American Systems Corp.
CHANTILLY, Va. - American Systems Corp. hired Principal Financial Group as a bundled provider for its $15 million 401(k) plan. The number of funds offered to employees will increase to 13 from 10 funds. Diversified Investment Advisors had been the provider. Paul Horn, benefits manager, would not say why Diversified was terminated.
City of Anniston
ANNISTON, Ala. - The City of Anniston Policemen's and Firemen's Retirement Fund hired AG Edwards, Southern Trust Bank and Merrill Lynch to run the fund's newly created equities allocation, which includes both domestic and international stocks.
Each firm will run $3.2 million, which will come from an $11.3 million money market fund managed by Merrill Lynch. The remaining $1.8 million will go to bond managers and cash.
Boy Scouts of America
IRVING, Texas - The Boy Scouts of America selected Bankers Trust as master custodian and trustee for its combined $750 million endowment and pension plans. Bankers, which replaces NationsBank, also will provide performance measurement, investment management and benefit payment services. Boy Scouts officials declined to disclose details.
Cherokee Eastern Band
CHEROKEE, N.C. - The Cherokee Eastern Band hired Kalson & Associates as the first consultant for its $30 million endowment fund and $10 million minors fund.
Kalson will be looking at the band's investment policy and doing an asset allocation study that should be finished up before the end of the year. Currently, First Citizens Bank is balanced manager for the endowment and Merrill Lynch is balanced manager for the minors fund.
DeKalb Employee Retirement
DECATUR, Ga. - The $830 million DeKalb Employee Retirement System hired GLOBALT and Peachtree Asset Management as U.S. core growth equity managers handling $25 million each. Funding will come from a portfolio managed by INVESCO, leaving the manager with $155 million in equity assets.
The board hired the two firms for diversification, said Betty Barton, administrator and employee benefits manager. Callan assisted.
District of Columbia
WASHINGTON - District of Columbia Retirement Board picked Hughes Capital as a minority "farm team" manager, for between $20 million and $25 million in active core U.S. fixed income for the $4.5 billion fund. Money for the new investment will come from cash.
RICHMOND, Ind. - Earlham College hired consultant Cambridge Associates to assist with alternative investments for its $245 million endowment fund, said Richard K. Smith, vice president-financial affairs.
The fund will retain Wellesley Group, its existing full-service retainer consultant, which also assists on alternatives.
The fund has 3% invested or committed to alternatives now, and a target of 15%.
Eastman Chemical Co.
KINGSPORT, Tenn. - Eastman Chemical Co. moved the $800 million liquid portion of its $1.1 billion defined benefit portfolio to Barclays Global Investors. The funds previously had been managed as part of the Eastman Kodak defined benefit plan in a variety of active equity, fixed income and derivative portfolios.
Eastman Chemical's move coincides with the spinoff of its defined benefit plan assets from the Eastman Kodak plan. The rest of the fund's assets will remain with the other 30 current managers in a mix of real estate, venture capital and natural resources. Barclays will invest the assets in four of its commingled funds: the Equity Index Fund; Extended Market Fund; US Debt Index Fund; and EAFE Equity Index Fund.
Fairfax County Police
FAIRFAX, Va. - The Fairfax County Police Officers Retirement System, with about $468 million in assets, terminated WorldInvest and hired Capital Guardian to replace it as an MSCI EAFE international equities manager running slightly less than 9% of total assets said Don McCorry, acting executive director.
TALLAHASSEE - The State of Florida Deferred Compensation Plan hired Aetna as an investment provider for the $850 million plan. Aetna will bring the total of providers to nine.
Florida State Board
Landmark initially will oversee $250 million for the $70.5 billion fund and will consider additional investment opportunities with existing limited partnership funds as well as new opportunities in third-party relationships. The funding will come from new contributions. Hamilton Lane will perform due diligence, assist with relationship oversight and strategic planning.
The fund is expected to expand its private equity program to 5% of assets, said Irwin Loud, portfolio manager of private equity investments.
STOCKHOLM - Forsakringsbolaget SPP hired Chase Manhattan Bank as global custodian for the Swedish insurer's $9 billion in international equity and fixed-income securities. Chase replaces Barclays Global Securities.
SPP is the largest pension insurance group in Scandinavia, managing more than 275 billion Swedish krona ($35 billion) in assets.
DALLAS - Halliburton Co. hired Hewitt Associates as record keeper for its $3.8 billion defined contribution plan. The plan had been administered internally.
Nathaniel Duffield, director-trust investments, said domestic equity and international equity selections might be added to the plan's existing four options in the near future.
HGP Industries Inc.
DALLAS - HGP Industries Inc. selected Diversified Investment Advisors as bundled service provider for its $11 million 401(k) plan. Diversified will provide record-keeping, administration and investment management services. HGP will use six investment funds including three life-cycle options. The plan was consolidated with Diversified after merging four plans, two of which were managed by CIGNA and one each by Prudential and Massachusetts Mutual.
Illinois State Universities
CHAMPAIGN, Ill. - State Universities' Retirement System of Illinois hired the ICMA Retirement as record keeper for a new optional retirement program.
ICMA will provide administrative and record-keeping services and some investment management options for the program.
The system's board meets again Oct. 8 to decide what asset classes will be offered and to then select one or more money managers to offer investment-only services, said James Hacking, executive director.
Deloitte & Touche is assisting.
GAMBIER, Ohio - Kenyon College hired a U.S. stock manager and five venture capital managers for its $78 million endowment fund, said Teri Leonard, controller.
Iridian Asset Management will get $5 million to invest in domestic stocks.
For venture capital, $2 million will go to each of two Olympic Partners funds; $2 million to William Blair; $2 million to Trident Capital; $3 million to J.W. Childs; and $5 million to Welsh Carson Anderson Stowe.
Funding will come from cash flow. Cambridge Associates assisted.
Los Angeles Fire and Police
LOS ANGELES - The $6 billion Los Angeles Fire and Police Pension Plan has hired two fixed-income managers as part of its emerging managers program.
LM Capital Management will handle $25 million and GW Capital Management, $40 million.
Watson Wyatt Worldwide assisted.
BOSTON - The Massachusetts Pension Reserves Investment Management Board decided to retain Wilshire Associates as general consultant and Pathway Capital as alternative investment consultant.
PRIM also voted to put $20 million in the Europe-only portion of the Advent International Global Private Equity Fund III and up to $40 million in Oaktree Capital Management Opportunities Fund II, which invests in distressed, high-yield bonds.
R. Meeder & Associates
DUBLIN, Ohio - R. Meeder & Associates, advisers to the Flex-Partners Funds, hired Commercial Union Investment Management as subadviser to its new international equity fund.
Memorial Health Services
LONG BEACH, Calif. - Memorial Health Services will switch its defined contribution plan to bundled provider Vanguard early next year, said Cheryl Nichols, executive assistant to the treasurer.
The $180 million plan will increase the investment options to 20 from six. Ms. Nichols would not release the names of the plan's current providers. According to Nelson's Directory of Plan Sponsors the managers were Dreyfus Investment Advisors, Patterson Capital Corp. and Provident Investment Counsel.
Metropolitan Water Reclamation
CHICAGO - The $800 million Metropolitan Water Reclamation District Retirement Fund of Chicago hired Kenwood Group, assigning it $7 million for midcap value equities, said George Kirie, financial analyst.
The fund also added $10 million to its equity index fund with ANB Investment Management, raising that assignment to $102 million. And it added $5 million each to Phoenix Duff & Phelps and to Zurich, both core growth equity managers, raising their assignments to $61 million each.
Funding came from dropping Abacus, a core fixed-income manager; from decreasing an ANB fixed-income index fund, which retains $83 million; and other reallocations.
MidAmerican Energy Co.
DES MOINES, Iowa - MidAmerican Energy Co., hired Janus as a large-cap growth equity manager for its defined benefit plan and added the MFS Research Fund A to its defined contribution plan.
Janus will manage $40 million for the $500 million pension fund and replaces Alliance Capital, which was terminated for performance reasons and because of style deviation. The firm would not comment on the termination.
MFS Research Fund A replaces Fidelity's Advisors Equity Growth T Fund. The Fidelity fund was dropped from the $230 million plan due to the continued "musical chairs" at the firm, said Tom Foster, manager-investments. Hewitt Associates assisted.
New Haven Employees
NEW HAVEN, Conn. - The New Haven Employees Retirement Fund hired New Amsterdam Partners as its first midcap equity manager. The firm will manage 5% of the $130 million fund's total assets. Funding will come from cash, said Gwendolyn Bell, pension administrator.
Watson Wyatt assisted.
Norfolk Southern Corp.
NORFOLK, Va. - Norfolk Southern Corp. hired two international equity managers for its $1.3 billion pension fund, said James N. Bayley, director-financial planning.
Bank of Ireland Asset Management and Silchester International Investors will each run active EAFE portfolios. The fund will assign $70 million in total to the managers.
Funding will come from an S&P 500 index fund, which will retain $150 million, and from eliminating an international index fund, which has less than $20 million. Barclays Global manages both.
Hamilton & Co. assisted.
City of Philadelphia
PHILADELPHIA - The City of Philadelphia Treasury Department has added two short-term U.S. fixed-income managers to run $900 million in cash proceeds from the sale of bonds earmarked for various city projects, said Karen Yancey, deputy treasurer. The city has shifted about 25% of the money to Smith, Graham and Hughes Capital Management. Smith Barney and CoreStates previously managed all of the money.
Plumbers Local 130
CHICAGO - The $300 million Plumbers Local 130 pension fund hired Congress Asset Management to manage $25 million in core growth equity.
Congress replaces Loomis, Sayles & Co., which was terminated because of poor performance, said John Bojan, fund supervisor and pension secretary. A spokesman at Loomis said the firm does not usually comment on client relationships.
EDEN PRAIRIE, Minn. - Rosemount Inc. hired two small-cap managers for its more than $300 million combined 401(k) profit-sharing plan, said David P. Vanasek, manager-tax and financial administration.
Wall Street Associates and Woodland Partners join MFS Asset Management, an existing manager, to share in the management of the plan's aggressive equity portfolio.
Jeffrey Slocum & Associates assisted.
SAN FRANCISCO - The Sierra Club, San Francisco, hired NWQ Investment Management to manage its new Sierra Club Combined Fund/Balanced Environmentally Responsible Account. Sierra Club spokesman Jeff Christy said the money manager will be responsible for the all-cap fund, which combines fixed income and domestic equities. The fund will start with $1.6 million from the Sierra Club.
Southern States Cooperative
RICHMOND, Va. - Southern States Cooperative, Richmond, Va., hired Fidelity as a semi-bundled provider for its $66 million 401(k) plan. The firm replaced First Union National Bank of North Carolina, which was allowed to take part in the bidding process, said Richard Sherman, vice president of human resources.
The number of plan options will double to 12. Mercer assisted.
Steamship Historical Society
PROVIDENCE, R.I. - The Steamship Historical Society of America Inc. hired AMAS Securities to manage its $1.8 million endowment fund, said Bradford Hatry, treasurer. The balanced portfolio initially will be skewed toward core diversified growth equities, said Mr. Hatry.
The previous manager of the endowment was terminated for performance reasons, said Mr. Hatry, who declined to identify the firm.
Virginia Retirement System
RICHMOND, Va. - The $27.2 billion Virginia Retirement System approved a $50 million investment in The Hines U.S. Development Fund, a real estate partnership investing in the development of suburban office buildings, said Bill Sullivan, a spokesman. Money will come from cash. The fund also approved hiring a consultant to study the board's structure.
Volvo-GM Heavy Truck
GREENSBORO, N.C. - Volvo-GM Heavy Truck Corp. hired Wachovia Asset Management as a trustee for its $105 million defined benefit plan. Wachovia replaces NationsBank, whose trust business was purchased by Bankers Trust.
Merrill Lynch assisted.
DARIEN, Conn. - Zotos International Inc. hired Diversified Investment Advisors as bundled provider for its $20 million 401(k) savings plan. Diversified will provide record keeping, administration and six diversified investment funds.
The fund previously was unbundled with three investment funds through State Street Bank & Trust Co. Sedgewick Noble Lowndes was record keeper.