Bechtel Power Corp.
SAN FRANCISCO -- Bechtel Power Corp. hired Bee Associates to manage $30 million in an aggressive international small-cap strategy for the multiasset fund of its $3.6 billion defined contribution plan, said Kent Copa, vice president at Fremont Investment Advisors, which oversees the plan.
The money was managed by Acadian Asset Management in a small-cap value fund that Bechtel terminated because the style fell out of favor, he said. Churchill Franklin, vice president at Acadian, said returns were unattractive, but the strategy is now starting to do well.
BRAINTREE, Mass. -- The $71 million Braintree Contributory Retirement System hired Loomis Sayles to manage $10 million in a domestic fixed-income portfolio, said Jennifer Miller, retirement clerk. Money for the new manager came from cutting back the allocation to 1838 Investment Advisors, which still manages a $20 million domestic bond portfolio for the fund, she said.
SACRAMENTO, Calif. -- The California Public Employees' Retirement System selected Hines Interests and Commonwealth Pacific to manage $1.3 billion in U.S. office properties. Hines will manage more than $950 million in existing CalPERS office properties in the East and Northwest. Commonwealth will manage $375 million in existing office properties in the Southwest. Hines also will invest up to $50 million in CalPERS' office portfolio and Commonwealth will co-invest $2 million alongside the $135 billion system in a newly formed operating company. The system also approved commitments of $150 million to Welsh, Carson, Anderson & Stowe VIII, a fund that will invest in health care and information services in the U.S.; and $125 million to Green Equity Investors III, which will invest mainly in West Coast consumer-oriented companies.
CHARLOTTE, N.C. -- The Charlotte Firefighters Retirement System hired Boston Partners as midcap value equity manager for an $18.8 million portfolio after recently selected WEDGE Capital withdrew from contract negotiations. Barbara Avard, administrator of the $196 million fund, would not say why the firm withdrew. Boston Partners will manage one-third of the $56 million portfolio that was managed by First Union in large-cap and midcap stocks.
First Union will continue to run the remainder of the portfolio in large-cap value stocks. Callan assisted. WEDGE officials did not return calls.
CHICAGO -- The Public School Teachers' Pension & Retirement Fund of Chicago hired two emerging managers to manage $20 million each. Hired were Woodford Gayed Management as a large-cap growth manager and MDL Capital as a domestic bond manager. The hires are subject to contract and fee negotiations. The money is coming from cash. The board of the $8.5 billion fund interviewed 10 firms and may look to hire more emerging managers after reviewing two or three quarters of the new managers' performance, said Mike Nehf, executive director. Mercer assisted.
INDIANAPOLIS -- The Children's Museum of Indianapolis hired two managers for its $210 million foundation fund, said John Grogan, director-investments.
Conseco Capital will run $20 million and Miller Anderson & Sherrerd $10 million. Both will manage broad market bond portfolios. Funding came from new money and a reallocation. Cambridge Associates assisted.
Colorado Fire & Police
ENGLEWOOD, Colo. -- The $2.1 billion Colorado Fire & Police Pension Association committed $10 million to the Apollo Real Estate Investment Fund III. The money will come from cash. Pacific Corporate Group assisted.
Consolidated Papers Inc.
WISCONSIN RAPIDS, Wis. -- Consolidated Papers Inc. hired two equity managers for its more than $200 million 401(k) plan, said John D. Steinberg, treasurer. It added the Founders Growth Fund and Neuberger & Berman Genesis Fund. The additions bring to about 15 the number of investment choices in the plan. Arthur Andersen assisted.
MEDIA, Pa. -- The $232 million Delaware County Retirement System hired McHugh Associates to manage a $10 million midcap to large-cap U.S. equity portfolio, said Richard Daisley, controller. Funding will come from other managers; none will be terminated. Spagnola & Cosack assisted.
Denver School Employees'
DENVER -- The Denver Public School Employees' Pension & Benefit Association hired TT International to manage $100 million in international equity. The money will come from the fund's domestic fixed-income portfolio, which will be reduced to 25%of the $2.1 billion fund. The portfolio is managed internally.
The search was completed in-house.
SPRINGFIELD, Ill. -- Electrical Workers, International Brotherhood of Electrical Workers, Local 51, hired Conseco Capital Management to manage a core fixed-income portfolio for a general union fund, said Dominic Rivara, business manager. The assets had been run internally in fixed income. Further details were unavailable.
SIOUX FALLS, S.D. -- The Evangelical Lutheran Good Samaritan Society hired Alliance Capital as a manager of $20 million in large-cap growth equities, said Thomas Peterson, finance director and assistant treasurer. Alliance replaces Northern Capital in a $230 million balanced mutual fund operated by the society for use by nursing homes it operates. Piper Capital, fund administrator and manager of the society's other fund, a $50 million money market fund, assisted with the selection.
TAMPA -- The $35 million Florida Millwrights Pension Fund hired Carl Domino Associates as a large-cap value equity manager to run a $3 million portfolio. The money will come from existing domestic equity manager Loomis Sayles. Trustees hired Carl Domino to help diversify the fund's assets. Portfolio Progress assisted. The fund also hired Southern Benefits as administrator in order "to upgrade service," said Marty Bearry, trustee. ABPA had been administrator.
Gaylord Container Corp.
DEERFIELD, Ill. -- Gaylord Container Corp. added the Vanguard PRIMECAP Fund and Vanguard Windsor II Fund to its 401(k) plan. The $70 million plan now has 10 investment options provided through alliances with Principal Mutual. Hewitt assisted in the selection of funds, said Catherine Curran, assistant treasurer.
INDIANAPOLIS -- The $1 million Junior Achievement Foundation of Central Indiana hired Conseco Capital Management to run core equities for its fund, said Lyle Hartman, vice president-finance. Conseco will run $500,000. Details were unavailable.
BALTIMORE -- The $43 million Marion I. and Henry J. Knott Foundation hired three managers, said Robin Platts, executive director. Conseco Capital will run $12 million in core fixed income; Legg Mason will run $11.2 million in value equities; and Templeton will run $5.5 million in its foreign equities mutual fund. Money for the foreign equities mutual fund came from replacing four global and international mutual funds, including one Templeton fund, to consolidate management. Funding for the other two managers came from dropping a balanced manager she declined to identify and from reassigning Montag & Caldwell to manage only growth equities from a balanced portfolio; it retains $11.2 million. Ennis Knupp assisted.
MARLBOROUGH, Mass. -- The $30 million Marlborough Retirement System hired Meketa Investment Group as investment consultant. The firm replaces Advest Group, said Kim Bower, assistant.
BOSTON -- The Massachusetts Housing Finance Agency Retirement System hired Phoenix Realty as its first real estate manager, and INVESCO as its first international equities manager, said William R. Farmer, executive director.
Phoenix will manage $1.5 million in an open-end separate account, and INVESCO will manage $3.5 million in an active portfolio. The $33 million system added the managers after an asset allocation study by Dahab Associates, the fund's consultant. The fund also has 40%of its assets in domestic bonds and 45%in U.S. equities, Mr. Farmer said.
METHUEN, Mass. -- The Methuen Contributory Retirement System hired its first small-cap equity and real estate managers. The $49 million system hired Dreyfus to run $3 million in U.S. small-cap stocks, said Kevin Leonard, the Segal Advisors consultant who assisted. Real estate managers Sentinel and the RREEF Funds will manage $2 million each, he said. Money will come from David L. Babson, which manages 93%of the system's assets in a balanced fund.
NATICK, Mass. -- The $55 million Natick Contributory Retirement System hired H.C. Wainright & Co. as investment consultant. The firm replaces The Hannah Group, which was purchased by Advest. The fund's board will meet with the new consultant at its April 29 meeting.
Nestle USA Inc.
GLENDALE, Calif. -- Nestle USA Inc. hired Putnam Investments as a global balanced manager for its $800 million defined benefit plan. The mandate is part of a manager consolidation that resulted in the termination of nine managers. Manfred Lehmann, vice president and treasurer, would not give the names of the firms dropped. Putnam will manage $110 million. J.P. Morgan was retained to manage a global balanced portfolio of $150 million. J.P. Morgan formerly managed a little less than that in a U.S. stock portfolio and a U.S. bond portfolio. Frank Russell assisted.
New York City Fire
NEW YORK -- The New York City Fire Department Pension Fund allocated a total of $160 million to five EAFE managers, said Jon Lukomnik, New York City deputy comptroller. For active management, the $5.5 billion fund hired Invista Capital for $25 million; GE Investments for $60 million; Scudder, Stevens & Clark, $30 million; and Bank of Ireland Asset Management, $40 million. Barclays Global Investors, an existing manager, received an additional $5 million for an existing passive EAFE portfolio. The trustees also committed $25 million to FDG Capital Partners, a private equity partnership. The allocations and commitments will be funded with money from Alliance Capital Management -- which was terminated -- and from cash reserves.
New York City Police
NEW YORK -- The New York City Police Department Pension Fund allocated $730 million to seven EAFE managers, according to Jon Lukomnik, New York City deputy comptroller. For active management, the $14.7 billion fund hired GE Investments for $150 million; Bank of Ireland Asset Management for $65 million; Invista Capital, $25 million; Rowe Price-Fleming, $200 million; and Oechsle and Putnam Investments for $100 million each. Barclays Global received $90 million for a passive EAFE mandate. The fund also committed $50 million to FDG Capital Partners, a private equity partnership. In addition, a $36 million enhanced high-yield portfolio was split between Alliance Capital and Loomis Sayles. The money came from Schroders, which had managed enhanced high-yield manager. Other allocations and commitments were funded from cash. A Schroders spokeswoman said the firm resigned during the first quarter.
New York State Common Fund
ALBANY, N.Y. -- The New York State Common Retirement Fund committed a total of $150 million to two alternative investment partnerships, said State Comptroller H. Carl McCall, sole trustee of the $100 billion fund. The fund committed $100 million to Beacon Energy Investment Fund and $50 million to Lexington Capital Partners II, he said. The commitments will be funded from cash.
Pacific Alliance Capital
SAN FRANCISCO -- Pacific Alliance Capital Management hired AXA Investment Managers as subadviser of Pacific's HighMark International Equity Fund, a $100 million mutual fund. AXA replaces Tokyo Mitsubishi Asset Management U.K. Pacific Alliance is a subsidiary of Union Bank of California, which is owned by Bank of Tokyo Mitsubishi. No consultant was used.
William Penn Foundation
PHILADELPHIA -- The William Penn Foundation hired its first emerging markets manager and small-cap value stock manager. Templeton will manage $40 million in emerging markets stocks and Crabbe Huson will handle $50 million in a small-cap value portfolio for the $1 billion foundation.
Funding came from a consolidation of domestic equity managers late last year that resulted in the terminations of large-cap value managers Brandywine and Sturdivant, said Louis J. Mayer, vice president for finance and administration. Brandywine managed $60 million and Sturdivant $45 million. Callan assisted.
HARRISBURG, Pa. -- Pennsylvania State Employes' Retirement System trustees voted to rehire Copeland Cos. as third-party administrator for the state employees' deferred compensation plan. Under state law, the board of the Harrisburg-based system has oversight responsibility for the $544 million 457 plan. The vote extends Copeland's contract for third-party administrative services, which it has provided since the plan's inception in 1988. Pending successful completion of negotiations, the new contract will begin Aug. 1 and run for four years with a one-year option.
Plum Creek Timber
SEATTLE -- Plum Creek Timber added the Vanguard Index Trust Extended Market Portfolio Fund to its defined contribution plan. The Vanguard fund invests in growth equity stocks in the Wilshire 4500 index. The $95 million plan now has eight options. Arnerich, Massena & Stewart assisted.
Polsinelli White Vardeman
KANSAS CITY, Mo. -- Polsinelli White Vardeman & Shalton selected J.P. Morgan/American Century Retirement Plan Services as bundled provider for its $14 million 401(k) plan. The firm replaces previous record keeper George K. Baum. The plan will offer 10 investment choices including three lifecycle funds and a self-directed brokerage account. The plan previously offered three investment choices, which a spokesman declined to identify.
Pontiac Police & Fire
PONTIAC, Mich. -- The Pontiac Police & Firemen's Retirement System hired Wellington as its first international bond manager. The firm will handle 6%of the $214 million fund. The funding will come from rebalancing. Callan assisted.
SAN FRANCISCO -- Charles Schwab & Co. Inc. hired SEI Investments to provide fund accounting and administrative services for its equity mutual funds as of April 30. Schwab has about $7 billion invested in its equity offerings. SEI already was providing Schwab with trust accounting services.
State Universities of Illinois
CHAMPAIGN, Ill. -- State Universities Retirement System of Illinois selected five managers as finalists in an international equity search for the $9 billion fund, said John R. Krimmel, associate investment officer. They are Brandes, Global Asset Management, Harris Associates, Templeton Investment and Wellington Management. The board's investment committee hopes to conduct interviews near the end of April. The full board will could make a decision in June. The new manager will run in an active world ex-U.S. mandate and could be assigned $100 million to $150 million. Funding will come from a rebalancing. Ennis Knupp is assisting in the search.
TAUNTON, Mass. -- The Taunton Contributory Retirement System hired Boston Millennia Partners as its first venture capital manager, and probably will allocate 3%of assets. Segal Advisors assisted. The system, with $85 million in assets, is conducting a routine search because Segal's three-year contract expired in June 1997. The firm continues to be on a retainer.
CHATTANOOGA, Tenn. -- The Tri-State Carpenters Pension Trust Fund hired First Tennessee Bank and HGK Asset Management as U.S. core bond managers to manage $10 million each. The money will come from a reallocation among the $170 million fund's existing balanced managers. Officials wanted to hire more specialty managers for the portfolio, said Ronald Dixon, administrator. No existing managers were terminated. Investment Performance Services assisted.
Uniformed Fire Officers
NEW YORK -- The Uniformed Fire Officers Association selected Fidelity Investments as bundled provider for its 401(k) plan. A spokesman declined to give specifics about the plan. Fidelity will provide investment management record keeping and employee education. The UFOA will use eight diversified Fidelity funds and the PIMCO Total Return Fund.
RICHMOND, Va. -- The Virginia Retirement System, with $31.3 billion in assets, hired Koll Bren Fund V to manage $50 million in a commingled real estate pool, and TA Associates to manage $50 million in a real estate separate account, said Bill Sullivan, a spokesman. The system also hired NatWest Equity Partners to invest $50 million in the private equity fund which aims to acquire the majority interest in medium-sized companies in the U.K. and Europe. The system also agreed to give an additional $50 million to the First Reserve Fund VIII, a private equity fund. Money for the new investments came from cash flow.
MADISON -- The $750 million Wisconsin Deferred Compensation Program added a domestic midcap growth mutual fund from T. Rowe Price as an investment option, said Mary E. Willett, director-supplement retirement plans. The program plans to phase out by the end of the year the 20th Century Growth Fund, managed by American Century. It now has $39 million from participants. The fund is being dropped because of performance, based on a five-year assessment. American Century officials couldn't be reached for comment.