SEARCHES & HIRINGS
Wisconsin Public Service Corp., Green Bay, Wis., is looking to add an equity index fund to the seven options for its $100 million 401(k) plan. Trustees have to decide which index to track, said Jerry Myers, manager, employee benefit administrator committee. A subcommittee is expected to give recommendations to the board in August.
Public Service Electric & Gas Co., Newark, N.J., hired three U.S. small-cap managers for its $1.7 billion defined benefit plan. RCM Capital received $50 million; Rosenberg Institutional, $80 million; and Reich & Tang, $30 million. Assets will come from three active large-cap managers terminated because of a decision to add active small-cap and retain enhanced equity index managers for core equity. Fred Saunders, assistant treasurer, would not say which managers were dropped.
The company also hired State Street Global and W.R. Huff for its $350 million decommissioning trust. State Street will run 10% in non-U.S stocks and 20% in U.S. small-cap stocks. Huff will run 10% in high-yield bonds. Assets came from restructuring and termination of two unidentified firms. The searches were done in-house.
Los Angeles City Employees' Retirement System hired Paradigm Asset Management to run $225 million in enhanced large-cap value equities for the $6.1 billion system, said CIO Daniel P. Gallagher. Funding came from cash flow. Asset Strategy Consulting assisted.
Spokane (Wash.) Employees' Retirement System hired five U.S. equity managers following a decision to drop balanced management. Hired were: John A. Levin & Co. and Spears Benzak Salomon & Farrell for $10 million each in value equity; Bank of New York for $15 million in an S&P 500 index fund; Frank Russell for $10 million in a large-cap fund-of-funds; and ICM Asset Management for $12 million in small-cap. Merrill Lynch assisted.
Officials terminated all but one balanced manager, Olympic Capital, which will run part of the fund's 40% bond allocation. Most of the allocation will be run internally, said Jim Bennett, director of the $140 million fund. He would not name the terminated managers