Agway Inc., Syracuse, N.Y., completed an asset allocation study for its almost $600 million pension fund and is enacting changes as a result of the study and the partial reassignment of one manager.The company is searching for managers for three equity mandates, said G. Leslie Smith, vice president and CIO.It is looking for one or two managers for global equities and could allocate some $50 million in total to the area. It also is seeking a manager for an all-cap domestic equity portfolio and a large-cap domestic equity manager. The company isn't ready to announce an amount it will allocate to the all-cap firms. It could assign $20 million to $25 million to large-cap stocks.There is no firm timetable for the completion of the searches. ``It's going to be a while,'' Ms. Smith said.The fund is doing the searches in-house without a consultant. Some of its existing managers will be considered, in addition to new managers, for the global mandate. She declined to name them.Funding will come from two managers that were dropped and small reallocations among remaining managers. The names of the terminated managers were unavailable.California State Teachers' Retirement System, Sacramento, is planning to issue an RFP for foreign equity money managers in August.Probably 16 managers will be chosen to manage its $20 billion in foreign equity. The $86.5 billion system has 11 existing managers and does some internal management. Existing manager contracts expire in the first quarter of 1999. Four of the new slots will go to active managers. Of the $10 billion in actively managed assets, 70% will go to MSCI EAFE managers and 30% to regional managers.The system's current active foreign equity managers are Bank of Ireland; Capital Guardian Trust; Chancellor LGT; J.P. Morgan; Lazard Freres; Morgan Stanley; Oechsle International; Schroder Capital; and Scudder Stevens & Clark. Existing passive managers are Barclays Global and State Street Global.The selection process will take six to eight months after the RFP goes out.First Data Investor Services Group, the mutual fund and distribution services unit of First Data Corp., acquired United States Pension Services, an independent third-party retirement plan administrator. Terms were not disclosed.United States Pension Services, formerly a Dun & Bradstreet subsidiary, provides defined contribution and defines benefit services to more than 4,350 small- and mid-sized pension plans with about 170,000 participants.Mobil Oil Corp., Fairfax, Va., selected Pacific Corporate Group as the alternative investment adviser for its $7.5 billion pension fund, confirmed a spokeswoman for the fund.The spokeswoman could not confirm if Mobil had any investments in alternative assets. The 1998 Money Market Directory listing for Mobil did not have an alternatives category nor did it list any identifiable alternative investment managers.Also, Donald Hellyer, formerly manager-global benefits and finance, left the pension fund in March to pursue opportunities in his native Australia. He was replaced by Steadman Watson.
State of Connecticut Trust Funds, Hartford, committed a total of $215 million to real estate and private equity partnerships, said a spokesman for State Treasurer Paul J. Silvester. The $18 billion pension fund committed $100 million to AEW Real Estate Partners III and $75 million to Apollo Real Estate Partners III. Lexington Capital Partners II, which will buy interests in buyout partnerships, received a $40 million commitment.University of Utah, Salt Lake City, added a second manager for the $184 million main endowment fund, said investment manager David Heaps.The endowment, which has been managed solely by the Common Fund, will add First Security Investment Management, which currently handles $7 million of U.S. equities for one of the university's other endowments. The university is raising First Security's allocation to $17 million and will begin to include those assets as part of the main endowment, Mr. Heaps said.In addition, the fund's investment committee approved a new overall asset allocation. The new asset mix will be: 40% in multistrategy equities, down from 50%; 25% in multistrategy bonds, down from 40%; 15% in international equities vs. the previous 10%; and new allocations of 5% to emerging stock markets and 15% to small-cap growth stocks. Interpublic Group, New York, hired State Street Bank to run a self-directed brokerage option for its $300 million defined contribution plan, said Alan Forster, vice president and treasurer of Interpublic. The details are being worked out for a July start date. That will give the plan a total of eight options. Other recent changes include the hiring of Bankers Trust to manage a $100 million stable value option that was managed internally until May 1