California Public Employees
SACRAMENTO, Calif. - The California Public Employees' Retirement System has approved $150 million in investments to two private equity funds targeting high-growth technology companies. The $160 billion system will invest $100 million in Thomas Weisel Capital Partners, formed by Thomas Weisel, founder and former chief executive of Montgomery Securities. The fund will invest in high-growth technology companies.
The California Public Employees' Retirement System also will invest another $50 million in Solera Capital, which focuses on the consumer, health care, Internet and technology sectors. The system already has invested $25 million in Solera.
California State Teachers
SACRAMENTO, Calif. - The California State Teachers' Retirement System awarded a contract to consultants Pension Consulting Alliance Inc./E&Y Kenneth Leventhal to perform specialized monitoring and evaluation of the $800 million Lazard Freres Strategic Realty Investors Fund 1, in which the $101 billion fund has a $150 million investment.
The action was taken at the system's July 7 board meeting, after a report that three of the four key individuals managing the real estate fund had left the firm.
Case Corp. Canada
TORONTO - Case Corp. Canada hired Northern Trust Canada to provide custody and related services for its C$117 million (U.S.$176 million) defined benefit master trust and money purchase plan. It will provide a full range of services, including domestic custody, global custody, cash management and benefit payment services and other online services via Northern Trust Passport.
An official at Case would not name the firm Northern replaced.
DANVILLE, Va. - The Danville Employees' Retirement System hired Scudder Kemper to replace Thompson, Siegel & Walmsley as a large-cap value U.S. equity manager, said Rich Dahab of Dahab Associates, consultant to the $160 million fund.
He declined to give the reason for the change or portfolio size but did say half of the terminated portfolio will go to Scudder Kemper and the other half will fund a Russell 1000 value index manager at a later date.
Gordan Goodykoontz, senior vice president for Thompson Siegel, declined to comment.
Delta Dental Plan
OKEMOS, Mich. - Delta Dental Plan has hired Key Asset Management's Key PRISM Daily 401(k) plan service to provide bundled services for its $15 million 401(k) plan, according to Dave Reavis, a spokesman for Key.
PURCHASE, N.Y. - Diversified Investment Advisors hired Payden & Rygel to replace 1740 Advisers as subadviser for its $521 million Government/Corporate Bond fund. Diversified changed the name of the fund to Core Bond Fund and changed its benchmark to the Lehman Brothers Aggregate Bond index from the Lehman Government/Corporate Bond index.
Officials at Diversified said the change was to expand the fund's strategy. "The new fund will have exposure to value-added sectors like mortgage-backed and international securities in order to increase long-term return potential,"said Mark Mullin, chief investment officer.
El Paso County Pension
COLORADO SPRINGS, Colo. - The El Paso County Pension System hired State Street Global Advisors as its first Russell 1000 growth index manager to diversify the $155 million defined benefit plan.
Funding for the $17 million allocation will come from reducing a $40 million large-cap growth U.S. equity portfolio run by Fayez Sarofim, said Dave Klemmer, plan administrator.
Genesee County Employees
FLINT, Mich. - The $450 million Genesee County Employees' Retirement System has committed $10 million to PRISA, a commingled real estate fund run by Prudential Real Estate Investors, said Warren Vyvyan, retirement office supervisor. The system has a 5% allocation to real estate, he said.
Funding will be completed by Sept. 30 and will come from cash.
WASHINGTON - The International Union of Electrical Workers expects to make its first private equity investment in the Heartland Labor Investment Fund, said Doug Williams, a trustee for the $370 million defined benefit plan.
The Heartland Labor Investment Fund is the working name for a new private equity fund that is being organized by Ronald Richman, an attorney with Schulte Roth & Zabel, and Tom Croft, executive director of the Steel Valley Authority, to invest in small industrial companies needing capital to modernize or expand.
Montgomery County Retirement
MONTGOMERY, Ala. - The Montgomery County Retirement System Fund will invest in equities for the first time Oct. 1, said Al Umphrey, deputy administrator.
Trustees at the $39 million pension fund selected AmSouth Bank to manage the initial 10% allocation.
AmSouth now manages the entire fund in U.S. fixed-income instruments. The change in allocation is the result of state legislation that allows the fund to place up to 35%of assets in U.S. equities over the next few years.
ROCKVILLE, Md. - The National Association of Securities Dealers Inc. hired Davis Selected Advisers to manage $30 million in large-cap value equities and Janus Capital to manage $30 million in large-cap growth equities. Funding came from the working capital of the NASD and its subsidiaries, said James R. Allen, senior vice president and treasurer.
North Dakota State Investment
BISMARCK, N.D. - North Dakota State Investment Board has allocated an additional $30 million in real estate investments to J.P. Morgan, said Steve Cochrane, executive director and chief investment officer.
The $3.4 billion fund allocated $20 million to the J.P. Morgan Strategic Property Fund and $10 million to the J.P. Morgan Special Situation Fund.
Funding for the new investments will come from cash and rebalancing.
"Because of the growth in the fund, the allocation was lagging the target," he said. The target is 7.4% of total assets; the allocation is 5.7%.
WEBSTER, N.Y. - PSC Inc. hired Key Asset Management's KeyPRISM Daily 401(k) plan service to provide bundled services for its $25 million 401(k) plan, according to Dave Reavis, spokesman for Key.
San Antonio Fire & Police
The managers will receive $30 million each, funded by the termination of a $60 million S&P 500 index fund managed by Mitchell Hutchins Asset Management, he said. Mitchell Hutchins will continue to run a Russell 1000 value index fund and a Lehman Aggregate bond index fund for the plan.
Towers Perrin assisted.
San Jose Retirement Systems
SAN JOSE, Calif. - The San Jose Retirement Systems - which includes a fund for police and firefighters and another for other city employees - hired three fixed-income money managers to invest a total of $250 million in domestic fixed-income strategies, according to Edward Overton, administrator for the $2.7 billion system.
Chicago Trust and Seix Investment Advisors each will manage $75 million in a domestic core-plus fixed-income strategy for the $1.6 billion Police & Fire Department Retirement Plan.
Dodge & Cox will manage $100 million in a domestic core fixed-income strategy for the $1.1 billion Federated City Employees Retirement System.
The allocations were funded by reducing a $350 million core fixed-income portfolio managed by Scudder Kemper and terminating a fixed-income portfolio managed by Putnam Investments.
Putnam was terminated for organizational and performance-related issues, said Mr. Overton. A Putnam spokeswoman said the company has no comment.
Scudder remains a fixed-income manager for San Jose; the reduction was unrelated to performance.
South Central Community
YORK, Pa. - South Central Community Health is merging two 403(b) plans with combined assets of $50 million and hiring Prudential Retirement Services in partnership with GBS Retirement Services as its semi-bundled provider.
South Central on Nov. 1 will replace the plans' bundled providers, Diversified Investments and Copeland. Once the plans are consolidated, it also will change the investment strategy from mainly variable annuities to having all of its 31 investment options in mutual funds, said Bob Batory, vice president of human resources for South Central. About half of the options are in Prudential funds, he added.
About 50% of employees now participate in the 403(b) plans, which are voluntary and to which the company does not contribute. South Central also has 401(k) plans for two of its for-profit subsidiaries.
KANSAS CITY, Mo. - Sprint Corp. hired MDL Capital Management, a minority-owned investment management firm, to manage $40 million in active domestic fixed income for its $3.3 billion pension fund. The hiring was part of the company's effort to "enhance Sprint's managerial diversity," said Bill Searcy, Sprint pension and savings trust officer. Money for the new manager will come from a fixed-income index fund.
Teamsters, Central States
CHICAGO - The Teamsters Central States, Southeast and Southwest Areas Pension Fund hired J.P. Morgan as one of the fund's named fiduciaries effective Feb. 1.
In 1998 the consent decree under which the $19 billion fund operates was amended to allow for two named fiduciaries, each responsible for half of the fund's investments.
Morgan Stanley had been the fund's sole named fiduciary since 1984.
Terra Industries Inc.
SIOUX CITY, Iowa - Terra Industries Inc. hired Alliance Capital Management to run a $20 million domestic large-cap value equity portfolio for its $78 million defined benefit plan, said William Connor, treasurer.
The hiring is due partly to poor performance and partly to a change in style. Funding will come from terminating Lynch & Mayer, which runs $20 million in midcap growth U.S. equities, Mr. Connor said.
Rufus Winton, senior vice president of Lynch & Mayer, did not return phone calls by press time.
Terra also has a $110 million defined contribution plan.
CHARLOTTE, N.C. - United Dominion Industries Inc. hired TCW to run $12 million in small-cap growth U.S. equities, said Thomas Snyder, vice president and treasurer.
This is the $225 million defined benefit plan's first small-cap manager and it will provide diversity, he said. Funding will come from reducing other domestic equities.
Virginia Retirement System
RICHMOND, Va. - The $35.4 billion Virginia Retirement System approved additional commitments to existing private equity funds.
They are: $25 million to Menlo Ventures Fund VIII; $45 million to Heritage Partners Fund IV; $50 million to Hellman & Friedman Partners Fund IV; and up to $20 million to the Summit Accelerator Fund, said Nancy Everett, chief investment officer. Money for the new investments comes from cash.
Walter Industries Inc.
TAMPA - Walter Industries Inc. hired SunTrust Bank to replace Citibank as trustee of its $10 million 401(k) plan, said Jeanell Hires, manager of pension administration. Citibank continues to be master trustee of the plan's $260 million defined benefit plan.
WALTHAM, Mass. - The $115 million Waltham Contributory Retirement System hired State Street Bank & Trust as custodian to replace Investment Bankers Trust, which was terminated recently, said Gus Aristizabal, the Wainwright Investment Counsel consultant who assisted.
Washtenaw County Employees
ANN ARBOR, Mich. - The $185 million Washtenaw County Employees' Retirement System hired Firstar to run $20 million in domestic fixed income to diversify the defined benefit plan. The funding source will be determined after an asset allocation study is completed, said Monica Lawrence, retirement administrator.
Woburn Retirement System
WOBURN, Mass. - The $70 million Woburn Retirement System hired three real estate managers to run $1 million apiece. They are TA Associates, Intercontinental Real Estate and Corcoran & Jennison.