock Fund. The new funds will bring the total investment choices to six.
TALLAHASSEE, Fla. - The Florida State Department of Insurance/Treasury Division, Tallahassee, selected two intermediate-term fixed-income managers and plans to hire two more in the first quarter, said Bruce Gillander, chief of the bureau of banking.
The $8.5 billion state operating and special purpose fund hired Eaton Vance Management and Fischer, Francis, Trees & Watts for $200 million each. Assets came from new money, Mr. Gillander said. Chase Manhattan assisted.
In February, two new firms should be in place to manage an intermediate-term bond index portfolio and a two-year bridge bond portfolio. Mr. Gillander declined to name the firms being considered. Funding will come from internally managed assets.
Fort Lauderdale Employees
FORT LAUDERDALE, Fla. - The $192 million Fort Lauderdale General Employees Retirement System hired Hansberger Global Investors and Schroder Capital Management to split approximately $5 million for emerging market mutual funds.
Scudder, Stevens and Clark was the only other finalist, said Dorothy Holt, pension administrator.
The source of the funding for the new mandate has yet to be determined. The board will be discussing rebalancing the fund's allocation at next month's meeting, because of a 65%cap on domestic equity investments, Ms. Holt said. No additional hires are expected from the rebalancing.
Currently, the system also invests $23 million in core international equity funds offered by Warburg, Pincus and Templeton. Dahab and Associates is assisting.
ROCHESTER, N.Y. - Frontier Corp. has committed to two alternative investment funds following an asset-liability study of its $475 million defined benefit plan.
The fund invested $5 million each in the Cornerstone Equity Partners fund and Heritage Asset Management's small-cap emerging markets private equity closed-end mutual fund. RogersCasey assisted.
As a result of the study, the fund will decrease equities and increase bonds to 25%from 13%to 14% said Joseph Enis, treasurer. Equities make up roughly 80%of the portfolio, with almost 60%in U.S. equities. The investment management committee is still deciding how much equities will be cut, he said.
Irving S. Gilmore Foundation
KALAMAZOO, Mich. - The Irving S. Gilmore Foundation, Kalamazoo, hired Essex Investment Management as a small-cap equity manager for its $190 million foundation.
Essex is replacing Apodaca-Johnston, which was terminated following the firm's breakup in October, said Frederick Fruend, executive director. He would not reveal how much Essex will be managing. SEI Capital Resources assisted.
TROY, Mich. - Kmart Corp. hired Mellon Bank as trustee to replace First Chicago NBD, said Michael Viola, treasurer.
First Chicago NBD is exiting the custodial business. Kmart's defined benefit plan has $1.8 billion in assets; the defined contribution plan is $1 billion. Wyatt Invesment Consulting assisted.
Litman/Gregory Fund Advisors
LARKSPUR, Calif. - The Masters' Select Equity Fund, a new mutual fund launched by an affiliate of the No-Load Fund Analyst newsletter, selected six subadvisers. The firms will be allocated a portion of the portfolio as follows: New York Venture Fund, 20%in mid- to large-cap growth at a reasonable price; SoGen, 20% global value; Longleaf Partners, 20% mid- to large-cap value; Jennison Associates, 20% large-cap earnings momentum; Friess Associates, 10% mid- to large-cap earnings momentum; and Strong, 10% small-cap GARP.
The unusual fund is not a fund of funds. Instead, its manager, Litman/Gregory Fund Advisors, will allow each subadviser to pick up to 15 stocks. Allocations among subadvisers by Litman/Gregory may drift slightly over time.
Lufthansa German Airlines,
NEW YORK - Lufthansa German Airlines hired Merrill Lynch Group Employee Services as bundled service provider for its $70 million 401(k) plan for U.S. employees.
Merrill will provide record keeping, administration, participant education and five of the plan's eight investment options. The funds are the Merrill Lynch Retirement Preservation Trust; ML Growth Fund; ML Equity Index Trust; ML Intermediate Corporate Bond Fund; and the ML Capital Fund. Lufthansa also uses the AIM Constellation Fund, MFS Equity Fund and the Templeton Foreign Fund.
Massachusetts Port Authority
BOSTON - The Massachusetts Port Authority Employees Retirement System hired its first small-cap firms to manage $7.5 million each. Essex Investment Management will run small-cap growth and Trust Fund Advisors will manage small-cap value portfolios, said George O'Brien, treasurer of the $175 million fund. The fund is still reviewing its allocation and may look at hiring more managers later this year, he said.
Wellington Capital had been the fund's sole money manager.
Hannah Group is assisting.
R. Meeder & Associates
DUBLIN, Ohio - R. Meeder & Associates hired Sector Capital Management as subadviser of the renamed and redesigned Flex-Funds Highlander Fund. The fund formerly was called the Flex-Funds Growth Fund and was internally managed as a defensive asset allocation fund. Sector Capital now uses its proprietary sector investment style to manage the fund as a growth equity vehicle.
Sector Capital uses eight external managers to manage 10 sectors. The current managers are Mitchell Group, Dreman Value Advisors, Ashland Management, Miller/Howard Investments, Hallmark Capital Management, RCM and Barrow, Hanley, Mewhinney & Strauss. Alliance Capital Management will be added in April.
Nebraska State Council
LINCOLN, Neb. - The Nebraska State Investment Council, Lincoln, hired T. Rowe Price to manage a stable value asset fund for the Nebraska Public Employees Retirement System's $700 million defined contribution plan, said Rex Holsapple, state investment officer. The firm will handle about $450 million in the fund that hand been managed by the council, mainly in GICs.
GREENWICH, Conn. - Northstar Investment Management named Navellier & Associates as subadviser to its new Northstar Growth + Value Fund. Louis Navellier, Navellier's president, is portfolio manager of the fund, which will invest using a proprietary quantitative approach to allocate assets among growth and value equities. He also rund the Northstar Advantage Special Fund and other annuities for Northstar.
Ohio Public Employees'
COLUMBUS, Ohio - The Ohio Public Employees' Retirement System, hired Capital Guardian for a $300 million broad international equities portfolio, said Joel Buck, investment director. Assets came from cash. The $39.6 billion fund did not use a consultant.
San Bernardino County
SAN BERNARDINO, Calif. - The $2.4 billion San Bernardino County Employees' Retirement Association allocated $25 million to the RREEF REIT America real estate investment trust. It is the fund's first REIT allocation, said Terry Slattery, administrator. Assets will come from cash.
Townsend Group assisted.
Scapa Group Inc.
RALEIGH, N.C. - The Scapa Group Inc., Raleigh, hired New York Life Benefits Services Inc. to manage and administer its $40 million 401(k) plan. According to a Scapa spokesman, the fund will reduce its investment options to eight from 11; the options had been handled by NationsBank. Three new funds - indexed equity, stable value and value equity - are NYL funds, while five diversified mutual funds from separate fund families also are included.
NEW YORK - Siemens Corp. named Bankers Trust Co. as master trustee of its $1.5 billion defined contribution plan, replacing State Street Bank. Siemens chose Bankers Trust to consolidate master trust activities and achieve economies of scale in its defined contribution plan and its $1.5 billion defined benefit plan, which already was served by Bankers. Curt Kohlberg & Associates assisted.
No other searches are planned.
ATLANTA - The Spelman College endowment is investing about $13 million in a new market neutral fund offered by Aronson + Partners. Robert D. Flanigan, treasurer of the $150 million endowment, said the fund has invested previously in market neutral strategies, but declined to give details. The endowment is the first investor in the Aronson fund.