Changes at NYS Teachers
The $80 billion New York State Teachers' Retirement System terminated Dresdner RCM Global Investors, which managed $190.5 million in domestic small-cap growth equities, for poor performance. The money will be transferred to an internally managed Russell 3000 index fund that now holds $32.8 billion.
Fund officials put Lincoln Capital Management, which manages $324.4 million in domestic large-cap growth equities, on its watch list for performance, and it removed Iridian Asset Management, which manages $518.17 million in domestic large-cap value equities, from the watch list because its performance has improved.
Alexander B. Knowles, director of marketing at Lincoln, said: "We are a growth manager and like many growth managers we've been challenged by the recent market downturn and high volatility. However, we have had a nice rebound in April." Joe Rusbarsky, senior managing director at Dresdner, did not return calls seeking comment.
It also renewed its contract for one year with general investment consultant Evaluation Associates.
Iowa cuts MAS
The $15.9 billion Iowa Public Employees' Retirement System terminated Miller Anderson & Sherrerd, which managed $552.5 million in mortgage-backed securities for the fund, according to Kathy S. Comito, CIO. Iowa is restructuring its $6.7 billion fixed-income portfolio.
It also raised its core-plus fixed-income target allocation by about $810 million, based on recent valuations. It will add about $270 million each to the portfolios run by J.P. Morgan, BlackRock Financial and Western Asset, increasing each to about $1.4 billion.
The system lowered the target weighting of its Lehman Aggregate bond index fund, run by Mellon Capital, to 32% from 33% of total fixed income, an $80 million cut. It also sliced the target weighting of its high-yield bond portfolio, run by Oaktree Capital, to 6% from 7% of total fixed income.
Pell Rudman sold
AMVESCAP is acquiring Pell Rudman from Old Mutual for a cash payment of $172 million and potential asset retention payments of up to $28 million over two years.
Pell Rudman's client base is primarily endowments, foundations and high-net-worth individuals, which will be the cornerstone for AMVESCAP's foray into the high-net-worth market, AMVESCAP Chairman and CEO Charles W. Brady said in a statement. Pell Rudman, which has $8 billion in assets, will retain its name and will operate independently.
Fund, adviser settle
Westport Advisers paid $437,500 to the $21 billion Connecticut Retirement Plans and Trust Funds to settle an ethics complaint related to the administration of former state Treasurer Paul Silvester, said Larry Landry, Westport CEO. The settlement also calls for Westport to pay a $2,000 fine to the State Ethics Commission.
Westport didn't register as a lobbyist or file disclosure reports when it awarded Andrew Moses, a Silvester associate, a $1 million consulting contract to help the firm obtain a $100 million contract from the system. That contract was to develop senior living facilities through the Westport Senior Living Investment Fund.
Mr. Silvester, who pleaded guilty in 1999 to federal charges of racketeering and money laundering, is cooperating with authorities while awaiting sentencing. The firm did not admit to any wrongdoing, Mr. Landry noted.
Putnam's Lucey retiring
Thomas J. Lucey will retire from Putnam Investments June 30. Mr. Lucey, a senior managing director, is chief of institutional, retirement plan and retail businesses.
Steven Spiegel, senior managing director and head of Putnam's international distribution and corporate development activities, will take over investment product distribution in the United States along with his current duties.
Private equity hire near
The L16.1 billion ($23.5 billion) Consignia Pension Plan, formerly known as the Post Office Pension Plan, drew up a short list of private equity managers to run three L100 million portfolios. The plan also committed an additional L100 million to incumbent private equity manager Hermes Investment Management's mandate, doubling its allocation.
Hamilton Lane and Pathway Capital are among those on the short list, said Gerry Degaute, director of finance. Appointments will be made within the next month.
Oregon fund commits
The Oregon Public Employees Retirement Fund committed $50 million to 2000 Riverside Capital Appreciation Fund, which focuses on small buyouts, said Dan Smith, director of investments. The $36 billion system also committed $50 million to Cliffwood Partners, a REIT value fund, and reaffirmed its $1 billion commitment to the Kohlberg Kravis Roberts Millennium Fund.
Funding will come from cash.
Denali to get funding
Progress Putnam Lovell Advisors likely will invest $2 million in Denali Advisors, its fifth investment under CalPERS' manager development program.
Progress Putnam Lovell also agreed to allocate $100 million to Denali to be managed in quantitative U.S. value equities. The deal closes April 30 and will be funded May 1.
New Dutch fund exec
Roland van den Brink was appointed managing director, a new position at the 25 billion guilder ($10.2 billion) Pensioenfonds voor de Metaalnijverheid, which covers workers in the Dutch heavy metals industry. He will join PMI next week and initiate a review of the investment strategy with Dutch insurer Achmea, which manages the fund's assets.
Mr. Van Den Brink was head of investment strategy at MN services, Rijswijk, Netherlands, which administers and runs the assets of the 29 billion guilder Stichting Bedrijfspensioenfonds voor de Metaal en Technische Bedrijfstakken.
Union opposes Kodak
The Service Employees International Union's $1.5 billion Master Trust is leading a campaign to oppose the election of the four nominees to the Eastman Kodak. board, including former Democratic presidential contender Bill Bradley.
Mr. Bradley, a new nominee, along with Laura d'Andrea Tyson, Council of Economic Advisers chairwoman during the Clinton administration and a current director, and two others are nominees to be approved by the board at its May 9 meeting.
The campaign follows Kodak's refusal to improve board accountability, despite SEIU resolutions to eliminate staggered three-year terms and to have directors elected annually.