City of Allentown
ALLENTOWN, Pa. -- The City of Allentown hired Spagnola Cosack as its new consultant, said Linda Bodnar, director of finance for the $140 million pension fund.
Spagnola will begin a performance review of its managers and will make recommendations by next quarter.
The contract of previous consultant Legg Mason had expired.
Avon Products Inc.
NEW YORK -- Avon Products Inc. hired Harris Investment Management to run $55 million in U.S. large-cap value equities, said Joseph Kulhanek, manager, pensions and trust investments for the $550 million fund.
Avon also hired two international equity managers to run $20 million each: Silchester International, which will use a value style, and Nicholas-Applegate, which will use a growth style, he said.
Mr. Kulhanek declined to say who previously managed the assets.
Wilshire Associates assisted.
Colorado Police & Fire
ENGLEWOOD, Colo. -- The $2.1 billion Colorado Police & Fire Association hired J.P. Morgan as an enhanced S&P 500 index manager to run approximately $100 million, said Bill Morris, deputy executive director for investment.
Funding will come from State Street Global's $332 million S&P 500 index portfolio. The board increased the target allocation for the active domestic equity portfolio, Mr. Morris said.
Other finalists were: DSI International Management; AIM; and PIMCO.
Essex County Retirement
SALEM, Mass. -- The Essex County Retirement Board, Salem, Mass., voted to retain Investors Bank and Trust as custodian, said Kevin Leonard, the Segal Advisors consultant who assisted.
The $164 million pension plan searched for a new custodian after BankBoston sold its custody business to Investors Bank.
SPRINGFIELD, Ill. -- The $18.8 billion Teachers' Retirement System of Illinois made its first big allocation to indexing, hiring State Street Global to manage $800 million in an S&P 500 index fund, among other changes.
Funding came from the termination of Munder Capital Management, which ran $792 million in U.S. large-cap growth, and First Analysis Investment, which managed $5 million in U.S. small-cap growth.
Lincoln Capital Management was given an additional $150 million to manage in U.S. large-cap growth, with assets coming from the termination of Fox Asset Management.
Also, Aon Risk Services was given a three-year contract for brokerage and risk management for the system's real estate portfolio.
Interpublic Group of Cos.
NEW YORK -- The Interpublic Group of Cos. hired two managers for its $115 million defined benefit plan, said Evan Brown, treasury executive.
Sector Capital was hired to run a $10 million sector-neutral, style-neutral core domestic equity portfolio.
Funding came from cash and taking $5 million from Munn Bernhard, which will continue to manage $21 million in large-cap domestic equities.
Templeton International was hired to run an active international equity portfolio investing in developed markets. It replaced Bankers Trust, which was running a $12 million MSCI EAFE index fund.
The searches were done in-house.
ARDEN HILLS, Minn. -- Land O'Lakes hired Cadence Capital Management to actively manage a $46 million midcap U.S. equity portfolio, said Terrence Koves, director of compensation and benefits for the $177 million defined benefit plan.
Cadence was hired to replace Denver Investment Advisors, which was terminated for performance, said Mr. Koves.
Todger Anderson, Denver Investment president, did not return phone calls by press time.
Eli Lilly & Co.
INDIANAPOLIS -- Eli Lilly & Co. hired Oaktree Capital Management to run a high-yield bond portfolio, said Fred Ruebeck, director of investments for the $2.6 billion defined benefit plan.
Diversification was the reason for the hiring.
While Mr. Ruebeck declined to discuss the portfolio size, he did say funding will come from rebalancing.
The search was done in-house.
Louisiana Teachers' Retirement
BATON ROUGE, La. -- The $10.2 billion Louisiana Teachers' Retirement System hired LSV Asset Management, J&W Seligman and Scudder Kemper Investments to actively manage large-cap value U.S. equity portfolios for the $10.2 billion fund, said Dan Bryant, chief investment officer.
Each manager will receive $200 million, with funding coming partly from rebalancing and partly from prior managers Loomis, Sayles, Boston Co. and MacKay-Shields, said Mr. Bryant. The previous managers' contracts expired, he said.
Holbein Associates assisted.
City of Memphis Retirement
MEMPHIS, Tenn. -- The City of Memphis Retirement System hired Commerce Capital Management to run a $100 million U.S. fixed-income portfolio, said Pamela Clary, deputy director of finance and investments for the $1.6 billion fund.
Commerce previously managed a $25 million midcap U.S. equity value portfolio for the fund, which it did not retain.
Highland Capital and Tattersall Advisory are the fund's other fixed-income managers. Funding for the new portfolio wasn't disclosed.
Merced County Employees'
MERCED, Calif. -- The $270 million Merced County Employees' Retirement System has chosen an active, EAFE equity manager to run between $15 million and $17 million, said Bill Smith, plan administrator.
He declined to name the manager because a contract has not yet been signed. This will be the fund's first international investment; funding will come from rebalancing.
Dorn, Helliesen & Cottle assisted.
Oil, Chemical, Atomic Workers
LAKEWOOD, Colo. -- The Oil, Chemical and Atomic Workers Union Pension Fund hired Valenzuela Capital Partners and Sit/Kim International Investment Associates to manage midcap domestic equity and international equity portfolios, respectively.
The firms will manage $10 million each, funded from the termination of balanced manager Fox Asset Management.
Innovest Portfolio Solutions assisted the $202 million fund.
Pennsylvania State Employes'
HARRISBURG, Pa. -- The Pennsylvania State Employes' Retirement System retained BARRA RogersCasey as its general investment consultant, said spokesman Geoffrey S. Yuda.
The contract will run for three years with an option for two more years.
BARRA will provide performance evaluation services for the $23 billion fund.
Philadelphia Housing Authority
PHILADELPHIA -- The Philadelphia Housing Authority is retaining Fiduciary Investment Solutions, renewing the consultant's contract for another two years, said Holly Hollimon, senior program evaluation specialist for the $154 million retirement fund.
The plan issued RFPs when Fiduciary's contract expired earlier this year.
Rhode Island State Investment
PROVIDENCE, R.I. -- The $5.6 billion Rhode Island State Investment Commission hired Parthenon Investors and VS&A Communications Partners III.
The commission will commit $15 million each to the two middle-market buyout partnerships. Funding will come from investment income and operational funds.
Pacific Corporate Group assisted.
EVANSTON, Ill. -- Rotary International hired Templeton Investment Counsel to replace Vanguard Group as an active, EAFE equity manager for performance reasons, said David Lewis, investment analyst for the $515 million retirement plan.
Vanguard's $3.5 million portfolio has been allocated to Templeton, said Mr. Lewis.
John Demming, communications director for Vanguard, said, "it is our policy not to comment on current or past relationships with clients."
The search was done in-house.
Salem Retirement System
SALEM, Mass. -- The Salem Retirement System voted to retain its current custodian, Investors Bank and Trust.
The $63 million system had searched for another custodian after BankBoston sold its custody business to Investors Bank and Trust, said Kevin Leonard, the Segal Advisors consultant who assisted.
Security Benefit Group
TOPEKA, Kan. -- Security Benefit Group hired Oppenheimer Funds to manage more than $325 million as a subadviser for its Security Global and Worldwide Equity Series funds, subaccounts in its variable annuity program.
This is Oppenheimer's first assignment as a subadviser to another company's mutual funds.
The funds previously were managed by Lexington Management. Oppenheimer was selected for its brand name in global investment management and for its complementary investment management and corporate structure, said Terry Maley, a spokeswoman for Security Benefit.
GLENVIEW, Ill. -- Zenith Electronics Corp. restructured the investment options for its salaried and hourly defined contribution plans, which total more than $300 million.
State Street Global Advisors was retained as the plans' daily valued record keeper; it also was awarded trustee and custodial duties, which previously were handled by Bank of New York.
The plans were unbundled prior to the change, with six investment options from separate managers.
Two of the existing options -- a stable value option managed by PRIMCO and company stock -- are being retained in the new plan. Ralph Beidelman, manager of compensation and benefits at Zenith, declined to identify the other managers.
The new structure offers 10 options, including two institutional mutual funds managed by SSgA -- active large-cap growth and an active large-cap value; the Managers' International; the Franklin/Templeton Small-Cap Growth; and four customized lifestyle options. Employee education and communication services were also enhanced. Consultant EFR Asset Strategies assisted in the plan design and search processes.