Santa Clara (Calif.) County Transit District hired William M. Mercer Investment Consulting to do an asset allocation study and select the first external managers for its $110 mi llion pension fund. The study should take a couple of months and yield significant changes, said Jerry Rosenquist, deputy director. The fund's mix: 98% fixed income and 2% indexed equities, all domestic.
Maxus Energy Corp., Dallas, hired Northern Trust as a master custodian and a fixed-income manager for its $120 million defined benefit plan. Northern replaces NationsBank, which is exiting the custodial business.
The firm will manage $25 million in bonds. The funding comes from other fixed-income portfolios, said Dan Imthurn, assistant treasurer. He declined to provide any additional information. Principal Financial assisted.
Sierra Technologies, Buffalo, N.Y., hired Northern Trust as trustee for its $20 million defined contribution plan and overhauled the investment options available to employees.
Sierra chose five new investment options: Northern's Stable Asset Fund and Benchmark Equity Index Class C Fund; D odge & Cox Balanced Fund; Templeton Foreign Fund I; and MFS Emerging Growth Fund A. The Strong Common Stock Fund was retained from the previous lineup. Three other options - PIMCO Low Duration, Twentieth Century Balanced and INVESC O Individual Income Fund - were dropped.
International Union of Operating Engineers Local 4, Boston, selected Putnam as record keeper for its combined 401(k) and self-directed annuity plans with $40 million in assets. Putnam replac es KPMG and will provide quarterly valuation and already provides the local's nine investment selections. A union spokesman said the change in record keepers primarily was a cost measure.