WASHINGTON -- Association of American Railroads, Washington, hired CIGNA Retirement Services to be bundled provider for both its $27.8 million defined benefit plan and its $28 million defined contribution plan.
MassMutual was the other finalist, said Jeffrey Marsh, vice president of financial administration.
The investments in the defined benefit plan are all from CIGNA: Charter large company index; Charter large company stock; Charter large company stock growth; small company stock; small company value; small company growth; guaranteed deposit; mortgage-backed securities; investment-grade corporate bond; high-yield bond; Charter real estate fund; and a foreign stock fund, Mr. Marsh said.
The investment options in the defined contribution plan, which has been changed to daily valuation from quarterly, include guaranteed long-term fixed income, high-yield bond, investment-grade corporate bond, five lifestyle funds, a global fund, a balanced fund, a large company stock index fund, large company stock, small company value, large company growth, small company growth and foreign stock funds.
INDIANAPOLIS -- Butler University hired Conseco as a midcap growth equity manager and Speece, Lewis and Thorson as a midcap value equity manager for its $145 million long-term investment portfolio, of which the university's endowment accounts for about 85%.
Each firm received $11 million, which came from the termination of two active midcap to large-cap equity managers, said Bruce Arick, vice president of finance at the university. He would not identify the terminated firms, but said the move was made to create a pure midcap equity portfolio.
Chattanooga General Employees
CHATTANOOGA, Tenn. -- Chattanooga General Employees' Pension Fund hired Insight to manage $25 million to $30 million in small-cap domestic equity. Insight takes over for another manager, which City Treasurer Carl Levi did not disclose. Mr. Levi said the $205 million defined benefit plan terminated the manager because several of the firm's principals left.
Civil Service Benevolent Fund
LONDON -- Civil Service Benevolent Fund appointed Barings Asset Management to run a 19 million ($30.4 million) balanced charity portfolio. The objective of the mandate was to outperform the weighted average of WM's "constrained by asset mix universe," according to a statement from Barings.
Dearborn Retirement System
DEARBORN, Mich. -- Dearborn Retirement System named Fountain Capital Management as the new high-yield fixed-income manager for all three of its retirement funds. Fountain will manage 5% of the total assets in each fund, said Donald Cundy, pension administrator. According to the 1999 Money Market Directory, the System's asset breakdown is: Police & Fire Revised Fund, $172 million; General Employees' Fund, $122 million; and Police & Fire Fund, $50.5 million. Mr. Cundy did not comment on the funding source for the portfolios.
Elmhurst Memorial Hospital
ELMHURST, Ill. -- Elmhurst Memorial Hospital hired PIMCO and Wellington to manage $25 million domestic fixed-income and $10 million international fixed-income portfolios, respectively, for its $110 million defined benefit plan. The accounts had been managed by another firm that continues to manage equity accounts for the hospital. Capital Resource Advisors assisted.
Everett Retirement System
EVERETT, Mass. -- Everett Retirement System is in contract negotiations to hire four new managers. Freedom Capital has been the $57 million defined benefit plan's biggest manager since late 1998, said Robert Shaw, director.
The new managers are: State Street Global Advisors, domestic fixed income and international equities; Pioneer Capital Management, large-cap growth domestic equities; RhumbLine Advisors, S&P 500 index; and SEB Asset Management, small-cap domestic equities. Freedom Capital will continue to manage large-cap active domestic equities. The search was conducted in-house. Contracts should be signed by the end of January.
The asset allocation is: 30% domestic fixed income; 25% large-cap active domestic equity; 20% S&P 500 index; 7.5% large-cap growth domestic equity; 7.5% international equity; 5% small-cap domestic equity; 3% venture capital; and 2% cash.
Father Flanagan's Trust Fund
OMAHA, Neb. -- Father Flanagan's Trust Fund hired Metropolitan West Asset to run an enhanced S&P 500 fund, said Philip Ruden, executive vice president of investments.
The $681 million endowment for Father Flanagan's Boys Home also hired Metropolitan West Asset to run a low-duration bond portfolio to finance its expansion program. He declined to give the amount of money to be managed for both portfolios. Funding came from cash.
IUOE Local 14-14B
FLUSHING, N.Y. -- International Union of Operating Engineers Local 14-14B Annuity Fund named CIGNA as the provider for its member-directed defined contribution plan.
The $180 million fund was managed in-house. Participants had requested a provider that offered investment education and customer service through the Internet, said Rachel Rosten, a spokeswoman for CIGNA's public relations firm.
The Jewish Federation
CHICAGO -- The Jewish Federation of Metropolitan Chicago hired Thomas White International to run a $25 million large-cap value portfolio containing assets from both the federation's pension fund and its endowment fund.
The funding came from rebalancing the portfolio after a large-cap value equity manager was terminated for straying from its original investment strategy, said Jeffrey King, controller for the $24 million pension fund and the $750 million endowment fund. Mr. King would not identify the terminated manager.
State of Kansas
TOPEKA, Kan. -- The State of Kansas hired American Century Investments for a seven-year contract to manage the assets of its new post-secondary education savings program, the Kansas Education Savings Program, which opens July 1.
American Century will manage the assets in three investment tracks -- conservative, moderate and aggressive -- using combinations of its mutual funds as the underlying investment vehicles. The asset allocation of individual savings accounts automatically will become more conservative as the beneficiary gets closer to college age.
American Century will handle record keeping, education, communication and enrollment in the plan.
BOSTON -- Massachusetts Pension Reserves Investment Management Board trustees approved up to $215 million in new private equity commitments. The system approved up to $75 million to GTCR Fund VII and up to $75 million to Texas Pacific Group III for buyouts; and up to $50 million in J.H. Whitney Fund IV and up to $15 million in Polaris Venture Partners III for venture cap. Funding will come from domestic equity and fixed-income allocations, Mr. Henderson said.
PRIM also approved a target allocation of $825 million for new opportunities in alternatives, excluding real estate, in 2000.
Missouri Public School
Payden & Rygel can manage up to 10% of the portfolio in high-yield bonds; 10% foreign bonds; and 45% in mortgage-backed securities.
Sovran Capital had managed the portfolio in intermediate domestic bonds. The assets then were moved to Agincourt Capital, a firm launched by the former investment team at Sovran. Shortly after the switch, Agincourt was terminated and a search for an enhanced bond manager began. NISA managed the portfolio in the interim, said Craig Husting, chief investment officer for the $21.8 billion pension fund.
HIGH WYCOMBE, England -- Molins PLC pension plan appointed the Northern Trust Co. its global custodian. The 305 million ($504.8 million) plan had used Lloyds Bank as custodian. The search was led by the Pension Fund Partnership.
Montgomery County Employees
ROCKVILLE, Md. -- Montgomery County Employees' Retirement System hired Capital Guardian to run $130 million in active international equities, said Patrick F. Bell, director of pension investments.
The $1.8 billion fund increased its allocation to international stocks to 14% from 10% of total assets. Funding will come from reducing a passive international equities portfolio run by State Street Global.
NECA-IBEW Pension Trust
DECATUR, Ill. -- NECA-IBEW Pension Trust hired Conseco to manage $12.5 million in a domestic core fixed-income portfolio. Funding came from existing managers and a U.S. bond manager terminated for performance reasons, said Bob Williams, fund administrator for the $500 million Taft-Hartley fund.
Northern Trust Global
LONDON -- Northern Trust Global Investments dropped Scottish Widows Investment Management from its 83 million ($132.8 million) European equity fund of funds and replaced it with BlackRock International.
BlackRock will take over management of a 33.2 million European equity mandate. SG Asset Management will continue to run a 33.2 million slice of the fund, and Odey Asset Management remains responsible for a 16.6 million portfolio.
The new appointment follows last month's defection to BlackRock by Albert Morillo, former head of SWIM's U.K./European equities desk, and his team of European equity managers.
"We follow individuals -- not houses -- and we would not have gone to BlackRock if Albert had not moved there," said Daniel Sharp, vice president responsible for U.K. investment marketing at Northern Trust.
Park Tudor School Foundation
INDIANAPOLIS -- Park Tudor School Foundation hired Conseco to manage its domestic fixed-income portfolio. A school spokeswoman did not disclose previous managers or asset totals. The portfolio size was $14 million, according to a Conseco release. The foundation's assets total $26.2 million, according to the 1999 Money Market Directory and Nelson's Directory of Plan Sponsors.
Purdue University Foundation
WEST LAFAYETTE, Ind. -- Purdue University Foundation, Purdue Research Foundation and Purdue Alumni Foundation jointly hired Snyder Capital to manage small-cap value equities, said Jeff Wilson, senior vice president and treasurer of the research foundation. He declined to give the amount of the assignment. The three foundations have assets totaling $1.2 billion.
Mr. Wilson said funding came from a reallocation, mainly from internally run assets.
With this hiring, Snyder closed to new investors its small-cap value fund, which now has $1.7 billion in assets.
Roman Catholic Archdiocese
BRIGHTON, Mass. -- Roman Catholic Archdiocese of Boston hired Fidelity Management Trust to manage large-cap value and international growth equity portfolios in its endowment/pension plan. David Smith, vice chancellor of financial affairs, declined to comment on portfolio sizes, total assets, or if any firms were terminated.
Charles Schwab Retirement
SAN FRANCISCO -- Charles Schwab Retirement Plan Services hired seven managers to run five new institutional commingled trust funds -- large-cap value, large-cap growth, small-cap, international equity and fixed-income -- which will be managed, in some cases jointly, by Dodge & Cox; Goldman Sachs; Sirach Capital; Rice Hall James; Loomis, Sayles; INVESCO; and Bank of Ireland Asset Management.
The funds will be offered in Schwab's bundled 401(k) plan program and alliance programs and will use tiered operating expenses that decline as plan assets increase.
Callan Associates also was hired to help plan sponsors in fund selection; it will do ongoing performance monitoring.
Sonoma County Employees
SANTA ROSA, Calif. -- Sonoma County Employees' Retirement Association hired Systematic Financial Management to manage a $61 million small-cap growth portfolio, said Tom Ford, county treasurer and a member of the board.
A large-cap core portfolio managed by Delta Asset Management was reduced to about $100 million to fund the new portfolio. The shift brings the $898 million pension fund in line with its asset allocation strategy and does not reflect any dissatisfaction with Delta, Mr. Ford said.
CINCINNATI -- Standard Textile switched its $36 million 401(k)/profit sharing plan from employer-directed to employee-directed and hired J.P. Morgan/American Century Retirement Plan Services as its bundled provider.
Tri-State Plan Administration had been the record keeper; Gradison-McDonald Asset Management had provided all the investment services; and trustee services were provided internally, said Jerry Fick, director of human resources for Standard Textiles.
The 401(k) plan also has moved to daily valuation and has a new menu of eight core investment options, Mr. Fick said. The new options are American Century's equity index fund, value fund and Ultra Fund; J.P. Morgan's Bond Fund and U.S. Small Companies Fund; Vanguard's short-term federal fund and international growth fund; and Fidelity Investments' Disciplined Equity Fund. The plan also offers a choice of three pre-selected asset allocation portfolios using the core funds and based on risk tolerance.
St. Louis Firemen's Retirement
ST. LOUIS -- Firemen's Retirement System of St. Louis hired Northern Trust as domestic custodian, replacing Deutsche Bank. Trustees for the $480 million system wanted better rates, said John Brewer, executive director. Northern will begin its duties on March 1. A Deutsche Bank spokesman declined to comment on the termination.
Total Travel Management
TROY, Mich. -- Total Travel Management added five funds to its $4 million 401(k) plan, which now offers 10 investment options, all provided by Putnam.
Added were the: Growth Opportunities Fund; International Voyager Fund; Research Fund; U.S. Government Income Fund; and Vista Fund.