Ace Hardware Corp.
OAK BROOK, Ill. - Ace Hardware Corp. hired Strong Capital Management to run $13 million in an active domestic small-cap blend of growth and value stocks for its $164 million employer-directed profit-sharing plan, said Sandra Brandt, treasurer. Strong replaces Furman Selz Capital Management, which was dropped because of performance. John Bergamini, Furman Selz managing director, didn't return phone calls seeking comment.
Disabato Associates assisted.
AssetMark Investment Services
Pleasant Hill, Calif. - AssetMark Investment Services hired 11 money managers to subadvise its new family of multimanager mutual funds. They are: Ariel Capital; Brandes Investment; Cramer Rosenthal McGlynn; Deutsche Asset; Lazard Asset; Lend Lease Rosen; Lombard Odier; Provident Investment Counsel; TCW Investment; William Blair; and Weiss, Peck & Greer.
AssetMark also hired BARRA RogersCasey to provide initial research, due diligence and analysis for manager selection and ongoing portfolio monitoring and risk measurement.
Columbus Medical Association
COLUMBUS, Ohio - The $75 million Columbus Medical Association Foundation hired four active domestic managers, said Brandon Evans, investment manager. MDL Capital Management will run $11 million in fixed income; Columbia Management, $5.2 million, small-cap growth equities; Lotsoff Capital Management, $5.2 million, small-cap value equity; and Banc One Investment, $11 million, core fixed income.
Funding for all the hirings will come from the termination of several managers Mr. Evans did not name. Changes were made due to an asset allocation study conducted by consultant William Mercer.
HUNTSVILLE, Ala. - Dynetics Inc. hired New York Life Benefit Services as semibundled provider for its $65 million 401(k), money purchase and employee stock ownership plans, said Robert Wilkes, head of the firm's investment advisory committee. New York Life replaces Zurich Scudder.
Options now include a State Street Brokerage self-directed brokerage account, a New York Life Anchor account and the following mutual funds: Zurich Scudder Global Discovery; Janus Fund; INVESCO Dynamics; Oppenheimer U.S. Government Trust and Global; PIMCO Total Return; Eclipse Index Equity; Mainstay MAP Equity; Davis New York Venture; RS Emerging Growth; Strong Advisor Small-Cap Value; Oakmark Select; and three Barclays Global Investors lifestyle funds.
Zurich Scudder executives declined to comment.
Flower City Tissue Mills
ROCHESTER, N.Y. - Flower City Tissue Mills hired Victory Capital as bundled provider for its $1 million 401(k) plan. Victory, which offers 10 investment options, replaces J.P. Morgan Fleming, which offered seven options. J.P. Morgan Fleming informed the plan it no longer would provide 401(k) and profit-sharing services to small businesses, said Tom Myers, Flower City treasurer.
J.P. Morgan Fleming has developed a small business investment and insurance services group, said K.S. Ramdas, senior vice president of small business investment and insurance services. Seven months ago, the firm formed a strategic alliance with Oppenheimer Funds to provide the "entire gamut of services to small businesses," he said.
John Hancock Funds
BOSTON - John Hancock Funds hired Bank of New York to provide accounting and custody services for its $26 billion mutual fund assets. Investors Bank & Trust, Brown Brothers Harriman and State Street Bank were custodians for the funds. John Hancock wanted to consolidate its custody services with a single provider to reduce costs, said Liz Kennedy, spokeswoman for John Hancock.
Indiana State Teachers
INDIANAPOLIS - The Indiana State Teachers' Retirement Fund hired Holt-Smith & Yates to manage $25 million in active domestic large-cap growth equities. Funding came from reducing an S&P 500 index fund managed by Barclays Global Investors, leaving it with $975 million, said Robert Newland, chief investment officer for the $6 billion fund. The change was made for diversification.
Intermountain Health Care
SALT LAKE CITY - Intermountain Health Care hired Investment Counselors of Maryland to manage an undisclosed amount in active domestic small-cap value equities. Bruce Blanchard, chief investment officer, declined to provide the asset size of the fund or the amount of the portfolio.
Funding comes from terminating a Russell 2000 index fund managed by Barclays Global Investors, because "we believe active managers are performing better right now," he said.
CHARLOTTE, N.C. - Lance Inc. hired mPower to provide online investment advice to participants in its $250 million 401(k)/profit-sharing plan. Employees wanted investment advice, said Greg Morris, senior director of benefits and risk management at Lance. The plan has 12 investment options, including four lifestyle funds. First Union, the plan's semibundled provider, has an alliance with mPower.
The Managers Funds
NORWALK, Conn. - The Managers Funds hired Holt-Smith & Yates as subadviser for the Managers Capital Appreciation Fund, a midcap and large-cap growth fund.
Holt-Smith & Yates will co-manage the portfolio along with existing manager Essex Investment Management. Holt-Smith & Yates replaces Roxbury Capital.
BOSTON - Manulife Financial hired Dreyfus as subadviser for its new mutual fund portfolio, the All Cap Value Trust. The fund will be available to 401(k)s and pension fund investors through the Manulife Series lineup.
Marin County Employees
SAN RAFAEL, Calif. - The $900 million Marin County Employees' Retirement Association hired, pending contract negotiations, Morgan Stanley, Dresdner RCM and Western Asset each to run $90 million to $100 million, said Norman Klein, retirement administrator.
Morgan Stanley will run an international value equity portfolio; Dresdner RCM, active domestic large-cap growth equities; and Western Asset, core fixed income.
The changes are part of a restructuring that involved shifting assets to active from passive portfolios and creating a 50/50 split between value and growth portfolios.
The fund intends to terminate Zurich Scudder, which runs $90 million in an active international core equities portfolio. Morgan Stanley will pick up the international value equity portfolio, totaling 10% of total assets; Montgomery Asset Management previously was hired to run an active international growth portfolio of equal size.
Meanwhile, the amount BGI runs in passive domestic core and core enhanced equity portfolios will shrink to 14.4% of total assets from 22.5%. Dresdner RCM will run 10.8% of total assets in actively managed large-cap growth stocks, increased from 4.5% that previously were run passively by BGI. An active large-cap value portfolio will be increased to a matching 10.8% of assets from 9%; Dodge & Cox will continue as the manager of that portfolio.
In fixed income, a 19% core portfolio run by Seneca will be split into two parts of 11.5% each. Seneca's portfolio will be converted into a core-plus portfolio, while Western will run a core portfolio. A global passive bond portfolio managed by BGI will be dropped, providing the balance of the funding.
Callan Associates assisted.
The Monument Funds Group
BETHESDA, Md. - The Monument Funds Group hired Orbitex Financial Services Group as interim subadviser for the Monument Digital Technology, Medical Sciences and Telecommunications mutual funds while Monument reorganizes its portfolio management operations. Orbitex also will assist with marketing the funds.
North Dakota Investment Board
SEI replaces two domestic small-cap equity management firms: Brinson Partners, which managed $193 million in value; and Nicholas-Applegate, which handled $83 million in growth.
The changes were made to "optimize diversification, risk control and return potential," said Steve Cochrane, executive director and chief investment officer.
The board includes a $2.5 billion pension trust and a $943 million insurance trust.
San Francisco City & County
SAN FRANCISCO - The $11.5 billion San Francisco City & County Employees' Retirement System committed $20 million to CSFB Global Opportunities, a distressed securities fund, and $20 million to DLJ Merchant Banking III, a private equity fund. Cambridge Associates consulted.
Jessie Smith Noyes
NEW YORK - The $75 million Jessie Smith Noyes Foundation, New York, hired Chicago Equity Partners to manage $5 million in active domestic large-cap value equities and NorthPointe Capital to run $5 million in active domestic small-cap value equities. Funding will come from rebalancing.
Ohio Highway Patrol
COLUMBUS, Ohio - The $634 million Ohio State Highway Patrol Retirement System committed $20 million to the Fidelity Real Estate Growth Fund. Funding comes from rebalancing, said Richard Curtis, executive director.
University of St. Thomas
ST. PAUL, Minn. - The University of St. Thomas committed $13.5 million to a UBS Realty real estate investment trust, said Carol Peterfeso, assistant treasurer of the $260 million endowment.
Funding came from the portfolios of several active domestic fixed-income managers. Changes were made for diversification.
The Terteling Co. Inc.
BOISE, Idaho - The Terteling Co. Inc. hired ADP Benefits Services as a bundled provider for its $54 million profit-sharing plan, said Flinda Terteling, vice president. ADP replaces Caterpillar Investment Management.