Alaska State Pension Investment Board, Juneau, hired Allegis Realty Investors, PMRealty Advisors and Lowe Enterprises as real estate equity managers to handle $100 million each. Allegis and PMRealty both will manage core real estate equity, and Lowe will handle value-added investments. The funding source for the portfolios has yet to be decided.
The hires bring the $10 billion fund to a total of $540 million committed to real estate with a target allocation of $800 million. Matt Holbert, real estate investment officer, said it is possible the remaining part of the target allocation will be placed with existing real estate managers in 1998. Eileen Bryne assisted.
Rhode Island State Investment Commission, Providence, committed a total of $42 million to alternative investments.
The $5.5 billion fund will commit $12 million to OCM Opportunity Fund II, a distressed debt and equity fund; $15 million to Wellspring Capital Partners II, which invests in undermanaged or underperforming companies; and $15 million to Harvest Partners II, which invests in multinational divestitures. All commitments are subject to contract negotiations. The allocations bring the fund's commitment to alternatives to $156 million; its target is $413 million.
Pacific Corporate Group assisted.
Anglican Church of Canada hired Letko Brosseau & Associates for its C$400 million (U.S.$285 million) pension fund, said Jer Homavazir, executive assistant. Letko will run C$100 million in Canadian equities. It replaced Altamira Management, which ran a similar portfolio. Towers Perrin assisted.
H.F. Ahmanson & Co., Irwindale, Calif., hired Northern Trust to provide record-keeping and trustee services for its $220 million 401(k) plan. Northern replaces Towers Perrin as record keeper and Bankers Trust as trustee in a move to daily valuation.
The search was completed in-house.
Denison University, Granville, Ohio, will commit $5 million to the Lone Cedar Limited Hedge Fund, said Michael Horst, manager of financial services. The off-shore hedge fund is managed by Lone Pine Capital.
The board of the $258 million fund still has to determine a source of the funding. The fund doesn't actually open until Jan. 1, Mr. Horst added. Fund Evaluation Group assisted. CORRECTION: Teachers' Retirement System of Illinois, Springfield, assigned an additional $50 million to Paradigm Asset Management. The amount was stated incorrectly in the Oct. 31 issue.