NYC into small cap, midcap
The $15.1 billion New York City Police Department Pension Fund hired seven active domestic small-cap and midcap equity managers: J.&W. Seligman and MacKay Shields, $50 million each in small-cap to midcap growth; Lord Abbett, $110 million in midcap value; Ariel, $100 million, midcap value; Forstmann-Leff and INVESCO, $55 million each, midcap growth; and Chicago Equity, $105 million, midcap core.
The $5.4 billion New York City Fire Department Pension Fund hired nine active managers: Ariel, $60 million in small-cap value; Lord Abbett, $60 million, midcap value; Forstmann-Leff and John McStay, $40 million each, midcap growth; MacKay Shields and J.&W. Seligman, $40 million each, small-cap to midcap growth; Chicago Equity and Franklin Portfolio, $37.5 million each, midcap core; and Emerald Advisors, $20 million, small-cap growth.
Also, the $1.6 billion New York City Board of Education Retirement System hired Lord Abbett, $16.5 million in midcap value; Ariel, $12.4 million in small-cap value; Emerald, $12.4 million, small-cap growth; and J.&W. Seligman, $24.8 million, small-cap to midcap growth.
All were funded by reducing Russell 3000 index funds.
Harris analysts join Artisan
Artisan Partners is adding an international value equity strategy and hired two analysts from the top-rated international value team at Harris Associates to run it. N. David Samra has joined Artisan as a portfolio manager. He was an analyst and co-manager, working with Harris stars David Herro and Michael Welsh. Daniel O'Keefe joined Artisan as an analyst; he had been an analyst at Harris.
SEI lands foundation
The Jewish Federation of Greater Philadelphia hired SEI Investments to handle its $140 million foundation in a manager-of-managers program, said David Marshall, chairman. He declined to name the previous consultant and managers.
YMCA moves to hedge funds
The $3.3 billion YMCA Retirement Fund committed $50 million each to Tremont Advisers and Grosvenor Capital Management for hedge fund of funds, said CIO Victor Raskin. Funding will come from active equity portfolios.
AIMR nixes continuing ed rule
AIMR members defeated a proposal that would have required CFAs to meet a 20-hour-a-year continuing education requirement. The proposal won only 41% of votes cast.
Diebold goes with BNY
The $300 million defined benefit plan of Diebold Inc. hired Bank of New York as master trustee and custodian, replacing Mellon. Diebold officials thought BNY would be a better fit.
Nevada picks Mellon Bond
The $13.3 billion Nevada Public Employees' Retirement System hired Mellon Bond Associates to manage $400 million in a Lehman Aggregate index fund, said CIO Laura B. Wallace. The money had been invested temporarily in a Lehman Aggregate fund managed by Lincoln Capital, which now has $1 billion.
Nationwide Mutual Insurance will buy Gartmore Global Investments from Nationwide Financial Services for about $375 million, or 8 million shares of common stock, and $225 million in shareholder equity.
Paul Hondros will continue to head the asset business.
College taps 9
The $51 million University of Akron endowment hired nine managers, said Elizabeth Voth, budget analyst.
Hired were: Westwood Management and Dreman Value, $4 million each in active domestic large-cap value equities; Trusco Capital Management, an undetermined amount in active domestic large-cap growth equities; Lazard Freres, $3.5 million, active international equities; Wasatch Advisors, $3 million, active domestic small-cap growth equities; Systematic Financial and Sterling Capital, $3.25 million each, active domestic small-cap value equities; and PIMCO and Metropolitan West, $7 million each, active domestic fixed income.
Terminated were: Commonfund, which had managed about $30 million in various stock and bond strategies; Gratry, $3.5 million in active international equity; and Cincinnati Asset, $2 million in high-yield bonds
AMG buys Third Avenue stake
Affiliated Managers Group acquired a majority stake in Third Avenue Management, the holding company for the money management businesses of value investor Martin J. Whitman. Third Avenue is the holding company for EQSF Advisers, manager of the three Third Avenue Funds, and MJ Whitman Advisers Inc., which manages separate accounts. The company has $5.6 billion under management.
Ventura adds to international
The $2 billion Ventura County Employees' Retirement Association hired Sprucegrove to run a $110 million international value-oriented equity portfolio as part of an increase in its international stock allocation, said Tim Thonis, assistant administrator.
Fund officials also terminated Putnam as manager of a $120 million international growth equity portfolio, adding the assets to Capital Guardian's $100 million international growth portfolio.
Denver Schools hires 2
The $2.3 billion Denver Public Schools Retirement System hired Constitution Research and Cordillera Asset to manage $25 million each in active domestic small-cap growth equities with midcap flexibility, said David A. Stella, executive director.Funding came from terminating Essex.
Also terminated was Progress Investment, which managed $60 million in active domestic midcap growth equities, Mr. Stella said. The money will be parked in an S&P 400 index fund run by Deutsche Asset, pending the conclusion of an asset allocation study in August.
ERISA panel: Withdraw report
The ERISA Industry Committee is calling for the immediate withdrawal of a Labor Department inspector general's report on lump-sum distributions from cash balance plans. In a letter to Labor Secretary Elaine Chao and Treasury Secretary Paul H. O'Neill, the association said the report creates an "erroneous" impression that cash balance plans do not pay out all that participants who take lump-sum distributions are owed.
WorldCom lawsuit ahead?
WorldCom may face a lawsuit over the plunging value of its long-term bonds. William Lerach, a partner with Millberg Weiss Bershad Hynes & Lerach, said he is discussing filing suit under federal securities law against WorldCom and its investment bankers over losses incurred by bondholders who bought into the company's $11.9 billion bond issue from a year ago. Officials at WorldCom were unavailable for comment.
Tyson stays with firm
Tyson Foods rehired Howard Johnson as record keeper for its two main 401(k) plans and more than 20 other retirement plans, with combined assets of more than $500 million.