Austin Police Retirement Fund
AUSTIN, Texas -- The $205 million Austin Police Retirement Fund hired First Austin Capital and Private Capital Management as small-cap value equity managers and Arbor Capital as a small-cap growth equity manager.
Private Capital and Arbor each will manage $4 million, and First Austin will run a $2 million portfolio. Funding will come from cash, said Sam Jordan, administrator.
Monroe Vos assisted.
Automatic Data Processing
ROSELAND, N.J. -- Automatic Data Processing hired PaineWebber as an S&P 500 index fund manager for its $760 million 401(k) plan, increasing its options to eight from seven, said Annaliese Rush, manager of investments for ADP.
Borg-Warner Automotive Inc.
CHICAGO -- Borg-Warner Automotive Inc. hired Barclays Global Investors to manage $33 million in intermediate duration fixed income for its $250 million pension fund, said Margaret Annett, director-financial planning and investments.
Funding came from STW Fixed Income Management, which had been the fund's sole fixed-income manager and was at 100% long duration. As a result of the change, STW will retain $33 million in long duration and have a new $33 million intermediate duration portfolio.
Brookline Retirement Board
BROOKLINE, Mass. -- The $130 million Brookline Retirement Board picked Irish Life Investment Managers to manage 10%of its assets in an international stock portfolio, and T. Rowe Price to run approximately $13 million in a core domestic small-cap equities portfolio, said William Wolf, director of retirement services for the fund.
Domestic small-cap equities is a new asset class for Brookline. Money for the new allocations will come from reducing the portfolios of existing balanced managers, Loomis, Sayles, which runs about $58 million, and State Street Research, which runs about $62 million.
Wilshire Associates assisted.
California Public Employees'
SACRAMENTO -- Trustees for the $141 billion California Public Employees' Retirement System renewed contracts for one year for its three currency overlay managers: BEA Associates; Pareto Partners; and State Street Global.
BEA has $1.6 billion for hedging; Pareto Partners, $3.6 billion; and SSgA, $659 million.
Staff and Wilshire recommended the renewal.
Separately, system staff approved, subject to negotiations, a $50 million commitment to Friedman Fleischer & Lowe Capital Partners, an alternative investment partnership that will invest in underperforming companies.
The partnership expects to raise $600 million for investments.
Hamilton Lane Advisors assisted.
SHOREVIEW, Minn. -- Deluxe Corp. has selected Northern Trust Retirement Consulting to provide record keeping and master trust services for its $2 billion defined contribution plan, according to Thomas VanHimbergen, senior vice president, chief financial officer and chairman of the trust review committee of Deluxe.
Northern Trust Global Investments will provide an equity index fund investment option for Deluxe's money purchase and profit-sharing plans.
Florida State Board
TALLAHASSEE -- The $83 billion Florida State Board of Administration has committed $400 million to Hicks Muse Tate & Furst Fund IV and $50 million to Chartwell Capital Fund II, said Frank Fernandez, assistant portfolio manager at the pension fund.
Mr. Fernandez said the moves were part of the fund's strategy to increase its private equity program to $3 billion in commitments from the current $2 billion.
Fresno City Retirement
FRESNO, Calif. -- The $1.5 billion Fresno City Retirement Systems hired INVESCO as an international equity manager to replace Brinson Partners, which was terminated for performance-related reasons, said Stanley McDivitt, retirement administrator.
The $81 million allocation will come from Brinson Partners, which previously managed $65 million, with the remaining $16 million coming from rebalancing, Mr. McDivitt said.
Carl Gargula, spokesman for Brinson Partners, did not return phone calls by press time. Dorn, Helliesen & Cottle assisted.
GLOUCESTER, Mass. -- The $39 million Gloucester Contributory Retirement System hired Delaware Investment Advisers to manage $2 million in a global fixed-income portfolio, and Wellington Management to run $2 million in a domestic midcap stock portfolio, said Linda Geary, executive secretary for the fund.
Money for the new investments came from a reduction in Freedom Capital's balanced portfolio, Ms. Geary said.
New England Pension Consultants assisted.
Holly Hill Police Relief
HOLLY HILL, Fla. -- The $6 million Holly Hill Police Relief & Firemen's Pension Fund hired Salem Trust as custodian after Key Trust withdrew as custodian because of the fund's small size, said Brenda Gubernator, finance director.
Ms. Gubernator said the police fund has $2 million and the firemen's fund, $4 million.
Burgess Chambers & Associates assisted.
University of Louisville
LOUISVILLE, Ky. -- The $317 million University of Louisville Foundation hired MacKay-Shields as an additional large-cap value U.S. equity manager to help reach its target asset allocation mix, said Stewart Shrader, chief investment officer.
Portfolio size and funding have not yet been determined.
The target asset mix is 45% domestic equity; 15% international equity; 15% alternative investments; and 25% domestic fixed income.
Hilliard Lyons and National Asset Management also manage large-cap value U.S. equity portfolios for the endowment.
Cambridge Associates assisted.
Manhattan and Bronx Transit
BROOKLYN, N.Y. -- The $500 million Manhattan and Bronx Surface Transit Operating Authority Pension Plan hired UBS Brinson to manage a $38 million large-cap value U.S. equity portfolio after terminating a previous large-cap value manager for performance reasons, said Anthony Patten, director of pension services.
Mr. Patten said funding will come from the terminated manager, which he declined to name.
Callan Associates assisted.
SACRAMENTO, Calif. -- McClatchy Newspapers hired INVESCO to replace George Bjurman Associates as a small-cap U.S. equity manager for its $200 million defined benefit plan, said James P. Smith, vice president of finance.
Mr. Smith declined to discuss portfolio size, funding source or the reason Bjurman is being replaced.
Watson Wyatt assisted.
McCormick & Co.
SPARKS, Md. -- McCormick & Co. hired Boston Partners, to replace Legg Mason as a midcap U.S. equity manager, and Mellon Equity Associates, as an additional midcap U.S. equity manager for the $127 million defined benefit plan.
Boston will manage $6.4 million and Mellon will manage $3.2 million. Funding will come from the $6.6 million Legg Mason midcap equity portfolio, and another $3 million will come from an $18 million U.S. fixed-income portfolio run by Harris Investment Management.
Legg Mason was terminated for performance reasons, according to sources familiar with the matter.
"This is a very rough time for all midcap U.S. equity managers and our value-style management remains competitive," Kyle Legg, Legg Mason chief investment officer, said.
Evaluation Associates assisted.
Mount Dora General Employees
MOUNT DORA, Fla. -- The $5 million Mount Dora General Employees' fund terminated its five managers and hired STI Capital as sole manager. STI will run $2.5 million in domestic fixed income and $2.5 million in predominately large-cap U.S. equities.
Terminated were: Madison Investment Advisors, domestic fixed income, $2.2 million; Lord, Abbett, large-cap value U.S. equity, $1.1 million; Furman Selz Capital, midcap growth U.S. equity, $570,000; Templeton, international equity, $511,000; and Wasatch Advisors, small-cap growth U.S. equity, $500,000.
Dissatisfaction with the overall performance of the fund, not individual performance, led to the changes, said Steve Heitzner, financial analyst.
University of New Mexico
ALBUQUERQUE -- The $175 million University of New Mexico endowment hired Morgan Grenfell Capital Management as its first core bond manager to run a $26 million portfolio, said Charles W. Vickers, endowment director.
Mr. Vickers said funding will come from reducing a global fixed-income portfolio.
A change in the endowment's investment philosophy was the reason for the hiring.
New Orleans Firefighters
NEW ORLEANS -- The $180 million New Orleans Firefighters Pension and Relief Fund hired Advent Capital Management to manage $7.5 million in distressed securities and Fleming Capital Management to manage $7.5 million in convertible bonds, said Richard J. Hampton Jr., chief investment officer. Mr. Hampton said funding will come from rebalancing.
New York City Retirement
NEW YORK -- The $34.5 billion New York City Retirement System has committed $50 million to VS&A Communications Partners III, said Richard Halverson, deputy director of pensions.
This is the fund's second investment in its alternative asset program, which began in the summer. The target allocation is 2%of assets. Funding will be done over time and probably come from passive domestic equities, he said.
OSLO, Norway -- Norges Bank hired five equity managers for Norway's 140.5 billion krone ($19 billion) government petroleum fund, which is made up of Norwegian government petroleum revenue.
Mercury Asset Management was hired for U.K. equities; Fidelity, for Asia Pacific ex-Japan; Capital International, Gartmore Investment Management and Storebrand Kapitalforvaltning were hired for Europe ex-U.K.
No portfolio sizes were given.
Orange & Rockland Utilities
PEARL RIVER, N.Y. -- Orange & Rockland Utilities hired Templeton Investment Counsel as an additional international equity manager, said John Finnegan, assistant treasurer for the $260 million defined benefit plan.
Profit Recovery Group
ATLANTA -- Profit Recovery Group International hired Scudder to provide bundled services for its $8 million 401(k) plan, Rene Campbell, benefits coordinator, said. The fund had been using Van Kampen American Capital for its investment and record keeping services. When Van Kampen left the record keeping business, the fund decided to hire Scudder for both record keeping and investment services, Ms. Campbell said.
Seneca Foods Corp.
ROCHESTER, N.Y. -- Seneca Foods Corp. hired Scudder to provide bundled services to its $13.5 million 401(k) plan, said Betty McBean, payroll and benefits administrator. Seneca previously used Aon Consultants to provide record keeping and Investors Fiduciary to provide investments for the plan.
After Aon left the record-keeping business, the company decided to hire Scudder to provide all services, Ms. McBean said.
Tacoma Employees' Retirement
After reviewing its asset allocation plan, the fund's board "was looking for a growth/value international fund to complement" its $39 million passive international account with Bankers Trust, she said. Edinburgh Fund Managers also actively manages $39 million in international equities. Funding will come from asset restructuring.
Washtenaw County Employees
ANN ARBOR, Mich. -- Washtenaw County Employees Retirement System hired Scudder Defined Contribution Services to provide bundled services for its $25 million money purchase pension plan, said Monica Lawrence, retirement administrator. Scudder was hired because the plan wanted to bundle its plan services. Previously, Comerica Bank was administrator and four mutual fund companies provided investment choices.