American Airlines Inc.
FORT WORTH, Texas - American Airlines Inc. has committed $50 million from its $6 billion defined benefit plan to Carlyle Partners III, Carlyle's latest U.S. buyout fund, said William Quinn, president of AMR Investment Services. Funding will come from cash.
The plan also will make commitments of $40 million to $50 million each to Hicks Muse Tate & Furst V and Fremont Partners II, Mr. Quinn said. American recently raised its target private equity allocation to 10% of total assets from 6%. Funding will come from paring public equities.
Archie Comic Publications
NEW YORK - Archie Comic Publications Inc. hired CitiStreet as bundled provider for its $600,000 defined contribution 401(k) plan, said Edward Spallone, chief financial officer. Previous bundled provider Chase Manhattan Bank declined to continue handling the plan because it has less than $2 million in assets, Mr. Spallone said. Archie Comic dropped the six funds run by Chase Manhattan and took on a package of 50 investments offered by CitiStreet.
SIOUX FALLS, S.D. - Augustana College hired Deutsche Bank as consultant and custodian for its $30 million endowment, replacing US Bank, said Loren Koepsell, budget director. The fund also will add five Deutsche mutual funds, replacing seven funds from US Bank, said Mr. Koepsell.
The endowment also hired US Bank subsidiary First American Asset Management to run $9 million in active global fixed income, replacing US Bank, which managed the money in a passive domestic fixed-income portfolio, said Mr. Koepsell.
ST. LOUIS - BJC HealthCare retained CitiStreet as bundled provider for its $100 million 403(b) plan and for its new 401(k) plan; both offer the same 17 investment options, said Norm Handshear, BJC human relations director.
California State Teachers
SACRAMENTO, Calif. - CalSTRS committed $300 million to Madison Dearborn Capital Partners IV, investing in growth equities and management buyouts; and $200 million to Whitney V, targeting growth-oriented companies in communications, health care, technology and financial services, said Christopher J. Ailman, chief investment officer for the $108 billion system. The California State Teachers' Retirement System has invested previously with the two managers, Mr. Ailman said.
Crain Communications Inc.
DETROIT - Crain Communications Inc. replaced three investment options with three new funds, and added another four investment options to its $72 million profit-sharing plan. It also added a self-directed mutual fund brokerage window, for which participants will pay an annual fee, as well as transaction costs.
The plan dropped the AIM Constellation, Templeton Foreign and Fidelity Advisor Growth Opportunities funds, replacing them with the Putnam Vista Fund A, the Putnam International Growth Fund A and the MFS-Massachusetts Investors Growth Stock Fund A. It also added the Neuberger Berman Genesis Trust fund, the MFS Value Fund A, the AIM Basic Value Fund A, and the Federated Total Return Bond fund.
The plan retained the Franklin Small Cap Fund and the AIM Balanced Fund, as well as an S&P 500 index fund and a stable value fund, both from Comerica. Standard & Poor's, the plan's consultant, assisted. Crain Communications owns Pensions & Investments.
Electricity Supply Pensions
SELBY, England - Electricity Supply Pensions Scheme-AES Drax Power Group Pension Plan hired SEI Investments as manager of managers for a L20 million ($29.4 million) U.K. equity and fixed-income portfolio. The pension plan for staff of AES Drax Power Ltd. was formed last year when the company was bought out from U.K. electricity supplier National Power. The plan will have assets of L40 million to L50 million once the transfer of assets for AES Drax plan members from the Electricity Supply Pensions Scheme is complete, said Tony Osborn-Barker, of the plan's adviser, Deloitte & Touche Investment. Legal & General Investment Management was hired to run the balance of the plan's assets in U.K. and global equities, said Mr. Osborn-Barker.
ATLANTA - Enterprise Funds hired Wellington Management to subadvise a new mutual fund, the Enterprise Deep Value Fund.
Federal Retirement Thrift
WASHINGTON - The Federal Retirement Thrift Investment Board retained Barclays Global Investors to manage the S&P 500 index fund and the domestic fixed-income index fund offered by the $100 billion thrift savings plan for federal government employees.
WASHINGTON - The GCIU Supplemental Retirement & Disability Fund hired Comerica as custodian and securities lending agent for its $1.6 billion defined benefit plan, replacing Deutsche Bank, said G.L. Griesbauer, fund administrator.
LOS ANGELES - HighMark Funds hired Nicholas-Applegate Capital Management as its first subadviser; it will manage the new HighMark Small Cap Growth Fund.
Hilton Hotels Corp.
BEVERLY HILLS, Calif. - Hilton Hotels Corp hired RhumbLine Advisors to manage $20 million in a passive large-cap equity portfolio benchmarked to the S&P 500 and $10 million in a passive midcap equity portfolio benchmarked to the S&P 400 for Hilton's $315 million defined benefit plan. Funding comes from terminating Bank of New York, which managed a $30 million portfolio benchmarked to the S&P 500.
Separately, Hilton merged its 401(k) plan with that of Promus Hotels, which it purchased in 1999. CitiStreet is bundled provider for the $410 million merged plan, which offers 15 investment options, including a self-directed brokerage window. CitiStreet was bundled provider for Hilton Hotels' $169 million 401(k) plan;. General Electric Asset Management and CitiStreet were service providers for Promus Hotels' $241 million 401(k) plan.
IBEW Local 405
CEDER RAPIDS, Iowa - IBEW Local 405 added a self-directed brokerage option to its $34 million 401(k) plan, said Tom Shea, business manager. Wells Fargo is the service provider for the plan.
NASHVILLE, Tenn. - Lipscomb University hired Wells Real Estate Funds to run $2 million in a non-publicly traded REIT fund for its $60 million endowment, said Don Hedrick, co-chairman of the board's real estate and finance committee.
Lockheed Martin Corp.
BETHESDA, Md. - Lockheed Martin Corp. on April 2 will add several investment options to its $12.7 billion 401(k) plan. They are: Putnam International Growth Fund; State Street Global Advisors small-cap and midcap index fund; Deutsche Lehman Aggregate Index bond fund; a set of three asset allocation funds from Deutsche; and a self-directed brokerage account from State Street Global, the plan's record keeper. The plan now will have three tiers of investment options comprising 10 core funds, including company stock; the asset-allocation fund tier; and the brokerage account.
CHESTERFIELD, Mo. - Logan College of Chiropractic hired Freund & Co. Investment Advisors to supervise management of its endowment, building and research portfolios, which total $20 million. Freund will use BARRA RogersCasey's manager-of-managers funds as the investment vehicles, which will be wrapped by AssetMark Investment Services. Schwab Institutional is custodian for all three accounts. The three portfolios were managed by Salomon Smith Barney; Rogers Co.; and the trust departments of Commerce Bank and Enterprise Bank, said Tim Lane, spokesman.
State of Maine 457
AUGUSTA, Maine - The State of Maine hired Buck as consultant to review its $193 million 457 plan, said Carol Whitney, state controller.
Ohio Workers' Compensation
COLUMBUS, Ohio - The $18 billion Ohio Bureau of Workers' Compensation hired 10 active international equity managers to handle a total of $1.8 billion: Lombard Odier; Perigee Investment Counsel; Putnam; Aeltus; Clay Finlay; Montgomery Asset; Oechsle; Simms Capital; TCW; and INVESCO. The new managers will be funded through reducing domestic equity and domestic fixed-income allocations, said Bob Cowman, chief investment officer.
TACOMA, Wash. - Frank Russell Investment Management hired MFS Institutional Advisors to manage U.S. large-cap value equities worth a total $1.25 billion, part of eight manager-of-managers portfolios. Sarah Hodges, spokeswoman at Frank Russell, would not say what manager MFS is replacing or why.
Separately, Frank Russell Investments (Japan) hired Systematic Financial Management to manage U.S. large-cap value equities as an additional manager in its $288 million Russell International Equity Mother Fund. Systematic also was hired by Frank Russell Co. for the $861 million Multi-Style, Multi-Manager U.S. Equity Fund.
PLEASANTON, Calif. - Safeway Inc. hired Howard Johnson as record keeper and administrator and Wells Fargo as trustee for its $1 billion 401(k) plan, replacing Merrill Lynch, said Geri Burrell, director of benefits. Howard Johnson offered a customized plan that will help Safeway with its technological needs, she said.
Sarasota Police Officers
SARASOTA, Fla. - The Sarasota Police Officers' Pension Fund hired 1838 Investment Advisors to manage $30 million in active domestic large-cap core equities, replacing Mississippi Valley Advisors, said Benita Saldutti, plan administrator. The changes were made because of personnel turnover at Mississippi Valley, she said.
The $118 million fund also hired active domestic equity managers Forstmann-Leff Associates to handle $6 million in midcap growth and Nicholas-Applegate to run $6 million in small-cap growth.
The managers were added for diversification; funding will come from rebalancing, Ms. Saldutti said.
BRISTOL, England - The Somerfield PLC Pension Scheme hired Baring Asset Management to manage L60 million ($89.5 million) in U.K. fixed income. Officials at the L300 million plan decided to raise its fixed-income allocation as part of a broad investment policy overhaul. Nick Redman, group pension manager and plan secretary, would not give further details.
South Dakota State University
BROOKINGS, S.D. - The $45 million South Dakota State University Foundation shifted its assets into a $35 million active domestic large-cap and midcap value equity portfolio and a $5 million active international value portfolio managed by Wells Fargo, and a $5 million portfolio in active domestic small-cap growth equities handled by KB Growth Advisors, said Beth Abraham, controller. All of the foundation's assets were in an active international large-cap value portfolio that was managed by Norwest, which was purchased by Wells Fargo. The change was made for diversification, she said.
Winchester Retirement Board
WINCHESTER, Mass. - The $56 million Winchester Retirement Board hired State Street Global Advisors to manage $2 million in an active emerging-markets portfolio, said Gail F. Rotman, administrative secretary. Employer contributions were used to fund the new manager.