Paul Hugh David Matson is the new director of the $19.2 billion Arizona State Retirement System, Phoenix. He was expected to start Jan. 6. Mr. Matson is currently the chief investment officer for the system. He replaced LeRoy Gilbertson, who retired. David Cannella, communications director for the system, said no decision has been made on how the new CIO will be chosen.
Missouri schools hires 2
The $20.4 billion Missouri Public School Retirement System hired Chartwell and PIMCO Equity to run $100 million each in active domestic small-cap growth equities, the plan's first allocation to the area, said Craig Husting, CIO. Funding came from a reallocation from short-term cash accounts, he said. Strategic Investment Solutions assisted.
IBM contributes $3.9 billion
IBM Corp. made a $3.95 billion contribution to its $32.4 billion defined benefit plan, company officials said last week. The move makes the plan fully funded, said John R. Joyce, senior vice president and CFO.
Nearly 53% of the contribution - $2.09 billion - was cash. The rest was made with 24 million shares of IBM stock. The contribution was almost $1 billion more than company officials had expected in early December; an unexpectedly high 5.8% decline in the S&P 500 stock index last month helped push the value of the plan's funds assets lower, Mr. Joyce said.
IBM on Dec. 4 announced it would fully fund its defined benefit pension plan by year-end.
U.K. funds lose $120 billion
Falling equity markets wiped L75 billion ($120 billion), an average of 11.5%, off the value of British pension assets in 2002, the third straight calendar year of negative returns, according to data from Russell/Mellon CAPS.
From a survey by UBS Global of more than 1,600 pension schemes in Britain, it was estimated total U.K. pension assets fell to L608 billion from L683 billion in the past year.
Florida DC cuts MetLife
Florida's deferred compensation program did not rehire MetLife Investors USA as one of the providers for the state's $1.5 billion 457 plan, according to a written statement by Tom Gallagher, state treasurer.
New contributions that are not actively redirected from MetLife funds by participants will be moved automatically to a similar Nationwide Retirement Solutions fund effective Jan. 18.
Florida also hired Safeco-ShareBuilder to provide the online brokerage account.
Luzerne County hires 17
The Luzerne County Employees' Retirement Fund hired 17 managers to replace the 30 firms that were terminated by the county's retirement board in September, said Steve Flood, county controller and board member. The $142 million fund in Wilkes-Barre, Pa., also changed its asset allocation mix to 50% equities and 50% fixed income, from the 70/30 split it had in September, when the board voted to terminate all of the fund's managers and change consultants, hiring Merrill Lynch to replace ASCO Financial Group. The managers were terminated for poor performance and high fees; the consultant was terminated because of losses at the fund and allegations it was too close to some money managers.
The new active equity managers are: MFS Investment Management and NWQ Investment Management, domestic large-cap value; Chase Investment Management and Davis Hamilton Jackson, domestic large-cap growth; Sun Bank/Guaranty Trust, Berkshire Asset Management and C.S. McKee, domestic large-cap core; ICM Asset Management, domestic midcap value; Kayne Anderson, domestic small-cap to midcap value; Penn Capital, domestic small-cap value; Emerald Advisors and Westcap Advisors, domestic small-cap growth; and Putnam, international. The new fixed-income managers are Allegiance Capital, M&T Bank, McDonnell and Wedge Capital.
Tulsa drops Provident
The Tulsa Municipal Employees Retirement Plan terminated Provident Investment Counsel as manager of a $43 million active domestic core fixed-income portfolio, said Christine Fisher, retirement specialist. The $250 million pension plan terminated Provident because it changed to a style of management that conflicted with the plan's investment policy and guidelines, she said. The $43 million was allocated to other managers. Jeffrey Miller, vice chairman at Provident Investment Counsel, did not return calls seeking comment by press time.
First Albany adds Noddings
First Albany Asset Management Corp. acquired Noddings Investments from Conning Asset Management. Terms were not disclosed. Sue Christoph, managing director of Noddings, said the company will maintain its identity and staff and will continue to operate independently in Oakbrook Terrace, Ill.
Hugh Johnson, chairman of First Albany Asset Management, said the firm is actively looking for other institutional money management companies to buy, particularly in non-traditional investments.
Noddings manages about $300 million in convertible bond arbitrage and unleveraged market-neutral strategies. It also manages an enhanced S&P 500 index strategy. Prior to the Noddings acquisition, First Albany managed about $600 million in institutional assets and $100 million in retail assets.
Subaru switches options
Subaru of Indiana Automotive Inc. replaced two investment options in its $124 million 401(k) plan, said Andy Scott, group leader of benefits and payroll. The plan added the Wellington Management Large-Cap Value separate account and the Franklin Balance Sheet Investment mutual fund; and dropped the Neuberger Berman Guardian Trust and the Lazard Small-Cap Equity funds, Mr. Scott said. The plan has 14 investment options, he said. Morgan Stanley advised.
CoBiz acquires Alexander
CoBiz, a financial holding company, acquired Alexander Capital Management Group, which runs $219 million for institutions and high-net-worth individuals. CoBiz, which has $1.1 billion in assets under management, will acquire ACMG with a blend of cash, stock and earn-out payments over the next three years. Alexander Capital will retain its name and management team.
The deal is expected to close in the first quarter. Further details of the terms were not disclosed.
Leahy joins SEI
Michael Leahy was hired as head of alternative investments operations, a new position, at SEI Investments. He will manage the alternative investments operations team, which consists of both hedge and private equity fund specialists, and will work to improve operational capabilities and help expand SEI's operations and fund administration business. Mr. Leahy was treasurer and head of operations at Goldman Sachs Princeton, where he directed cash management, hedge activities, foreign exchange execution and portfolio management for the firm's commodity index product and credit management activities.