CalPERS' list narrows
CalPERS named State Street Global Advisors and Barclays Global Investors as the top contenders to run its $18.4 billion passive international equity portfolio, according to an analysis by staff at the $152 billion pension fund. SSgA has been managing CalPERS' passive portfolio since 1989. A recommendation will be made at the system's March 18 investment committee meeting.
Also, CalPERS would stop investing in Malaysia and Indonesia under a new eligible countries test that includes transparency, political stability and bans on abusive labor practices that will be debated at the Feb. 19 investment committee meeting. The number of permissible markets would expand to 17 from 15 under a recommendation by Wilshire Associates.
Caisse in Dick Clark deal
A subsidiary of Caisse de Depot et Placement du Quebec, with C$125 billion (US$78 billion) in assets, is part of the investment group that agreed to purchase Dick Clark Productions for $140 million, according to Suzanne Brochu, Caisse spokeswoman.
"We think there is the potential for good returns here. It's good for the media and entertainment portfolio of the Caisse," said Ms. Brochu.
Boldt named CEO in Texas
Bob Boldt was named president and CEO of the University of Texas Investment Management, which oversees $13.8 billion in total assets. He replaces Thomas G. Ricks, who left in May to become an investment adviser to an individual in California, said Monty Jones, associate director of public information. Mr. Boldt was a managing director at Pivotal Asset Management; prior to that, he was senior investment officer at CalPERS.
Heidrick & Struggles assisted.
Hoosiers look at alternatives
The $1.2 billion Indiana University Foundation plans an invitation-only search for alternative investment managers in private equity, venture capital and absolute return strategies, including hedge funds of funds, said Walter L. Koon Jr., senior vice president and COO.
The foundation plans to allocate 8% of assets to the area over the next couple of years, he said. "We're doing a very selective allocation," he said. "We're trying to be opportunistic."
Fund Evaluation Group is assisting.
Dresdner RCM dropped
The $23 billion Illinois Teachers' Retirement System terminated Dresdner RCM, which managed $553 million in active international equities, because of poor performance, organizational changes and a pending SEC investigation of its Grassroots Research unit. Trustees moved the money into State Street Global Advisors' All Country World Ex-U.S. Index Fund until completion of an asset allocation and manager review by Callan .Dawn Vroegop, managing director of Dresdner RCM, did not return calls by press time seeking comment regarding the termination.
Progress Investment Management, which managed $450 million in a multimanager approach using minority-owned and emerging managers, also was terminated. Trustees decided to make direct investments through minority-owned firms, allocating $175 million to EARNEST Partners for two strategies, $100 million to MDL Capital Management and $75 million to Holland Capital Management.
Morgan Stanley was placed on watch because Arden Armstrong and Steve Chulik, who managed $187 million in active U.S. small-cap growth equities, left the firm in January.
UTC tweaks 401(k) plan
United Technologies Corp. added three Deutsche Asset Management equity index funds as options in its $8 billion 401(k) plan, along with investment advice by Financial Engines, said Michelle Frost, benefits manager. The plan now offers 19 options.
Don Allen McCorry, retirement administrator of the $3 billion Fairfax County (Va.) Retirement System, was arrested Feb. 12 on charges of embezzling about $100,000 from the pension fund, a spokesman for the Fairfax County police said. He is being held on a $500,000 bond.
Fund eyes alternative allocation
The $5.4 billion West Virginia Investment Management Board wants state lawmakers to change the law to permit a 5% allocation to alternative investments, said H. Craig Slaughter, executive director. The current asset allocation is 60% equities, 40% fixed income.
Michigan Muni fund taps CSFB
The $3.8 billion Michigan Municipal Employees' Retirement System hired Credit Suisse First Boston's customized fund investment group to create and manage a $100 million globally diversified private equity portfolio, said Jeb Burns, director of investments. Funding will come from U.S. equities.
First consultant for union
The $712 million Pipefitters Local 597 Retirement Fund hired Strategic Capital Investment Advisors as the pension plan's first external consultant, said Ross Klicker, financial secretary-treasurer. He declined further comment.
Dresner leaves Columbia
Bruce M. Dresner, chief investment officer overseeing the $4.3 billion endowment at Columbia University, plans to leave in early March to join Quellos Group, a hedge fund of funds, as a principal.
Officials hope to begin interviews for a new CIO in the next month or so, said John Masten, vice president for finance.
2 private equity firms picked
The $300 million University of Wisconsin System hired private equity fund-of-funds managers Adams Street Partners and J.P. Morgan Fleming to run $10 million each, said Doug Hoerr, treasury manager.
Voyageur gets Kampel assets
Voyageur Asset Management acquired the institutional assets of Daniel S. Kampel Associates. Terms were not disclosed. The acquisition brings $200 million in institutional assets to Voyageur, said Dan Callahan, Voyageur spokesman. Kampel will continue to manage the assets as a subadviser, he said.
New consulting firm
John F. Casey, Kevin P. Quirk, Christopher J. Acito, Jeb B. Doggett and David J. Bauer started their own consulting firm, Casey, Quirk & Acito. All were executives at Barra Strategic Consulting Group. Mr. Casey, chairman of the new company, said he expects to gain clients from Barra, which Friday closed its strategic consulting operation.
Callaway tees off with Vanguard
Callaway Golf hired Vanguard as bundled provider for its $85 million 401(k)/profit sharing plan, replacing Wells Fargo, said Jerry Edge, director of global compensation. The plan has not yet decided how many options will be offered; Wells Fargo provides 12. Buck Consultants will assist in the selection of the new options.
Arkansas fund deputy quits
Angelo Coppola resigned as deputy director of the $7 billion Arkansas Teacher Retirement System. He plans to retire, said Bill A. Shirron, executive director. Mr. Coppola had served a 30-day suspension in December and January for charging the pension fund for personal cell phone calls and personal FedEx service and for declaring some vacation days as work days. He repaid $1,447 for the calls and $149 in delivery service he charged to the system, and agreed that seven of 14 days he spent in New Mexico were used for vacation.
Bank's 401(k) revamped
ABN AMRO added seven fund options and eliminated six from its $490 million 401(k)/profit sharing plan, said James McInerney, manager of compensation and benefits.
The plan added ABN AMRO Chicago Capital Bond and Balanced funds; ABN AMRO Value Fund, subadvised by MFS; ABN AMRO Montag & Caldwell Growth Fund; ABN AMRO Veredus Aggressive Growth Fund; Artisan International Fund and Pilgrim International Value Fund. Dropped were ABN AMRO Government Money Market, Value, Small-Cap, International Equity, Asian Tigers and Latin America Equity funds.
Missouri picks TIAA-CREF
The Missouri State Employees' Retirement System hired TIAA-CREF as bundled provider for its new college and university 401(a) plan, effective July 1. It covers employees hired after that date; current employees are covered under the defined benefit plan. TIAA-CREF will provide 10 investment options. Summit Strategies assisted.
Panel for private equity
Private equity investors and managers created an industry Standards Board, which expects to improve transparency in reporting and timeliness of information.
It also seeks to eliminate manual data entry and establish consistency in reporting of investment performance, all problems that make tracking private equity portfolio performance difficult at the limited partner level.