Michigan Department of Treasury, Lansing, slightly raised its target real estate allocation yesterday, hiking it to 8.5% from 7.5%, said Roy Pentilla, acting director for the department, which oversees $40 billion.
Michigan staffers will work internally to decide how to invest the increased allocation. The change led to a decrease in the department's cash target, to 1% from 2%.
Separately, he said interviews for a permanent director have begun through the Treasurer's office.
Also, Michigan has yet to make any investments in a 2% long-only commodities allocation it received permission to implement last year, Mr. Pentilla said. The department is waiting for a better commodities market environment.
Banc One Investment Management and Invesco formed a joint venture to provide full-service bundled 401(k) services. Banc One will be responsible for sales, marketing and participant education. Invesco will provide administration and record keeping for the venture, known as Pathways to Retirement with Banc One SM. A total of 28 mutual funds will be available, including 14 Banc One funds and a combination of 14 funds from Invesco, PRIMCO and the AIM family of funds.
SEARCHES & HIRINGS
Phoenix City Employees' Retirement System hired Cadence Capital as a large-cap growth manager.
Cadence will run a $170 million portfolio previously handled by Chancellor, which was terminated last year by the $1 billion fund. Other finalists in the manager search were: Alliance Capital, Goldman Sachs and Montag & Caldwell. Becker, Burke assisted.
Rhone-Poulenc Rorer, Collegeville, Pa., hired Putnam as the first convertible securities manager for its defined benefit plan. The $24 million mandate will be funded by the rebalancing of the $250 million fund.
Yanni-Bilkey assisted.
Illinois State Board of Investment, Chicago, today decided to commit $35 million each to Apollo Real Estate Fund III and Lazard Freres Strategic Realty Investors II, both opportunistic real estate funds.
The $6.7 billion pension fund still has about $40 million allocated to real estate that has yet to be invested. Funding will come from cash.
The board also considered ColonyInvestors III Fund and a separate account relationship with ABKB/LaSalle Securities. The Townsend Group assisted.
The state of Maine 457 plan hired State Street Global Advisors as the first non-insurance company to offer investment options, said Carol Whitney, state controller.
State Street will offer index funds. The number is still under discussion. The plan has $130 million in assets.
The plan is retaining the three incumbent providers, Aetna, Hartford and VALIC. In all, they offer more than 30 investment choices, including outside mutual funds.
Spectral Sciences Inc., Burlington, Mass., named American Century as bundled service provider for its $5 million 401(k) plan. American Century will provide administration, record keeping, investment education and 15 investment funds.
Harris Administrators was the previous record keeper and offered four mutual fund investment options.
Integral Peripherals, Boulder, Colo., hired American Century as bundled provider for its $3 million 401(k) plan. The fim will provide administration, record keeping, communications and 10 mutual fund investment options. In addition, Integral will use the J.P. Morgan Diversified Fund and a self-directed brokerage option through Charles Schwab.
The previous record keeper was Trust Consultants, which also offered mutual fund investment options. A spokeswoman for Integral declined to provide details.
