ANGLIAN WATER
HUNTINGDON, England - The Anglian Water Pension Schemes hired Northern Trust as global custodian, replacing Bank of Scotland, said Ian Barrett, secretary to the trustees.
The 375 million pounds ($611 million) fund was overdue for reviewing its custody arrangements, Mr. Barrett said.
Bacon & Woodrow assisted.
BankAmerica
SAN FRANCISCO - BankAmerica hired Delaware Investment Advisors to manage a $100 million EAFE mandate for its $3.7 billion pension fund. Elsie Fletcher, senior vice president and senior manager pension asset management, would not name the manager Delaware replaces.
Frank Russell assisted.
Bechtel Power Corp.
SAN FRANCISCO - Bechtel Power Corp. hired Capital Guardian Trust to manage non-U.S. equities and Grantham, Mayo, van Otterloo to manage global bonds, said Kent Copa, vice president at Fremont Investment Advisors, which runs the $2.1 billion defined benefit plan. He declined to reveal the size of the portfolios.
The international equity money was run by Kleinwort Benson, which has been acquired by Dresdner RCM Global. Fremont thought Capital Guardian could do a better job, Mr. Copa said. A Dresdner spokesman said the firm had no comment.
J.P. Morgan had managed the global bond money, but since the firm also manages some non-U.S. stocks for Bechtel, a decision was made to diversify, he said.
Canadian Red Cross
OTTAWA, Ontario - The Canadian Red Cross Society hired Putnam Institutional Management as an international core equity manager for its defined benefit and defined contribution plans, which have a total of C$210 million (U.S.$147 million) in assets.
The firm will manage a total of C$15 million for the plans. Sandy George, pension analyst, would not reveal the source of funding. Towers Perrin assisted.
Carolina Power & Light
RALEIGH, N.C. - Carolina Power & Light Co. hired two private equity managers to manage $10 million each for its $800 million pension fund, said Donald F. Ray, project business analyst.
PruAsia will invest in Asia and Harvest Partners will invest in the United States. Funding will come from cash flow. LCG assisted in the international area.
Colorado Fire and Police
ENGLEWOOD, Colo. - The $1.9 billion Colorado Fire and Police Pension Association committed $10 million to the Thomas H. Lee Equity Fund IV, a private equity buyout fund.
Funding will come from cash reserves. Pacific Corporate Group is assisting.
Creighton University and Health
OMAHA, Neb. - Creighton University and Health Future Foundation hired M&I Global Securities Lending to provide third-party securities lending services for its combined $250 million endowment funds.
About $200 million will be available to be part of the securities lending program. Custodian First National Bank of Omaha assisted in the search.
Separately, the university is increasing its international exposure to 10%of the fund's equity portfolio or roughly $16 million from 3%of the equity portfolio or $5 million. The additional allocation is likely to stay with current manager The Common Fund, although a manager search is possible once the portfolio reaches a certain dollar amount, said Lee Galles, associate vice president for finance and treasurer.
District of Columbia
WASHINGTON - The District of Columbia Retirement Board, with $4.9 billion in assets, will temporarily invest $90.4 million in a short-term bond fund with State Street Bank. Of that amount, $57.4 million will come from the board's annual employer contribution; $33 million will come from employee contributions since June 1997.
The pension fund will park the money with State Street until it conducts an asset allocation study after the bulk of the fund's assets are handed over to the U.S. Treasury.
Florida Progress Corp.
ST. PETERSBURG, Fla. - Florida Progress Corp. added the Vanguard Extended Market Fund to its $415 million 401(k) plan, bringing the total investment options to 10. Vanguard is the plan's bundled provider.
Greyhound Transportation
CALGARY, Alberta - Greyhound Transportation Corp. hired Laketon Investment Management for its C$160 million (U.S.$112 million) pension fund, said Geoff McCulloch, treasury manager.
Laketon was assigned C$15 million for an active EAFE mandate.
Funding came from a reallocation. Watson Wyatt assisted.
Illinois State Board
CHICAGO - The $6.7 billion Illinois State Board of Investment committed $35 million each to Apollo Real Estate Fund III and Lazard Freres Strategic Realty Investors II, both opportunistic real estate funds. Funding will come from cash.
The pension fund still has about $40 million allocated to real estate that has yet to be invested.
The board also considered ColonyInvestors III Fund and a separate account relationship with ABKB/LaSalle Securities.
The Townsend Group assisted in the search.
Injured Workers Insurance
TOWSON, Md. - The $850 million Injured Workers Insurance Fund hired Alliance Capital to replace Chancellor as a large-cap growth equity manager.
Alliance will manage $36 million. Chancellor was terminated last September, said Bob Merritt, chief investment officer for the fund. Wilshire Associates assisted.
Integral Peripherals
BOULDER, Colo. - Integral Peripherals hired American Century Investments as bundled provider for its $3 million 401(k) plan.
American Century 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 offered mutual fund investment options.
Iowa Public Employees'
DES MOINES, Iowa - The Iowa Public Employees' Retirement System hired Oaktree Capital Management to run an initial mandate of $100 million in domestic high-yield bonds. The new portfolio ultimately will reach $325 million and will be funded gradually during the year, said Mike Finnegan, senior investment officer for the $12.1 billion fund.
The initial funding came from cash; subsequent allocations will come from portfolio rebalancing. Wilshire assisted.
Kimball International
JASPER, Ind. - Kimball International hired Fox Asset Management as a large-cap value manager and Bank of New York as master trustee and custodian for its $325 million defined contribution plan.
Fox replaces Palley-Needelman, which was terminated because of personnel departures. Kenneth Sendelweck, vice president and assistant treasurer at Kimball, would not give the size of the portfolio. Large-cap stocks account for 20%of the total plan and are split between two managers.
Chet Needelman, chief executive of Palley-Needelman, said a letter from Kimball stated the firm's investment objectives differed from that of the fund.
BONY replaces McDonald & Co. Officials made the change to benefit from the record keeping and administrative software BONY uses, Mr. Sendelweck said.
McDonald & Co., which will remain consultant to the fund, assisted in the manager search.
Lee Memorial Health System
FORT MYERS, Fla. - Lee Memorial Health System hired Diversified Investment Advisors as a bundled provider for its $60 million 403(b) plan. Diversified replaces Lincoln Insurance, which was included in the search. Diversified will provide 14 investment options in addition to education, record keeping and administration. Towers Perrin assisted.
Lucent Technologies
MURRAY Hill, N.J. - Lucent Technologies Inc. added the Bankers Trust BT Institutional Equity Fund to its management and salaried 401(k) plans, with combined assets of $13 billion. The addition brings the number of investment choices to 13.
State of Maine 457
AUGUSTA, Maine - 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. The plan has $130 million in assets. State Street will offer index funds. The number is still under discussion.
The plan is retaining the three incumbent providers: Aetna, Hartford and VALIC.
Memorial Sloan Kettering
NEW YORK - Memorial Sloan Kettering Cancer Center made three more commitments to alternative managers.
Thomas Lee will run $10 million in an LBO fund; Knight-Bridges, $3 million in a venture capital fund of funds; and Accel Partners, $5 million in a high-tech venture capital fund. Funding will come from the $1.4 billion fund's cash reserves.
Cambridge Associates assisted.
Merced County Employees'
MERCED, Calif. - Merced County Employees' Retirement System hired Dorn, Helliesen & Cottle as its first consultant to do performance evaluation and an asset allocation study. Officials of the $275 million fund have yet to establish a timetable for the study.
National Australia Group
LEEDS, England - The National Australia Group Pensions Common Investment Fund hired Northern Trust as global custodian for its 1.4 billion pounds ($2.3 billion) in assets.
The fund comprises assets of the Clydesdale Bank Pension Scheme, Northern Bank Pension Scheme, Yorkshire Bank Pension Fund and National Australia Bank UK Retirement Benefits Plan.
Previously, three of the fund's four balanced managers - Morgan Grenfell, Gartmore and PDFM - provided custody internally. The fourth manager, Baillie Gifford, outsourced custody to Clydesdale Bank.
Watson Wyatt Worldwide was the consultant.
Northstar Investment
GREENWICH, Conn. - Northstar Investment Management hired Brandes Investment Partners to manage its new Emerging Markets Value Fund under a subadvisory agreement. The addition brings Northstar's mutual fund family to 12.
New York State Common
ALBANY, N.Y. - The $95 billion New York State Common Retirement Fund allocated $75 million to the Olympus Real Estate Fund II, an opportunistic real estate partnership sponsored by Olympus Realty Partners, confirmed New York State Comptroller H. Carl McCall, sole trustee of the pension fund. The allocation was funded from cash.
Oakland Police & Fire
OAKLAND, Calif. - The $794 million Oakland Police & Fire Retirement System hired five managers: RhumbLine Advisers for $40 million in a Russell 1000 index portfolio; Scudder Stevens & Clark, $31 million in international core equity; Tiffany Capital, $10 million in U.S. midcap stocks; Invista, $28 million international core plus; and Reams Asset Management, $97.5 million core-plus bonds.
Funding will come from a pension obligation bond offering. Watson Wyatt assisted.
Pennsylvania State Employes
HARRISBURG, Pa. - The $21 billion Pennsylvania State Employes' Retirement System will allocate up to $200 million to four venture capital managers and one real estate manager.
The system will invest up to $75 million with Kelso Investment Associates VI for middle-market buyouts; up to $40 million with HarbourVest International Private Equity Partners III, an international fund of funds; and up to $35 million each with Whitney Equity Partners III for investment in emerging growth companies and FMC Venture Partners VIII, which will focus on the service industry. Cambridge Associates assisted.
In real estate, the board allocated up to an additional $15 million to Forest Investment Associates, bringing the total to $100 million for investment in timberland. The new allocation is earmarked for investment in Pennsylvania. The Townsend Group assisted.
Funding for the allocations will come from cash reserves.
Phoenix City Employees
PHOENIX - The Phoenix City Employees' Retirement System hired Cadence Capital as a large-cap growth manager. Cadence will manage a $170 million portfolio previously handled by Chancellor, which was terminated last year by the $1 billion fund. Becker, Burke Associates assisted.
Quaker Family
VALLEY FORGE, Pa. - The Quaker Family of Mutual Funds hired Compu-Val Investments to manage its new Quaker Mid-Cap Value Fund. Compu-Val uses a proprietary cash flow-based valuation model to screen for companies with significant appreciation potential.
Rhone-Poulenc Rorer
COLLEGEVILLE, Pa. - Rhone-Poulenc Rorer hired Putnam as the first convertible securities manager for its $250 million defined benefit plan. The $24 million mandate will be funded by a rebalancing. Yanni-Bilkey assisted.
Shook, Hardy & Bacon
KANSAS CITY, Mo. - Shook, Hardy & Bacon LLP hired Prudential Investments to provide quasi-bundled services for its 401(k) and money purchase plans.
Prudential will provide full service administration and record keeping, employee communications and education, and five of the 11 new investment options. Five options will be managed by other firms. The 11th option permits the firm's 1,100 employees to use their own third-party brokers to manage their accounts in mutual funds or individual securities.
Prudential was selected from more than 30 bidders, said Dale Chaffin, chief operating officer. Mr. Chaffin would not disclose the size of the company's retirement plans; the 1998 Nelson's Directory of Plan Sponsors put the total assets at $95.7 million.
The company previously used bundled plan services from NationsBank.
Spectral Sciences Inc.
BURLINGTON, Mass. - Spectral Sciences Inc. 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.
Washington State Investment
OLYMPIA, Wash. - The $43 billion Washington State Investment Board committed to three more limited partnerships.
Officials allocated $100 million to Harbourvest International Fund III, a private equity fund; $35 million to Mezzanine Capital Property Investors, an opportunistic real estate partnership; and $55 million to HomeTown America, also an opportunistic real estate partnership.
Pension Consulting Alliance assisted.
