International Paper Co., Purchase, N.Y., will begin searching for high-yield and international bond managers - both new asset classes - for its pension fund after it completes its search for international stock managers sometime next month, said Robert Hunkeler, vice president and director of investments.
The $3.7 billion pension fund will probably hire two managers for each of the asset classes, and will allocate 4% of total assets to the two classes, he said.
Donaldson, Lufkin & Jenrette added 23 investment banking professionals from UBS Securities - including eight managing directors - doubling the size of its financial institutions group and expanding its coverage of sectors in which it was under-represented.
The expanded group will be co-headed by Leandro S. Galban and Richard J. Barrett. Mr. Galban led DLJ's insurance industry group; Mr. Barrett formerly managed UBS' financial institutions group.
A UBS spokeswoman said the company was continuing its commitment to the financial industry marketplace. ``We will evaluate our needs going forward and will assure that we have appropriate resources to meet our needs and the needs of our clients,'' the spokeswoman said .
Firefighters Pension and Relief Fund for the City of New Orleans may invest between $5 million and $10 million in hedge funds.
The board is expected to decide in the summer whether to move forward with a search in the new area. Trustees want to decide which type of fund would be best suited to the $175 million fund before initiating a formal search, said Richard Hampton, Jr., fund administrator. It is likely a fund-of-funds approach would be used, he added. Smith Barney is assisting.
Washington State Investment Board, Olympia, placed Pacific Rim equity manager Chancellor LGT on probation due to concerns over the transition of ownership to AMVESCAP, said Chris Ailman, CIO. The firm's $300 million portfolio has had strong performance, but the board will watch for changes in the investment process or in personnel, Mr. Ailman said.
Separately, the $45 billion fund committed $75 million to TSG Capital III and $21 million to Olympus Growth Fund III, both private equity funds. Brinson Partners assisted. The board also voted to allow staff to allocate up to an additional $50 million to Mezzanine Capital Property Investors, an existing private REIT investment. PCA assisted.
Funding for all commitments will come from rebalancing.
