OAKLAND, Calif. - The $3.6 billion Alameda County Employees' Retirement Association hired Brandywine Asset Management to run $210 million in global fixed income, subject to fee negotiations. If the parties fail to agree on fees, the pension fund's second choice is Bridgewater Associates, according to minutes of the Oct. 12 investment committee meeting. The move into global fixed income is a first for the fund, and stems from a new asset allocation decided late last year.
LINCOLN, Neb. - Ameritas Investment Corp. hired John McStay Investment Counsel to manage the $90 million Ameritas Small Capitalization portfolio of the Calvert Variable Series of funds, said Robert O`Meara, assistant treasurer. McStay replaces Fred Alger Management, which had on-going performance problems, said Mr. O`Meara. Alger still subadvises three other portfolios in the Calvert Variable Series.
Jim Connelley, executive vice president of Fred Alger Management, did not return calls by press time regarding the termination.
Archdiocese of St. Louis
ST. LOUIS - The Archdiocese of St. Louis hired Diversified Investment Advisors as semibundled provider for its $60 million 403(b) plan and changed its menu of investment options, said Mike Kelly, managing director, human resources.
Equitable had been the provider. The archdiocese made the change to move out of insurance-based investment options such as annuities and to reduce costs. The finalists were MetLife and Prudential, said David Hinderstein, consultant with GBS Retirement Services.
The plan now offers 16 investment options; it had 35 before.
CHICAGO - Ariel Capital Management hired Lincoln Capital Management as subadviser of Ariel Premier Growth Fund, a new large-cap fund that will launch Feb. 1. Lincoln also is subadviser of the Ariel Premier Bond Fund.
Barclays Global Investors
SAN FRANCISCO - Barclays Global Investors hired Schwab to run its $18 million 401(k) plan, said Barton Waring, managing director.
Merrill Lynch was the plan's previous administrator, he said. Further details were not available at press time.
Battle Creek Foundation
BATTLE CREEK, Mich. - Battle Creek Community Foundation hired Frank Russell to provide asset allocation services, investment management, custody, transition management and performance reporting, said Cindy Leach, financial officer. The foundation will use Russell's manager-of-managers funds.
Previously, Fund Evaluation Group was the $48 million foundation's consultant; Cohen, Klingenstein & Marks managed active domestic growth equities; and Alliance Bernstein, active domestic value equities. The fund also was invested in five mutual funds, Ms. Leach said. She declined to provide further details.
COLUMBUS, Ohio - Big Lots Inc. hired American Express Retirement Services as record keeper and trustee for its $65 million 401(k) fund, said Mark Fisher, director of benefits human resources information systems. The plan's previous record keeper and trustee was Fifth Third Bancorp. Mr. Fisher would not say why the change was made.
The plan will increase its investment options, provided by Merrill Lynch, Janus, Dryfus and Fidelity, to 12 from nine.
SACRAMENTO, Calif. - CalPERS invested $75 million in the Thailand Equity fund, a new private equity vehicle sponsored by Lombard Investments and the World Bank's International Finance Corp. The $144 billion California Public Employees' Retirement System is the largest investor in the fund, which is expected to reach $250 million.
Thailand's Finance Ministry will invest about $30 million. Other domestic investments include: $50 million from 13 members of the Thai Bankers Association; $10 million from the Industrial Finance Corp. of Thailand; and $5 million each from the Thai Government Pension Fund and the Government Savings Bank. Other foreign investments include $37.5 million from the IFC and $25 million from the Asian Development Bank.
The fund will invest only in companies that agree to comply with the government of Thailand and IFC environmental and social policies, including tough corporate governance policies.
Ciba Specialty Chemical U.K.
MACCLESFIELD, England - Ciba Specialty Chemical U.K. Pensions Scheme, Macclesfield, hired AXA Rosenberg Investment Management to manage L44 million ($64 million) in pan-European equities.
Incumbent J.P. Morgan Fleming was terminated following a routine performance review by the L449 million plan, said Sally Seed, plan spokeswoman. She would not give further details.
Arno Kitts, head of U.K. institutional business at J.P Morgan Fleming, said the firm does not comment on client relations.
This is AXA Rosenberg's first hire by a U.K. client to manage a pan-European equity mandate that includes U.K. investments, Jennie Paterson, AXA Rosenberg CEO, said in a statement.
William M. Mercer advised.
ANN ARBOR, Mich. - Flint Ink next year will add the Fidelity Midcap and Dodge & Cox Balanced funds to the lineup of 12 investment options in its $290 million 401(k) plan, said Anne C. Wolf, director of benefits and compensation. The plan's bundled provider is Northern Trust Retirement Services.
FARMVILLE, Va. - Longwood College Foundation outsourced 99% of its $25 million endowment to manager of managers Frank Russell. The foundation's investment committee will work with Russell staff on asset allocation, said Darlene Selz, CFO and treasurer.
Mangum Associates was the foundation's consultant. Alliance Bernstein managed large-cap equities; Grantham, Mayo Van Otterloo, international equities; Mentor Investment Group, a balanced portfolio; and Commonfund, fixed income. Further details were not available.
Commonfund continues to manage 1% of the fund's assets in short-term fixed income, Ms. Selz said.
Marines Personal & Family
QUANTICO, Va. - Marine Corps Community Services Personal & Family Readiness Division hired American Express Retirement Services to provide semibundled services for its $27 million 401(k) plan, said Heidi Mauck, employee benefits program manager. The plan had been unbundled with Sansima as third-party administrator, Wachovia Bank as trustee and Merrill Lynch providing the investments, she said. The change was made to save costs and provide daily valuation.
The plan expanded its investment options to 12 from six.
MOLINE, Ill. - The $26 million Moline Firemen's Pension Fund hired Quad City Bank & Trust to manage the plan's assets in an active domestic large-cap value equity portfolio, said Candace Skiles, recording secretary. Funding came from terminating First Midwest Bank, which ran the same portfolio; Ms. Skiles said the board was dissatisfied with the firm's response time as well as personnel issues. Officials at First Midwest did not return calls seeking comment by press time.
Moline's $24 million Police Pension Fund is content with First Midwest and does not intend to make any changes in managers, said Ms. Skiles.
MRS, Mackenzie Financial
TORONTO - MRS Group of Cos. and Mackenzie Financial Services hired AIM Funds Management as subadviser for the Keystone Sceptre International Equity Fund and the Keystone Sceptre Equity Fund, according to Kim Race, spokeswoman at Environics Communications, the PR firm for MRS and Mackenzie. The two funds will be renamed Keystone AIM Trimark Global Equity Fund and Keystone AIM Trimark Canadian Equity Fund.
OAKLAND, Calif. - MTC Holdings hired Principal Financial Group as semibundled provider for its $28.9 million 401(k) plan, replacing Merrill Lynch, said Hal Strottman, vice president of human resources. The plan also increased its investment options to 18 from eight, to give employees more choice, he said. He declined to list the options, but said all are mutual funds, some with institutional pricing.
New York City Deferred
NEW YORK - The $4.5 billion New York City Deferred Compensation Plan hired Galliard Capital as its first discretionary investment manager to run the plan's $1.3 billion stable income fund, said Dean Weltman, counsel to the plan. The plan had used consultant Mercer to manage the fund on a non-discretionary basis.
The plan also hired Aegon Institutional as wrap administrator.
HARRISBURG, Pa. - The Pennsylvania State Employees' Retirement System approved a new $50 million commitment to OCM Emerging Markets Fund III. BARRA RogersCasey assisted. It also approved a follow-on investment of up to $75 million in Blackstone Capital Partners IV and an additional commitment of $2.6 million to A.G. Capital Recovery Partners II. Cambridge Associates, the fund's alternative investment consultant, assisted.
It also approved a new commitment of up to $25 million to a public real estate securities separate account to be managed by Urdang & Associates Real Estate Advisors. Townsend Associates, the fund's real estate consultant, assisted.
All allocations will be funded from cash.
Pirelli Common Investment
BURTON-ON-TRENT, England - Pirelli Common Investment Fund hired Dresdner RCM Global Investors to manage L64 million ($91.5 million) in global equities, a new allocation for the L350 million fund. The hiring is a result of the merger of the pension funds of Pirelli Tyres U.K., Burton-on-Trent, and Pirelli Cables, Southampton, said Clive Tinker, pensions manager for Pirelli Tyres U.K. He would not give further details. Andrew McTaggart, pensions manager for Pirelli Cables, could not be reached for comment.
Quilter Fund Management
LONDON - Quilter Fund Management hired State Street Corp. to provide custody, fund accounting and transfer agency services through its International Financial Data Services unit. IFDS is a joint venture between State Street and DST Systems. Quilter has L5 billion ($7.3 billion) in assets under management for institutional and high-net-worth clients in the United Kingdom and elsewhere.
San Antonio Fire & Police
SAN ANTONIO, Texas - The San Antonio Fire & Police Pension Fund hired John Hancock Funds to manage $70 million in active domestic large-cap core equity assets. The $1.3 billion pension fund terminated previous manager Sector Capital Management for performance reasons, said Warren Schott, investment officer.
Sector officials could not be reached for comment by press time.
SAN FRANCISCO - The $10.4 billion San Francisco City & County Employees' Retirement System hired Ashmore Investment Management to run a $75 million short-duration local currency emerging markets debt portfolio, and agreed to invest $20 million in OCM Opportunities Fund IV, a distressed debt fund run by Oaktree Capital Management. Funding for Ashmore will come from other fixed-income portfolios.
BRENTWOOD, Tenn. - Service Merchandise Inc. hired DailyAccess.Com as record keeper and administrator for its $52 million 401(k) plan, said Doris Meador, director of benefits. The firm now has 14 investment options, up from nine, she said. The options, all new, are: nine American funds; one fund each from Van Kampen, Liberty, INVESCO and AIM; and a stock option fund. DailyAccess.com replaces T. Rowe Price; the fund wanted a more flexible investment format, she said.
SOUTHPORT, Conn. - Sturm, Ruger & Co. Inc., Southport, hired MassMutual Retirement Services to run its defined benefit, profit-sharing and retirement income plans, as well as a new 401(k) plan, with assets totaling $51.6 million, said Leslie M. Gasper, corporate secretary.
All of the defined contribution plans will have the same 12 investment options, provided by MassMutual. They are a GIC fund, core bond, large-cap value, indexed equity, focused value, small-cap growth, emerging growth, international equity and four lifestyle portfolios.
Sturm Ruger also will have Internet access to plan and participant-level information, including defined benefit projections.
LITTLETON, Mass. - Veryfine Products Inc. hired MassMutual Retirement Services as semi-bundled provider for its 401(k) plan, said John Demers, director of human resources. MassMutual replaces All America Financial. Veryfine executives increased the plan's investment options to 21 from 16 to give participants a more diverse menu of options, he said.
MassMutual also will manage a separate profit-sharing plan that is invested in company stock, he said. Mr. Demers declined to give either plan's asset size.
YORK, Pa. - York International Corp. hired Strong Capital Management to run $12 million in an active domestic small-cap value equity portfolio for its $300 million defined benefit plan. The fund also hired Marvin & Palmer to manage active domestic large-cap growth equities, said James Corcoran, treasurer. He declined to give further information and said the fund is unlikely to make additional changes.
Aon Consulting assisted.
MILWAUKEE - Ziegler Cos. hired Emplanet as administrator and record keeper for its $32 million 401(k) plan, said Larry Myrold, vice president of retirement plan services. Diversified Investments was the semibundled provider.
The plan now has 24 investment options, including seven of Ziegler's proprietary North Track funds, and the remainder through outside providers including Federated, Van Kampen and AIM.
Ziegler executives also added a loan feature, shortened the graded vesting schedule to five years from six, and increased the maximum salary deferral to 15% from 6%, Mr. Myrold said.