State of Connecticut Trust Funds, Hartford, committed a total of $320 million to three alternative investment limited partnerships and $2.2 billion to core fixed-income managers.
State Treasurer Paul Silvester, sole trustee of the $16.8 billion pension fund, also placed First Pacific Advisors on the watch list and removed RCM Capital Management from the list. In alternatives, the fund committed $145 million to Triumph Capital Partners III, $100 million to the IAI World Fund and $75 million to SCP Private Equity.
For bonds, the fund committed $300 million apiece to J.P. Morgan and BlackRock, which already managed $300 million each for Connecticut; $600 million each to new managers Western Asset and Wellington; and $200 million apiece to Phoenix Duff & Phelps and Mitchell Hutchins, also new managers.
First Pacific Advisors was placed on a watch list because the U.S. small-cap portfolio it manages for the fund was 30% in cash, despite insistence from Connecticut that the portfolio be fully invested. RCM was removed from probation because personnel issues that landed it there had been resolved.
Oregon State University Foundation, Corvallis, hired Miller Anderson & Sherrerd as its first domestic core fixed-income manager.
The firm will run a $55 million portfolio that will come from Columbia Management and Fayez Sarofim, which were balanced managers. Both funds will run large-cap stocks. Trustees wanted more specialized managers, said Ronald Theberge, CFO for the $275 million foundation. The fund also is considering adding a small-cap to midcap equity manager.
The size of the portfolio and date for a search will be decided in 1998. R.V. Kuhns & Associates will assist.