SEARCHES & HIRINGS
Pensionskasse der Schweizerischen Elektrizitätswerke, Zurich, hired Templeton Worldwide to manage a $50 million global emerging markets equity portfolio, said Franz Winkler, head of capital markets.
The 5.2 billion Swiss franc (U.S.$3.6 billion) fund also picked Morgan Grenfell Investment Management to run a 50 million Swiss franc (U.S.$35 million) European small-cap equity portfolio.
Both new portfolios will be funded from cash. Pension Portfolio Consulting assisted the search.
New York State Common Retirement Fund, Albany, committed $33 million to Warburg Pincus Ventures International, an $800 million international private equity fund, said New York State Comptroller H. Carl McCall, sole trustee of the $95 billion fund.
The fund also made an additional $200 million allocation to an emerging markets portfolio managed by Barclays Global. The firm's portfolio for the fund had been $97 million, Mr. McCall said.
The allocations will be funded from cash.
University of British Columbia Faculty Pension Plan, Vancouver, hired Putnam and Lazard Freres as emerging markets equity managers and Guardian Capital as a small-cap manager. Putnam and Lazard each will handle C$25 million (U.S.$17.6 million) in emerging markets stock, which will be funded from both firms' EAFE portfolios and from existing Canadian stock managers. No managers will be terminated.
Also, Guardian Capital will run a C$30 million (U.S.$21.9 million) Canadian small-cap portfolio for the C$900 billion (U.S.$632.8 million) fund. Funding will come from Guardian and Conner, Clark & Lunn's existing large-cap equity portfolios. SEI assisted.
Carpenters Labor & Management Pension Funds, Oklahoma City, hired Putnam to manage $20 million in domestic core growth equity. Putnam replaces a manager that the $172 million fund terminated earlier this year, said consultant Tom Mitchell Sr. of Marco Consulting. He would not name the firm.
Colorado Public Employees' Retirement Association's $259 million 401(k) plan hired PIMCO to manage a $21.6 million long-term bond fund and dropped Norwest Bank which had been managing the assets.
A spokesman for the Denver-based plan said the switch was prompted by portfolio management changes at Norwest. Norwest officials declined to comment.
The bond fund is one of seven funds offered by the Colorado plan. Mercer assisted.
University of Colorado Foundation, Boulder, committed $3 million to Roser Partnership in a move to complete its 5% allocation to venture capital. Funding will come from the cash held by the $330 million fund. The search was completed in-house.
City of Enid, Okla., hired Norwest Bank as manager of its $9 million defined benefit plan and bundled provider for its $2 million 401(k) plan. The DB plan will be invested in a balanced portfolio. Investment options have not been selected for the 401(k), but officials expect to offer between seven and 10 Norwest funds and three non-Norwest funds. Assets of the plans had been commingled and employer directed through Boatmen's Trust.
Other finalists were Diversified Investment Advisors, Merrill Lynch and BancOne.
Equitable Distributors Inc., Newport Beach, Calif., added managers for its variable annuity program, EQ Trust.
Added as of Jan. 1 will be three indexed options, based on the S&P 500, the EAFE and a small-cap composite index, run by Bankers Trust. Also, Lazard Freres will manage a large-cap value and a small-cap value fund; J.P. Morgan will manage a core bond fund; and Morgan Stanley will run an emerging markets fund.
Greg Brakovich, managing director. said Equitable Distributors will review the fund lineup at the end of the first quarter to make sure there aren't any gaps in the asset allocation spectrum; and likely will add a general account or fixed-income option next year. The trust likely will be made available to the 401(k) plan market in 1998, he said.
