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.
SEARCHES & HIRINGS
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 Sept. 18 meeting whether to search for a replacement, or offer the job to another DCRB official.
William L. Tindall joined American United Life Insurance as senior vice president of the pension division. He replaces James Shanahan, who will retire later this year.
Mr. Tindall was most recently senior vice president, sales, at Massachusetts Mutual Life, where he was replaced by Fred Castellani. Mr. Castellani was head of marketing at Mass Mutual and has been replaced by Tom Johnson, who was formerly at Federated Investors.
Also, David N. Tenebaum joined American United as vice president, pension plan design, pension contracts and compliance. In this newly created position, Mr. Tenebaum will assist clients and AUL employees with technical compliance issues and plan design. Mr. Tenebaum was a practicing employee benefit attorney at Fast & Tenebaum and McKay Hochman.
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 Kruth joined Alliance Capital Management as a vice president with the Alliance Real Estate Investment Fund, a new position.
Mr. Kruth was a senior vice president with The Yarmouth Group, now known as ERE Yarmouth. His duties there have been absorbed internally, said a company spokesman