Blue Cross & Blue Shield
CHICAGO - Blue Cross & Blue Shield Association hired Northern Trust as master trustee for its $1.5 billion pension plan, said Jamey Sharpe, director of investments. The plan issued RFPs earlier this year to explore new options, and incumbent Deutsche (formerly Bankers Trust) was asked to rebid, he said. Callan Associates advised.
California School Employees
SAN JOSE, Calif. - The California School Employees Association hired Milliman USA as record keeper and administrator of its 401(k) and 457 plans, with a combined $4 million in assets, said Jerome Liebling, chief financial officer. Milliman replaced Fortress Benefits Administrators, which Mr. Liebling said had difficulties in providing accurate data. Wendy Richie, administrator at Fortress, did not return calls seeking comment by press time.
California State Employees
SACRAMENTO, Calif. - The California State Employees Association hired Flippin Bruce & Porter to manage $4 million in active domestic large-cap growth equities for the $63 million pension plan, replacing INVESCO, said Gae Von Wagoner, administrative technician to Patrick Haagensen, controller and plan administrator. INVESCO resigned because the portfolio was too small, but continues to manage $28 million in active domestic fixed income, she said. Salomon Smith Barney advised.
Charter One Bank
CLEVELAND - Charter One Bank added five investment options to its $334 million 401(k)/ESOP, said Jo Anne Schloz, vice president and manager of retirement benefits. Added were PIMCO Long-Term U.S. Government, Growth Fund of America, Prudential Jennison Equity Opportunities, Goldman Sachs Small-Cap Value and Fidelity Advisors Mid-Cap funds. The plan dropped the Putnam Vista Fund.
Investment options will increase to 13, Ms. Schloz said. Key Trust is semibundled provider; administration is handled internally.
Circle Trust Co.
STAMFORD, Conn. - Circle Trust Co. hired Wright Investors' Service to subadvise its International and International Pension funds, which have combined assets of $27 million, said Louis P. Celentano, chairman and chief executive officer of Circle Trust. Previous subadviser Columbus Circle resigned because it no longer does international investing, said Clifford G. Fox, Columbus senior managing director.
FARMINGTON, Conn. - ConnectiCare Inc. hired MassMutual Retirement Services as semibundled provider for its defined contribution plan and to run its cash balance plan, replacing Scudder, said William Walton, director of compensation and benefits. The plans have a combined $14 million in assets.
CARLISLE, Pa. - Dickinson College hired Angelo Gordon and Cerebrus Capital as distressed debt managers, made commitments to Commonfund's Capital International Partners IV and Capital Venture Partners venture capital funds, and committed to Commonfund Private Equity Partners V, said David Walker, associate vice president and comptroller. He would not say how much the $170 million endowment committed to each. Funding came from cash. The commitments are the result of the endowment allocating 5% of total assets to distressed debt, and 2.5% each to venture capital and private equity, Mr. Walker said; all are first-time investments to those classes.
PURCHASE, N.Y. - Diversified Investment Advisors hired Delaware Investments and Sterling Capital Management as subadvisers on two new mutual funds. Delaware will manage the Diversified Small-Cap Growth Fund, benchmarked to the Russell 2000 Growth index; and Sterling will run the Diversified Small-Cap Value Fund, which is tied to the Russell 2000 Value index.
Duff & Phelps
CHICAGO - Duff & Phelps hired DiMeo Schneider as the first consultant for its 401(k) plan, said Christopher Janssen, managing director. Plan officials wanted guidance from a firm specializing in 401(k) plans, he said.
HONOLULU - The Hawaii Employees' Retirement System hired State Street as custodian, replacing Deutsche Bank. The $8.4 billion system conducts custodial searches every five years, said David Shimabukuro, administrator. Callan assisted.
Houston Police Officers
HOUSTON - The $2 billion Houston Police Officers Pension System hired Ashmore Investment Management to run $60 million in emerging markets debt, said Tony Kane, head of marketing for the Americas for Ashmore. Fund officials declined to comment.
Laborers, District Council
NEW YORK - Laborers, District Council, Cement & Concrete Workers, Locals 6A, 18A and 20 hired Freedom Capital to manage $17 million in active domestic large-cap value equities for the $152 million pension plan, said Thomas Reynolds, senior vice president of consultant Thomas P. Reynolds Securities. Funding came from terminating a $17 million active domestic large-cap core equity portfolio run by Unity Management; plan officials wanted to increase diversification, he said.
Lake Forest College
LAKE FOREST, Ill. - Lake Forest College hired Legg Mason to run $5 million in active domestic large-cap value equities for its $65 million endowment fund, said Leslie T. Chapman, vice president-business. Funding will come from dropping an S&P 500 index fund managed by Northern Trust. DeMarche Associates assisted.
SAN FRANCISCO - Littler Mendelson PC is replacing four of the 12 investment options shared by its $97 million 401(k) money purchase plan and $4 million savings plan, said Bedwin Cheung, retirement plan analyst. The new options - MFS Total Return, Federated GNMA, Federated Total Return Bond and MFS Value - replace Federated U.S. Government Bond, Fidelity Advisor Intermediate Bond, Fidelity Advisor Balanced and American Century Equity Growth, she said. UMB Bank is the bundled provider.
Lovelace Health Systems
ALBUQUERQUE, N.M. - Lovelace Health Systems is adding seven investment options to both its $52 million physicians 401(k)/profit-sharing plan and $53 million employees' 401(k)/profit-sharing plan, said Brenda Turner, director of compensation and benefits. The plans, which share most investment options, added the Acorn Fund, Strong Advisor Small-Cap Value Fund, CIGNA Core Enhanced Bond Fund and four Vanguard Lifestyle funds. Both plans increased their investment options to 29 from 22, she said.
North Carolina Retirement
RALEIGH, N.C. - The $59 billion North Carolina Retirement System hired State Street as its first master custodian and record keeper, said Steve Eubanks, senior portfolio manager. Separately, the North Carolina Department of State Treasurer also hired State Street as custodian and record keeper for its $6 billion operating fund.
"We were probably the last large public pension fund not to have someone like that," he said.
Norwood Retirement System
NORWOOD, Mass. - The $81 million Norwood Retirement System hired State Street Global Advisors to manage $15 million in active domestic large-cap growth equities, said Debra A. Lorenzo, executive director. The assets came from a $15 million S&P 500 index fund run by SSgA; plan officials wanted to increase the amount the fund allocated to growth equity, she said. Mercer Human Resources advised.
NEW YORK - The International Union of Operating Engineers Locals 94, 94A and 94B hired Carret & Co. to manage $20 million in active domestic large-cap equities for its $350 million annuity plan, said Stephen McGahran, administrator.
Funding came from terminating a manager that ran $20 million in active domestic large-cap growth equity and $30 million in active domestic fixed income. He declined to identify the manager or give a reason for the termination.
The plan also has a shortlist of managers for the $30 million fixed-income portfolio, he said. Stacey Braun Associates, which already managed $75 million in active domestic fixed income, is managing the assets temporarily, and there is no deadline for a decision, he said.
The plan's asset allocation is 60% fixed income and 40% equity. Morgan Stanley Dean Witter advised.
ENGLEWOOD, Colo. - Qwest Communications, hired CitiStreet as record keeper for its $7 billion 401(k) plan; CitiStreet replaces MetLife, which no longer provides the service for large defined contribution plans, said Chris Hardman, Qwest spokesman.
Former auditor Arthur Andersen announced June 15 that it will close its auditing business in August.
SILVER SPRING, Md. - The General Conference of Seventh-Day Adventists Investment Funds hired FTI Institutional to manage $140 million in blended growth/value international equities for its $1.7 billion investment portfolio, said Gary DeBoer, associate treasurer.
Funding came from a reallocation of assets as the result of an asset allocation study done a few months ago. Mr. DeBoer said one manager was terminated; he declined to identify the firm. Madison Portfolio Consultants assisted.
Sheet Metal Workers
TROY, Mich. - Sheet Metal Workers, Local 80, hired Victory Capital Management to run $28 million in a domestic balanced portfolio, said Tom Ingalls, business manager for the $260 million pension fund. Victory replaces another manager, which Mr. Ingalls would not identify.
Shropshire County Council
SHREWSBURY, England - Shropshire County Council Pension Fund hired F&C Management to run a L30 million ($44.7 million) emerging markets portfolio and Harbourvest Partners U.K. to run a L20 million private equity fund-of-funds portfolio, said Philip Guy, treasury and pensions manager at the L630 million plan.
F&C replaces Schroder, which was dropped for poor performance. Schroder continues to manage L37.8 million in Japanese and Pacific Basin equities and L25.2 million in international equities excluding Japan for the plan, he added.
Charlie Price, the Schroder account director responsible for the Shropshire mandates, acknowledged the firm's performance in emerging markets had "gone off the boil" over the last few years, which he attributed to a growth style bias in the management of the portfolio. However, the firm's emerging markets investment process recently has been enhanced, he added.
Tulare County Employees
VISALIA, Calif. - The Tulare County Employees' Retirement Association hired Wall Street Associates to manage $40 million in active domestic small-cap to midcap growth equities, said David Kehler, retirement administrator. The $700 million pension fund terminated Nicholas-Applegate, which ran $40 million in active domestic midcap growth equities, largely for performance reasons. Rick Shaughnessy, Nicholas-Applegate spokesman, did not return calls seeking comment by press time.
24-Hour Fitness USA
PLEASANTON, Calif. - 24-Hour Fitness USA Inc. hired MassMutual Retirement Services as semibundled provider for its $13 million 401(k) plan. Bridget Hinchliffe, director of benefits, would not name the previous provider. The company wanted a provider with more technological capabilities, she said. The plan now offers 16 options, up from 10. Marsh USA Inc. and Woodside Financial Advisors assisted.
STAMFORD, Conn. - Verizon Communications Inc. added four managers to its diversity managers program and increased the program's assets to $785 million from $450 million, said Britt Harris, president of Verizon Investment Management, which manages the $45 billion defined benefit plan of Verizon.
The four new managers are EARNEST Partners, which will manage a U.S. core equity fund with a value tilt; Piedra Capital, which will manage a small-cap to midcap value strategy; and Utendahl Capital Management and Taplin, Canida & Habacht, each of which will manage high-grade U.S. bonds. Verizon also is increasing the amount managed by existing minority manager Ariel Capital. Mr. Harris declined to say how much each new manager was awarded or how much Ariel will manage.
There are now 19 minority managers in the program, Mr. Harris said. The additional $335 million committed to the program will come from other managers, which he declined to name.
ST. PAUL, Minn. - Workers' Compensation Reinsurance Association hired Voyageur Asset Management to run $52 million in active domestic large-cap growth equities for the $1 billion fund, said Carl W. Cummins III, WCRA president and chief executive officer. Funding came from reducing what was a $150 million portfolio managed by Alliance Capital in a similar style and from rebalancing, he said. The amount of the reduction wasn't available. WCRA wanted a second manager in that style, Mr. Cummins said. The search was handled internally.