Board of Public Utilities of Kansas City, Kan., is starting an asset allocation study of its $250 million defined benefit plan. DeMarche Associates is expected to give its recommendations to the fund's board Oct. 24. The fund now has 80% of its assets with UMB Bank in a balanced portfolio; 10% in U.S. equity managed by Dalton, Greiner, Hartman, Maher; 6% in an international equity with Lazard Freres; and 4% in real estate commingled portfolios, split between Prudential and MetLife.
Bank of America will restructure its asset management business, creating two business units.
The Asset Management Group will combine all asset management activities of both BankAmerica and Robertson Stephens & Co., following the completion of BankAmerica's acquisition of Robertson Stephens later this year. G. Randy Hecht, now COO and president of asset management, will head the group.
The Global Private Bank will combine in one organization the bank's private banking and trust services, previously managed separately.
The $150 million managed by Baring was placed in State Street Global's EAFE Index fund. The $37 billion fund will decide in the next six to nine months whether to replace the international equity manager, said Howard J. Bicker, executive director. The firm was dropped because of concerns over staff turnover.
U.S. equity managers Investment Advisers, Wilke Thompson and Winslow Capital will be re-interviewed by the investment committee in September because of staff turnover or performance concerns. The committee will then recommend whether to terminate those firms. Montgomery Asset Management was placed on probation for the next six months because of its acquisition by Commerzbank.
Richards & Tierney assisted.
SEARCHES & HIRINGS
Public School Teachers' Pension & Retirement Fund of Chicago will commit $30 million each to the Olympus Fund II managed by Olympus Real Estate Corp. and the Blackstone Real Estate Partners II Fund run by The Blackstone Group. Funding probably will come from rebalancing of U.S. equity investments, said Mike Nehf, deputy executive director. Mercer assisted.
The $8.2 billion fund also will be sending RFIs to local commission recapture firms in a move to expand the current commission recapture program. The board will consider the addition of two more firms. The fund now uses Merrill Lynch Citation.
Separately, trustees decided to commit $30 million each to the Olympus Fund II managed by Olympus Real Estate Corp. and the Blackstone Real Estate Partners II Fund run by The Blackstone Group. funding probably will come from rebalancing of U.S. equity Investments, said Mike Nehf, deputy executive director. Mercer assisted
Louisiana State Employees' Retirement System, Baton Rouge, named six finalists in its contract rebidding process for global fixed-income managers. The $5 billion system will make its final selection next month. Incumbent global bond managers Morgan Grenfell and Putnam, who now manage about $500 million combined, are among the finalists. Other finalists are Standish, Ayer & Wood; Delaware; Lazard Freres; and PIMCO.
New Haven (Conn.) Employees Retirement fund interviewed four finalists in its search for a midcap equity manager.
Wellington Management, William Blair, Driehaus Capital and New Amsterdam Partners are competing to manager 5% of the fund's $140 million in assets. A final decision is expected in mid-September said Gwendolyn Bell, pension administrator.
San Francisco City & County Employees' Retirement System committed $85 million to four alternative investment funds. The $9 billion system moved $20 million to BC European Capital Fund V; $20 million to Doughty Hanson & Co. III; $15 million to Yorktown Energy Partners III; $30 million to Blackstone Capital Partners III. The San Francisco fund has committed a total of 5.5% of assets to alternative investments.
It has a target allocation of 9%. The consulting firm Cambridge Associates assisted.
Washington State Investment Board, Olympia, committed $16 million to Varde Select Fund offered by Varde Partners Inc. and $49 million to the Nordic Capital Fund III offered by Nordic Capital. Both are international private equity funds. The funding will come from cash. Brinson Partners assisted.
Falmouth Town (Mass.) Retirement System trustees hired Cutler as a U.S. equity manager, and will pick a U.S. fixed-income manager at tomorrow's board meeting, said Margaret Corellis, administrator. Trustees originally had planned to hire a balanced portfolio manager to replace Bear Stearns, the $43 million system's only manager, which has the fund's assets in an equity-bond portfolio. But the system decided to hire separate equity and bond managers instead, Ms. Corellis said.
Cutler will get the value of the equity portion of Bear Stearns' portfolio, the new bond manager will get the fixed-income portion. The Hannah Group is assisting