WASHINGTON -- American Council of Life Insurers hired Ernst & Young as investment consultant for its new cash balance plan, and it retained Prudential Investments as investment manager, said Joanne Daly, vice president of benefits. Prudential managed all the assets of the council's now-terminated $60 million defined benefit plan; a $9 million surplus will fund the new cash balance plan.
The trade association also dropped its 2% allocation to real estate and shifted it to domestic bonds. The new asset allocation is 50% domestic equity, 5% international equity and 45% domestic bonds.
Separately, the association added the Van Kampen Comstock Fund as an investment option in its $35 million 401(k) plan, and added the MFS Total Return A Fund, replacing the Prudential Active Balanced Fund. It also took the Prudential Government Income Fund off its watchlist, and put the Dreyfus Emerging Leaders Fund on the list because of performance.
Alaska Permanent Fund
JUNEAU, Alaska -- Alaska Permanent Fund hired three managers to run a total of $225 million in active domestic small-cap equities for the $21.5 billion fund, according to a spokeswoman from the fund. Martingale Asset Management will handle $75 million in a value style; and Cordillera Asset Management and Turner Investment Partners will manage $100 million and $50 million, respectively, in growth. Of the total allocation, $60 million will come from a rebalancing that will shift $750 million from the fund's $7.3 billion internally managed U.S. bond portfolio to domestic and international equity portfolios. The remainder will come from reducing an S&P 1000 index fund and several small-cap portfolios; the managers were not identified.
Callan Associates is consultant.
AUSTIN, Texas -- Austin Police Retirement Fund will invest $15 million in the PIMCO Total Return Fund, said Sampson K. Jordan, pension administrator.
Funding for the hiriing will come from reducing several portfolios: an active international equity portfolio run by Brandes will be cut by $9 million, to $30 million; an active domestic midcap growth equity portfolio run by Cavalier will be cut by $3 million, to $6 million; and an active domestic large-cap growth equity portfolio run by Davis Hamilton Jackson will be cut by $3 million, to $19 million.
Separately, the $240 million plan terminated Arbor Capital, which ran $6 million in active domestic small-cap growth equities, said Mr. Jordan.
The termination was due to the asset class' overall poor performance, he said. The assets will be added to a domestic government fixed-income portfolio run by Hoisington, increasing it to $41 million, he said.
The plan's asset allocation is 45% fixed income, 40% equities and 15% real estate, Mr. Jordan said.
Monroe Vos Consulting advised on all changes.
BROCKTON, Mass. -- Brockton (Mass.) Contributory Retirement System hired Meridian Investment to manage $5 million in active domestic all-cap core equities, said Harold P. Hanna Jr., executive director. Funding will come from annual appropriations from the city and from maturing investments in the L&B Property Fund IV and the SSR Realty MAC Trust Fund.
Separately, the $165 million pension plan hired Fleet Institutional Trading, Patterson Capital Markets and Chapdelaine Pension Services Group as commission recapture brokers, he said. The firms join Trading Partners, which remains a commission recapture broker for the plan, he said.
The system's asset allocation is 33% domestic fixed income, 32% domestic equity, 8% international equity, 8% international fixed income, 7% real estate, 7% cash and 5% pooled venture investments. Wainwright Investment Counsel advised.
SACRAMENTO, Calif. -- CalPERS committed $75 million to Page Mill Properties, a real estate opportunity fund, said Brad Pacheco, CalPERS spokesman. The $33 billion Oregon Public Employees' Retirement Fund, Salem, also committed $50 million to the same fund, said Steve Gruber, Oregon PERF senior real estate officer. The investment by the $136 billion California Public Employees' Retirement System will be the first funded under its $500 million opportunistic real estate allocation, Mr. Pacheco said.
CLEVELAND -- Eaton Corp. hired Fidelity Employer Services as administrator for its $2.1 billion defined benefit and $1.1 billion 401(k) plan, along with its health and welfare benefit program. Gary Klasen, Eaton spokesman, would not identify the previous administrator, whose contract had expired.
Fidelity Employer Services is also trustee of the 401(k) plan.
El Paso Fire & Police
EL PASO, Texas -- El Paso Firemen & Policemen's Pension Fund hired Fidelity to manage $27 million in active international large-cap growth equities, said Robert J. Stanton, pension administrator. The $420 million pension plan began the search in August 2001, but it held off in June until Summit Strategies was hired as consultant, he said. The plan's asset allocation is 60% equity and 40% fixed income.
FALMOUTH, Mass. -- Falmouth Contributory Retirement System hired Delaware Investments to manage $8 million in active domestic large-cap value equities, replacing Cutler, said Margaret Correllus, administrator and board member at the $53 million pension plan. Cutler was terminated because of personnel changes, she said. Wainwright Investment Counsel advised.
QUINCY, Ill. -- Gardner Denver Inc. hired Wachovia/First Union as record keeper and trustee of its $50 million cash balance plan, said Frank Jamboretz, manager-employee benefits. The plan replaced J.P. Morgan/American Century as record keeper and United Missouri Bank as trustee because of fee increases.
The plan's asset allocation is 65% equity and 35% fixed income. Buck Consultants made provider recommendations, he said.
GLOUCESTER, Mass. -- Gloucester Contributory Retirement System hired PIMCO to manage $13 million in active domestic core fixed income for the $40 million pension plan, said Douglas Moseley of New England Pension Consultants. Funding came from reducing a balanced portfolio by $13 million to $10 million, Mr. Moseley said; he would not identify the manager. The plan's asset allocation is 33% large-cap equity, 12% international equity, 10% small-cap to midcap equity and 45% fixed income.
APPLETON, Wis. -- Great Northern Corp. hired Principal Financial Group as record keeper for its $36 million profit-sharing fund, replacing US Bank, said Brian Diermeier, director-human resources. The plan offers eight investment options: S&P 500 index, bond and mortgage funds from Principal; Vanguard's Wellington balanced, PRIMECAP and Explorer equity funds; Fidelity midcap equity; and Putnam international equity funds.
Lincoln Firemen & Policemen
LINCOLN, Neb. -- Lincoln Firemen's & Policemen's Retirement System may invest $4 million in the J.P. Morgan Multi-Strategy fund of hedge funds, and it may also invest $1 million in the Smith Hayes Capital 20 Fund, said Paul Lutomski, pension officer. The commitments are pending approval from the $132 million pension plan's advisory committee at its Nov. 7 meeting.
Funding would come from reducing Treasury strip investments to $22 million, from $27 million, he said.
The plan may eventually add to these investments; the plan's investment policy allows up to 10% of total assets to be in alternatives, he said. The plan is not using a consultant.
Los Angeles County
PASADENA, Calif. -- Los Angeles County Employees Retirement Association committed $50 million to the Resolute Fund, which will invest in middle market buyouts, said Chris Wagner, senior investment officer for alternatives. The $23.2 system will fund the commitment from cash. Pathway Capital assisted.
CHATTANOOGA, Tenn. -- McCallie School hired Trustco to run its $4 million pension plan, said Jessica L. Hibbs, controller. The plan terminated consultant Chartwell and dropped its previous investments, three equity mutual funds and one bond fund, she said. Plan officials wanted a bundled approach, she said. The plan's asset allocation is 65% equity and 35% fixed income.
Separately, the school made several changes to the lineup of investment options in its $13 million 401(k) plan, said Ms. Hibbs. It added: five Fidelity Freedom funds and Fidelity Balanced, Spartan 500 Index and Midcap Stock; Credit Suisse Capital Appreciation and Small Value; Managers Value and Special Equity; Ariel Appreciation; Oakmark Select One; and Templeton Mutual Discovery funds, she said. The plan also dropped Fidelity's Worldwide and Asset Manager Growth funds, she said. It now has 22 investment options, up from nine, she said.
Fidelity is bundled provider; the plan did not use a consultant.
Nebraska State Investment
LINCOLN, Neb. -- Nebraska State Investment Council hired Grantham Mayo Van Otterloo to manage $200 million in active international equities for the state's three pension plans, which have a combined $4.2 billion in assets, said Anna J. Sullivan, executive director. Funding came from reducing a passive MSCI EAFE index equity fund managed by Alliance Capital; the portfolio size was not available. The plans' asset allocation is 50% domestic equity, 35% fixed income and 15% international equity. Wilshire Associates advised.
Niagara Mohawk Power
SYRACUSE, N.Y. -- Niagara Mohawk Power Corp. invested $37 million in the PIMCO Stock Plus Fund, said a pension plan official who declined to be named. She said funding came from terminating an enhanced S&P 500 index account managed by Advanced Investment Management, but she would not provide further details.
The pension plan has $1.1 billion in assets, according to the Money Market Directory.
Ohio Northern University
ADA, Ohio -- Ohio Northern University hired Lord Abbett to manage $10 million in active domestic midcap value equities for the $85 million endowment plan, said Emanuel Goode, controller. Funding came from reducing an active domestic large-cap growth equity portfolio managed by Alliance Capital by $5 million, leaving it with $23 million, and reducing the plan's internally managed fixed-income portfolios by $5 million, leaving them with $10 million. Plan officials added the midcap value equity allocation for diversification, he said. The asset allocation is 88% equity and 12% fixed income. A.G. Edwards advised.
Oklahoma County Employees'
OKLAHOMA CITY -- Oklahoma County Employees' Retirement System hired InvesTrust as bundled provider of its $50 million 401(a) plan, replacing Prudential, said Melinda J. Colson, human resources director and county clerk. The number of investment options will remain at 11 or increase slightly, she said.
Opportunity Capital Advisors advised.
TULSA, Okla. -- Oneok Inc. hired Merrill Lynch as consultant for its $550 million pension plan, said John Manning, director of employee benefits. Previous consultant Morgan Stanley was terminated due to personnel changes, he said. There are no plans for an asset allocation study or any manager changes, he said. The plan's asset allocation is 60% equity and 40% fixed income.
Oregon Public Employees
SALEM, Ore. -- Oregon Public Employees Retirement Fund committed $50 million to Greenfield Fund III, a value-added fund, said Steve Gruber, senior real estate officer. The $33 billion system will fund the commitment from cash.
Physicians Mutual Insurance
OMAHA, Neb. -- Physicians Mutual Insurance Co., Omaha, Neb., added the Liberty Acorn Fund Z as an investment option for its $45 million 401(k) plan, and it dropped the GAM International Fund, said Nancy Veasey, employee benefits administrator. The plan has 13 investment options.
Vanguard is bundled provider.
R.J. Reynolds Tobacco
WINSTON-SALEM, N.C. -- R.J. Reynolds Tobacco Holdings Inc., Winston-Salem, N.C., added the PIMCO Total Return Bond Fund and the MFS Institutional Large-Cap Value Fund as investment options in its $1 billion 401(k) plan, said Ms. Premo. Investment options increased to 12, up from 10, with one self-directed brokerage account, she said. The plan does not use an investment provider, but Frank Russell advises on investment options, she said. Citibank is trustee; Mellon HR Solutions is record keeper, and Administration is handled internally.
SARASOTA, Fla. -- Sarasota Firefighters' Pension Plan hired ICC and DePrince, Race & Zollo to manage $10 million each in active domestic large-cap growth equities, both replacing INVESCO, said Hector M. Ruiz, pension manager. The $75 million pension plan terminated INVESCO because of personnel changes, he said. Its asset allocation is 60% domestic equity, 30% fixed income and 10% international equity. Merrill Lynch advised.
Sheet Metal Workers 33
CLEVELAND -- Sheet Metal Workers, Local 33, Cleveland District, hired active domestic value equity manager Brandywine to run two portfolios for the $94 million pension plan, said Richard A. McLendon, funds administrator. Funding for an $11 million large-cap portfolio came from terminating Bartlett for performance; Bartlett ran $11 million in active domestic all-cap value equities. Funding for an $8 million small-cap to midcap portfolio came from reducing other equity and fixed-income portfolios, he said.
The plan's asset allocation is 47% domestic equity, 28% fixed income, 15% international equity, 7% cash and equivalents and 3% real estate. Summit Strategies advised.
Woody Uible, managing director for Bartlett, said the firm has had competitive long-term returns, but Bartlett has slightly underperformed by about 30 basis points per year since the plan implemented a performance-based fee arrangement three years ago.
Sheet Metal Workers 265
CAROL STREAM, Ill. -- Sheet Metal Workers Local 265 hired Salomon Smith Barney as consultant for its $125 million pension plan, $45 million annuity plan and $23 million welfare plan, said Erwin Pasch, administrative manager. The plan replaced its previous consultant, Merrill Lynch, because of personnel changes, according to Mr. Pasch.
The pension plan's asset allocation is 45% equity, 45% fixed income and 10% real estate; the annuity plan, 93% GICS and 7% equity; and the welfare plan, 94% fixed income and 6% equity.
STAMFORD, Conn. -- Stamford Police Pension Trust hired GEM Capital and Victory Capital to manage $5 million each in an active convertible strategy combining equities and bonds, said Frank Cronin, chairman. Funding came from terminated active equity managers, said Mr. Cronin; he declined to provide further details.
Separately, the $125 million plan hired McHugh Associates to manage $6.5 million in active domestic large-cap growth equities, said Mr. Cronin.
Funding came from a similar portfolio run by ING Aeltus Group, which was terminated due to personnel changes, Mr. Cronin said.
RICHMOND, Va. -- Virginia Retirement System approved three new investment options for its $480 million 457 plan. It added a Tuckerman REIT index fund, Vanguard active inflation-protected bond fund and a Vanguard Wellington active high-yield bond fund.
The plan previously offered 13 investment options and a self-directed brokerage window.