SEARCHES & HIRINGS
Wisconsin Electric Power Co., Milwaukee, hired Callan Associates as its first full-retainer consultant. Previously, the plan had used consultants strictly 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.
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.
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, daily valuation and record keeping. The plan had been employer-directed in a NationsBank pooled fund.
Des Plaines (Ill.) Firemen's Pension Fund hired its first U.S. equity managers in response to state legislation allowing up to 35% of the fund to be invested in stocks.
Rittenhouse and Bidwell & Riddle both will manage about $4.2 million in large-cap core equities; Furman Selz will run $2.6 million in midcap equity; and Wasatch has been allocated $1.9 million. Funding will come from the termination of bond managers Fidelity and First Chicago and from annuities. Oppenheimer will continue to run the rest of the $37 million fund in core U.S bonds. Oppenheimer, as investment adviser, assisted the search.
The city's Policemen's Pension Fund also will hire equity managers. Interviews of six firms are scheduled within the next couple of weeks. The $40 million fund will split its new 35% equity portfolio between two firms.
