Transnet Pension Fund, Johannesburg, South Africa, might restructure its domestic equity portfolio and has picked five managers for the fund's first foray into international equities, said Esmarie Strydom, investment manager.
Subject to approval by trustees, fund officials hope to adopt a consensus index approach for perhaps 40% of equities, while placing additional amounts in a structured, tilted index and perhaps guaranteed capital investments. The number of active equity managers likely will be reduced.
Also, the 30 billion rand fund ($6.4 billion), South Africa's second largest, will funnel 3 billion rand during the next two years to Bank of Ireland, Brandes, Lazard Freres, Orbis Group and SEI. Allocations have not yet been determined. Assets initially will be invested in unitized pools; transfers to segregated accounts may occur later. Fund officials will seek a global custodian at that time.
Funding will hinge on Transnet's ability to engage in asset swaps, in which an equal amount of assets are invested in South Africa as go out of the country. Fund officials expect to start engaging in swaps in about a month.
Assets for the swaps will be drawn from the fund's nine active domestic equity managers.
Changes stemmed from an asset/liability study conducted by SEI; fund officials used Brockhouse & Cooper's manager database.
Adams County Retirement Plan, Brighton, Colo., is considering small-cap managers for a new mandate of a yet-to-be-determined amount.
The $102 million plan is considering three existing large-cap equity managers: Morgan Stanley; Oppenheimer Capital and Denver Investment Advisors. The decision to look at small-cap equity is due to a new rule that allows the fund to invest 65% of assets in stocks, up from 55% in past years, said Joann Mendenhall, executive director.
A final decision on the amount of the allocation and the manager will be made at the board's Oct. 1 meeting. Mercer is assisting.
Aquarion Co., Bridgeport, Conn., is evaluating its defined contribution plan and may decide to ad options and/or switch providers, said Linda Discepolo, manager of finance. Metropolitan Life is the $15 million plan's current bundled provider, offering four investment options. An internal committee is looking at what's in the marketplace and considering whether to expand the number of options. No timetable has been established.
The plan probably will stay bundled, Ms. Discepolo said.
Hartford (Conn.) Employees' Retirement System hired Aeltus Investment Management as core enhanced-index bond manager. The firm will manage $70 million for the $850 million fund. The funding will come from a fixed-income annuity contract with Aetna.
J.M. Smucker Co., Orrville, Ohio, added three investment options from Fidelity for its $35 million 401(k) plan, said Debra A. Wells, assistant treasurer. It added the Puritan fund, a growth fund and a value fund. The additions bring to nine the number of investment options offered by the plan.
Jeanna M. Cullins has resigned as executive director of the $4.5 billion District of Columbia Retirement Board effective Sept. 30, confirmed Berna Gunn-Williams, chairman. Ms. Cullins' letter, dated Sept. 4, did not give a reason for her resignation, Ms. Williams said. The board will decide at its next meeting on Sept. 18 whether to search for a replacement, or offer the job to another DCRB official.
Alan Gilston and Nicholas Horsley were hired by OppenheimerFunds as portfolio managers.
Previously, Mr. Gilston was a vice president and portfolio manager at Schroder Capital Management International, where his replacement is still being sought. In his new position, he will be a co-manager of the Oppenheimer Discovery Fund. Mr. Horsley had been an emerging markets portfolio manager at Warburg Pincus Counsellors. His duties are being assumed internally. Mr. Horsley may be managing new Oppenheimer funds in addition to being on the firm's international equity investment team.
David N. Tenebaum joined American United Life Insurance as vice president, pension plan design, pension contracts and compliance. In this newly created position, He will assist with technical compliance issues and plan design. Mr. Tenebaum was a practicing employee benefit attorney at Fast & Tenebaum and McKay Hochman.
James J. Ramp joined Cowen & Co. as a director in the capital markets group, a new position. He will concentrate on public equity underwriting, including structuring, marketing and syndicating transactions for clients.
Mr. Ramp was an executive vice president and director of syndicate with Gerard Klauer Mattison & Co. and also was a member of the board of directors. Lori A. Begley was promoted to replace him