The $19 billion Teamsters Central States, Southeast & Southwest Areas Pension Fund hired Goldman Sachs as a second named fiduciary to oversee asset allocation and manager and custodian selection for half the assets.
Goldman officials are in the process of choosing managers and a custodian, and will assume its responsibilities July 1, said Mark F. Angerame, director of finance.
Goldman replaces Bankers Trust, which resigned after Teamsters officials learned the firm was accused of committing fraud in its transaction processing area.
Fund ordered to pay
The Labor Department has obtained a court order directing the pension fund of the Operating Engineers Local 675 of Pompano Beach, Fla., to pay $37 million to the insolvent fund's participants.
The Local 675 fund is being merged into the Central Pension Fund of the International Union of Operating Engineers, and the PBGC is paying $14.1 million of the $26 million being disbursed to participants immediately.
The court's recent action is the final piece of a 1992 settlement of a Labor Department lawsuit against fund trustees.
Hike in passive mulled
The $10.6 billion San Francisco City & County Employees' Retirement System is considering raising its passive domestic equity exposure to 72% of domestic equity assets from 61%, said Carl Wilberg, senior investment officer. Such a move would get tracking closer to its Russell 3000 benchmark, he said.
Equities cut back
The $917 million Nature Conservancy endowment cut $100 million from its equity allocation, which may go to current fixed-income managers Standish Ayer & Wood and Fleet Investment Advisors, said John Wood Bolton, director of investments. "We now have 62% in stocks and 18% in fixed income, but we can go up to 25% in fixed income." The cutback came from an Amerindo technology portfolio, which had done so well it was time to "take some money off the table," Mr. Bolton said. The endowment still has around $109 million, or 19% of its stock allocation, with Amerindo.
Granada hires Scottish Widows
The Granada Pension Scheme hired Scottish Widows Investment Management to run L127 million ($204 million) in European (ex-U.K.) equities, said Jim Teape, group pensions manager for the L1.7 billion scheme.
Funding will come from terminating one world (ex-U.K.) portfolio and reducing another, he said. Marathon Investments, with L64 million, wasn't retained because of a change in strategy and performance, he said.
Schroders' L125 million portfolio will be reduced, but the firm will gain other assets after the change. It now will run a Japan and Pacific Basin portfolio, with L152.5 million, he said.
Union taps Reams
The $1.7 billion Graphic Communications, Inter-Local Pension Trust hired Reams Asset Management to take over a $100 million core-plus fixed-income portfolio, said James Mitchell, executive director. He declined to name the manager being replaced. Ennis, Knupp assisted.
Bowater in emerging markets
The $500 million pension fund of Bowater Inc. hired Marvin & Palmer Associates as its first emerging markets manager to fulfill a 5% emerging markets target, said Bill Harvey, vice president and treasurer. Funding will come from cash, he said.
BARRA RogersCasey assisted.
Austin hires Summit Strategies
The $1 billion Austin Employees' Retirement System hired Summit Strategies Group as a full-retainer investment consultant, the fund's first consultant in nearly a decade. Summit will review and update investment policy and conduct an asset-liability study, to be followed by an asset allocation study, said Cathy Harrington, pension director.
Cooper Consultants assisted.
Foundation picks 2
The $842 million Samuel Roberts Noble Foundation hired Western Asset Management as a domestic fixed-income manager and Montag & Caldwell as a large-cap growth U.S. equity manager, said Larry Pullium, CFO.
City selects managers
The $240 million City of Lakeland Retirement System hired Bankers Trust and INVESCO to run $13 million each in active international equities, said Gary Clark, pension fund administrator.
Funding will come from an active EAFE portfolio run by Ladas & Hulings; the firm recently was terminated. Asset Consulting Group assisted.
Dresdner RCM hired
The $180 million City of Aurora (Colo.) General Employees' Retirement Plan hired Dresdner RCM Global Investors to manage a $25 million large-cap growth portfolio, said Tom Connell, administrator,
The hiring follows an asset allocation study. Funding came from reducing by $5 million a large-cap value allocation to Ark Asset Management and from terminating a $20 million midcap growth portfolio run by Denver Investment Advisors. Dennis Larkin, spokesman at Denver, said as a result of the study, his firm's domestic fixed-income portfolio was increased to $55 million from $40 million.
The $65 million City of Charlottesville pension fund hired Pioneer Investment Management as its first large-cap growth U.S. equity manager to run $8 million, said Greg McNeille, consultant.
Until now, all assets were managed in a balanced portfolio run by Thompson, Siegel & Walmsley.
Dahab Associates assisted.
Credit Suisse names CIO
Laurence Smith will join Credit Suisse Asset Management as global chief investment officer and managing director, a new position. He had been global head of asset allocation and balanced accounts at J.P. Morgan Investment Management.
Alameda promotes Tse
Betty Tse was named investment officer for the $3.4 billion Alameda County Employees' Retirement Association. She was a senior analyst. She replaces Linda Brewton, who became manager of treasury for Cisco Systems.
Utility picks Northern
The $625 million Wisconsin Public Service pension fund hired Northern Trust Global Investments to manage $25 million in an S&P 400 index fund, said Jerry Myers, director-trust investments and treasury. Becker Burke assisted.