Texas hires consultant
The $18 billion Employees' Retirement System of Texas, Austin, hired Callan Associates to complete an asset allocation and asset-liability study, said Kathy Reissman, director of investments.
Callan is likely to present its recommendations to the board in February, she said.
Separately, the Texas fund is adding high-yield bonds as an asset class and will start a manager search in February, Ms. Reissman said.
Funding will come from the $6 billion in fixed income currently managed in-house and previously managed by Miller Anderson & Sherrerd.
Fund plans study
The $9 billion Public School Teachers' Pension and Retirement Fund of Chicago will begin an asset allocation/risk study in the first quarter.
The current asset allocation is 38% fixed income, 46% domestic equity, 1% emerging markets, 8% international equity, 2% public REITs, 4.5% private real estate, and 0.5% short term.
Fund officials probably will review the fixed-income manager structure in mid to late 1999, said Mr. Nehf. Mercer will assist.
Separately, the fund hired Northern Trust, its custodian, to run a short-term investment fund.
Fort Pierce taps 3
The $150 million Fort Pierce (Fla.) Retirement Trust Fund hired John McStay and STI Capital Management to actively manage $5.5 million each, and State Street Global Advisors as its first indexed manager to run $50 million in S&P 500 and $10 million in S&P 400 index funds. George Bergalis, director of finance, said McStay will manage small-cap growth equities; STI, small-cap value.
Funding will come from a rebalancing and from terminating Loomis, Sayles, a balanced and fixed-income manager for Fort Pierce; and Lynch & Mayer, an active large-cap and midcap manager.
Bond purchases firm
Alan Bond, chief investment officer of Bond, Procope Capital Management, announced "an agreement in principle" to purchase the firm and rename it Bluestone Capital, effective Jan. 1.
Mr. Bond, a minority shareholder, will purchase 70% of the shares held by John and Ernesta Procope, who will discontinue any day-to-day involvement in the firm.
Lucent promotes Carapezzi
Lucent Technologies named William R. Carapezzi Jr. as vice president and treasurer. He succeeds Florence L. "Meg" Walsh, who died Nov. 7.
Mr. Carapezzi previously was vice president-taxes and tax counsel.
As treasurer, he will oversee the company's more than $60 billion in pension funds and other employee benefit assets and be responsible for corporate finance.
He will continue his duties as tax counsel.
Board seeks CEO
Canada Pension Plan Investment Board hired Spencer Stuart to search for a CEO, said Gail Cook-Bennett, chairwoman. The search is likely to take three to four months.
Baker leaving Trilogy
Charles A. "Tony" Baker, executive vice president and principal for futures manager Trilogy Capital Management, has left the firm and is negotiating the terms of the departure.
Mr. Baker declined to say what he will do next, but said opportunities are available. Mr. Baker said he owns a portion of Trilogy, but declined to say how much.
The $200 million AFL-CIO Staff Retirement Plan submitted a shareholder proposal to IBM, urging the board to adopt an executive compensation policy requiring disclosure in its proxy statement of the relationship between the company and its executive compensation consultants.
"We thought IBM was a good (target) because it has huge executive compensation packages," said Chris Bohner, the research analyst in the AFL-CIO Office of Investment who drafted the proposal.
IBM is challenging the resolution at the SEC, claiming the proposal raises "ordinary business" issues and therefore does not have to be included in its proxy statement.
Asset study slated
The $70 million Pasadena (Calif.) Fire & Police Retirement System will begin an asset allocation study by March after completing a search for its first consultant. The asset study could lead to manager hirings, said Mary O'Neil, administrator.
Proposals were due Dec. 1. A final decision is expected by February.
The current asset mix is 50% U.S. equities and 50% domestic fixed income.
Santander to subadvise
Santander Global Advisors has been hired to subadvise $600 million previously managed in-house by MetLife.
Santander Global will manage a $300 million international variable annuity fund, a $200 million commingled ERISA-qualified fund and $100 million in general account insurance assets, according to Peter Braun, head of institutional marketing and sales.
MetLife bought a 25% holding in Santander Global last July.
Principal Financial Group will acquire Professional Pensions, which specializes in pension and health insurance plans for 501(c)(3) tax-exempt organizations and has record-keeping responsibility for about $600 million in pension assets. PPI will become part of the Principal's pension business unit, but will retain its separate staff and current offices. Michael P. DeBaggis Jr. will remain PPI's president.
Ohio taps PEBSCO
The $3.5 billion Ohio Public Employees Deferred Compensation Program hired PEBSCO to provide education, enrollment and customer support services, said Virginia Shimrock, executive director. PEBSCO replaces Copeland Cos., which decided not to bid on the new contract.
Bill Scott, managing director and head of marketing and client services at Brandywine Asset Management, will retire at the end of the year.
Mr. Scott joined the firm in 1988, two years after it opened, becoming the eighth person on the staff. "We had $338 million under management, now we have a staff of 80 and have $8 billion under management," he said.
Brandywine officials have not yet filled Mr. Scott's position, but plan to hire a marketer focusing on the Midwest.
Behrman fund invests
Behrman Capital II invested $26 million in Intertech Management Group, which provides Windows NT-based billing and customer care software solutions to the communications industries. The investment was the fourth equity investment for the fund, which closed a year ago with commitments totaling $518 million.
CalPERS was the lead investor in Intertech, committing $150 million. Other investors include the New York State Common Fund; Kansas Public Employees' Retirement System; Pfizer Retirement Annuity Plan; and UNISYS Master Trust.
DLJ Real Estate Capital Partners, a $680 million equity fund, has acquired a portfolio of commercial properties from Phoenix Home Life Mutual Insurance. The portfolio is valued at $310 million.
The acquisition consists primarily of office and retail properties in high-growth markets.
Lafrance assumes post
David Lafrance will serve as acting director of finance for the Denver Board of Water Commissioners until a permanent replacement is hired.
Mr. Lafrance, who also is manager of rate administration, replaces Roberta Wilson, who retired earlier this year.
Among his duties will be hiring managers for the $142 million retirement plan trust fund.
New Conning prez
Leonard Rubenstein will become president of Conning when Maurice Slayton, the current president, retires in February. Mr. Rubenstein is chairman and CEO of the insurance industry asset manager.
The Chicago Board of Trade, the Chicago Mercantile Exchange and the Board of Trade Clearing Corp. agreed to offer cross-margining and common banking for their members.
Cross-margining, which is intended to lower costs, will begin with the exchanges' interest-rate products. Common banking should reduce the potential for systemic risk and allow for more efficient use of trading collateral, a statement said.
Growth investing pioneer David L. Babson died Dec. 14 at age 87. He founded David L. Babson & Co. Inc. in Cambridge, Mass., in 1940 and retired from the firm in 1978. The firm now manages nearly $20 billion in total assets.
A service was held Dec. 19 in Wellesley, Mass.
Istvan to Delaware
Karina J. Istvan joined Delaware Investments as vice president-strategic planning, replacing Susan Hanson, who moved over to a similar position in the company's institutional area. Ms. Istvan was most recently a consultant at Cerulli Associates.
Orlando narrows search
The $600 million Orlando (Fla.) Public Employees' Retirement System has narrowed a search for its first REIT manager to five finalists, said Bruce Harter, treasurer. He wouldn't name them.
Mr. Harter said $25 million will be allocated to the new manager.
Kalson & Associates is assisting.