Aberdeen City Council
ABERDEEN, Scotland -- The Aberdeen City Council Superannuation Fund hired Friends Ivory & Sime to apply a corporate engagement overlay program to a £300 million ($434 million) passive balanced global equities portfolio now managed by State Street Global Advisors, said Joanne Hope, superannuation officer. FIS already runs an active £20 million U.K. equity engagement overlay program for the £1 billion pension plan.
Ms. Hope said plan officials adopted the engagement overlay program because it separated the investment process from the plan's social, environmental and ethical objectives.
Aegis Communications Group
DALLAS -- Aegis Communications Group hired Milliman USA as semibundled provider for its $11 million 401(k) plan. Aegis will offer 12 investment options from several fund providers, according to Janice Woodury, marketing coordinator at Milliman.
Aon Asset Allocation Fund
CHICAGO -- Aon Asset Allocation Fund may hire Ned Davis Research as subadviser, pending shareholder approval of changes to the $166 million mutual fund, according to SEC filings. Ned Davis Research, a money management and investment consulting firm, has managed part of Aon's pension plan, which totals $725 million, according to Money Market Directory. Further information about that portfolio was not available.
Ned Davis Research also managed the $10 million Ned Davis Disciplined private equity hedge fund, offered by Aon Advisers.
Austin Police
AUSTIN, Texas -- The $267 million Austin Police Retirement Fund hired Lend Lease Real Estate to manage $5 million in a value-enhanced real estate partnership, said Sampson K. Jordan, pension administrator. The Lend Lease partnership includes 10 limited partners investing in commercial office space in the Midwest and Northeast.
The move was the result of an asset allocation study. Funding came from reallocating assets from international investments and terminating a $2 million emerging markets mutual fund managed by Brandes Investment Partners, said Mr. Jordan. Brandes continues to manage $55 million in active international large-cap equities for the fund.
Monroe Vos Consulting Group assisted with the study.
CalPERS
SACRAMENTO, Calif. -- CalPERS picked Alliance Bernstein, Capital Guardian Trust, Dimensional Fund Advisors and Genesis Asset Managers to run up to a total of $1 billion in active emerging market equities.
Funding will come from reducing the system's current $18.2 billion passive international equity portfolio managed by State Street Global Advisors. However, the $147 billion California Public Employees' Retirement System will not fund the emerging markets accounts until it concludes its review of permissible country guidelines, which have been expanded to include financial transparency and labor standards. Fund officials expect to adopt country rankings in February.
Meanwhile, SSgA's portfolio is up for bid and staff is expected to recommend a manager at the investment committee's March 18 meeting.
Wilshire Associates is the consultant on both portfolios.
ChevronTexaco
SAN RAMON, Calif. -- ChevronTexaco Corp. hired Fidelity Management Trust to manage $250 million in active international equities benchmarked to the MSCI EAFE index for the $4.5 billion pension plan, said William Clutter, manager of accounting and analytics.
Funding came from several managers terminated when Chevron acquired Texaco and combined the two master trusts last year; he would not identify the managers.
The plan's current asset allocation is 55% equity, 20% fixed income, 10% real estate and 15% cash and private equity.
CPP Investment Board
TORONTO -- Canada Pension Plan Investment Board committed up to US$100 million over six years to Paul Capital Top Tier Investments II, a new fund of funds focusing on North American venture capital.
The CPP Investment Board already has a strategic alliance with Paul Capital Partners through a US$90 million commitment over four years to Paul Capital Partners VII, which acquires U.S. and European limited-partnership interests in the secondary markets.
The CPP Investment Board, with C$12 billion (US$7.5 billion) in assets, is the equities unit of the Canada Pension Plan.
Diamond Offshore
HOUSTON -- Diamond Offshore Inc. hired Fidelity as semibundled provider for its $100 million 401(k) plan, said Kay Lawless, manager of benefits and compensation.
The plan terminated previous semibundled provider Zurich Scudder on the recommendation of consultant Aon Investment Consulting. The plan now offers 19 options, up from nine previously, she said.
East Hartford Town
EAST HARTFORD, Conn. -- The $150 million East Hartford Town Retirement System hired William Blair to manage $20 million in active domestic short-term fixed income, and Allegiance Capital to manage $30 million in active domestic long-term fixed income, said Michael Walsh, director of finance and administrator of the pension plan.
Funding came from a $50 million active domestic fixed-income portfolio run by Aeltus Investment Management, which was terminated for performance. Aeltus will continue to manage $60 million in active domestic core equity for the fund, Mr. Walsh said. Tracy Sherman, vice president of business strategy and communication at Aeltus, said the firm had no comment.
The current allocation is 60% equity and 40% fixed income. Prudential advised.
Enterprise Capital
ATLANTA -- Enterprise Capital Management hired BISYS to provide record keeping and administrative support services for its Enterprise 401(k) clients. BISYS replaces Trustar, said Jack Schilt, executive vice president.
FBL Financial Group
WEST DES MOINES, Iowa -- FBL Financial Group Inc. added the American Century Small-Cap Value Fund and the Van Kampen Comstock Fund as options in its $35 million 401(k) plan, said Michael Dulaney, retirement plan actuary. The additions increase the plan's investment options to 14 from 12, he said. Wells Fargo is semibundled provider.
Frankenmuth Financial
FRANKENMUTH, Mich. -- The Frankenmuth Financial Group hired Diversified Investment Advisors to manage its $27 million pension plan, said Kari Shaheen, benefits coordinator. The plan terminated previous manager PaineWebber because it wanted a firm that also provides actuarial and advisory services.
The fund's asset allocation is 54% active domestic equity, 6% active international equity and 40% active domestic fixed income. Portfolio Analytics advised.
Hewlett-Packard
PALO ALTO, Calif. -- Hewlett-Packard Co. hired Financial Engines to provide investment advice for its $4.3 billion 401(k) plan and other tax-deferred investments for company employees, said Debra Pynchon, program manager, retirement and capital accumulation plans. Fidelity Investments is the plan's semibundled provider.
Holland & Hart
DENVER -- Holland & Hart added the Oppenheimer Capital Appreciation Fund and a Dodge & Cox stock fund as investment options for its $120 million 401(k)/profit-sharing plan, said Victoria Gordon, benefits and compensation administrator.
The plan also dropped three funds: Fidelity Contrafund; Janus Aspen Aggressive Growth; and American Funds Fundamental Investors.
The plan now offers 19 options, down from 20. Ms. Gordon said plan officials wanted to eliminate redundancy in the choices offered to employees. Fidelity is the semibundled provider.
Indiana DC Plan
INDIANAPOLIS -- The $450 million Indiana Deferred Compensation Plan selected eight managers to provide 10 mutual fund choices for the participant-directed fund pending contract negotiations, said Doris Anne Sadler, secretary of the deferred compensation committee and secretary of the plan.
The new funds are: Wells Fargo large-cap growth; Alliance large-cap value; Barclays Global Investors S&P 500 index; Vanguard midcap growth; Domini social equity; Brown small-cap growth; Fidelity small-cap domestic value; Fidelity large- and midcap international growth; Fidelity large-cap international value; and PIMCO Total Return for opportunistic fixed income.
The new options would replace eight variable annuity funds offered by Lincoln National Life Insurance and seven by Great-West Life Insurance.
William M. Mercer assisted.
The pending changes are part of a restructuring; an implementation date hasn't been set.
Iowa Board of Regents
URBANDALE, Iowa -- The Iowa Board of Regents hired Barclays Global Investors to run $40 million in an S&P 500 index fund and LSV Asset Management to run $16 million in active domestic small-cap to midcap value equities, said Mark Brubaker, vice president of consultant Wilshire Associates. Funding came from cash, said Debra Hendrickson, associate director of business and finance for the board.
The board oversees the $219 million University of Iowa Foundation and the $87 million Iowa State University Endowment Fund
Jerry's Home Improvement
EUGENE, Ore. -- Jerry's Home Improvement Center hired Victory Capital Management as record keeper, trustee and semibundled provider for its $20 million 401(k) plan, said Jeff Heriot, director of finance. Incumbent U.S. Bank was asked to rebid. Victory will provide 13 new options, up from four, he said. The plan is administered in-house.
Kinsley Construction
YORK, Pa. -- Kinsley Construction, York, Pa., hired SEI Investments as investment provider and trustee for its $15 million 401(k)/profit-sharing plan, said Daniel Driver, executive vice president at Kinsley. SEI replaces Mercantile-Safe Deposit & Trust, which no longer provides these services to 401(k) plans, he said.
The plan will offer 13 SEI funds, all new, down from 15 options previously, he said. PFPC Global Fund Services is record keeper for the plan; it is administrated internally. E.K. McConkey assisted.
Knowles Electronics
ITASCA, Ill. -- Knowles Electronics Inc. added the PIMCO Total Return Fixed Income Fund as an investment option, said Connie Greve, corporate benefits manager. The $32 million 401(k) plan now offers 12 options; it added the fund to provide a fixed-income option, said Ms. Greve.
T. Rowe Price is semibundled provider; J.H. Ellwood & Associates is consultant.
Marconi Commerce Systems
GREENSBORO, N.C -- Marconi Commerce Systems Inc. hired Putnam to run $85 million in international core equities, said Bob Penter, the $780 million pension plan's consultant at Hewitt Associates. Putnam replaced Zurich Scudder, which managed a similar portfolio for the plan. Further information was not available.
Millennium Inorganic
GRIMSBY, England -- Millennium Inorganic Chemicals U.K. Pension Scheme hired SEI Investments and Barclays Global Investors as managers for the £55 million ($78.5 million) pension plan. SEI received a £36 million global equity mandate; BGI will manage two £9.5 million passive portfolios, one of corporate and one of U.K. government bonds.
Phillips & Drew previously managed the entire fund in a balanced mandate. David Evans, chairman of the board of trustees, said the plan wanted to diversify its manager risk.
Towers Perrin advised.
Missouri Public School
JEFFERSON CITY, Mo. -- The $21 billion Missouri Public School Retirement System hired BPI Global Asset Management to run about $700 million in active international equities. Funding will come from terminating a passive global portfolio benchmarked to the MSCI All Country World index (ex-U.S.) and managed by State Street Global Advisors.
System officials wanted the international equity portfolio to be actively managed. Strategic Investment Solutions assisted.
Nationwide Retirement
COLUMBUS, Ohio -- Nationwide Retirement Solutions hired Morningstar Associates to provide investment guidance to all of the participants in the 8,200 mainly deferred compensation plans it serves, said Karen Eisenbach, senior vice president at Nationwide. This is the first time Morningstar will be providing investment guidance and advice in the public plan sector, according to John Rekenthaler, president of online advice for Morningstar.
The guidance will be free, but there will be a charge for advice.
New York State Teachers
ALBANY, N.Y. -- New York State Teachers' Retirement System committed $350 million each to enhanced passive international equity managers Merrill Lynch Investment Managers, Barclays Global Investors and Deutsche Asset Management. The $78 billion system also committed $100 million to Warburg Pincus Private Equity VIII, and $25 million each to ABRY Mezzanine Partners and Apex Investment Fund V. Real estate awards of $50 million each went to ARCap High Yield CMBS Fund and Landmark Real Estate Fund IV.
Ohio Public Employees
COLUMBUS, Ohio -- The $54 billion Ohio Public Employees Retirement System hired Pacific Corporate Group as an adviser to help develop a private equity portfolio. The plan targeted 4% of total assets to private equity early in 2001, said Neil Toth, director of investments. Previously, the plan had no exposure to private equity.
Cooper Consultants assisted.
Ontario Teachers
TORONTO -- Ontario Teachers' Pension Plan, Toronto, invested C$500 million (US$310 million) with Relational Investors, according to Lee Fullerton, a spokeswoman for the C$71 billion plan. Relational invests in equities of publicly traded companies that are undervalued because of poor corporate governance, but whose boards are willing to work on this area.
"We are searching for value, and want to work with boards of directors who are interested in improving their shareholder value," said Ms. Fullerton.
Pennsylvania State Employees
HARRISBURG, Pa. -- The $24 billion Pennsylvania State Employees' Retirement System committed up to $40 million to J.W. Childs Equity Partners III and up to $26 million to Alpha Private Equity Fund IV, according to Sean Sanderson, a spokesman for the fund.
South Yorkshire
BARNSLEY, England -- The South Yorkshire Pension Fund hired Standard Life Investments to manage a £220 million ($318 million) real estate portfolio, replacing Aberdeen Property Investors, said a spokeswoman for John Hattersley, fund manager for the £2.2 billion pension plan. Further details were not available by press time.
Wyoming City Employees
WYOMING, Mich. -- Wyoming City Employees' Retirement System hired Wasatch Advisors to manage $9 million in active domestic small-cap growth equities for the $102 million plan, said Timothy Smith, board secretary, finance director and comptroller.
Funding came from terminating Baron Capital Management; its style began drifting toward midcap and was underperforming, he said. Officials at Baron did not return calls by press time for comment.
The system's current asset allocation is 55% equity and 45% fixed income. Callan Associates assisted.
