Duke Energy Corp., Charlotte, N.C., the newly formed energy firm resulting from the merger of Duke Power Co. and PanEnergy Corp., will move the investment management operations of the combined company to Charlotte. Jeffrey French, Duke's manager of long-term investments, will assume the investment responsibilities formerly handled by PanEnergy's Jennifer Tyler, manager of investments.
Mr. French said it is too early to speculate on how the merger will affect the management of retirement plan assets.
Employee benefit assets of the merged companies total almost $4 billion. Duke Power has defined benefit assets of about $1.7 billion and a stock purchase-savings program of about $1 billion. Houston-based PanEnergy's pension plan has $810 million in assets; its employee savings plan, about $425 million.
Ann Arbor (Mich.) City Employees' Retirement System could be searching for a fixed-income manager as soon as July, said Robb Hubbs, retirement administrator.
The investment committee for the $300 million fund is setting requirements for a new manager and will give its recommendations at the July 17 board meeting.
The new manager would replace Lexington Global Asset Managers, which was terminated last month. The $50 million it managed temporarily was invested in State Street Global Advisors' Lehman aggregate index fund. Callan will be assisting the board.
SEARCHES & HIRINGS
Oklahoma Firefighters' Pension and Retirement System, Oklahoma City, hired Asset Consulting Group as consultant, said Robert Hollander, executive director of the $1.3 billion fund. The new consultant probably will assist with an asset allocation study in the third quarter. The fund has about 70% in equities.
Incumbent DeMarche Associates declined to rebid for the contract.
Security Industrial Insurance Co., Donaldsville, La., hired Putnam Institutional Management to run about $37 million of its approximately $200 million general insurance assets in fixed income.
The insurer wanted a second manager for diversification purposes; Conseco will continue to manage the remainder of the portfolio, said Bill Stewart, manager-finance and investment management with Loewen Group, the parent company. The search was completed in-house.
School Employees Retirement System of Ohio, Columbus, hired Sanford C. Bernstein to run $25 million in an emerging markets commingled portfolio and CRA Real Estate Securities to run $25 million in a REIT separate account, subject to contract negotiations. The allocations will be funded from cash. Frank Russell assisted the $6 billion fund with the emerging markets search and the REIT manager search was done internally.
St. Olaf College, Northfield, Minn., hired Thomson Horstmann & Bryant to manage, in small-cap equities, 20% of the school's $90 million endowment, said Linda Roiger, assistant treasurer.
Funding will come from a reallocation. DeMarche Associates assisted.
RMC/Vanguard Financial Services, Houston, selected Oppenheimer Funds to take over investment management and administration for its $250,000 401(k) plan.
The plan will offer six diversified Oppenheimer investment funds. A fund official declined to name the previous provider. Mass Mutual will continue as record keeper. Post Oak Capital Advisors assisted in the search.
John P. Callaghan joined Morgan Grenfell Capital Management as the third co-manager of its small-cap equity team specializing in health-care and technology stocks.
He replaced Robert Kern, who left to form his own firm. Mr. Callaghan had been a growth stock portfolio manager for Odyssey Partners, which is dissolving.
Don W. Ceglar joined Weiss Peck & Greer as director of institutional sales, marketing and client service, a new position. Mr. Ceglar will be a principal and a member of the product review committee.
He left Alliance Capital, where he was senior vice president and director of fixed-income marketing. Alliance hasn't selected a replacement yet, a spokesman said.
Christopher Legallet was hired by Newport Fund Management as co-manager of the new Newport Greater China Fund. He will be managing the fund with Thomas R. Tuttle and Xiadong Zhang. Mr. Legallet had been a managing director in the Hong Kong office of Jupiter Asset Management Asia Ltd. and ran $600 million in Asian investments.
Gary R. Lisk joined Lotsoff Capital Management as director focusing on marketing to Taft-Hartley plans, a new position. He was a partner in marketing for Weiss Peck & Greer. Information was unavailable from WPG on whether Mr. Lisk will be replaced