Flanigan's new CIO gig
Thomas Flanigan was named CIO of the $22 billion State of Connecticut Retirement & Trust Funds, effective next month, said Denise Nappier, state treasurer.
Mr. Flanigan, CalSTRS' ex-CIO, was recommended by Ms. Nappier and approved by the Connecticut Investment Advisory Council.
The new position was created by the Treasury Reform Act, passed in the most recent legislative session after the corruption scandal involving former state Treasurer Paul Silvester.
Minority manager launched
First Union is backing a new investment firm formed by portfolio manager Stephen Dalton and his four-member large-cap equity team from the bank's capital management group.
The five are forming ForeFront Capital Advisors, a minority-owned institutional money manager.
Mr. Dalton will be ForeFront's majority owner. First Union has a 40% equity stake in the new firm.
Mr. Dalton said 35 of his institutional clients at First Union -- mostly corporate pension plans -- with a total of $400 million in assets will move to his new venture.
The firm also will subadvise $1.4 billion for First Union.
$11 billion to SSgA
The University of California Board of Regents awarded $11.55 billion in passive mandates to State Street Global Advisors.
The board, which oversees the investment of $58 billion in university retirement and endowment assets, picked SSgA to manage $8.3 billion in a fund tracking the Russell 3000 index and $3.25 billion in a fund tracking the EAFE index.
Previously, all university assets were managed internally and had no foreign exposure. Of the assets to be transferred, $9.55 billion were taken from a domestic stock portfolio and $2 billion from cash.
Wilshire assisted.
MFR reform delayed - again
The restructuring of British statutory pension funding requirements could be delayed for at least another year.
Alistair Darling, social security secretary, last week unveiled a joint review of the Minimum Funding Requirement by the Faculty and Institute of Actuaries and gave the British pensions industry until Jan. 31 to respond.
The report was to have been released earlier this year after it was delivered to Mr. Darling in May following 18 months of research by the two groups, but Mr. Darling said the government needed to look further at all the options before recommending any changes.
Changes for Vermont
The $1.2 billion Vermont Teachers' Retirement System hired State Street Global Advisors to run $117 million in an S&P 500 non-tobacco index fund, said James H. Douglas, state treasurer and chairman of the fund.
Funding comes from reducing active domestic portfolios managed by Delaware Investment Advisers and Fidelity Investments by $42 million and $88 million, respectively, leaving them with $164 million each, Mr. Douglas said.
The system increased two active global fixed-income portfolios: Loomis Sayles will run $146 million, up from $114 million; and Delaware, $205 million, up from $155 million. Also, it cut J.&W. Seligman's active domestic small-cap equity portfolio by $24 million. The system increased an active international equity portfolio managed by Scudder Kemper to $94 million, from $85 million; and decreased an active international equity portfolio run by Delaware to $94 million, from $164 million.
The changes were made based on a new asset allocation plan, Mr. Douglas said. Callan assisted.
CalPERS eyes alternatives
The $172 billion CalPERS will consider making $470 million in commitments to alternative investment limited partnerships at its Monday investment committee meeting.
Staff recommended investing $200 million in two Alta Partners biotech funds: $135 million to Alta California Partners III and $65 million to Alta Biopharma II. Also, CalPERS' staff proposed committing a total of $105 million to two telecommunications-related funds: $40 million to CEA/Seaport Capital Partners II, which will make controlling and minority private equity investments primarily in media and telecommunications companies; and $65 million to M/C Venture Partners V, an early-stage telecom fund.
CalPERS also will consider committing $40 million to Rosewood Venture Group IV, which will invest in private New Economy firms; and $125 million to WCAS Capital Partners IX, investing selectively on health-care investments and also focusing on buyouts in information services and telecommunications services firms.
PBGC takes over 2
The PBGC took over the underfunded pension plans of two bankrupt companies -- Forstman & Co. Inc., a defunct textile company, and Smith Corona Corp.
Forstman's two pension plans, covering hourly and salaried employees, had combined assets of $27 million and liabilities of more than $31 million. The agency is terminating the pension plans retroactively as of Nov. 5, 1999, when Forstman shut its doors.
Meanwhile, the underfunded pension plan for Smith Corona's salaried employees had total assets of $42 million and liabilities of nearly $48 million, according to PBGC estimates. The pension plan was shut down Aug. 2.
The PBGC took over Smith Corona's pension plan for hourly workers in 1996 as part of the company's court-supervised reorganization.
Lexington chief quits
Robert DeMichele resigned as chairman and CEO of Lexington Management and as chairman of its investment strategy group.
The parent company, Lexington Global Asset Managers, was acquired by ReliaStar/Pilgrim in July, and ReliaStar was subsequently acquired by ING.
Robert Stallings, chairman of ING/Pilgrim and president of Pilgrim mutual funds, will become president, chairman and CEO of Lexington Management, which remains a separately managed subsidiary. "We have two chairmen, and we don't need two chairmen," Mr. DeMichele said. His role as chairman of Lexington's international investment strategy group is being filled by Stanley D. Vyner, chief investment officer, international and fixed-income securities at ING/Pilgrim.
Fort Worth taps Putnam
The $1.2 billion City of Fort Worth Employees' Retirement Fund hired Putnam to manage $130 million in active core international equities. The plan terminated Invista Capital, which managed the same amount in the same asset class, said George Nicolaides, executive director. Performance was not a factor.
Callan assisted
