Global plan OK'd
The $41 billion Pennsylvania Public School Employees' Retirement System, Harrisburg, approved a plan to hire four firms to manage 20%of the fund's total assets in global portfolios, said John Lane, CIO. A search for the managers will be conducted between now and the end of the year, said Mr. Lane.
The managers will have the mandate to invest wherever they see opportunities. The impact on the system's existing managers is unclear, he said.
The board also approved a $30 million commitment in a venture capital fund that will make investments in Pennsylvania. The fund's general partner is Safeguard Scientific, which also committed $10 million. The state of Pennsylvania, too, committed $10 million.
The board also increased its commitment to SCP Partners, a private equity firm, to $62.5 million or 25%of the total assets, whichever is less, said Mr. Lane. The board initially committed $25 million, but the partnerships total assets increased.
Fund pays $3,000 in accord
The Illinois State Universities Retirement System, Champaign, agreed to pay $3,000 in a settlement with the Federal Election Commission over violations that occurred in 1993 and 1994. The violations resulted from employees receiving reimbursements from SURS for political contributions they had made.
Jones joins Travelers
Thomas W. Jones, formerly vice chairman, president and COO of TIAA-CREF, will join the Travelers Group as vice chairman. Mr. Jones will head up a new unit that combines all of the investment management operations of Traveler's Smith Barney subsidiary into a new, single entity, Smith Barney Asset Management. Mr. Jones will be the chairman and CEO of that new division.
TIAA-CREF has not yet named a replacement for Mr. Jones.
Brown new SSgA CIO
Alan Brown has been promoted to CIO for State Street Global Advisors and to chairman of the manager's U.K. operation. He previously had been CIO for SSgA's non-U.S. operations and managing director of the U.K. office. Nigel Wightman, formerly COO for the U.K. operation, has been named managing director of that unit.
Peter Stonberg, formerly CIO of the SSgA's U.S. operation, will direct the manager's U.S.-based active equity strategies.
Valdes says he's staying
Charles P. Valdes, investment committee chairman for the $118 billion CalPERS, denied reports he is considering resigning from the board of trustees, following the revelation of two Chapter 13 bankruptcy filings.
Mr. Valdes filed for Chapter 13 bankruptcy protection in February 1991 and January 1997, according to records in the U.S. Bankruptcy Court, Eastern District of California, Sacramento.
Shortly after the revelation of the bankruptcy filings, Mr. Valdes was quoted in a Sacramento newspaper as saying he was considering resigning as a trustee. However, in an interview with P&I, Mr. Valdes denied he ever considered resigning and added he is getting widespread support in his run for re-election as a trustee. He said his most recent filing stemmed from a tax dispute with the IRS.
Belgian fund in search
The Voorzorgskas voor Geneesheren, Tandartsen en Apothekers vzw has reopened a search for a $10 million Eastern European equity mandate, said Karel Stroobants, deputy general manager of the Brussels-based pension fund for doctors, dentists and pharmacists. Submissions by managers are due by the end of October. A previous search had not turned up satisfactory results, he said.
Separately, the 14.5 billion Belgian franc ($377 million) fund hired Singer & Friedlander International Asset Management to take over a $17 million small- and midcap European (ex-Belgium) portfolio from Framlington Investment Management. The fund also hired Sanford C. Bernstein to manage a $10 million emerging markets equity portfolio that will invest in Latin America countries and Turkey, South Africa and Israel.
Pragma Consulting assisted.
Bogle dropping 'chairman'
John C. Bogle is stepping aside as chairman of the board of the Vanguard mutual funds and of the company, effective Jan. 31 next year. He will retain the title of senior chairman and will remain on the board. Mr. Bogle will continue to provide advice to the company and will work on special projects of interest to him as well as continue his public speaking engagements on mutual fund topics. John J. Brennan, president and CEO, will succeed Mr. Bogle as chairman.
L.A. City OKs sale
The $6.2 billion Los Angeles City Employees' Retirement System board gave its staff authority to negotiate the sale of the $6.2 billion fund's $14.7 million share of the O'Connor Group's $1.1 billion Retail Property Trust. No further information was available.
Separately, the fund retained Northern Trust as its master custody and securities lending agent, pending contract negotiations.
Foundation moves assets
The University of South Florida Foundation, Tampa, with $128 million in endowment assets, decided to move $14 million in stock and bond indexed assets to The Common Fund, said John Scott, CFO.
The Common Fund already received $5 million from a portfolio managed by Bankers Trust, which managed against the S&P 500, while State Street Bank will lose a $9 million portfolio managed against the Lehman Brothers aggregate.
Performance was about the same, but fees were lower, Mr. Scott said.
Chicago Parks hires
Chicago Park Employees' Annuity & Benefit Fund hired Becker Burke Associates as its second retainer consulting firm, joining Ennis Knupp, said Joseph Fratto, executive director for the $557 million fund.
Becker Burke will be responsible for special projects and general consulting, while Ennis Knupp will continue on performance measurement and surveillance of external managers. One of Becker Burke's first projects will be an examination of the commission recapture issue, Mr. Fratto said.
AAI seeks to add funds
AAI Corp., Hunt Valley, Md., is searching for managers to add two or three funds to its roughly $100 million 401(k) fund.
International equities and domestic growth equities are among the types of funds being considered. Also, it is looking at managers to add to the five or six funds managed by Fidelity, which now provides bundled services.
Hewitt is assisting t in the search. A decision could be made in late October.
Guinness America selects
Guinness America-United Distillers North America Inc., Stamford, Conn., hired Putnam Institutional Management to manage $17 million in core growth equity. Putnam replaced another core growth equity manager that was "out in left field," said James Ricci, director of credit, cash and risk management for the $100 million fund.
He would not identify the terminated manager. Evaluation Associates assisted.
Alaska Permanent hires
Alaska Permanent Fund Corp., Juneau, hired Bank of New York as the global custodian for the $23 billion fund. It replaces Brown Brothers Harriman.
"This move was based on price," said Peter Bushre, CFO. Bank of New York was already the fund's domestic custodian