Grolier Inc., Danbury, Conn., hired SEI Asset Management Group to assume responsibility for the investment management of the company's $50 million defined benefit plan. SEI is managing the plan in its global investment program, which uses 20 outside managers as subadvisers to 10 mutual funds. SEI handles all selection and asset allocation according to Grolier's investment policy statement, said Jim Tyce, director of compensation and benefits.
Grolier has mandated a mix of 65% to 70% equities and 30% to 35% fixed income. About half of the Grolier plan previously was managed by SEI in manager-of-managers strategies. Neuberger & Berman managed the balance.
Ohio State University, Columbus, hired Mercer Consulting as consultant to conduct an asset allocation review of its $715 million endowment fund. The firm will take a look at investment policy and asset allocation but will not be involved in any manager searches, said James Nichols, treasurer.
No searches are expected for at least six months if at all, he added.
Teachers' Retirement System of Illinois, Springfield, with $15 billion in assets, assigned $900 million to U.S. equity and fixed-income managers and $25 million to a farmland manager.
For fixed income, BlackRock Financial was given $250 million, Payden & Rygel was given $200 million, Western Asset Management was given $200 million and incumbent manager W.R. Huff was given $50 million, said Scott Mulford, public information officer. Huff already manages $80 million. Assets came from the termination of a manager Mr. Mulford would not identify.
For equities, $100 million was added to an existing $1.3 billion PIMCO StocksPlus portfolio, and incumbent firms Paradigm Asset and Valenzuela Capital were given $50 million each. The firms already manage $80 million and $40 million, respectively, Mr. Mulford said. Assignments came from a manager that ran $290 million; Mr. Mulford would not identify the firm. The balance was assigned to cash flow.
Also, $25 million was awarded to Cozad Asset Management, an existing farmland manager of $225 million for the system.
Callan Associates assisted.
The Berkshire County Council Superannuation Fund hired Wellington Management International to run a U.S. equity portfolio of £40 million to £42 million, said Jack Johnson, manager of the Reading, England, pension fund.
The fund has £707 million ($1.15 billion) in assets. Assets came from a £143 million international equity mandate previously run by PDFM, which was divided into separate regional portfolios. Hymans Robertson assisted in the search.
City of Allentown (Pa.) Employees' Retirement System hired Eagle Asset Management to manage $30 million in intermediate-term fixed income. Eagle replaced C.S. McKee, which was terminated in January, said Linda Bodnar, director of finance.
State Street Research and David Babson were finalists in the $110 million fund's search. Legg Mason assisted