Detroit Edison, Detroit, hired Mount Lucas Management to run a $35 million passive managed futures program for its $1.4 billion defined benefit plan. The program, based on the Mount Lucas Management index, will be funded from cash.
Allen Anning, director of trust fund management, said the company continues to look for other alternative investment opportunities such as timberland and mezzanine debt financing, but no searches are under way. Officials will review deals as they are brought to them by New England Pension Consultants, he said.
Texas County & District Retirement System, Austin, hired its first equity manager in a move to create an equity exposure of 30% of total assets. The plan was previously 100% invested in-house in long-term bonds. Barclays will run 5% of the $5.5 billion fund in an S&P 500 index fund.
The money will come from new contributions, said Terry Horton, director.
Trustees are examining other types of equity portfolios to fill the new target allocation. Nothing more will be decided until at least July, Mr. Horton said. Wilshire is assisting.
University of Cincinnati endowment fund hired The RREEF Funds to manage a $12 million portfolio of real estate investment trust securities, said Linda Graviss, assistant treasurer. Funding came from a reallocation of the $680 million endowment's assets, said Ms. Graviss.
Suiza Foods Corp., Dallas, hired MFS Investment Management as bundled provider for a new 401(k) plan. The plan will have $40 million to start, all from several smaller plans of companies recently acquired by Suiza.
MFS will provide administration, record keeping and eight diversified investment funds in addition to Suiza company stock.
The Bell Financial Group assisted.
Bramco Inc., Louisville, Ky., hired Diversified Investment Advisors to handle the investments and administration of its $27 million 401(k) plan.
Des Plaines (Ill.) Policemen's Pension Fund hired Montgomery Asset Management and Mesirow Asset Management as its first equity managers.
The $38 million fund will place about $7 million with each to run in ``all-cap'' portfolios. The money will come from the plan's annuities and existing fixed-income managers, none of which will be terminated. Prudential Securities assisted