Orange County Employees' Retirement System, Santa Ana, Calif., plans to search for a small-cap value equity manager in 1998, adding a new asset class. Ray Fleming, retirement administrator, said the amount and source of funding have not yet been identified. The $3.6 billion fund's consultant, Callan Associates, is expected to direct the search.
United Asset Management is acquiring 49% of Integra Capital Management, a Canadian manager of managers. Terms were not disclosed.
Integra currently works with two firms, Lincluden Management and Gryphon Investment Counsel, which manage Integra's $3.9 billion in assets on a 50/50 basis. UAM bought 49% of Lincluden in July.
The owners of Integra are the firm's principals as well as Lincluden and Gryphon. UAM executives won't say whose ownership is being purchased. The Integra principals signed employment contracts to remain with the firm, said UAM spokesman Jonathan Hubbard.
Washington State Investment Board, Olympia, allocated money to two U.S. real estate managers and is considering investing in international real estate.
TA Associates was allocated an additional $200 million for U.S. industrial and suburban office properties, bringing its total portfolio for the board to $400 million. Hearthstone Homebuilding Investors was hired to manage $50 million in residential real estate. Both portfolios will be funded from cash.
Pension Consulting Alliance assisted.
Staff will likely do due diligence on international real estate, a new asset class for the fund, in the next few months, said James Parker, executive director for the $40 billion fund.
Separately, the fund renewed Barclays Global's contract to manage $4.7 billion in passive U.S. equities.
State Street Mansion House Investment Management Services will form a joint venture with Guangdong Overseas Chinese Trust & Investment to seek a license to distribute mutual funds in China. SSMH will work with Guangdong Overseas to obtain regulatory approval to distribute mutual funds in Guangdong province, adjacent to Hong Kong.
SEARCHES & HIRINGS
Florida State Board of Administration, Tallahassee, will hire Smith Barney Capital and Trinity Investment as large-cap value managers, said Lan Janecek, chief of equities for the $70 billion fund. Portfolio sizes have yet to be determined, but earlier estimates were between $300 million and $500 million. The mandates are expected to be funded from cash by year end, pending finalization of contracts. Ennis Knupp is assisting.
Alaska State Pension Investment Board, Juneau, hired McKinley Capital to manage a $100 million U.S. equity portfolio for the Alaska Public Employees' and Teachers' Retirement System, said Steve Eason, an investment officer of the $11 billion system.
Ann Arbor (Mich.) City Employees' Retirement System hired Bradford & Marzec as a core-plus domestic fixed-income manager for the $350 million pension fund.
The firm will run $45 million, which will come from rebalancing and the termination earlier this year of U.S. core bond manager Lexington Global. Bradford & Marzec will be allowed to invest up to 10% in high-yield bonds and 10% in international bonds. Callan assisted.
Hamline University, St. Paul, Minn., hired two small-cap managers for its $42 million endowment fund, said Orwin W. Carter, vice president-finance and operations. It hired Strong Capital Management for growth and Rosenberg Institutional Equity Management for value.
Each will be assigned 10% of the fund. Funding will come from terminating Mitchell Hutchins, which had run the 20% small-cap allocation blending growth and value. Jeffrey Slocum assisted.
Royal & Sun Alliance, Horsham, England, hired Midland Securities Services to provide custody for £30 million ($50 million) in externally managed assets of two units, Sun Alliance Pensions and Sun Alliance Linked Life Insurance. Midland succeeds Barclays Global Securities, which was acquired last year by Morgan Stanley.
Lenore Thornton joins Nicholas-Applegate as director of client service and marketing for corporate, endowment and foundation clients. She had been director of marketing client services at Smith Barney Capital. Her new position is part of a restructuring of Nicholas-Applegate's marketing group to focus on two markets. One is the one in which Ms. Thornton will work; the other, public/Taft-Hartley funds, will be headed by John Pipkin, director of client service and marketing. Peter Johnson, also a director of client service and marketing, will assume direct responsibility for some of the firm's largest client relationships.
P&I Daily will not be published Nov. 27 and 28; publication will resume Dec. 1.