BRACKNELL, England -- BMW (GB) Ltd. has hired J.P. Morgan Investment Management Inc. to manage its L25 million ($41 million) hybrid defined contribution plan.
The fund will be invested roughly 60% in U.K. equities and 40% in overseas equities, with a tiny portion in index-linked and conventional gilts, said Amanda Cullen, senior benefits consultant with William M. Mercer Ltd., London, who advised the plan.
Ms. Cullen declined to name the previous manager, but said the change was made because of poor performance and high staff turnover. Company officials referred phone calls to Mercer.
BOURNVILLE, England -- Cadbury Schweppes Pension Trust Co. Ltd. has hired Northern Trust Co. as global custodian for its L1.01 billion ($1.65 billion) pension fund. Custody previously was provided by the fund's money managers. Watson Wyatt Worldwide was the consultant.
Colorado Fire and Police
ENGLEWOOD, Colo. -- The Colorado Fire and Police Pension Association hired Brandywine Asset Management as a small-cap equity manager.
The portfolio will total $35 million to $45 million. The funding will come from cash and from the dropping of State Street Global as a passive small-cap manager.
The termination happened because the board decided to use only active management in the small-cap allocation, said Bill Morris, deputy executive director for the $2.1 billion fund. State Street's portfolio totaled $35 million to $40 million, he said. Pension Consulting Alliance assisted.
Hampshire County Retirement
NORTHAMPTON, Mass. -- The $100 million Hampshire County Retirement System has picked Loomis, Sayles to run a $9.2 million domestic small-cap growth portfolio.
Most of the money for the new manager came from John Hancock, which was terminated earlier in the year.
Dahab Associates is assisting.
HONOLULU -- The $8.2 billion State of Hawaii Employees' Retirement System made an anticipated $100 million allocation to Hancock Timber Resource Group, a spokesman for the timber manager confirmed.
Last month, Stanley Siu, executive secretary for the pension fund, said Hawaii Employees' was considering an investment in timber. Hancock Timber initially will invest in the southeast, northeast and northwest United States. In the future, it will consider international investments in Canada, Chile, New Zealand and Australia.
International Paper Co.
PURCHASE, N.Y. -- The approximately $4.1 billion pension fund of International Paper Co. has hired five, as yet undisclosed, money managers to handle its 18% allocation to international equities (developed markets), and Bank of New York to manage an undisclosed amount in currency overlay, said Connie Caperella, director of trust investments.
Knoxville City Employees'
KNOXVILLE, Tenn. -- The Knoxville City Employees' Pension Plan has picked Calamos Asset Management as its first convertible securities manager, and Southeastern Asset Management as its first publicly traded REIT manager, said Mike Cherry, executive director at the $720 million fund. Both Calamos and Southeastern will receive 7.5% of the fund's assets, or $54 million each.
Money for Calamos will come from paring back the fund's exposure to its two domestic fixed-income managers, Miller Anderson & Sherrerd and STW Fixed Income Management, which manage $121 million each. Money for the publicly traded REIT manager will come from a $117 million domestic midcap portfolio, also with Southeastern. Mercer assisted.
MANCHESTER, Conn. -- The Manchester Retirement Allowance Fund, with about $85 million in assets, has picked PaineWebber Managed Account Services as its new investment consultant, said Alan Desmarais, director of finance.
The firm replaces Hannah Group/Advest. The new consultant will "just do a tuneup" of the fund's investment portfolio, Mr. Desmarais said.
Minnesota State Board
ST. PAUL, Minn. -- The $40 billion Minnesota State Board of Investment committed a total of $400 million to six alternative investment partnerships, according to Howard Bicker, executive director. The trustees committed $20 million to Coral Partners Fund V, a venture capital fund; $100 million each to Warburg Pincus Equity Partners and Golder Rauner Fund VI, both private equity funds; $40 million each to Thoma Cressey Fund VI and Fox Paine Capital Fund, both private equity funds; and $100 million to First Reserve Fund VIII, an oil and gas fund.
Multi-Employer Property Trust
Four pension funds committed $40 million to the Multi-Employer Property Trust during the first quarter. Contributors to the fund are: Local 705 IBT Pension Trust Fund, Chicago; Electrical Contractors Association and Local Union 134 IBEW Joint Pension Trust of Chicago; Bricklayers and Allied Crafts Local 1, Maryland, Virginia, Washington-Baltimore Chapter Pension Fund, Baltimore; and Retirement Trust Fund of the Plumbing, Heating and Piping Industry of Southern California, Los Angeles. The MEPT is a $1.5 billion open-end real estate commingled fund.
CHARLOTTE, N.C. -- Nations Funds hired Brandes Investment Partners LP to manage the Nations International Value Fund. The fund is the successor to the Emerald International Equity Fund, which had been managed by Barnett Banks Inc. since 1995. NationsBank Corp. acquired Barnett Banks this year.
New York Common
ALBANY, N.Y. -- The $105 billion New York Common Retirement Fund committed $45 million to the APA Excelsior V venture capital fund, said State Comptroller H. Carl McCall, the sole trustee. The pension fund has invested in previous APA Excelsior funds.
The commitment will be funded from cash.
Ohio Bureau of Workers
COLUMBUS, Ohio -- The Ohio Bureau of Workers' Compensation hired six emerging managers as part of its search for 25 to 30 emerging managers for its $19.5 billion insurance fund, said Robert G. Cowman, chief investment officer.
The other emerging managers have been selected, but their hirings are pending the negotiation of contracts. In all, approximately $500 million will be allocated to the emerging managers.
The six firms are all small-cap equity managers. They are: Daruma, with an assignment of $10 million; Cordillera, $10 million; Great Northern, $30 million; JMC, $25 million; Opus, $10 million; and ZPR, $10 million. The searches were done in-house.
Ohio Police and Firemen
COLUMBUS, Ohio -- The Police and Firemen's Disability & Pension Fund of Ohio will change its international custodian to State Street Bank Oct. 1. The $8 billion fund's international custodian was Morgan Stanley.
Bill Guy, deputy state treasurer, said the decision was made because Morgan Stanley sold its global custody business to Chase.
LINCOLN, Mass. -- The Quantitative Group of Funds hired Polaris Capital Management as the subadviser of its new Quantitative Foreign Value Fund.
Portfolio manager Bernard R. Horn Jr., president of Polaris, will use the same value strategy he has used for institutional and wealthy individual clients. The strategy combines proprietary quantitative technology to develop a portfolio of between 50 and 100 companies with fundamental research to find companies with undervalued cash flow and/or assets. The shares are sold as no-load funds, but carry a 1% redemption charge. The new foreign fund is the Quantitative Group's sixth mutual fund.
NEW YORK -- The $3.5 billion RJR Nabisco Inc. pension fund invested $50 million in Pine Grove Equitized Partners LP, a "long/short" fund of funds that also overlays a S&P 500 futures contract.
The five managers in Pine Grove's fund of funds are Aronson + Partners; Innovest Capital; Martingale; Standish, Ayer & Woods; and Twin Capital.
Money for the new investment came from rebalancing.
Meanwhile, RJR Nabisco plans to more than double its exposure to a limited duration bond fund that has an S&P 500 futures overlay. The $30 million portfolio with Metropolitan West Asset will be boosted to $75 million by the end of the year.
San Francisco City & County
SAN FRANCISCO -- The $10 billion San Francisco City & County Employees' Retirement System approved commitments of up to $50 million to Western Presidio Capital III and up to $25 million to Technology Partners Fund VI LP. Western Presidio takes minority positions in privately held growth companies. Technology Partners invests in the early stages of information processing, communications and health care companies. The pension fund has commitments of just less than 6% of assets in alternative investments and a new investment target of 12% up from 9%
Security Benefit Group
TOPEKA, Kan. -- Security Benefit Group hired Salomon Brothers Asset Management as subadviser of the Security Municipal Bond Fund, formerly called the Security Tax-Exempt Fund. The fund had been managed internally.
New portfolio manager Marybeth Whyte will diversify the portfolio by increasing the number of bonds held in the portfolio. She will focus on the education, water and sewer and state government general obligation bond sectors.
MADISON, Wis. -- The Wisconsin Deferred Compensation Program tentatively selected an alliance of three investment advisers to manage a diversified stable-value option for its $823 million fund, said Mary E. Willett, director-supplemental retirement plans.
The Galliard Alliance involves Pacific Investment Management Co., Sanford C. Bernstein & Co. and Galliard Capital Management. The hiring depends on the Wisconsin program's board approval, pending contract negotiations.
The alliance would replace a straight guaranteed investment contract fund managed by Great West Life Assurance Co. That fund now has $130 million.
Wisconsin Investment Board
MADISON, Wis. -- The State of Wisconsin Investment Board hired J.P. Morgan Investment Management and Grantham Mayo Van Otterloo & Co. LLC to each manage $500 million in U.S. equities, said Michael McCowin, chief investment officer.
J.P. Morgan will invest in an enhanced index style, and Grantham Mayo will use a quantitative core investment style for Wisconsin, which manages $55 billion in pension assets. The hirings should be funded July 1. Assets will come from an S&P 500 fund managed by Barclays Global Investors.