New Mexico Mortgage Finance Authority, Albuquerque, is issuing RFPs for a manager to run between $10 million and $40 million in cash, treasury and agency securities for its $1.3 billion portfolio, said Yvonne Segovia, controller. Funding will come from assets from maturing bonds, she said. The RFP is available at the MFA website, www.housingnm.org, or by faxing a request to the attention of Ms. Segovia at (505) 243-3289. Proposals are due Aug. 30, and a selection is expected to be made in October, said Ms. Segovia.
Milwaukee County Employees' Retirement System, Milwaukee, is conducting an asset allocation study, which it expects to complete in October. The $1.5 billion plan conducts such studies every five years, said Jac Amerell, secretary and director. No manager or allocation changes are expected.
Mercer Investment Consulting is assisting.
Missouri Public School Retirement System, Jefferson City, hired Pathway Capital to manage $150 million in private equity, the $21 billion pension plan's first such allocation, said Stacey McNally, investment operations officer. Funding will come from cash. The hiring was the result of an asset allocation study adopted by the system in January.
Strategic Investment Solutions assisted.
Philadelphia Gas Works Retirement Reserve hired Evergreen Investment to manage $33 million in active domestic core fixed income, pending contract negotiations, said John R. Foulkes, CIO of the $400 million pension plan. Partial funding will come from terminating an $18 million active domestic core fixed-income portfolio run by RRZ; $10 million will go to the Evergreen portfolio, and $8 million will be added to a existing active domestic core fixed-income portfolio run by Weaver C. Barksdale. Mr. Foulkes would not provide the asset size for the Barksdale portfolio. The remainder of the Evergreen allocation will come from rebalancing, he said. The RRZ portfolio was terminated because the portfolio management team that worked with the plan left the firm and formed Providence Investment Advisors.
Yanni Partners advised.
International Longshore and Warehouse Union and the Pacific Maritime Association, San Francisco, hired Fidelity as semibundled provider for the ILWU $385 million 401(k) plan, said Michael Wechsler, CFO and senior vice president, Pacific Maritime Association, the employer group for the union. The plan's investment options were expanded to 16 from 11. The union kept five funds, managed by Berger, Dresdner RCM, Oakmark, PIMCO and Washington Mutual; and mapped the remaining assets to Fidelity funds and the Baron Growth Fund. Former provider MetLife left the large defined contribution plan business last year.
Susquehanna Pfaltzgraff Co., York, Pa., added the T. Rowe Price Small-Cap Fund as an investment option in its $60 million 401(k) plan, said Pamela B. Zerba, director of employee benefits. The plan now offers nine options, up from eight.
J.P. Morgan/American Century is bundled provider.
Los Angeles County Employees Retirement Association, Pasadena, Calif., increased the amount in the $26 billion plan's alternatives allocation to up to $330 million in commitments, said Christopher J. Wagner, investment officer. The increase brings the system closer to its target alternatives allocation of 7% of total assets. Consultant Pathway will develop a shortlist of managers for future searches, Mr. Wagner said, and no RFPs will be issued.
Nordson Corp., Westlake, Ohio, will conduct an invitation-only search for a consultant, said Ray Cushing, treasurer. The first job for the new consultant will be to conduct a search for bundled provider of Nordson's $180 million 401(k)/ESOP. Mr. Cushing said Victory Capital Management, a subsidiary of KeyCorp, the current bundled provider of 12 investment funds, no longer provides record keeping. The plan will begin the consultant search as soon as possible; no deadline has been set.
Wisconsin State Investment Board, Madison, is searching for a managing director for alternatives to replace Jim Gannon, who is retiring effective today. The managing director oversees a $2.2 billion private placement portfolio for the $56.9 billion system. The search is in the "very early" stages, said Ledell Zellers, human resources director. A timeline and job posting have not been made yet.
Wegner & Associates is assisting.
Case Western Reserve University, Cleveland, is searching for an associate treasurer for financing and investments, a new position at the $1.4 billion university endowment. The post oversees the endowment's fixed-income portfolio and $200 million operating cash funds, said Sally Staley, associate treasurer for alternatives and equity investments. A job posting can be found on the university's website at www.cwru.edu.
Todd Burns will become president and CEO of Lynch Jones & Ryan, New York, when Howard Schwartz retires at the end of the year. Mr. Burns is vice president for global sales.
Financial Services Authority, London, Britain's securities regulator, may close its L148 million ($229 million) pension plan because of a L31.5 million deficit and the possible implementation of the new British accounting standard FRS 17, which would increase the amount of the shortfall.
"We have initiated a staff consultation process and we are considering various options in how to deal with the deficit ... one of which would be closing the scheme, which is also being considered by thousands of other companies," said Robin Gordon-Walker, authority spokesman. Other options including introducing a hybrid scheme or simply increasing contributions.
South Carolina's $200 million Optional Retirement Plan, Columbia, a 401(a) plan for public school teachers and public school administrators, will be offered to new state employees, said Peggy Boykin, director of the $20 billion South Carolina Retirement System. New employees will be able to choose between the 401(a) plan and the defined benefit plan, Ms. Boykin said. Participants who stay with the defined contribution plan for five years will then have a one-time option to switch to the defined benefit plan, she said.
The 401(a) plan's four bundled providers are ING Aetna, VALIC, TIAA-CREF and CitiStreet. Ketchum Communications will run the education and communication campaign, she said.
Kansas State University Foundation, Manhattan, is conducting an asset allocation study of its $168 million endowment fund, said David L. Weaver, vice president of real estate and investments. The plan conducts a study every three years, he said. The study will be completed in August; manager changes are not expected, Mr. Weaver said. Cambridge Associates is advising.
Baker & McKenzie, Chicago, approved a new cash balance plan for its U.S. partners and senior staff, said Edward D. Burmeister, partner. The new plan will supplement the firm's separate $160 million general employee 401(k)/profit-sharing plan. The plan will be active on Monday and will be funded by Nov. 1, he said.
In August, the retirement board will conduct an invitation-only search for a single manager to handle the plan, Mr. Burmeister said. The search will conclude before November, he said. No consultant is being used.
Heidrick & Struggles Inc., Chicago, will begin an annual review of investment options in its $120 million 401(k) plan, said Robert Sloan, director of executive compensation and employee benefits. He does not expect changes in the plan's 34 options when the review concludes in September. Bundled provider Vanguard will assist.
The Lincoln Electric Co., Cleveland, is conducting an invitation-only search for a consultant to assist it in an upcoming search for a record keeper for its $110 million 401(k) plan, said Paul Klingensmith, treasurer. Incumbent Victory Capital Management is leaving the record-keeping business. The company is not accepting inquiries, Mr. Klingensmith said. No timeline has been set.
Central Service Association, Tupelo, Miss., retained ING Retirement Services as record keeper, trustee and investment provider for its $10 million 401(k) plan and $10 million 457 plan, said Scott Blassingame, secretary treasurer. Both plans offer the same 20 investment options, he said. Administration is handled internally.
Phoenix Investment Partners terminated the investment management team of The Zweig Group, a retail mutual fund company it purchased in 1999, replacing them with teams from other investment subsidiaries, according to Sharon Bray, a Phoenix spokeswoman. Phoenix gave the assets to Oakhurst Asset to manage the Phoenix-Zweig Managed Assets and Strategy Fund; Hollister Investment to run the Phoenix-Zweig Appreciation Fund; Goodwin Capital Advisers to manage the Phoenix-Zweig Government Cash Fund; and Capital West Asset to run the Phoenix-Euclid Market Neutral Fund. The investment style and process for each fund will not change, although fund names will change to incorporate the name of the new asset managers. The two smallest mutual funds in the Zweig Series Trust - the Phoenix-Zweig Growth & Income and Government Funds - will be closed.
Two publicly traded closed-end funds will not be affected, according to a statement from Phoenix. Martin Zweig will continue as chairman and president of the closed-end funds but will not remain president of the mutual funds that once bore his name. Phoenix officials said in the statement that the company remains committed to the closed-end funds and Zweig Consulting, which advises the closed-end funds. Phoenix will maintain its contractual relationship with Mr. Zweig, according to the statement.
The change was made to stop the outflow of assets and to improve performance, Ms. Bray said.
Brown Brothers Harriman added ActionWorld, a new web-based service to inform clients of corporate actions that may affect their portfolios. ActionWorld is available free to BBH clients, said Evan Zall, spokesman.