MINNEAPOLIS - American Express Retirement Services hired Morningstar Associates to provide its ClearFuture online investment advice for American Express' plan sponsor clients. ClearFuture will be launched this summer, together with telephone-based and face-to-face advice from American Express.
American Express will keep its current online advice provider, mPower, said Jennifer Jones, American Express spokeswoman. Company executives don't want to take it away from the handful of clients offering the mPower service, she explained.
Anne Arundel County
ANNAPOLIS, Md. - Anne Arundel County Retirement & Pension System hired Western Asset to run $60.7 million in active domestic core fixed income for the plan, said John R. Hammond, budget officer. The $865.2 million plan terminated the previous manager, Manning & Napier, for performance, he said. Richard T. Barrington, managing director of client services at Manning & Napier, said the firm had not been notified of the termination.
DENVER - Colorado County Official & Employee Retirement Association added a self-directed brokerage account from Ameritrade as an option in its 401(k) and 457 plans, which total $470 million, said Jay Shoemaker, executive director at CCOERA. Plan officials wanted to give participants greater investment flexibility; the plans offer the same 14 investment options.
In August, CCOERA hired Harris Direct to provide a brokerage account, but that investment option never made it into the plan, Mr. Shoemaker said. "During the testing process we became disillusioned with their personnel and their knowledge," he said. "We pulled the plug and looked elsewhere."
Amy Yuhn, Harris Direct spokeswoman, acknowledged the company has been through mergers and that the brokerage account never got to the live phase. "There have been no work force reductions in the institutional brokerage services group, which is the group within Harris Direct that services these types of accounts for clients," Ms. Yuhn said.
Ameritrade has an alliance with SunGard, which provides back-office systems for CCOERA and executes trades for the program, he said.
ATLANTA - Cumulus Media Inc. hired ABN AMRO as bundled provider for its $8 million 401(k) plan, said Martin R. Gausvik, executive vice president and chief financial officer.
Previous bundled provider Principal Financial was replaced because plan officials thought ABN AMRO was better equipped to handle the rapidly growing plan, which will continue to offer 11 investment options, he said.
Smith Barney advised.
El Paso County
COLORADO SPRINGS, Colo. - The $160 million El Paso County Retirement System hired Strong Capital to manage $13 million in active domestic large-cap growth equities, said Dave Klemmer, plan administrator.
Funding came from terminating State Street Global Advisors, which ran the money in a Russell 1000 index fund, because officials wanted active management, Mr. Klemmer said. SSgA continues to manage $26 million in an S&P 500 index fund.
Summit Strategies advised.
QUINCY, Ill. - Gardner Denver Inc. made several changes to the investments in its $50 million cash balance plan, said Frank Jamboretz, manager-employee benefits. It added Evergreen Core Bond, High Yield Bond, Stock Index and Select Growth; CRM Midcap Value; DLB Small-Cap Opportunity; T. Rowe Price Small Stock; Artisan International Stock; and Delaware Pooled International funds. Of the nine previous investments, only the Dodge & Cox Stock Fund was retained, Mr. Jamboretz said. Buck Consultants advised.
GCIU, Local 119 B
NEW YORK - Graphic Communications International Union, Local 119 B, hired LSV Asset to manage $8 million in active domestic large-cap value equities, and PIMCO and Metropolitan West Asset to run $7.5 million each in active domestic core fixed income, said Howard B. Katz, fund administrator. The $140 million pension plan terminated Oppenheimer Capital, which ran the equity portfolio, and Amalgamated Bank, which managed $15 million in active domestic core fixed income; both terminations were for performance, Mr. Katz said. Oppenheimer continues to manage $30 million in active domestic core fixed income for the plan, and Amalgamated runs an active domestic fixed-income portfolio with less than $1 million in assets, he said.
The plan's asset allocation is 50% equity and 50% fixed income. Madison Portfolio advised.
Jeff Sheran, director of marketing at Oppenheimer, declined to comment; Ron Luraschi, Amalgamated senior vice president, did not return calls seeking comment by press time.
Indiana Public Employees
INDIANAPOLIS - The $9 billion Indiana Public Employees Retirement Fund hired J.P. Morgan Chase as global custodian, said Patricia J. Gerrick, chief investment officer of the fund. J.P. Morgan Chase will replace National City Bank, which will continue working with the fund in another capacity, including providing some backup services. "We needed to move to a more sophisticated platform, more online services, more advanced reporting," Ms. Gerrick said.
Separately, the plan hired INVESCO to run $200 million in a global opportunistic mandate, pending contract negotiations, said Ms. Gerrick. The mandate will be benchmarked to the MSCI All Country World index but INVESCO will have latitude to place up to 30% of the portfolio in asset classes outside that benchmark, such as small-cap equities and fixed income, including high yield and emerging-market debt.
The funding source has not been determined. Mercer Investment Consulting assisted.
EMERYVILLE, Calif. - Industrial Employers & Distributors Association hired Standish Mellon to manage $5 million in active domestic small-cap growth equities for the $140 million Distributors Association Warehousemen's Pension Trust, said David McKenzie, administrator. Funding came from terminating TCW, which ran a similar portfolio, for performance. The trust's asset allocation is 50% equity and 50% fixed income. Alan D. Biller & Associates advised.
Marc Stern, TCW president, did not return calls seeking comment by press time.
Iron Workers, Local 580
NEW YORK - Iron Workers, Local 580, Joint Funds hired Lord Abbett to manage $30 million in an active balanced portfolio for its $120 million pension plan, and Lazard Freres and Buckhead Advisory Group to handle $15 million each in active balanced portfolios for the $192 million annuity plan, pending contract negotiations. A plan official, who asked not to be identified, said funding came from terminating INVESCO, which ran active balanced portfolios of $30 million each for the pension plan and the annuity plan. The termination was due to performance, the official said. INVESCO officials did not return calls seeking comment by press time.
Smith Barney advised.
Johnson & Johnson
NEW BRUNSWICK, N.J. - Johnson & Johnson hired State Street Global Advisors to run $412 million in a Russell 3000 index fund, $150 million in an MSCI EAFE index fund and $188 million in a Lehman Aggregate bond index fund, said William Rauh, director-pension funds. Funding came from a $750 million contribution the company made to its $3.3 billion defined benefit plan.
LJH Global Investments
NAPLES, Fla. - LJH Global Investments hired PFPC to provide custody, accounting, administration and tax and regulatory services to the Phoenix-LJH Advisors Fund LLC, a registered fund of hedge funds offered jointly by LJH and Phoenix Investment Partners. PFPC provides similar services for Phoenix's mutual funds.
LITTLE NECK, N.Y. - Leviton Manufacturing Co. Inc. added four investment options to its 401(k)/profit-sharing plan, the AIM Midcap Core Equity, Columbia Real Estate Equity and Liberty Quality Plus Bond and Small-Cap funds, said Fran Ruderman, corporate director of benefits. The plan now has 13 investment options, up from nine. Columbia Management and INVESCO provide bundled services to the plan through an alliance, she said. Columbia advised.
The plan has $60 million in assets, according to the Money Market Directory.
Los Angeles County
PASADENA, Calif. - Los Angeles County Employees Retirement Association committed up to $54.23 million to Nordic Capital V, subject to contract negotiations with the $23 billion fund's legal office, said Christopher J. Wagner, investment officer, alternative assets. Funding will come from cash, Mr. Wagner said.
MANCHESTER, Conn. - The $85 million Manchester Retirement Allowance Fund will commit $2 million each to hedge funds managers Pine Grove and Meridian, said Alan Desmarais, director of finance for the plan. Funding will come from reducing a $14 million Russell 1000 Value index fund and a $9 million Russell 1000 Growth index fund, both run by State Street Global Advisors, by $1 million each; the remaining $2 million will come from reducing fixed-income portfolios across the board, Mr. Desmarais said. Prime Investment Consulting advised.
Marion County Law Enforcement
INDIANAPOLIS - Marion County Law Enforcement Trust hired Richmond Capital to manage $10 million in active domestic core fixed income for the $120 million pension plan, said Joe Bill Wiley, principal and consultant for Capital Cities, the plan's consultant.
He said funding came from terminating a $10 million portfolio managed in a similar style by Sirach Capital. Sirach was terminated because of performance and personnel changes, he said. Brian Tipple, CEO of Sirach, didn't return phone calls by press time.
J.P. Morgan Investment
NEW YORK - J.P. Morgan Investment Management hired State Street Research, J.&W. Seligman and UBS Global Asset Management to subadvise the J.P. Morgan Multi-Manager Small-Cap Growth Fund, and EARNEST Partners and ICM Asset Management to manage the J.P. Morgan Multi-Manager Small-Cap Value Fund, according to SEC filings.
Both funds will be available only to J.P. Morgan's private bank customers.
NYC Deferred Comp
NEW YORK - The New York City Deferred Compensation Program hired Bank of Ireland to manage $45 million in international value equities with a core tilt, and Delaware Investment Advisers to run $30 million in international value equities, for the $4 billion plan's $150 million international investment option, said Dean Weltman, counsel. Capital Guardian, which managed the entire option in a growth strategy, now will handle $75 million.
"The goal was to create a style-neutral option, so we're balancing the growth manager with a core and a value manager," Mr. Weltman explained.
CHAPEL HILL, N.C. - University of North Carolina at Chapel Hill committed $10 million each to Energy Investors Fund and ArcLight Energy Partners Fund I, and $15 million to Oaktree Distressed Debt Fund 4-B. Funding will come from cash, said Mark Yusko, president of UNC Management, which runs the endowment's $1 billion in assets.
Separately, the endowment, as part of a rebalancing, increased its exposure to real estate and enhanced fixed income and cut its domestic equity exposure, said Mr. Yusko. Real estate now stands at 10% of total assets, up from 7.5%, and enhanced fixed income, 7.5%, up from 5%. Domestic equity was cut to 20%, from 25%; and the endowment also lowered its absolute return exposure to 9%, from 13%, to return to its 10% target for the asset class.
NEW YORK - Operating Engineers International Union, Local 94, 94A, 94B Annuity Fund hired Bear Stearns to manage $25 million in active domestic large-cap value equities, pending contract negotiations, said Stephen McGahran, administrator.
Officials at the $350 million plan will reduce a fixed-income portfolio by $16 million to $22 million to fund the hiring, Mr. McGahran said; he would not provide further details about the portfolio but did say the manager continues to run $20 million in equities for the plan. The remaining assets will come from employer contributions, he said.
The fund's asset allocation is 60% fixed income and 40% equity.
Morgan Stanley advised.
PEABODY, Mass. - The $78 million Peabody Contributory Retirement System hired Independent Investment Advisors to manage $5 million in active domestic small-cap growth equities, said Linda Cavallon, pension administrator. Funding for the new portfolio came from rebalancing, she said. No consultant was used.
San Bernardino County
SAN BERNARDINO, Calif. - The San Bernardino County Employees' Retirement Association hired RREEF to manage $65 million of the $80 million core real estate portfolio formerly managed by PMRealty, said Tim Barrett, executive director and CIO. PMRealty is closing. The remainder of the portfolio will go toward rebalancing, Mr. Barrett said. RREEF already manages $38 million in real estate for the $3 billion fund, he said.
NEW ORLEANS - Tidewater Inc. altered the investment options in its $76 million 401(k) plan, said Laurie L. Kirzner, senior benefits specialist. It added: MFS Total Return, New Discovery and Midcap Value; Lord Abbett Affiliated and Small-Cap Value; Merrill Lynch U.S. Government Mortgage; PIMCO Total Return; American Growth; Alger Midcap Growth; and Fidelity Diversified International. Dropped were: Dreyfus Premier Balanced and Premier Worldwide Growth; Mercury Total Return; Merrill Lynch Fund-Core Bond Portfolio; Fidelity Advisor Growth Opportunities; Pioneer Large Growth; and Oppenheimer Enterprise funds.
UBS PaineWebber advised.
TOPEKA, Kan. - Washburn Endowment Association hired Waddell & Reed to manage $6 million in active domestic small-cap growth equities, pending contract negotiations, said Lee Benson, vice president-finance and advancement services. Funding will come from terminating Columbia Management, which ran the money in a similar style, for performance. Columbia also manages an international equity portfolio, two other domestic equity portfolios and all of the $90 million endowment's total fixed-income allocation, according to the Money Market Directory.
John Ullman, media manager at Columbia, declined comment. Smith Barney advised.
CHEYENNE, Wyo. - The $4 billion Wyoming Retirement System hired Seix Investment to run $200 million in active domestic high-yield fixed income, said Thomas Mann, director. Plan officials terminated Offitbank, which ran a similar portfolio, because of personnel changes. Buck Consultants advised.