MONTGOMERY, Ala. -- The $608 million Alabama Pre-Paid Affordable College Tuition fund hired Regions Bank to manage a new $60 million active domestic fixed-income portfolio.
Funding comes partially from reducing an active domestic fixed-income portfolio managed by Stern Agee, leaving it with $60 million, and partially from terminating its international managers, Delaware Pooled Trust and Julius Baer.
The Alabama fund no longer has any international investments, said Brenda Emfinger, PACT director.
The fund added the fixed-income manager for diversification.
The fund also selected five finalists, whose names were not released, for a new active core domestic equity manager to run $42.6 million. Funding will come from the terminated international portfolios.
Watson Wyatt is assisting.
Arizona Tax Deferred Annuity
PHOENIX, Ariz. -- Arizona Tax Deferred Annuity Board retained incumbent Public Employees Benefits Services as bundled provider.
The $1.2 billion annuity board had conducted a search to investigate whether it was getting the best service and performance, said Rick Griffeth, chairman. The 401(k), 457 and 403(b) plans offer 38 options each.
City of Austin Employees
AUSTIN, Texas -- The City of Austin Employees' Retirement System hired Northern Trust Quantitative Advisors to manage $330 million in a passive S&P 500 index portfolio. The $1.4 billion fund is increasing its use of indexing as the result of an asset-liability study completed last fall, said Cathy Harrington, pension director.
Partial funding came from terminating a $150 million large-cap value equity portfolio managed by Thompson Siegel & Walmsley; Ms. Harrington said the termination was not related to performance. The rest of the assets came from rebalancing the portfolios of existing equity managers.
Also, Northern Trust was hired to manage $220 million in a passive fixed-income portfolio benchmarked to the Lehman Brothers Government/Corporate Aggregate index. Funding came from terminating Standish Ayer & Wood and Davis Hamilton Jackson, which managed $150 million and $70 million, respectively, in active core bonds.
Ms. Harrington said the terminations were due to the fund's decision to index more of the total bond portfolio.
Northern already managed $170 million in domestic indexed equities and $59 million in passive international equities, she said.
Chicago Transit Authority
CHICAGO -- The $1.9 billion Chicago Transit Authority Employees' Retirement System doubled its real estate allocation to 10%of assets and hired Prudential, RREEF and J.P. Morgan to run $22.2 million each in core real estate, said John Kallianis, executive director. The source of funding has not been identified.
Consolidated Freightways Corp.
VANCOUVER, Wash. -- Consolidated Freightways Corp. hired Putnam to manage a $35 million international commingled fund, said James Epperson, cash manager. Funding comes from reducing the T. Rowe Price Fleming Foreign Discovery Trust fund, leaving it with $35 million. He said the $300 million plan decided to diversify.
LONDON -- Diageo PLC hired Cohen, Klingenstein & Marks to manage a $175 million large-cap portfolio of mostly domestic stocks for the $5 billion fund.
The decision is the result of an asset-liability study conducted after Diageo was formed from the December 1997 merger of Grand Metropolitan PLC and Guinness PLC, said Philip Page, a consultant with Bacon & Woodrow, the U.K. affiliate of Callan Associates, which assisted in the search.
Diagnostic Products Corp.
LOS ANGELES -- Diagnostic Products Corp. has converted its internally managed defined benefit and profit-sharing plans to a single, $22 million 401(k) plan with a profit-sharing component and hired CIGNA Retirement & Investment Services as semibundled provider, said Jim Brill, chief financial officer.
In addition to its profit-sharing and company matching contributions, Diagnostic Products makes an independent company contribution to the 401(k) plan that does not require contributions by eligible employees, Mr. Brill explained.
The new plan has 10 to 12 investment options, plus Diagnostic Products stock.
Mr. Brill declined to name the funds but said the selection includes a set of lifestyle funds and "a fruit salad of different options" that are not all managed by CIGNA, which also runs the company's health care plan.
Finn Graphics Inc.
CINCINNATI -- Finn Graphics Inc. hired Fifth Third Bank as semibundled provider for its new $2 million 401(k) plan with a profit-sharing component, said Robert Finn, chief executive officer.
Finn folded a profit-sharing plan run by Fifth Third into a 401(k) to allow its 60 employees to make their own investment decisions, Mr. Finn said.
Mr. Finn declined to name the seven investment options, but he said they are all actively managed.
Iowa Judicial Retirement
DES MOINES, Iowa -- The $72 million Iowa Judicial Retirement System hired Vanderbilt to manage $28 million in active international fixed income, replacing Fiduciary Trust. The no longer felt Fiduciary's strategy fit its needs, said Gene Lackershire, investment officer.
Louisiana State Employees
BATON ROUGE, La. -- The $7 billion Louisiana State Employees' Retirement System hired Montgomery Asset Management and Nicholas-Applegate each to run $150 million in concentrated international equity portfolios, said Robert Borden, chief investment officer.
Funding came from reducing the international value portfolios of Templeton Investment and Delaware Investment Advisers by $150 million each, leaving them with $150 million each.
Both Templeton and Delaware's mandates were changed from diversified international value to concentrated international value, each containing 30 to 40 stocks. Mr. Borden said the changes were made "so we could play to each manager's strength."
New Mexico Public Employees
SANTA FE, N.M. -- The New Mexico Public Employees' Retirement Association hired State Street Global Advisors and rehired Deutsche Asset Management as domestic passive equity managers.
State Street will run an undetermined number of index portfolios of $50 million to $100 million each, said Bob Gish, director of investments at the $8.5 billion fund. Exact allocations will be determined within the next 12 months.
The fund is considering the following indexes: S&P/BARRA Value; Russell 2000; Russell 2000 Value; Russell 2000 Growth; Russell 3000; Wilshire 5000; Russell Top 200; S&P 500 tobacco-free; and S&P 400, Mr. Gish said. The fund is leaning toward the S&P 400 and the S&P/BARRA Value indexes.
Funding for the additional index allocations is expected to come from cash.
Deutsche will continue managing $650 million in an S&P 500 index portfolio and $750 million in a Russell 1000 Growth index portfolio. Fund officials also are considering giving Deutsche $50 million to $100 million to run in a Russell 2000 index and/or an S&P 400 index portfolio, he said.
Ohio Police & Firemen
COLUMBUS, Ohio -- The Police & Firemen's Disability & Pension Fund of Ohio hired high-yield bond managers W.R. Huff Asset Management, Shenkman Capital Management and MacKay-Shields to manage $150 million each for the $9 billion fund.
Oklahoma School Land Trust
OKLAHOMA CITY -- The $1.2 billion Oklahoma School Land Trust hired Aronson + Partners to manage a $56 million active domestic large-cap value equity portfolio, replacing Sanford C. Bernstein, said Herb Johnson, investment director.
SANFORD, Fla. -- The Sanford Police Pension Fund hired Cutler to manage $5.5 million in active domestic large-cap value equities; Freedom Capital, $5.5 million in active domestic large-cap growth; and Atlanta Capital, $7 million in active domestic fixed income.
The managers replace SunTrust, which had managed all of the $20 million plan's assets and served as custodian. Salem Trust replaced SunTrust as custodian. Greg McNeillie, senior consultant at Dahab Associates, said SunTrust was terminated from both roles for performance reasons. Barry Colling, a SunTrust spokesman, did not respond to calls for comment.
Santa Clara Valley
SAN JOSE, Calif. -- Santa Clara Valley Transportation Authority hired Putnam to manage $18 million to $20 million in active international equities for the $190 million fund, said Scott Buhrer, chief financial officer. Funding comes from reducing an active domestic fixed-income portfolio handled by Dodge & Cox, leaving it with $105 million. Mr. Buhrer said the move was made for diversification.
Sheet Metal Workers
MANHATTAN BEACH, Calif. -- The Sheet Metal Workers Pension Plan of Southern California, Arizona and Nevada, hired Roxbury to handle an active domestic midcap growth equity portfolio. The $943 million plan added the manager for diversification, said Rich Wondra, administrator, who declined to identify the funding source or portfolio size.
Salomon Smith Barney assisted.
LUBBOCK, Texas -- Texas Tech University hired Compass Bank as custodian for its $260 million endowment trust, replacing Deutsche Bank, which was terminated because of pricing issues, said Jim Brunjes, vice president-fiscal affairs.
Waterford General Employees
WATERFORD, Mich. -- Chartered Township of Waterford General Employees Retirement System hired consultant Portfolio Analytics, replacing Merrill Lynch, said Nancy Smith, chairwoman. The $40 million plan will conduct an asset allocation study, to be completed in early 2001.
It also will begin interviewing finalists next week in its search for a custodian, also replacing Merrill.
The plan undertook the searches because it had not looked at other options since hiring Merrill Lynch in 1992.
West Virginia Investment
CHARLESTON, W.Va. -- The $7 billion West Virginia Investment Management Board hired Capital Guardian to manage $90 million in emerging markets stocks, said H. Craig Slaughter, executive secretary.
Jacobs Asset Management, which ran a $165 million international equity portfolio, was terminated after key employees left when parent company United Asset Management merged the firm with Thompson Siegel & Walmsley, he said.
The board split the remaining $75 million equally among three existing international stock managers.