New role for Pilgrim Baxter
Old Mutual will use Pilgrim Baxter as the focus of its retail mutual fund business once its bid for UAM is complete, said James Poole, head of investor relations at Old Mutual.
The Pilgrim Baxter brand would be used in the United States, where Old Mutual has no name recognition. "Then we would look at how we could exploit the brands on a global basis," he said.
It is likely the mutual fund assets would be managed in three different pools to suit the varying needs of the U.S., European and South African client bases.
Large-cap growth RFP set
The $3 billion State of Wyoming Loan and Investment Board will issue an RFP for an active large-cap growth domestic equity manager within a month. The fund has not yet determined the allocation.
Firms interested in receiving the RFP should contact the state treasurer's office, the board or consultant R.V. Kuhns.
The board hired State Street Global to run $500 million in an active S&P 500 index fund.
Funding for both will come from money that had been managed by the state treasurer's office that has been transferred to the permanent fund.
Oregon gives KKR $1 billion
The $40 billion Oregon Public Employees Retirement System committed $1 billion to the new buyout fund being raised by Kohlberg Kravis Roberts.
The commitment is believed to be one of the largest ever made to a buyout fund, Oregon fund spokesman Michael Parker said.
KKR asked Oregon to commit $1.5 billion, but the state declined because the additional $500,000 would have pushed Oregon over its target alternatives allocation of 13% of assets.
Of Oregon's $5.4 billion alternatives portfolio, another $2 billion has been committed to four earlier KKR funds.
The new commitment will be funded by cash and distributions, Mr. Parker said.
Tim Hanley retiring
Bryant "Tim" Hanley Jr. will retire in September from Barrow, Hanley, Mewhinney & Strauss, the firm he co-founded in 1979. Mr. Hanley is the third founder to leave the firm in recent years; James Barrow will assume the presidency.
Executives at Barrow, Hanley, a UAM affiliate, are weighing an offer from UAM's new owner, Old Mutual. Robert Barkley, partner and director of marketing, declined to elaborate.
"There are two things that are most important to us. One is that we continue to manage the firm independently. . . . The second consideration is that we are able to continue to manage traditional value stocks as we always have," Mr. Barkley said.
Florida DC plan taps Callan
The $103 billion Florida State Board of Administration hired Callan Associates as investment services consultant for the system's new defined contribution program, said Barbara Jarriel, director of fixed income.
Board trustees and the Legislature plan to appoint seven people to an advisory committee responsible for deciding the basic structure of program, Ms. Jarriel said. The committee is scheduled to develop an investment policy statement by the end of the month.
New Orleans hires Rorer
The $400 million New Orleans City Employees' Retirement System hired Rorer Asset Management as its new active large-cap value domestic equity manager, handling an estimated $25 million portfolio, said Jerry Davis, chairman. The funding source has not been determined.
The fund also is searching for a manager to handle $20 million in active convertible bonds and will name finalists in late September. Interested firms may contact the plan or consultant Morgan Stanley, Mr. Davis said.
The plan also retained Banc One as custodian.
Morgan gets Tucson realty
The $525 million Tucson Supplemental Retirement System will place its entire real estate allocation of 5% of total assets in the J.P. Morgan Strategic Property fund, said L. Joseph Ladenburg, treasury administrator.
Initial funding will come from withdrawing its $20 million investment in Sentinel's apartment fund and reducing Fidelity's active domestic small-cap growth equity portfolio by $7 million, leaving it with $58 million.
Wisconsin in Frontenac fund
The $66 billion State of Wisconsin Investment Board committed $50 million to Frontenac Capital's latest private equity fund, Frontenac VIII.
The retirement fund already has $40 million in other Frontenac funds.
Funding for the additional allocation came from cash reserves in the $310 million venture capital portfolio, said Vicki Hearing, spokeswoman.
LA County exec moves to Pru
David Locke, who oversaw $1.5 billion in private equity assets at the Los Angeles County Employees' Retirement Association, was named a vice president at Prudential Global Private Equity Group, where he will build a fund-of-funds business.
Mr. Locke replaces Michael Arpey, who moved to DLJ Merchant Banking to develop a customized fund-of-funds business for institutional clients.
Ken Shaffer, chief investment officer at the $31 billion LACERA system, said no decision has been made on a replacement for Mr. Locke.
Orange County seeks exec
The $4 billion Orange County Employees Retirement System hired consultant DMG Maximus to assist in hiring a new administrator, said John M.W. Moorlach, county treasurer and investment board member.
The full board is expected to interview finalists, Mr. Moorlach said, adding no time line has been established.
Former administrator Ray Fleming left the fund in July. During the search process, the fund is being run by a four-person management team including Farouki Majeed, CIO, and James Buck, COO.
Hedge fund firm bought
ED&F Man Group, the London-based alternative investments manager, will acquire hedge fund-of-funds manager Glenwood Capital Investments for $110 million. Glenwood has $1.4 billion in assets under management; Man Group has $3.3 billion under management.
The Glenwood management team continue to operate out of Chicago.
Meriden hires McKinley
The $135 million Meriden (Conn.) Municipal Employee Pension Board hired McKinley Capital to manage $3 million in active domestic all-cap growth equities.
Funding came from reducing the portfolios of three existing managers.
Trustees hired McKinley because of its performance as a manager for Meriden's $106 million police and fire fund, said John Miniter, trustee.
A.G. Edwards assisted.
Hunter picks MassMutual
Hunter Engineering hired MassMutual as administrator and record keeper for its $25 million profit-sharing plan, replacing Vanguard.
MassMutual offered better Internet capabilities and a local presence, and the company was concerned with turnover at Vanguard, said Joseph Staniszewski, CFO.
New investment options are the David L. Babson Government Money Market, Core Bond, Balanced, Value and Small-Cap Equity; Davis Selected Large-Cap Value; Deutsche Indexed Equity; OppenheimerFunds Capital Appreciation and International Equity; Janus Aggressive Growth; and T. Rowe Price Mid-Cap Growth.
FirstEnergy chooses Goode
FirstEnergy's $2.6 billion defined contribution plan hired Goode Investment Management to run $25 million in the Goode Stable Value Fund.
Founder Bruce Goode, who started Goode last October after 24 years with KeyCorp, said FirstEnergy is the first major institutional client to commit money to the fund.
Donald Perrine, director of investment management at FirstEnergy, said he chose Goode because "the manager has a nice track record and has done a good job of delivering performance."
New firm gets funded
ICV Capital Partners, a newly formed private equity investment firm focusing on inner-city and minority markets, raised nearly $100 million in capital commitments, including from the New York State Common Retirement Fund. Its investment is through Fairview Capital II LP, said Jeffrey Gordon, spokesman for the $127 billion Common Fund, which has $15 million invested in the partnership.
ICV plans to make investments up to $30 million in industrial manufacturing, consumer and commercial products and services, food processing and health care.
KLA-Tencor adds option
KLA-Tencor will add a company stock option to its $310 million 401(k) plan, beginning Oct. 1, to give employees a chance at ownership and to meet participant requests, said Cecilia Hermes, retirement and stock services supervisor. The plan currently has 11 investment options.
Merrill Lynch/Howard Johnson is service provider.
Goldman gets fund nod
Advance Asset Management hired Goldman Sachs as the sole manager for its Worldwide Shares Fund.
The fund had been managed by Wellington and Morgan Stanley Dean Witter.
The A$150 million (U.S.$86 million) fund wanted a style-neutral strategy that was risk-controlled, said Stephen Lam, Advance's CIO