2 UAM subs combine
Jacobs Asset Management and Thompson Siegel & Walmsley, two United Asset Management subsidiaries, are merging.
The deal has been in the works for several months and is not related to UAM's sale to Old Mutual, said Jonathan Hubbard, UAM spokesman. Jacobs manages $580 million in international equities; Thompson, Siegel manages $4.8 billion, mainly in U.S. equities and bonds.
Daniel Jacobs, founder of Jacobs Asset, had expressed his wish to resign and pursue other activities, Mr. Hubbard said. Thompson Siegel was seeking to expand its international equity management and research capabilities. Principals were introduced and decided to combine, he said.
Six of Jacobs' 13 staffers will move to TS&W.
Shift at Montgomery County
The $1.8 billion Montgomery County Employees' Retirement System is trying to eliminate a value bias by converting RhumbLine's $100 million Russell 1000 value index portfolio into a Russell 1000 growth index portfolio, said Patrick Bell, director of pension investments.
RhumbLine will continue to manage a separate $170 million Russell 1000 portfolio. "We found we had a very strong value bias," Mr. Bell said. The system hopes to complete the rebalancing by year-end.
Pension funds in Hyundai deal
CalPERS and the State of Wisconsin Investment Board are among the players in a consortium that will invest 900 billion Korean won ($815 million) in Hyundai Investment Trust and Securities, the largest investment trust in South Korea.
The pension funds are making the investment through WL Ross & Co. Ross, along with American International Group, is leading the consortium.
Funds bow out of casino
Four pension funds withdrew as potential investors in a Detroit casino.
The pension funds -- including the Carpenters Pension Fund, Detroit & Vicinity -- were negotiating with owners of Greektown Casino to purchase a 40%interest in the completed but unlicensed casino.
No reason was given for the withdrawal.
MOSERS picks AmeriCap
The $5.6 billion Missouri State Employees' Retirement System hired AmeriCap Advisers to run $140 million in a domestic all-cap equities strategy, said CIO Rick Dahl.
AmeriCap, a woman- and minority-owned firm, is the fourth and final external manager to be hired for MOSERS' fund-of-funds program, Mr. Dahl said. Funding came from an internally managed S&P 500 index fund.
Painters trust taps 3
The $350 million Bay Area Painters & Tapers Trust hired three active large-cap domestic equity managers.
Pioneer and Quest Investment Management will handle $30 million and $20 million, respectively, in growth portfolios; and Glenmede will manage a $50 million value portfolio. Funding comes from a $100 million active large-cap value domestic equity portfolio managed by Oppenheimer Capital, which was terminated for performance reasons, said Alex Lawrence, administrator.
The trust also hired Mellon Capital as the sole investment manager for its $100 million defined contribution plan, replacing Oppenheimer. Mr. Lawrence said performance was the cause for this termination as well.
An Oppenheimer spokesman declined to comment.
Segal Advisors assisted.
Cadinha, Convergent in deal
Convergent Capital Management acquired a majority interest in Cadinha & Co., its 12th money management affiliate.
Terms were not disclosed, said Jon C. Hunt, a managing director at Convergent. Cadinha manages $700 million in assets for high-net-worth individuals.
No changes in personnel or investment management strategy at Cadinha are planned, he said.
CalPERS in realty ventures
The $170 billion California Public Employees' Retirement System hired Bridge Housing and RREEF to manage $100 million each in its $200 million Northern California Urban Infill Program.
The fund also made commitments of $1.1 billion to California real estate and private equity investments.
The fund also is creating the CalPERS California Biotechnology Fund, a $500 million vehicle capitalizing on new technologies, including genomics, in the California biotech industry; creating the California initiative, a $500 million investment program targeting small businesses and emerging or developing companies in underserved California communities; and adding $50 million to the Kennedy California Development program, which invests in the development of office buildings and office parks.
Also, CalPERS, through CalWest Industrial Properties, its joint venture with RREEF Funds, has agreed to acquire a portfolio of industrial properties valued at $929 million from Pacific Gulf Properties. It is the largest basket of industrial properties CalPERS has purchased.
Oxford Auto hires
The $50 million Oxford Automotive pension fund hired Bank of New York Asset Management to handle $11 million in active small-cap domestic equity. The move is part of its consolidation of 11 plans. More changes may be made soon, said Thomas Kerns, treasurer. Funding will come from a variety of managers and asset classes. The search was conducted in-house.
Reynolds now Fidelity COO
Organizational changes at Fidelity Investments catapulted Robert Reynolds to chief operating officer and one of three vice chairmen, heading up distribution.
The institutional retirement group formerly run by Mr. Reynolds will be split in two. The 401(k) and benefit outsourcing business will be called Fidelity Employer Services and will be run by Peter Smail. The balance will be run by Ellyn McColgan.
New options for 401(k)
The $277 million CB Richard Ellis 401(k) plan is adding Vanguard Total Bond Market Index and RS Emerging Markets funds as investment options. It has 15 other options; Vanguard is service provider.
Tulare County narrows list to 4
The $700 million Tulare County Employees' Retirement Association selected four finalists in its search for an active small-cap to midcap value domestic equity manager to handle $60 million.
The four are: Aronson + Partners; Dimensional Fund Advisors; Sterling Capital Management; and Dalton Greiner Hartman Maher. A decision is expected to be announced in late summer.
