CalPERS private equity move
The CalPERS board was scheduled to vote Aug. 21 on committing $150 million to the Dresdner Kleinwort Benson Emerging Europe LP and $50 million to Polish Enterprise Fund IV. Both are private equity funds.
The first will focus on Poland, Hungary, the Czech Republic, Slovakia, the Baltic states, Romania and Bulgaria. Its target size is $250 million, while the Polish Enterprise Fund is targeted to be $300 million, according to documents.
Meanwhile, CalPERS has put off recommendations for its closely watched international equity manager search until its Oct. 16 meeting. The selection originally had been scheduled for June, and then deferred until September.
Also, Mark Albertson, a portfolio manager at CalPERS who oversees $3 billion in specialized real estate investments, will leave at the end of September.
Houston Police to drop firm
The $2.3 billion Houston Police Officers' Pension System plans to terminate Walter Scott as an active international equity manager, said John Lawson, executive director.
Officials at Walter Scott declined to comment.
New consultant at Harrah's
Harrah's Entertainment picked Mercer to replace Curcio-Webb as consultant for its $564 million 401(k) plan, said Mary Nell Billings, manager of savings and retirement plan administration.
Mercer's first duty will be to conduct a review of the entire plan, to be completed in the fall.
LSU may add asset classes
The $225 million LSU Foundation will consider adding alternatives, convertible bond and hedge fund allocations for added diversification, said Phil Griffith, investment officer. He expects to recommend allocation changes and managers to handle new portfolios at a Nov. 10 trustees meeting.
The current asset mix is: 43% domestic large-cap equity; 30% U.S. fixed income; 10% U.S. small-cap equity; 10% international equity; and 7% U.S. midcap equity.
Colorado hikes alternatives
The $31 billion Public Employees Retirement Association of Colorado raised its alternatives target to 10% of total assets from 8% and cut its fixed-income target to 8% from 10%, said Don Schaefer, spokesman. No new managers will be hired because the fund already has 11.1%of assets committed.
The changes, part of an annual review of the system's targets, also include creating a separate class for timberland, which will remain in the alternatives portfolio with a target of 2% of total assets.
Small quits under pressure
University of California Treasurer Patricia A. Small resigned Aug. 14 from the board of regents due to conflicts over investment strategy. She had been treasurer since 1995, overseeing $58 billion in internally managed assets, and was with the treasurer's office for nearly 29 years. She will receive a compensation package totaling $671,000. A search is under way for a successor.
Teachers fund taps Progress
The $21 billion Illinois Teachers' Retirement System will invest 1% of total assets in an emerging and minority manager-of-managers program with Progress Investment Management. Funding will come from cash. Northern Trust was the other finalist in the search.
The fund also committed up to $75 million to the Warburg Pincus International Partners private partnership, which invests in international venture capital.
Endowments using TIPS
Lifespan Corp. hired Standish Ayer & Wood to run $30 million in Treasury inflation-protected securities for its $700 million endowment fund, said Paul Pierannunzi, director of finance.
Also, the $1.2 billion endowment of Wellesley College hired Standish, Ayer to manage $80 million in TIPS, said Catherine Fedderson, chief investment officer at the $1.2 billion endowment. Funding came from cash reserves.
At Lifespan, funding will come from paring $8 million each from the portfolios of existing U.S. fixed-income managers Deutsche, John W. Bristol and Standish, and $6 million from an active international equity fund managed by Morgan Stanley. The three fixed-income managers now will run $41 million each, and Morgan Stanley will run $48 million in international equities.
Bradlees chooses NY Life
Bradlees hired New York Life Benefit Services as bundled provider for its two 401(k) plans - one for salaried employees and a year-old union plan - which have $41 million in combined assets, said Fred McGrail, vice president. New York Life replaces State Street Global.
The plans each will have 10 investment options: a stable value account by New York Life and funds managed by PIMCO, Davis, MainStay, INVESCO, Janus and Deutsche; all but the PIMCO fund are new. New England Pension Consultants assisted.
Mercer restructures Eager
William M. Mercer is restructuring Eager Manager Advisory Services, its U.S. money manager consulting business, following the departure of David L. Eager.
Mercer is renaming the unit Mercer Manager Advisory Services and is moving former Eager staff into Mercer's Louisville, Ky., office. Jeanette Schreiber, a principal within the manager advisory unit, assumed leadership of the U.S. unit and will remain based in Chicago.
Marketing firm started
Ed Theobold and Jim Kelly formed Maiden Lane Group in Boston to provide third-party marketing to asset management firms. The firm's first client is John A. Levin & Co., their former employer.
Neither returned calls by press time regarding their new company, but Greg Rogers, COO at John A. Levin, said: "We're supportive of them setting up their own business and they will continue to represent our products to a targeted institutional market niche."
Fidelity promotes LoRusso
Joseph LoRusso was named president of Fidelity Institutional Retirement Service Co., succeeding Peter Smail, who was promoted to president of Fidelity Employer Services, which includes FIRSCo. Mr. LoRusso was executive vice president of FIRSCo's large plan services group.
Connecticut exec quits
Michael MacDonald, investment officer at the $21.9 billion State of Connecticut Retirement & Trust Funds responsible for $2.5 billion in private equity investments, has been named a vice president at Chase Alternative Asset Management, a new position. No replacement has been named yet.
