Arlington Heights Police
ARLINGTON HEIGHTS, Ill. -- The $40 million Arlington Heights Police Pension Fund hired Thomas White Asset Management as its first small-cap value U.S. equity manager to run $2 million for the $40 million fund, said Gerald Besenhofer, president of the investment committee.
Funding for the hire will come from cash.
David Wall & Associates assisted.
Aurora City General Employees
AURORA, Colo. -- The $175 million Aurora City General Employees' Retirement Plan hired Ark Asset Management as its first core small-cap U.S. equity manager to run $12 million. Ark also runs a $40 million large-cap value portfolio.
The allocation comes from terminated manager NWQ Investment Management, which previously ran a $50 million balanced portfolio. The remaining $38 million probably will go into cash, said Thomas Connell, administrator.
Callan Associates assisted.
Mary Haggerty Korey, manager-investments, said the move is the fund's first in the asset class.
She declined to give out the amount of the assignment. Funding will come from a reallocation.
The fund conducted the search in-house.
BROCKTON, Mass. -- The $150 million Brockton Contributory Retirement System hired Buck Consultants as its actuary to determine the size of its unfunded liability. This is the first step toward issuing pension obligation bonds later this year.
H.C. Wainwright assisted.
Canada Pension Plan
TORONTO -- Canada Pension Plan Investment Board hired William Mercer as a consultant, said Janice Sharette, director of the transition team for the new organization.
Mercer is "in the process of advising and helping the board select investment managers and a custodian," Ms. Sharette said.
The CPP will hire or appoint the managers by the end of February, at which time the plan will start receiving funds.
SIMI VALLEY, Calif. -- DataProducts Corp. hired Union Bank to replace Bank of America as master trustee for its $32.7 million defined benefit plan, said Richard Kramer, vice president and treasurer. The firm needed a new master trustee because BofA is leaving that line of business.
Detroit Edison Co.
DETROIT -- Detroit Edison Co. committed $39 million to mezzanine debt managers as part of its alternative investment program, said Allen W. Anning, director, trust fund management.
They are: $5 million each to Peninsula Capital and Northstar Seidler; $15 million to Hancock Mezzanine; and $14 million to Capital Resources. Funding came from temporary investments.
The $1.4 billion defined benefit plan also hired Mount Lucas Management to run $35 million in managed futures.
ATLANTA -- Georgia-Pacific Corp. hired PIMCO to run a $50 million indexed EAFE portfolio, and Bankers Trust to manage a $55 million enhanced indexed EAFE portfolio, said John Stettler, director of benefit investments.
The $2.1 billion benefit plan is looking to diversify, and funding will come from rebalancing six active EAFE portfolios. Sizes were not disclosed.
Ennis, Knupp assisted.
KeySpan Energy Corp.
BROOKLYN, N.Y. -- KeySpan Energy Corp. selected Bank of New York as master trustee for its $2 billion pension plan and VEBA trusts. KeySpan was created by the merger of Brooklyn Union Gas and the Long Island Lighting Co.
BONY had been master trustee for Brooklyn Union. Citibank, which had been master trustee for LILCO, was terminated.
Memorial Sloan Kettering
NEW YORK -- Memorial Sloan Kettering Cancer Center hired Lazard Asset Management as an active core international equity manager for its $2 billion endowment fund.
Funding for the $50 million mandate will come from a manager that was terminated late last year, said Michael Gutnick, chief financial officer and senior vice president of finance. He wouldn't name the manager.
Nestle USA Inc.
SOLON, Ohio -- Nestle USA Inc. hired Northern Trust as master trustee for its $800 million defined benefit plan and $1.2 billion defined contribution plan, said Karin Brodbeck, manager of retirement investments.
Northern replaces Bankers Trust, which rebid.
"After 10 years with Bankers Trust, we wanted to see what else was available," said Ms. Brodbeck.
New York City Employees
NEW YORK -- The $34.5 billion New York City Employees' Retirement System committed $50 million to Cypress Merchant Banking Partners II, an alternative investment fund, said Richard Halverson, deputy comptroller for pensions. Funding will come from rebalancing.
The $55 billion fund also voted to renew its contract with its consultant, Callan Associates, Mr. Halverson said.
New York State Teachers
ALBANY, N.Y. -- The $80 billion New York State Teachers' Retirement System hired three domestic large-cap equity managers to actively run up to $500 million each, said George Philip, chief investment officer.
The $1.5 billion allocation will come from cuts of $750 million each to Ark Asset Management and Sanford C. Bernstein, which remain on the watch list. The two had managed about $2 billion each.
Separately, domestic small-cap equity manager SG Cowen was terminated for performance reasons, said Mr. Philip; it had managed $184.8 million. A spokesman for SG Cowen did not comment by deadline.
The fund also increased by $180 million its allocation to fund-of-funds Progress Investment Management. Progress now will oversee $380 million, all in small-cap equities.
DEDHAM, Mass. -- The $330 million Norfolk County Retirement System picked State Street Bank as its new custodian to replace BankBoston, which sold its custodial business, said Dick Zaccaro, the H.C. Wainwright consultant who assisted.
Oklahoma Police Pension
OKLAHOMA CITY -- The $1.1 billion Oklahoma Police Pension & Retirement System hired TCW/Crescent Mezzanine to run $7 million in private equities to reach a 5% target, according to Robert J. Wallace, executive director.
Funding will come from reducing domestic fixed-income mandates, said Mr. Wallace.
Pennsylvania State Employes
HARRISBURG -- The $23 billion Pennsylvania State Employes' Retirement System trustees have rehired real estate consultant The Townsend Group for three years with two one-year renewal options.
The board also approved alternative investment commitments of $65 million. Up to $35 million is going to TL Ventures IV for investment in information technology, communication and biotechnology in the United States; and up to $30 million is going to Atlas Venture IV, which will invest in life science and information technology sectors domestically and in Europe.
Funding will come from cash, said Geoffrey S. Yuda, spokesman for the fund.
Pipefitters Local 533
KANSAS CITY, Mo. -- Pipefitters Local 533 hired Aeltus as its first S&P 500 index fund manager, said Robert Lowe, co-administrator of the $100 million defined benefit plan.
The $20 million allocation will come from rebalancing.
Merrill Lynch assisted.
LINCOLN, R.I. -- Textile Workers, National Pension Fund hired Brinson Partners, replacing Glickenhaus, to run a $25 million large-cap value U.S. equity portfolio, said Richard Rust, pension fund manager for the $300 million defined benefit plan.
Performance problems brought about the change, said Mr. Rust.
Seth Glickenhaus, senior partner for Glickenhaus, said "We were with them for a number of years and just because we have one bad year they want to terminate us. Our overall performance still remains good." Marco Consulting Group assisted.
TUCSON, Ariz. -- Tucson Supplemental Retirement System selected Bank of Ireland and Sit/Kim as international equity managers to replace Murray Johnstone, which handled a $60 million international value equity portfolio.
Murray Johnstone was included in the search, but was terminated for performance reasons, said Mike Parisi, treasury administrator for the $450 million fund.
Representatives from Murray Johnstone did not return calls by press time.
Bank of Ireland will handle $24 million in international value equity and Sit/Kim will manage $36 million in international growth equity.
Wisconsin Electric Power
MILWAUKEE -- Wisconsin Electric Power Co. hired six domestic equity managers to handle a portion of its $856 million defined benefit plan.
The new managers are: Aeltus, $53 million, enhanced core; National Asset Management, $43 million, large-cap core; Lincoln Capital, $75 million, large-cap growth; Pacific Financial Research, $55 million, large-cap value; Edgar Lomax, $15 million, large-cap value; and Artisan, $21 million, small-cap value.
More than one manager was terminated in the restructuring, which followed an asset allocation study, including adding international equity, small-cap and value equity strategies, said Gordon Willis, treasurer. He wouldn't name the terminated managers. The new asset mix is 52% domestic equity, 20% international equity and 28% fixed income.