FORT WORTH, Texas - American Airlines Inc. committed $30 million to J.W. Childs Associates, a private equity manager specializing in leveraged buyouts and recapitalizations of middle-market companies. The $5.4 billion defined benefit plan now has about $700 million in private equity commitments, said William F. Quinn, president of AMR Investment Services, which oversees the pension assets.
NEW YORK - American Skandia gave Deutsche Asset Management an additional $745 million in new subadvisory mandates, said Michael Murray, chairman of American Skandia's investment committee. Deutsche already manages two portfolios with a combined $600 million for AS.
American Skandia is adding Deutsche's domestic large-cap growth, small-cap value and core bond "managed alpha" strategies to the American Skandia Trust platform.
American Skandia also is adding domestic small-cap growth, large-cap growth and value equity strategies from Deutsche to its Advisor Fund platform.
ARLINGTON, Va. - The $11 billion Arlington County Supplemental Retirement System hired Advent Capital to manage $50 million in convertibles, said Bruce O. Kallos, administrator. Funding came from Loomis Sayles, whose active domestic fixed-income portfolio was trimmed by $10 million, leaving it with $200 million; and Fidelity, whose REIT portfolio was cut by $15 million, retaining $45 million. The remainder came from cash. Ashford Capital assisted.
Ash Grove Cement
OVERLAND PARK, Kan. - Ash Grove Cement Co. added the American Century Small-Cap Value Fund as an option in its $45 million 401(k) plan, replacing the Principal Large Company Blended Account
Army Emergency Relief
ALEXANDRIA, Va. - Army Emergency Relief hired Northern Trust as manager of managers for its $230 million relief fund, said Col. Gregory W. Mason, deputy director of finance. Previous manager Zurich Scudder was terminated because of a "divergence of corporate philosophy," he said.
AT&T Wireless Services
REDMOND, Wash. - AT&T Wireless Services Inc. hired Mercer Investment Consulting as consultant for its $750 million 401(k) plan. AT&T Investment Management Group was the adviser.
Baker & McKenzie
CHICAGO - Baker & McKenzie hired Financial Engines to provide investment advice for its $160 million 401(k) plan, said Edward D. Burmeister, partner and chairman of benefits committee.
CHEEKTOWAGA, N.Y. - Buffalo Laborers Pension Fund hired Alliance Bernstein and INTECH to manage $4.4 million each in active domestic large-cap growth equities for the $119 million pension plan, said Thomas L. Panek, administrator. Funding came from terminating Putnam, which ran $8.8 million in the same style. Marco Consulting advised.
SACRAMENTO, Calif. - CalPERS staff committed $10 million to Tosca Fund, which focuses on global large-cap financial and business services stocks. The manager is the sixth hired for the $151 billion California Public Employees' Retirement System's hedge fund program.
Central Illinois Light
PEORIA, Ill. - Central Illinois Light Co. added the One Group Small-Cap Value Fund as an investment option in its $100 million 401(k) plan and replaced the Dreyfus New Leaders Fund with the Ariel Appreciation Fund, said Douglas M. Mech, pension administrator. The plan now has 13 options.
Deseret Mutual Benefit
SALT LAKE CITY - Deseret Mutual Benefit Administration added the Columbia Small-Cap and Artisan International funds as investment options for its 401(k) plan, said Mark Siegel, director of financial benefits. The plan now offers 10 options. It has $1 billion in assets, according to the Money Market Directory.
Indiana Deferred Compensation
INDIANAPOLIS - The Indiana Deferred Compensation Plans selected Fidelity Investments and Lincoln National Life Insurance to jointly manage a stable value fund for its $475 million 457 and $16 million 401(a) funds, said Doris Anne Sadler, secretary of the deferred compensation committee and secretary of the plans. The selections are pending contract negotiations, expected to be completed in the next few weeks. Mercer Investment Consulting assisted.
IBEW, Local 292
ST LOUIS PARK, Minn. - Electrical Workers, IBEW, Local 292, hired Strong Capital Management to run $30 million each in active domestic fixed income for its $250 million annuity plan and its $109 million pension plan, said Jody Roe-Hardie, administrator. Funding came from terminating a manager that ran $30 million in the same style for each plan. She would not name the manager or give the reason for the termination. Independent Fiduciary Services advised on the changes.
BLOOMINGTON, Ind. - Indiana University Foundation committed $10 million to Lighthouse Partners for a fund of hedge funds, said Walter L. Koon Jr., senior vice president and chief operating officer of the $1.2 billion foundation. Fund Evaluation Group assisted.
State of Iowa
DES MOINES, Iowa -State Treasurer Michael L. Fitzgerald selected Bank of New York as the global custodian for the $15 billion Iowa Public Employees' Retirement System, the $250 million Iowa Peace Officers' Retirement System and the $100 million Iowa Judicial Retirement System. Mr. Fitzgerald said the selection is pending contract negotiations. Bank of New York would replace Mellon.
Iron Workers Pension
DENVER - Iron Workers Pension Trust Fund hired Strong Capital to manage $15 million in intermediate fixed income for its $62 million pension plan. Segal Advisors assisted.
IUE/CWA Local 475
PELHAM, N.Y. - Electrical Workers IUE/CWA Local 475 hired Salomon Smith Barney and NWQ Investment to manage $5 million each in active domestic value equities and $5 million each in active domestic fixed income for the $87 million pension plan, said Rafael A. Riviera, fund administrator. Funding came from reducing balanced portfolios run by Carret Investments and Unity Management, leaving each with $33.5 million, he said. Plan officials wanted to add value investments. Prudential Investments LLC advised.
Kaye, Scholer, Fierman
NEW YORK - Kaye, Scholer, Fierman, Hays & Handler LLP added four mutual funds to both its $61 million general employee 401(k) plan and its $11 million associate 401(k) plan, said Lorraine M. Delio, director of benefits. The plans, which share the same investment options, added the Fidelity Structured Midcap Value, Fidelity Structured Large-Cap Value, Strong Advisor Small-Cap Value and Oakmark Select funds.
Ky. Deferred Compensation
FRANKFORT, Ky. - The Kentucky Deferred Compensation System added the Vanguard Midcap Stock Index, American Century Small-Cap Value, Dreyfus Small-Cap Index, Brown Capital Small Company and Templeton Foreign funds as investment options for its $456 million 457 plan and $434 million 401(k) plan. The plans dropped the Gartmore Total Return Fund and T. Rowe Price International Stock Fund, said Christopher J. Helvey, principal assistant to Robert C. Brown, executive director.
Lafayette General Medical
ACADIANA, La. - Lafayette General Medical Center hired SEI as consultant and manager of managers for its $77 million in board-designated funds, said Roger D. Mattke, senior vice president and CFO. Prudential was consultant; Roxbury Capital, NFJ Investments, Flippin Bruce & Porter, Shapiro Capital and TCW were active domestic equity managers; and Weaver C. Barksdale and Earnest Partners were active domestic fixed-income managers.
BATON ROUGE, La. - The $461 million Louisiana Firefighters' Retirement System hired Northern Trust to run a $21 million S&P 500 index fund, said Steven Stockstill, executive director. Funding will come from cash, he said. Becker, Burke Associates advised.
Minneapolis Police Relief
MINNEAPOLIS - The Minneapolis Police Relief Association hired Wasatch Advisors to manage $15 million in active domestic small-cap growth equities for its $350 million pension plan, said Phillip Kapler, executive director. Wasatch will be given a little flexibility to invest internationally, he said. Fidelity, which managed the $15 million in active domestic small-cap core equities, was terminated because of a change in strategy, Mr. Kapler said. Ennis Knupp advised.
Minnkota Power Cooperative
GRAND FORKS, N.D. - Minnkota Power Cooperative Inc. hired five managers for its $80 million pension plan, said Doug G. Gregoire, pension administrator. TCW Investment will manage $18.4 million in active domestic large-cap growth equities; Martingale Asset, $18.4 million in active domestic large-cap value equities; Wasatch Advisors, $3.6 million, active domestic small-cap growth equities; Keeley Asset, $3.6 million, active domestic small-cap value equities; and Mesirow Advanced, $12 million in a hedge fund.
Funding came from terminating large-cap growth managers Rittenhouse Financial and Mastrapasqua. Mr. Gregoire said the plan was too heavily weighted in large-cap growth equities and needed to diversify. Thomas Weisel Partners advised on the changes.
N.D. Investment Board
BISMARCK, N.D. - The North Dakota State Investment Board committed $25 million to Credit Suisse First Boston Global Opportunities Partners, a distressed securities fund, said Steve Cochrane, executive director and chief investment officer for the $2.5 billion system. Atlantic-Pacific Capital assisted.
PASADENA, Calif. - Pasadena Deferred Compensation Plan & Trust hired Hartford Life as investment provider and record keeper for its $90 million 457 plan; it also will share administration duties with the plan, said Jay M. Goldstone, director of finance and plan administrator. The plan replaced ING Aetna, Merrill Lynch and John Hancock, all of which shared administration and record-keeping responsibilities with the plan, in order to be more efficient, reduce fees and eliminate fund overlap, he said.
SST Benefits advised.
HARRISBURG, Pa. - The $24 billion Pennsylvania State Employees' Retirement System committed $575 million each to absolute-return fund-of-hedge-fund managers Blackstone Alternative Asset, Pacific Alternative Asset and Morgan Stanley Alternative Investment Partners. It also hired Morgan Stanley to implement an equity overlay strategy for the absolute-return fund-of-funds program, according to Sean Sanderson, spokesman.
In addition, the fund made a follow-on commitment of up to $75 million to HarbourVest Partners VII and committed up to $75 million to OCM Mezzanine Fund, up to $25 million to Berwind Property Group Investment Partnership VI and up to $35 million to The Campbell Timber Fund.
It also hired Rocaton Investment Advisors as general investment consultant.
NORTHBROOK, Ill. - Potash Corp. hired Western Asset Management to run $150 million in active domestic fixed income and Batterymarch to manage $22 million in active domestic small-cap equities for its $304 million pension plan, said L.J. Rolf, director of U.S. pension and benefits. Funding came from terminating two fixed-income managers and one active domestic small-cap equity manager; he would not provide details.
Hewitt Investment Group advised.
MILWAUKEE - Rockwell Automation Corp. hired Oppenheimer Capital to manage $70 million in active domestic midcap value equities for its $1 billion pension plan, said Debra Berens-Woida, director, corporate finance. Oppenheimer replaced another manager but she declined to comment further.