California Public Employees' Retirement System, Sacramento, committed $500 million to Enron II, a $1 billion partnership that will invest worldwide in natural gas, crude oil and electricity properties. Enron Corp. committed the other 50%.
Enron II, in partnership with the Ontario Teachers' Pension Plan Board, Toronto, already purchased a 7% common equity interest in Enron Energy Services. Enron Energy is a new Enron subsidiary formed to market natural gas, electric power and related services.
The investment is the $126 billion pension fund's second with Enron Corp.
Wisconsin Electric Power Co., Milwaukee, hired Callan Associates as its first full-retainer consultant. Previously, the plan had used consultants only on a project basis.
Callan will conduct asset reviews of the company's defined benefit plan, nuclear decommissioning trust, VEBA trust, RABBI trust and 401(k) plan. The funds' assets total $1.6 billion. Gordon Willis, treasurer, expects to be partially finished with the reviews within six months and said the project will be ``an ongoing effort.''
Separately, M&I Global Securities Lending was hired as a third-party securities lending agent for the company's pension fund and nuclear decommissioning trust, which total $1.2 billion. The search was completed in-house.
Union of Needletrades Industrial and Textile Employees Benefit Funds, New York, with assets of $1 billion, hired Marco Consulting as its new consultant.
Theodore Bernstein, director-national retirement funds, declined to comment.
Phi Kappa Phi Honor Society, Baton Rouge, La., hired Mellon Equity Associates to manage a $15 million balanced portfolio.
Wilmington Trust had managed the portfolio and was included in the search conducted by the investment committee for the society's foundation and life membership fund, said John Warren, executive director.
The foundation has $11 million in assets. Mr. Warren would not reveal the size of the life membership fund.
The Loxcreen Co., West Columbia, S.C., selected American Century as bundled provider for its $14 million 401(k) profit sharing plan. The firm will provide eight investment options along with daily valuation and record keeping. The plan previously was employer-directed in a NationsBank pooled fund.