Teamsters shift cash
The $18.2 billion Central States, Southeast and Southwest Areas Pension Fund for Teamsters reallocated $850 million to equities from cash, said Mark F. Angerame, director-financial accounting.
Morgan Stanley, as named fiduciary, made the reallocation decision.
The fund hired Institutional Capital for large-cap value stocks, assigning it $200 million. Also, the fund added $250 million to an S&P 500 index portfolio run by Barclays Global, raising it to between $500 million and $600 million.
For international, it split $400 million among existing active EAFE managers Scudder Kemper, Putnam, Brinson, Rowe-Price Fleming and Lazard. Amounts of the assignments were not immediately available.
The moves raised the fund's U.S. equity allocation to 35% and international equity to 21%.
Landmark falls short
Landmark Realty came up short in its bid to replace Heitman Financial as the manager of the JMB Group Trust III, said Landmark President Richard Maine.
Landmark, a secondary buyer of partnership interests, proposed last month that the investors in the $438 million replace Heitman with The RREEF Funds because of a perceived failure by Heitman to sell properties. Consent of two-thirds of the investors was required to replace Heitman.
A tender offer to buy a minimum of $40 million of JMB Group Trust III units also failed, said Mr. Maine. He declined to quantify the margin of failure.
"We are really pleased that the clients stood behind us on this," said Mary Ludgin, chief operating officer of Heitman Capital Management.
Hershey picks Russell
Hershey Foods hired Frank Russell to manage $201 million in three Russell multimanager funds. Hershey, which has about $550 million in defined benefit plan assets, allocated $43.3 million to Russell's fixed-income fund, $50 million to the small-cap fund and $108 million to the large-cap fund. Hershey officials declined to provide more information.
Wagner joins Pilgrim Baxter
Pilgrim Baxter & Associates appointed Robert Wagner president of institutional markets. It's a new position.
Mr. Wagner was formerly executive vice president of SEI Investment Systems and Services, the technology side of SEI. Mr. Wagner will handle all sales and client services for Pilgrim Baxter's institutional business.
New Mexico taps 2
The $5.8 billion New Mexico Public Employees' Retirement Association hired Brinson Partners and Sanford Bernstein to manage $450 million in large-cap value stocks. They replace Smith Barney, which was included in the search. Wilshire assisted.
Texas Tech adds 3
The $169 million Texas Tech University endowment fund hired two small-cap core equity managers and its first international equity manager.
Alex Brown and Becker Capital will split a 15% small-cap allocation, and Hansberger Global will manage a 15% foreign stock allocation. The money had been run in-house in U.S. bonds. Fund Evaluation Group assisted.
Warwick hires indexer
The $170 million City of Warwick (R.I.) Retirement System hired State Street Global to manage more than 10% of the fund in a Russell 1000 value index commingled fund, the system's first indexed portfolio.
The fund also is close to finishing a small-cap equity search. The mandate probably will be about the same size as State Street's, said Peder Schaefer, finance director. Officials are considering both value and growth styles.
Funding for State Street's portfolio will come from existing managers, none of which will be terminated. Watson Wyatt assisted.
Apollo III commits
Apollo Real Estate Investment Fund III committed $58 million to Western Realty Development, which will develop real estate in Moscow, said a spokesman for Brooke Group, one of the partners.
Western Realty is a joint venture between Brooke Group and New Valley Corp. As part of the agreement, New Valley will contribute two Moscow office buildings that it built in 1993 and 1997. The Apollo fund is offered by Apollo Management.
Tax-exempt investors in the Apollo fund include The 1199 Healthcare Employees Pension Fund, General Electric Co. pension fund, New York Common Retirement Fund, The Pew Charitable Trusts, The Kresge Foundation and the endowments for the University of Pennsylvania, University of Pittsburgh, Illinois State University and Dartmouth.
Bundled provider hired
Network Appliance hired NYL Benefits Group as bundled provider for its $6 million 401(k) plan, replacing Nationwide Insurance. Lisa Riggs, human resources analyst, said the plan will use a mixture of NYL funds and non-NYL funds for its 12 investment choices. The plan previously had 15 investment choices through Nationwide.
TruServ study under way
TruServ Corp. is conducting an asset-liability study of its $200 million defined benefit plan.
Buck Consultants will be working on the study, which is expected to be finished in summer or fall of this year.
Carlson is Newport COO
James Carlson joined Newport Pacific Management as chief operating officer, a new position. He most recently was controller and compliance officer at Spare, Kaplan, Bischel & Associates, where his duties have been assumed by Mark McKee.
Principal taps Griswell
J. Barry Griswell was named president of Principal Mutual Life and a member of the board of directors. He assumes the job from David J. Drury, who will continue as chairman and chief executive.
Mr. Griswell's new role is essentially that of chief operating officer, said a company spokeswoman. He also will have oversight responsibilities of Principal's global retirement services market. Mr. Griswell will add responsibility for pension operations and sales and retail businesses to his existing job as head of Principal International.
Calder joins SunAmerica
Donna D. Calder joined SunAmerica Asset Management as a portfolio manager and head of the company's small-cap investment group. She had been a general partner at Manhattan Capital Partners, a hedge fund specializing in high-growth equities. She dissolved that company in 1995.
