NEW YORK - Avon Products Inc. hired MONY Benefits Service to manage a new 401(a) plan for its 500,000 independent U.S. contractors. MONY will manage the plan under a two-year exclusive agreement and will offer seven investment options, said Laura Castellano, Avon spokeswoman. The funds are: Fidelity Advisor Growth & Income and Advisor Large Cap; and MONY's Enterprise Money Market, Enterprise Government Securities, Enterprise Growth A, Enterprise Small Cap Company Value and Enterprise Equity.
Burke Group, an alliance partner of MONY, will administer the plan.
LISLE, Ill. - Budget Group Inc. hired Fidelity as bundled provider for its $80 million 401(k) plan, effective Jan. 1, said Carrie Nowakowski, manager of retirement and communications. Fidelity will provide 11 investment options, all Fidelity funds.
The plan also has a company stock option.
Fidelity replaces Bank of New York; the plan wanted a bundled provider with stronger technological capabilities, Ms. Nowakowski said.
HARTFORD, Conn. - Connecticut Retirement Plans and Trust Funds hired Pension Consulting Alliance as its real estate consultant. The $20 billion system also hired Merrill Lynch and Fidelity to run about $215 million each in active risk-controlled international equities.
The managers replace DSI, which managed the portfolio passively. The hirings are subject to negotiations.
Illinois State Board
CHICAGO - The Illinois State Board of Investment hired Alliance Bernstein and Holland Capital Management to manage $150 million each in active domestic large-cap growth equities, said Scott Richards, portfolio manager-external investments. Funding came from the termination of a $300 million passive domestic large-cap growth fund managed by Barclays Global Investors. The $8 billion plan wanted to switch to active management from passive, Mr. Richards said.
The fund's current allocation is 43% domestic equity, 20% international equity, 22% fixed income, 7% real estate and 8% in alternatives, he said.
BOSTON - ING Pilgrim Investments hired Clarion CRA Securities to subadvise the Pilgrim Global Real Estate Fund. The fund, which attracted $25 million during its subscription period, opened to new investment last week. The fund is managed by Steven Burton, director and portfolio manager at Clarion CRA, and is available for institutional and retail investors. A separate account version of the strategy is available with a $10 million minimum investment.
Kansas City Firefighters
KANSAS CITY, Mo. - The $330 million Kansas City Firefighters' Pension System hired Fidelity Management Trust to manage $20 million in an active international large-cap growth equity portfolio, said Richard Boersma, retirement systems executive officer. The system funded the hire by reducing Morgan Stanley's active international equities portfolio to $50 million. The plan wanted to add growth exposure, Mr. Boersma said. Artisan and American Century were finalists for the mandate.
Callan Associates assisted.
New Haven Police & Firemen
NEW HAVEN, Conn. - The New Haven Police & Firemen's Pension Fund hired Columbia Partners to run $15 million in active domestic small-cap equities, the $275 million plan's first investment in the style, said Gwendolyn Bell, pension administrator. Columbia will use a blended strategy tilted toward growth. Funding will come from rebalancing.
Ohio Public Employees
COLUMBUS, Ohio - The $57 billion Ohio Public Employees Retirement System hired Barclays Global Investors to manage $1.2 billion in a passive Russell 3000 portfolio. The system will fund the allocation by reducing its internally managed $21.3 billion domestic equity portfolio, said Neil Toth, director of investments. The hiring is part of the system's ongoing restructuring of managers. Ennis Knupp assisted.
COLUMBUS, Ohio - Plaskolite Inc. hired Strong Retirement Plan Services as semibundled provider for its $24 million 401(k) plan, replacing Zurich Scudder Investments, said Angela Labudovski, director of human resources. The fund will have 10 options similar to those provided by Zurich Scudder, Ms. Labudovski said. Zurich Scudder was terminated because the options they provided were not performing well, she said. A spokeswoman for Zurich Scudder declined comment.
Royal Ten Cate
DULUTH, Ga. - Royal Ten Cate hired Strong Retirement Plan Services as semibundled provider for its $17 million 401(k) plan, said John Cahill, vice president of human resources. Previous semibundled provider ING Aetna was replaced because of a lack of problem-solving ability and "incredibly poor service" overall, Mr. Cahill said. ING Aetna officials did not return calls seeking comment by press time.
The plan will add four domestic value options, bringing total options to 12, he said.
SAN FRANCISCO - Charles Schwab Trust hired INVESCO to subadvise three of its stable value collective trust funds: Schwab Stable Value Fund, and Schwab subsidiary U.S. Trust's UST Capital Preservation and IBEW-NECA Stable Value funds. The three funds have a combined $2 billion in assets.
CHEYENNE, Wyo. - The $4.2 billion Wyoming Retirement System hired Dodge & Cox to manage $400 million in active domestic large-cap value equities, said Harry Wales, finance manager. Funding came from the termination of Ark Asset Management, which managed a similar mandate.
However, the $4.2 billion system hired Ark to manage $50 million in active domestic small-cap value equities, and Lord Abbett to manage $50 million in active domestic midcap value equities, said Mr. Wales. Assets came from a reduction in a Northern Trust domestic fixed-income index fund that exceeded its target allocation. Northern Trust will continue to manage $400 million in the index fund.
The system changed large-cap value managers because it wanted a group that had produced better returns over time, said Mr. Wales. The current allocation is 64% equities and 36% fixed income. Buck Consultants assisted.