CalPERS takes stake in firm
CalPERS is taking a minority equity stake in Steinberg Priest & Sloane Capital Management, the ninth investment through its manager development program. The size of the stake was not disclosed. The $149 billion pension fund also is allocating $50 million each to small-cap value equities and enhanced high-yield bond portfolios run by Steinberg Priest. Progress-Putnam Lovell Advisors, a joint venture between Progress Investment Management and Putnam Lovell NPF Private Equity, advised.
Florida ups venture cap
The $83.1 billion Florida State Board of Administration will search for a manager or adviser to construct a $300 million venture capital and middle-market buyout program, said Frank Fernandez, senior portfolio manager in alternative investments. Staffers are researching the best way to build a venture program, which may be through a fund of funds, Mr. Fernandez said. A three-year moratorium on new private equity investments has been lifted, he added.
The market value of Florida's private equity program is $3 billion, or around 3.6% of assets. The target is 4%. Funding will come from rebalancing. The system may work with its current alternatives consultant, Hamilton Lane, but that hasn't yet been decided.
Plexus up for sale?
Plexus Group, the trading cost measurement firm, may be up for sale. Plexus has been seeking a capital infusion for some time to help expand its consulting business. The firm has about $10 million in annual revenue and nearly 200 clients. It has retained investment bank Freeman & Co. Wayne Wagner, chairman, declined to comment.
Laborers drop Oppenheimer
The $1.4 billion Chicago Laborers' & Retirement Board Employees' Annuity & Benefit Fund terminated Oppenheimer Capital, which ran $60 million in active domestic large-cap value equities, because of performance, said James Capasso Jr., executive director. The plan transferred the money to UBS Global, which now manages $273 million in the same style.
Jeff Sheran, marketing director at Oppenheimer, said the company had no comment.
Philly picks Turner, Navellier
The $4.4 billion Philadelphia Public Employees' Retirement System hired Turner Investment Partners and Navellier & Associates to manage $40 million each in active domestic midcap growth equities, said Tony Johnson, CIO. The fund had parked the assets in an S&P 400 midcap index fund managed by Deutsche Asset Management. The move resulted from an asset allocation study completed earlier this year.
New U.K. pension plan pushed
A radical overhaul of Britain's pension system, including a compulsory 2% of annual pay savings requirement, was proposed Aug. 1 by a reform committee of U.K. parliamentarians and pensions industry experts.
The Universal Protected Pensions report called for a new scheme with universal compulsory membership across Britain, funded jointly by the state and compulsory member contributions. It would be an alternative to occupational or private schemes, especially for those who do not have access to either type of plan.
Oregon commits $50 million
The $35 billion Oregon Public Employees Retirement Fund committed $50 million to Coller International Partners IV, its first move into the secondary alternative equities arena, said Mike Mueller, interim director of investments. Coller buys secondary stakes from other investors in mezzanine, venture capital and buyout funds.
Ludwig hires SSR
Ludwig Institute for Cancer Research hired State Street Research to run $35 million in SSR's Analyst 1000 portfolio, said Xing Chen, senior investment analyst at the $1 billion foundation. The Analyst 1000 portfolio is a sector- and style-neutral portfolio of U.S. large-cap companies. Funding came from an existing manager's global portfolio; Mr. Chen would not give further details.
2 added to balanced fund
Holland & Knight hired Advisory Research to manage $10 million in active domestic large-cap value equities and Davidson Kempner to run $3 million in private equity for its H&K balanced fund, said Linda C. Lake, profit-sharing benefits coordinator. The fund is one of 15 options in the firm's $200 million 401(k) and profit-sharing plan, she said.
The value equity funding comes from a $10 million active domestic large-cap core equity portfolio run by Tom Johnson Investment Management, which was terminated for performance, Ms. Lake said. The private equity mandate was funded with cash, she said. Richard Parry, president and senior portfolio manager at Tom Johnson, did not comment by press time.
Separately, the plan terminated Kayne Anderson Rudnick, which managed $3.5 million in active international equities for the H&K fund, she said. Disappointing returns in the overall international equity market led to the termination, and the money will be distributed among the plan's fixed-income and equity managers, she said.
Brock Hazzard Investment Group of Wachovia Securities advised.
Board taps 3 in private equity
Canada Pension Plan Investment Board committed C$100 million (US $62.8 million) to Kensington Capital Partners, split evenly between a Canadian buyout fund of funds and a related fund that will co-invest directly in primarily Canadian private companies. The C$13 billion board also committed C$238 million each to Lindsay Goldberg & Bessemer and to Terra Firma Capital Partners II.
Calif. treasurer: No to offshore
California State Treasurer Phil Angelides proposed that CalPERS and CalSTRS divest their holdings in and stop doing business with companies that have expatriated themselves in Bermuda and other offshore locations. The two funds collectively hold $752 million in investments in publicly held expatriated U.S. companies. The CalSTRS board will consider Mr. Angelides' proposal at its Oct. 2 investment committee meeting.
Wisconsin moves index assets
The $54.8 billion Wisconsin State Investment Board moved $8.32 billion into a Russell 3000 index fund run by Barclays Global Investors, a new investment, said Vicki Hearing, spokeswoman. The money came from a $6.4 billion S&P 500 index fund, a $1.6 billion midcap index fund and a $320 million Russell 2000 index fund, all run by BGI, she said.
System officials wanted to get the fund in line with its equity benchmark, the Russell 3000 index.
Dean Health to review options
Dean Health Systems Inc. in September will begin a review of the nine investment options shared by its $315 million combined 401(k), profit-sharing and match plan, and its $48 million money purchase pension plan, said Kevin C. Stevens, corporate accounting coordinator. The plans may add an investment option when the study is finished in October, he said. Ennis Knupp advises on investment options and will handle the reviews.
401(k) gets 1st consultant
Patterson Dental hired Defined Contributions Advisors as the first consultant for its $91 million 401(k) plan, said Rick Fitzpatrick, benefits manager. Plan officials wanted a third-party opinion on fund selection and performance monitoring. US Bank is bundled provider.