A-Dec Inc., Newberg, Ore., will do an asset allocation study for its $70 million company-directed profit-sharing plan, said Alan L. Steiger, director-finance.
Among issues it will consider are the merger of U.S. National Bank with First Bank System and the implications for Qualivest Capital Management, a U.S. National Bank unit and equity manager for the plan. Other issues include considering boosting the fund's international equity allocation. R.V. Kuhns is assisting.
The fund's allocation is 53% U.S. equities, 2% international equities, 44% bonds and 1% cash. The fund expects to complete the study in August, when it will consider recommendations for changes.
Thirteen institutional investors committed a total of $280 million to GE Investment Realty Partners IV. They include: the pension funds of Olin Corp. and General Electric Co.; Carnegie Mellon University's endowment; the Battelle Memorial Institute Inc., a pension fund; the Memorial Drive Trust, the retirement plan of Arthur D. Little Inc.; and Allendale Mutual Insurance Co.
The fund will make equity real estate investments in North America ranging from $10 million to $50 million. The property types include office, industrial, retail and apartments, in either suburban or downtown locations.
Foster Higgins and William M. Mercer will operate as one firm effective today, following a merger of the two firms' parent companies earlier this year.
The firm will use the Mercer name.
The Alaska State Pension Investment Board will send out RFPs later this week for a $300 million real estate allocation for the $10 billion it oversees on behalf of the Alaska Public Employees' Retirement System and Teachers' Retirement System. The fund has a specific list of managers that will receive RFPs, said Matt Holbert, real estate investment officer. Responses are due Aug. 1.
More than one manager may be hired, said Dick Brown of Eileen Bryne Associates, the fund's real estate consultant.
The fund has an 8% allocation to real estate; $194 million, or about 2% of total assets, already has been placed with managers.
SEARCHES & HIRINGS
The UIU Pension Trust, Trevose, Pa., is searching for a U.S. equity momentum manager to run $10 million as part of the union fund's practice of hiring smaller firms to mirror larger existing managers.
The $10 million will come from Columbus Circle Investors, which runs $120 million to $140 million in momentum equities for the fund. No RFPs will be issued; a subcommittee of the board will narrow the list of candidates to three.
Trustees meet again in December and will decide then on a manager.
Separately, the $952 million fund hired Merrill Lynch Asset Management to manage $10 million in its MITTS guaranteed product that is expected to give returns similar to that of the S&P 500 and to keep the principle intact.
The funding will come from an internally managed fixed-income portfolio. The search was done in-house.
Hoechst Celanese Corp., Somerville, N.J., hired Bankers Trust as trustee of its $1.3 billion defined benefit plan, effective Jan. 1, replacing Mellon, said Terry W. Denzer, director-investments and planning. Bankers Trust has been trustee of the $1.3 billion defined contribution plan for 10 years.
Bankers Trust also will provide securities lending.
Curt Kohlberg & Associates assisted.
Arvin Industries, Columbus, Ind., hired Sasco Capital to manage $20 million in U.S. value equity for its $250 million defined benefit plan.
The funding came from the termination of Newbold's Asset Management last year, said A.R. Sales, treasurer. Hewitt Associates assisted.
City of New Haven (Conn.) Police & Firemen's Pension Fund committed $13.6 million to an S&P 500 index fund with Bankers Trust, said Gregory Brown, city controller.
The money came from NCM Capital Management, terminated because of significant turnover at the firm, said Mr. Brown. NCM managed a large-cap value portfolio for the system.
NCM Chairman Maceo Sloan confirmed the termination was attributable to a recent restructuring and the dismissal of Stanley Laborde, a senior marketing official, who oversaw the firm's relationship with the $183.8 million pension fund.
Citizens Bank of Flint, Mich., hired Systematic Financial Management as the subadviser for the Golden Oak Value Fund, a new value equity mutual fund.
The fund was created from the conversion of a common trust fund, said Dan Czmer, the bank's chief investment officer. Joe Joshi and Kevin McCreesh of Systematic are the fund's portfolio managers