Metropolitan Life Insurance will acquire Bankers Trust's defined contribution record keeping, plan administrative operations and other participant services business, in an agreement reached today. Terms of the deal weren't disclosed.
Bankers Trust will continue to provide trustee and investment management services to the 401(k) marketplace.
Gary Lineberry, MetLife vice president, who has headed MetLife's defined contribution business, also will head the new, expanded organization, which will have $67 billion under administration. It will retain Bankers Trust employees, systems and infrastructure.
American National Red Cross, Falls Church, Va., might invest in an inflation or deflation hedge for its $800 million pension fund, said Kathleen Kavanagh, senior investment associate-treasury.
The fund is studying the use of such a hedge and could decide in December on a course of action and begin a search afterward for managers. It could invest $4 million to $20 million.The scope of the study includes considering what asset classes would be best to use for such a hedge.
State Loan and Investment Board, Cheyenne, Wyo., is expected to approve a new asset allocation at its Nov. 6 meeting.
The study, originally expected to be finished in September, was held up because Gov. Jim Geringer requested consultant R.V. Kuhns make legislative directed investments a separate asset class. The $3.2 billion fund currently invests $400 million in loans to communities that fall under the LDI designation.
The fund also could establish its first midcap stock portfolio as a result of the study, said Steve Degenfelder, deputy director.
DTE Energy, Detroit, plans to conclude its managed futures search Nov. 10.
Officials still need to decide whether the portfolio will be indexed and which index to follow - the Goldman Sachs index or the Mount Lucas Management index. The new portfolio will be up to $35 million, depending upon the leverage agreement, said Allen W. Anning, director of trust fund management.
New England Pension Consultants is assisting.
Blairlogie Capital Management will be introducing a commingled fund based on its ``EAFE select'' strategy, said Darren DeVore, chief marketing officer. The strategy creates a concentrated portfolio from the 10 industrialized country markets Blairlogie rates the most favorable. Blairlogie also offers the strategy for separate accounts, in EAFE and emerging markets versions
SEARCHES & HIRINGS
Fulton County Employees' Retirement System, Atlanta, is searching for an emerging domestic fixed-income manager.
A portfolio size has yet to be established. RFIs are due back to consultant Watson Wyatt by Nov. 28. The search should be complete by early February, according to a source familiar with the fund. The $700 million fund will only consider firms that have been in business for two years and have a minimum of $50 million in total assets under management.
Ohio State Teachers' Retirement System, Columbus, with $40 billion in assets, will invest $20 million in CB Healthcare Fund sponsored by Cain Brothers & Co. The $100 million venture capital fund will focus on early-stage healthcare services companies. The investment will be funded from cash.
V.F. Corp., Reading, Pa., added four options and dropped two for its three defined contribution plans totaling $510 million.
Added were: Vanguard Institutional Index Fund, an equity index fund; Baron Asset Fund, a small-cap growth fund; Longleaf Partners Small-Cap Fund, a small-cap value fund; and the Vanguard Institutional Money Market Fund. Dropped were the Kemper Money Market Fund and Fidelity Magellan. Each defined contribution plan now totals nine options.
The search was conducted in-house.