Alaska State Pension
JUNEAU, Alaska - The Alaska State Pension Investment Board hired INVESCO as a real estate value-added manager to handle a new $100 million allocation, said Robert Storer, chief investment officer for the $14.7 billion board.
Townsend Group assisted.
HAGERSTOWN, Md. - Allegheny Energy Inc. named SEI as its first manager of managers for the equity portion of its $800 million defined benefit plan. SEI will handle a $391 million portfolio, said Michael Morrell, senior vice president and CFO.
American Dental Association
CHICAGO - The American Dental Association hired MetLife to manage a three-year traditional GIC and a five-year traditional GIC for its defined contribution plan's stable-value option.
Arizona Industrial Commission
PHOENIX - The Industrial Commission of Arizona renewed its contract with consultant Performance Analytics for another year. The assets of the commission's defined benefit plan total $281 million, said Douglas Newton, administrative assistant.
Arkansas Teachers Retirement
LITTLE ROCK, Ark. - The $7.4 billion Arkansas Teachers' Retirement System hired Rothschild and Eubel, Brady & Suttman to manage $200 million and $100 million, respectively, in domestic midcap value equity, said Bill Shirron, executive director.
Holbein & Associates assisted.
Best Buy Co. Inc.
MINNEAPOLIS - Best Buy Co. Inc. has bundled its $230 million 401(k) plan and hired American Express Retirement Services as its full-service provider.
Wilmington Trust had been the trustee and PricewaterhouseCoopers had been the plan's record keeper, said Laurie Bauer, spokeswoman for Best Buy.
The company earlier had hired American Express to provide the investment options, including a stable capital fund, a balanced fund, a Standard & Poor's 500 index fund, a small-cap value fund, a large-cap growth fund and a company stock option. Best Buy then issued an RFP for the remainder of the plan services and hired American Express.
NEW YORK - Commonfund hired State Street Global Advisors as a portfolio manager for its new socially responsible investment fund, which will be launched early next year. The Calvert Group will work with SSgA to screen stocks.
Equitable Life Assurance
NEW YORK - The Equitable Life Assurance Society of the U.S. hired Calvert Group as subadviser for a new $2.3 million portfolio that is an underlying investment option in several of Equitable's variable annuity products.
The Calvert Group selected Brown Capital as a joint subadviser for the portfolio.
Brown will be responsible for day-to-day stock picking and the overall investment process. Calvert will be responsible for the social screening.
COLUMBUS, Ohio - Limited Inc. has moved to a bundled environment for its $430 million 401(k) plan, hiring American Express Retirement Services to provide investment management services, daily record keeping, trust services and employee education.
The plan also has expanded its investment options to 13 funds including a self-directed brokerage account, from six, said Tim Meyer, media relations coordinator for The Limited.
The new investment options offered through American Express and its alliance partners are three American Express Horizon funds, Janus Overseas, American Century Growth and Income, AXP Selective fund and a balanced fund.
London Pensions Fund
LONDON - The London Pensions Fund Authority dropped Prudential Portfolio Managers, Phillips & Drew Fund Management and Mercury Asset Management as a part of an overhaul of its L2.8 billion ($4.48 billion) plan. Trustees decided to adopt a more active investment strategy now that the plan had become fully funded following five years of investing heavily in index-linked gilts, said LPFA Chief Executive Peter Scales.
Changes to the asset allocation for the plan are: U.K. gilts at 12.6% up from 3.4% index-linked gilts at 36.9%from 48.1% U.K. equities, 31.4%from 25.6% overseas equities, 13.2%from 8.8% overseas bonds, 1.6%from 3.6% and managed cash, to zero from 4.1%
The LPFA hired Henderson Investors to manage a L300 million international bond portfolio and a L600 million balanced portfolio; Goldman Sachs Asset will manage a L400 million multiasset portfolio; and Legal & General Investment Management will be responsible for a L500 million passive equity mandate.
Both MAM and Phillips & Drew had managed balanced portfolios for the plan, while PPM was responsible for an active equity portfolio. The three were dropped partly for performance reasons but largely because trustees wanted "a fresh approach," said Mr. Scales. None of three managers would comment.
Los Angeles County Employees
PASADENA, Calif. - The $27 billion Los Angeles County Employees Retirement Association's board selected an apartment specialist manager, Henderson Investors, to run $75 million. The other finalists were Sentinel Real Estate and Allegis Realty.
Massachusetts Bay Transport
BOSTON - The Massachusetts Bay Transportation Authority Retirement System, with $1.9 billion in assets, hired Lend Lease to manage $10 million in real estate. The new portfolio is being funded with cash, said Jack Gallahue, executive director. Callan Associates assisted.
Metro Atlanta Rapid Transit
ATLANTA - The Metropolitan Atlanta Rapid Transit Authority, in an effort to increase its international equity exposure, hired international core equity manager Sit-Kim International to run a $15 million portfolio. Funding comes from existing large-cap domestic equity manager Paradigm.
The $560 million defined benefit plan also terminated INVESCO as a large-cap domestic equity manager for poor performance; its $51.3 million portfolio has been divided between existing large-cap managers Northern Trust, which received $26.3 million, and Ernest Partners, $25 million. Claudia Daniel, plan administrator, said these allocations were temporary and the fund may launch a search for a third large-cap domestic manager next year.
Officials at INVESCO did not return calls by press-time.
In September, the plan hired Ariel and Albriond to handle new domestic midcap value equity portfolios of $20 million each. Albriond was terminated in October, according to Ms. Daniel, and the portfolio given to existing midcap manager Northern Trust.
Minnesota State Board
ST. PAUL, Minn. - The Minnesota State Board of Investments terminated Investment Advisers Inc. as a fixed-income manager because of poor performance and concerns over the board's account making up more than 60%of the total $1 billion in fixed income managed by the firm. IAI manages $658 million in active core bond strategies for the $38 billion retirement fund.
"Though IAI is disappointed with the board's decision in light of its bench-mark-matching performance since inception, we respect and understand the board's decision," said Steve Lentz, spokesman for IAI.
The IAI allocation will be distributed among three active core bond managers being hired because of a rebalancing of the portfolio's equities. Hired were Deutsche Asset Management, Dodge & Cox and Metropolitan West Asset.
Also, four managers were hired as part of the board's move to increase active international stock management. Hired were: American Express, $300 million; Blairlogie, $100 million; INVESCO, $400 million; and Montgomery Asset Management, $300 million. Funding will come from a reduction in the $3.2 billion of international equity passively managed by SSgA.
The board also selected Norwest to provide record keeping, communications, seven mutual funds and a mutual fund window for the Minnesota State Colleges and Universities' 401(a) plan. The plan's assets were not disclosed. TIAA-CREF was hired to manage additional investment options, beginning in June.
New Century Energies
DENVER - New Century Energies hired Fuller & Thaler to manage small-cap domestic equities for its $1.2 billion defined benefit plan. A spokeswoman declined to specify portfolio size.
New Orleans City Employees
NEW ORLEANS - The $380 million New Orleans City Employees' Retirement System hired Delaware Investment Advisers as its sole small-cap growth domestic equity manager, replacing JMC Capital Management, which was terminated because of poor performance, said Jerry Davis, chairman of the board of trustees. Delaware will manage a $12 million portfolio. Officials at JMC did not return calls by press time. Morgan Stanley Dean Witter assisted.
Port Terminal Railroad
HOUSTON - The Port Terminal Railroad Association hired AON Investment Consulting as consultant for its $12 million defined benefit plan. AON will assist with the selection, evaluation and monitoring of managers and a custodian early next year.
Cooper Consultants assisted.
City of San Jose Police & Fire
SAN JOSE, Calif. - The City of San Jose Police & Fire Department Retirement Plan hired The Chicago Trust Co. and Seix Investment Advisers to run domestic core fixed-income portfolios of $75 million each. The new managers replace Putnam, which was terminated last year. The defined benefit plan's assets total $1.5 billion.
Mercer Global Advisors assisted.
South Carolina Retirement
COLUMBIA, S.C. - The $18 billion South Carolina Retirement System selected managers for three domestic equity mandates, said Sandra Morelli, principal at William M. Mercer, consultant to the fund. The hirings are subject to contract negotiations, site visits and approval by the state Budget & Control Board, which will vote on the selections in late January.
Fidelity will run $67.5 million and Farrell-SL will run $22.5 million in small-cap to midcap core; J.P. Morgan and Wellington each will run $150 million in large-cap core; and Sanford C. Bernstein will run $192 million; Flippin, Bruce & Porter, $96 million and Institutional Capital, $192 million in large-cap value. Funding for all hires will come from cash and reducing existing domestic fixed-income portfolios.
The fund also is beginning a search for a domestic large-cap growth manager to run $400 million, Ms. Morelli said.
KANSAS CITY, Mo. - Sprint Corp. has picked the discount brokerage firms of Williams Capital, Magna Securities and Lynch Jones & Ryan to provide commission recapture for its $3.2 billion defined benefit pension plan.
The telecommunications giant replaced another brokerage firm that it chose not to disclose.
University of North Carolina
CHAPEL HILL - University of North Carolina at Chapel Hill hired Northern Trust as custodian to provide custody, risk management and performance measurement services for its $1 billion Foundation Investment Fund and Temporary Investment Pool, confirmed Barbara Aaron, director of investment operations. She wouldn't say who Northern Trust replaced.
ARLINGTON, Va. - US Airways has named State Street as custodian of its $3.6 billion in defined benefit assets, said Janice Emery, director of pension investments. Ms. Emery said the plan previously used Wachovia Bank, which sold its trust and custody operations to State Street.
State Street will provide trust, custody, valuation, performance measurement and foreign exchange services to the US Airways plan.
Washington Metro Transit
WASHINGTON - The Washington Metro Transit Authority hired Northern Trust Global Investments to manage $155 million in an S&P 500 index fund for its $2 billion defined benefit plan, said Guy Lawrence, a spokesman at K.P. Ross. The hiring was to meet the fund's target allocation.
Additionally, Northern Trust manages a $203 million small-cap equity portfolio and a $127 million large-cap equity portfolio for the plan.