Orange County eyes moves
The $4.4 billion Orange County (Calif.) Employees Retirement System's board was expected to decide March 20 whether it will approve a new domestic equity structure with a 45%passive commitment to the Russell 1000 index.
The investment committee is recommending the change.
The committee also has recommended, based on a performance review, the board terminate STI Capital Management, which runs a $260 million large-cap growth portfolio. It also recommended putting three firms on watch: Siphron, which runs $73 million in large-cap growth; Delaware International, $187 million in international bonds; and Kennedy Associates, $148 million in bonds. The panel also recommended transferring assets from Delaware Investment to Dodge & Cox to equally weight the two managers.
The investment committee also recommended the board terminate Schroder, which actively manages a $256 million EAFE portfolio, and approve a search for two international equity managers for mandates of undetermined sizes and styles.
Williamson exits Amoco
Greg Williamson has left BP Amoco, where he was investment manager, to become president of Springfield Asset Management. In this new position, Mr. Williamson will direct the firm's expansion. The $1.5 billion company manages alpha-oriented strategies.
2 get bigger allocations
The $11.8 billion State Universities Retirement System of Illinois is increasing the fixed-income assignments of BlackRock Financial Management and Chicago Trust, said John R. Krimmel, acting CIO. It will add $200 million to an enhanced fixed-income index portfolio managed by BlackRock, raising it to $320 million, and $50 million to an active core fixed-income portfolio run by Chicago Trust, raising it to $160 million. The source of the funding hasn't been determined, but it may come from equity and fixed-income funds managed by Barclays.
Endowment rebalances
Great Lakes Protection Fund rebalanced its $137 million endowment fund to return to its policy targets, said CFO Larry LaBoda. It pared equities to 75%from 81% by reducing a U.S. large-cap value portfolio managed by a firm he declined to name. Those assets are being transferred to fixed income to bring up the asset class to the fund's policy target of 20% from the current 15% The remaining 5%of the fund is in cash.
Inflation hedge funded
The C$68 billion (U.S.$46 billion) Ontario Teachers' Pension Plan Board has shifted assets to its inflation-hedge portfolio from its fixed-income portfolio. The fund's research and economics department recommended increasing the inflation hedge by five percentage points to 15%of total assets, said Lee Fullerton, spokeswoman. The fixed-income portfolio will be reduced to 20% The plan's exposure to equity will remain steady at 65% The inflation-hedge portfolio contains real estate and real return bonds.
New position at PIMCO
Victor Bhansali was named PIMCO's executive vice president and head of domestic analytics for portfolio management, a new position. He will be responsible for identifying and analyzing sources of relative value across all fixed-income sectors. Mr. Bhansali was vice president of proprietary fixed-income trading at Credit Suisse First Boston.
Rhode Island exec quits
Joann E. Flaminio, executive director at the $6.4 billion Employees' Retirement System of Rhode Island is resigning effective June 30. The search for her replacement has not begun.
Fund ups bond allocation
The $312 million Imperial County (Calif.) Employees' Retirement System will shift $25 million to bond manager Bradford & Marzec, increasing its mandate to $115 million on the advice of consultant Mercer.
Northern Trust promotes 1
James Snyder was promoted to vice chairman of Northern Trust Global Investments. He has been CIO for five years; a search for a new global CIO is under way.
New equity exec named
James M. Weiss was promoted from CIO-equities to head of the equity group at State Street Research & Management, effective April 1. He will oversee $24 billion in equity and high-yield assets, as well as research and equity trading. He replaces Peter Bennett, who will retire in June.
Butchers pick Putnam
The $201 million Oregon Federation of Butchers hired Putnam Investments as a core international equity manager to run $7 million. Funding will come from fixed income, said Gene Pronovost, union president.
AIMR compliance sought
American Century hired the Spaulding Group to help it become compliant with the AIMR performance presentation standards. American Century is trying to bolster its institutional appeal, said Steve Levitt, director of portfolio content and analysis.
Russell to manage plan
Dechert Price & Rhodes hired Frank Russell to manage its $24 million defined benefit plan and to provide most of the investment management options for its two defined contribution plans, which total $146 million. Russell will provide 13 of 16 options for the defined contribution plan. Three funds run by outside managers from the plans' old structure were retained. Vanguard was record keeper for the 401(k) plan; Alliance Benefit was record keeper for the H.R. 10 plan; and First Union was trustee of the defined benefit plan.
Doersch leaves BARRA
Todd Doersch joined Fuller & Thaler as senior vice president and COO, a new position. He had spent the past 11 years at BARRA.
Legend Group sold
Waddell & Reed Financial, looking to expand its position in the 403(b) market, will buy The Legend Group, a mutual fund distribution and retirement planning company. Waddell & Reed will pay $61 million in cash and contingent cash payments of up to $14 million over three years to acquire the company's stock. Legend will continue to operate under that name; founder Philip C. Restino will remain with the firm.
Fidelity promotes Churchill
Dwight D. Churchill was named president of the fixed-income division at Fidelity Investments, succeeding Fred L. Henning Jr., who will head Fidelity Corporate Services, a new unit at the company. Mr. Churchill was senior vice president overseeing Fidelity's bond portfolio management, research and trading.
Hancock's Freedman retires
Robert G. Freedman, executive vice president at John Hancock Funds, will retire effective March 31, after 16 years with the firm
