TOPEKA, Kan. - The $9.2 billion Kansas Public Employees' Retirement System will shift $350 million to international equities from domestic equities by late summer, according to Scott Peppard, deputy chief investment officer. Of that, about $150 million will be passively managed.
The Kansas system is making the move based on an asset-liability study by consultant Portfolio Advisors, which recommended an increase in international equities to about 19% of total assets, from 15%.
Existing international equity managers Morgan Stanley, Alliance Capital and Nomura will get the additional allocations.
Illinois Teachers restructures lineup, shifts equity assets
SPRINGFIELD, Ill. - Illinois Teachers' Retirement System terminated GE Asset Management, which ran $661 million in active domestic large-cap value equities. The termination was due to a manager restructuring at the $22.8 billion system and was not performance related, said John Day, system spokesman.
The assets were allocated to existing active domestic equity managers: Alliance Bernstein now runs $827 million in large-cap value, up from $717 million; Dodge & Cox now runs $827 million in large-cap value, up from $730 million; NorthPointe Capital, $303 million in small-cap value, up from $206 million; Neuberger Berman, $221 million in small-cap growth, up from $100 million; and PIMCO, $919 million in its StocksPlus enhanced large-cap domestic core equity portfolio, up from $662 million. The system also shifted about $20 million from other equity managers' accounts.
The moves are part of the system's increase in overall equity allocation to 41% of total assets, from 31%.
Blumenthal to oversee NYC pension plans
NEW YORK - Adam Blumenthal was named New York City first deputy comptroller/chief financial officer, overseeing the $81.5 billion New York City Retirement Systems as well as the city's financial operations. The new position broadens the role of deputy comptroller for pensions formerly held by Jane Levine, who is now chief deputy comptroller in Nassau County, New York. Her departure coincided with the change in administration of new Mayor Michael R. Bloomberg. Mr. Blumenthal was vice chairman of American Capital Strategies, a private equity fund, where he directed the firm's investment advisory committee activities. Korn/Ferry International assisted in the search for Mr. Blumenthal.
Wellington's von Metzsch plans to retire at end of the year
BOSTON - Ernst von Metzsch, portfolio manager of Vanguard Group's Wellington Fund, Energy Fund and the Balanced Portfolio, will retire at the end of the year. Mr. von Metzsch, 62, is a senior vice president and a partner with Wellington Management, which provides investment advisory services to the three funds. Edward P. Bousa, vice president of Wellington Management, will become portfolio manager of the Wellington Fund and Balanced Portfolio; Karl E. Brandtel, portfolio manager, will manage the energy fund.
Exxon Mobil shareholders reject 3 resolutions
DALLAS - Exxon Mobil Corp.'s shareholders rejected proposals concerning a poison pill plan, equal employment opportunities for gays and greater diversity on the board of directors. The poison pill proposal gained 45.2% of shareholders' votes; equal employment opportunity, 23.5%; and board diversity, 6.7%. Institutional Shareholder Services had recommended investors vote for the poison pill and the EEO proposals.
L.A. City renews SSgA as passive EAFE manager
LOS ANGELES - The $6.6 billion Los Angeles City Employees' Retirement System renewed State Street Global Advisors' three-year contract for a $390 million passive EAFE index portfolio.
Separately, the board approved the assignment of an $18.9 million apartment fund and a $14.3 million venture capital fund managed by RREEF to Deutsche Asset Management's real estate investment division. Deutsche Asset Management recently bought RREEF.
Hawaii sticks with 3Bridge, but keeps firm on watch
HONOLULU - The Hawaii Employees' Retirement System decided not to terminate 3Bridge Capital, which manages $332 million in active domestic large-cap value equities. David Shimabukuro, administrator of the $8.4 billion system, said the firm remains on watch. He declined to comment further.
Stanislaus County narrows list for 2 equity mandates
MODESTO, Calif. - Stanislaus County Employees' Retirement Association named finalists for passive equity and active small-cap value equity portfolios, said Robert Harmon, administrator. The $950 million pension fund is considering Bank of New York, its custodian, and Deutsche Asset Management to run a $45 million passive S&P 500 index portfolio. Finalists for a $65 million relative small-cap value portfolio are Charlotte Capital, TCW, Benson Associates and Strong Capital. Plan officials hope to make selections in the third quarter, Mr. Harmon said.
The moves are the result of an asset allocation study conducted by Strategic Investment Solutions, Mr. Harmon said. Small-cap value, which is run by Dodge & Cox, is being dropped to 17%, from 27%; small-cap growth, managed by TCW, is being cut to 5%, from 10%; international equities, run by Putnam, up to 15%, from 10%; and fixed income, run by Dodge & Cox, trimmed to 36%, from 38%; the small-cap value and S&P 500 strategies are being added, he said. Large-cap growth, managed by MFS, remains at 15%.
Yellow takes close look at asset allocation
OVERLAND PARK, Kan. - Yellow Corp. is conducting an asset allocation study of its $260 million pension plan, said Harold Marshall, director of employment and benefits. The study is due to "changes in the financial market," he said. Mr. Marshall does not foresee changes in investment managers when the study concludes in mid-June.
The current allocation is 60% equity and 40% fixed income. Frank Russell is advising.
Plumbers Local 12 spending summer looking at allocations
BOSTON - Plumbers, Local 12, is conducting an asset allocation study of its $120 million pension plan, said Roger Gill, administrator. The study will be completed by late August. Mr. Gill does not expect manager changes to result. The current allocation is 55% equity, 35% fixed income, and 10% real estate.
Separately, the plan will conduct an invitation-only search for a direct real estate investment partnership, handling up to $5 million, said Mr. Gill. Funding will come from rebalancing, he said.
Marco Consulting is advising on the study and search.
Nuveen purchases NWQ from Old Mutual group
BOSTON - John Nuveen acquired value equity manager NWQ from Old Mutual's U.S. asset management group for $140 million, including up to $20 million to be paid over five years as part of a strategic alliance between Nuveen and Old Mutual.
Nuveen will give priority consideration to firms within Old Mutual's U.S. asset management group for subadvisory mandates.
Gardner Denver uses shortlist for new record keeper/trustee
QUINCY, Ill. - Gardner Denver Inc., Quincy, Ill., is conducting an invitation-only search for a firm to serve as record keeper and trustee of its $55 million cash balance plan, said Frank Jamboretz, manager-employee benefits. Plan officials want to replace incumbents J.P. Morgan/American Century as record keeper and United Missouri Bank as trustee because of fee increases, he said. The search will end in mid-August; a selection is expected then.
J.P. Morgan/American Century also is bundled provider for Gardner Denver's $80 million 401(k) plan, Mr. Jamboretz said. Although 401(k) plan officials are not looking for a new bundled provider, Gardner Denver's retirement board is open to the possibility of a package deal that would combine a record keeper/trustee for the cash balance plan and bundled provider of the 401(k) plan, he said.
Buck Consultants advised on the shortlist of managers.
Manchester puts Simms, ING Retirement on watch
MANCHESTER, Conn. - Manchester Retirement Allowance Fund placed Simms Capital on watch for performance, said Alan Desmarais, director of finance. Simms runs $9 million in active global growth equities for the $93 million fund, and will meet with fund officials June 19.
Also, the system's $5 million 401(a) plan put bundled provider ING Retirement Services on watch due to the poor performance of its 13 investment options, said Mr. Desmarais. ING officials also will meet with the plan's board June 19.
Dennis Tracey, regional director for Simms, and Dana Ripley, director of external communications at ING Retirement, declined comment.
Tulare County nears choice in small-cap manager search
VISALIA, Calif. - The $700 million Tulare County Employees' Retirement Association is close to picking a manager to run $40 million in active domestic small-cap growth equities, said David Kehler, retirement administrator. The plan is terminating Nicholas-Applegate, which ran the money in a similar style, because of performance, he said.
A selection may be made in mid-June. Rick Shaughnessy, spokesman for Nicholas-Applegate, did not return calls seeking comment by press time.
New Haven Police, Fire go to shortlist in midcap value search
NEW HAVEN, Conn. - New Haven Police & Firemen's Pension Fund has a shortlist of managers in its search for a manager to run $14 million in active domestic midcap value equities, said Gwendolyn Bell, pension administrator for the $274 million plan. Funding will come from terminating Valenzuela Capital, which managed $14 million in the same style, for performance. The assets are being held in a temporary S&P 400 midcap index fund managed by Northern Trust, the plan's trustee, she said. Gray & Co. is assisting.
Donald Krueger, a managing director at Valenzuela, did not return calls seeking comment by press time.
Pensacola on lookout for small-cap to midcap managers
PENSACOLA, Fla. - Pensacola Firefighters Relief and Pension Plan is compiling a list in its search for domestic midcap to small-cap equity managers to run $3.5 million each, one in growth and one in value, said Cheryl Jackson, senior administrative officer.
Officials at the $72 million plan have not decided if the portfolios will be active or passive. Funding will come from rebalancing, she said, and no deadline has been set for the selection.