SEARCHES & HIRINGS
Teachers Retirement System of Illinois, Springfield, trustees shifted $1.4 billion of stocks, bonds and cash within the fund's $18 billion in assets; and will search for a real-estate appraiser, a TRS statement said.
Hired were: Capital Guardian for $200 million and Brandes Investment for $100 million, both in active EAFE-style international equity; and Edgar Lomax for $25 million in U.S. large-cap equities.
TRS trustees also shifted U.S. fixed-income assets among existing managers: BlackRock received $200 million, bringing its total to $451 million (using Sept. 30 numbers); Payden & Rygel received $225 million, for $432 million in total; Western Asset received $225 million, for a total of $434 million; and Chicago Trust was given $75 million, for a total of $131 million.
The fund also will shift $15 million in Ark Assets' specialty growth U.S. equity product to its small-cap value equity product. The fund allocated $300 million of STIF funds run by Northern Trust, the fund's master trustee and custodian, to an enhanced cash allocation.
John Day, acting executive director, declined to say if managers were terminated.
Upholsters International Union Pension Trust, Trevose, Pa., hired MacKay Shields Financial and Janus as large-cap growth managers. Each firm will handle $20 million, which is coming from a rebalancing among existing equity managers. The rebalancing will bring the $1 billion fund back to its 70% stock and 30% bond allocation, said Richard Hoffmann, counsel and director of operations. The search was done in-house.
Stichting Pensioenfonds ABP, Heerlen, The Netherlands, hired Chase Manhattan Bank as custodian for a Dutch equity portfolio. Chase replaces the Dutch central bank, which has withdrawn from the custody business.
The 250 billion guilder (U.S.$124 billion) civil servant pension fund also picked Chase Asset Management to run a cash portfolio. The sizes of the mandates were not disclosed.
Community Foundation of Boone County, Zionsville, Ind., hired Conseco Capital Management as its first domestic fixed-income manager to handle $1 million. The $4 million fund had used its custodian, National City, to manage its bonds, said Beth Casselman, executive director. Oxford assisted.
Fremont Investment Advisors, San Francisco, hired Kensington Investment Group to manage a new mutual fund it plans to introduce Jan 1. The fund will invest in real estate securities using the more conservative of Kensington's two REIT strategies.
Investors in Kensington's income-oriented separate account strategy will be moved into the fund. The firm's more aggressive style still will be available in separate account form.
Fremont also plans to introduce the Select Fund, a concentrated equity portfolio, to be managed internally by John Cosekof.