Sonoco Products Co., Hartsville, S.C., hired SEI Investments' Asset Management Group to run all of the fund's active equities in a manager-of-managers program for the $500 million pension fund.
Sonoco will assign SEI more than $200 million, which could increase depending on results of an asset-liability study, expected to be finished in October. SEI will have complete discretion to hire and terminate managers and play the lead role in recommending asset allocation. According to Vicki Arthur, assistant treasurer, Sonoco:
Dropped its active equity managers - First Union National Bank of North Carolina; Grantham Mayo Van Otterloo; and Frank Russell;
Switched passive equity and passive bond managers, moving to State Street Global Advisors and dropping Bankers Trust; and
Dropped Wachovia Corp., its master trustee, and Wachovia Asset Management, which handled cash and short-term investments. SEI will be custodian.
The fund will retain for now its three real estate managers and its enhanced index fund investment contracts, issued by two insurance companies. The fund likely will enter a new area - high-yield bonds - and expand its international equity allocation.
MCN Energy Group Inc., Detroit, hired Putnam Institutional Management as a core growth equity manager for its $800 million defined benefit plan. Putnam will manage $48 million and replaces an unidentified manager that was dropped for performance reasons, said Larry Schenk, manager trust investments. RogersCasey assisted.
Los Angeles City Employees' Retirement System has selected, subject to final negotiations, The RREEF Funds for a $20 million investment in undervalued properties. The $6.3 billion pension fund's consultant, The Townsend Group, assisted. LACERS also renewed, subject to negotiations, Townsend's real estate consulting contract for another three years.
Construction Workers Local 147, New York, hired Putnam Institutional Management to run a $20 million balanced portfolio. The $40 million fund chose Putnam to replace Fiduciary Trust, which was terminated in June. Segal Advisors assisted