Applied Arts and Technology
TORONTO -- The Colleges of Applied Arts and Technology Pension Plan hired CIBC Mellon as global custodian, replacing State Street Canada, said Paul Owens, chief executive officer.
CIBC previously handled domestic custody and benefit payments for the C$3.5 billion (US$2.4 billion) pension plan, said Tim Dixon, CIBC senior vice president for relationship management. Plan officials wanted to consolidate its custodians, Mr. Dixon said.
SACRAMENTO, Calif. -- The $134 billion California Public Employees' Retirement System committed $75 million to Aetos Capital Asia LP, an opportunistic fund focused on Japanese real estate, distressed debt and real estate-related activities.
Carpenters, Central Indiana
INDIANAPOLIS -- Carpenters, Central Indiana District Council, hired Buckhead Capital Management to run $8 million in an active domestic balanced portfolio. Funding came from terminating Ark Asset, which ran the money in an active domestic all-cap value equity portfolio, according to a plan official who did not wish to be named. Plan officials wanted to change the investment style, he said. Ark continues to manage other portfolios for the plan; he would not provide further details.
UBS PaineWebber advised.
The pension plan has $276 million in assets, according to the Money Market Directory.
PEORIA, Ill. -- Caterpillar Investment Management hired MFS Institutional and Pacific Financial as subadvisers for its Preferred Value Fund, previously known as the Caterpillar Investment Preferred Large-Cap Value Fund, said David L. Bomberger, president at Caterpillar. The name was changed to reflect a more flexible investment policy, he said.
Previous manager OppenheimerFunds was replaced because officials at Caterpillar Investment wanted to create a balance between Pacific's concentrated style and MFS' more diversified approach, he said; OppenheimerFunds continues to subadvise the Caterpillar Investment Management Limited Pension Group Trust Value Equity Fund, he said.
ALPHARETTA, Ga. -- Colonial Pipeline Co. made several changes to the investment lineup of its $150 million 401(k)/profit-sharing plan, said Steve L. Jackson, assistant treasurer and benefits manager. It added the American Century Strategic Allocation, Strategic Allocation Aggressive and Real Estate funds; and replaced the J.P. Morgan Diversified Commingled fund with the Dodge & Cox Balanced fund, and the J.P. Morgan Select Small Company Commingled fund with the Royce Premiere fund. In addition, two options became one when J.P. Morgan merged its Large Company Commingled fund into the Smart Index Commingled fund, he said. The plan has nine investment options, up from seven. J.P. Morgan/American Century is the bundled provider.
Colorado Fire & Police
GREENWOOD VILLAGE, Colo. -- The Colorado Fire & Police Pension Association hired State Street Global Advisors to run $170 million in a Lehman Aggregate bond fund, said Ruth Ryerson, chief executive officer. Funding will come from terminating Bradford & Marzec for performance in running an active core-plus fixed-income portfolio. SSgA already handles an S&P 500 fund, an S&P/BARRA growth fund and an S&P/BARRA value fund, which have a combined $700 million in assets, for the $2.1 billion pension plan, she said. Mark Walsh, research director for Bradford & Marzec, did not return a phone call requesting comment by press time.
The plan's asset allocation is 38% domestic equity, 29% fixed income, 18% international equity, 8% private equity, 6% real estate and 1% cash. Pension Consulting Alliance advised.
FAIRFAX, Va. -- The $600 million Fairfax County Uniformed Retirement System hired PIMCO to manage $100 million in fixed income using a total-return strategy, said Jeff Willison, investment manager. Also, the $535 million Fairfax County Police System hired Peregrine Capital Management to manage $30 million in active domestic core-plus fixed income in a positive return strategy; TCW to run $30 million in strategic mortgage-backed securities; and Dodge & Cox to handle $20 million in core fixed income.
Funding for each of these allocations came from terminating Credit Suisse, which ran active domestic core-plus fixed-income portfolios for both plans. The termination was caused by the departure of key portfolio manager Greg Diliberto, Mr. Willison said. CRA RogersCasey assisted.
Illinois State Universities
CHAMPAIGN, Ill. -- The Illinois State Universities Retirement System hired Fidelity as an investment provider for its $134 million participant-directed 401(a) plan, effective April 1, said James M. Hacking, executive director. Fidelity joins TIAA-CREF and ING as providers for the plan, which offers 40 investment options. Participants can move their money among any of the funds offered by the plan's three providers.
The plan terminated ICMA, which offered 18 funds, Mr. Hacking said; its average fund fee had crept up in recent years to 1.49%. TIAA-CREF's average fee is 38 basis points; ING's average fee is 94 basis points. SURS chose Fidelity in part because its fees average 62 basis points, and because of its broad array of brand-name funds, he said.
Laborers Local 169
RENO, Nev. -- Laborers Local 169, Northern Nevada hired Marco Consulting as the consultant for its $50 million pension plan, said James Mace, administrator. He said plan officials replaced Segal Advisors because they wanted a new perspective. Marco will conduct reviews of the plan, but no specifics have been determined, he said.
Lincoln Electric Holdings
CLEVELAND -- Lincoln Electric Holdings Inc. hired Northern Trust Global Investments to manage $100 million in an S&P 500 index fund for its $350 million Master Retirement Trust, said Roy Morrow, a spokesman. Funding came from terminating a manager of an enhanced S&P 500 index portfolio; he would not name the manager or provide further details.
Machinists Local 9
BRIDGETON, Mo. -- International Association of Machinists and Aerospace Workers, Local 9, Pension Fund hired Principal Global Investors to manage $10 million in Principal's RESA fund, subject to contract negotiations, said Tina Pannier, administrator. The $500 million pension fund has not determined the funding source.
STAMFORD, Conn. -- MeadWestvaco Corp. hired Northern Trust as trustee for its $2.8 billion defined benefit plan and $1.2 billion 401(k) plan. Northern will provide global custody, securities lending and benefit payment services, said Anthony Oliver, assistant treasurer. Bank of New York was trustee for Westvaco's defined benefit plan and Mellon Trust, for Mead's defined benefit plan; State Street Bank was trustee for Westvaco's 401(k) plan and Fidelity, for Mead's 401(k) plan. After the plans were merged, company officials decided to use one trustee for all the plans, Mr. Oliver said.
DES MOINES, Iowa -- Meredith Corp. hired Principal Financial Group as bundled provider for its $140 million 401(k) plan, replacing Wells Fargo, said Art Slusark, Meredith spokesman. The plan now will have 15 investment options, up from 14: 10 from Principal; one each from Wells Fargo, Vanguard, T. Rowe Price and Putnam; and Meredith stock.
CAMBRIDGE, Ontario -- Meritas Financial hired subadvisers for four new mutual funds, available exclusively to Canadian retirement plans through distribution by the group retirement services units of Great-West Life Assurance and London Life Insurance. State Street Global Advisors will manage a Canadian equity fund; MMA Capital Management will run a U.S. equity fund; and Oechsle will manage an international equity fund. All three will manage portions of the 40% equity allocation of a balanced fund; portfolio managers from Great-West and London Life will manage the fund's 60% fixed-income allocation, said Gary Hawton, Meritas CEO.
DULUTH, Minn. -- Minnesota Power hired LSV Asset Management and Benson Associates to run $12 million and $8 million, respectively, in active domestic small-cap value equities for its $270 million pension plan, said Jeweleon Tuominen, manager, executive compensation and employee benefits. Funding came from terminating a manager that ran $20 million in a similar style; Mr. Tuominen declined to identify the manager but said it was terminated for performance.
Montana Board of Investments
HELENA, Mont. -- The Montana Board of Investments hired Dimensional Fund Advisors to run $10 million in an enhanced Russell 2000 index fund, said James R. Penner, chief investment officer. He said the nine pension plans that comprise the board have combined assets of $4.8 billion and will fund the investment from cash. The current asset allocation for the plans is 57% equity and 43% fixed income. No consultant was used.
Montgomery County Employees'
ROCKVILLE, Md. -- The $1.6 billion Montgomery County Employees' Retirement System committed $40 million to Adams Street for a private equity fund of funds, said Linda Herman, acting director of pension investments. Funding will come from existing equity managers.
ROLLING MEADOWS, Ill. -- PepsiAmericas Inc. hired Fidelity as bundled provider of its $250 million 401(k) plan, said Andrew Stark, treasurer. He said 401(k) services had been unbundled, but declined to identify the previous vendors. Plan officials felt more services were available through a bundled provider, he said. The plan offers 16 investment options, plus a mutual fund window through Fidelity and a self-directed brokerage account, he said. Previously the plan had eight investment options, he said. No consultant was used.
Northern Trust Global Investments was trustee and custodian, and CitiStreet was record keeper, according to the Money Market Directory.
Rock of Ages
BARRE, Vt. -- Rock of Ages hired MassMutual Retirement Services as bundled provider for its $11 million 401(k) plans, said Paul Hutchins, manager of administration.
The company, which makes granite memorials, now offers 15 investment options, all but one -- the Janus Balanced asset allocation fund -- managed by MassMutual.
The plan offered 13 options; Victory Capital was the bundled provider.
San Francisco City & County
SAN FRANCISCO -- San Francisco City & County Retirement System hired Advent Capital Management to run $100 million in convertibles; it still is negotiating with another unnamed convertibles manager to run $60 million. Funding for both portfolios came from domestic equities.
The $9.7 billion system also retained Northern Trust as master custodian; consultant Angeles assisted.
TURIN, Italy -- Sanpaolo IMI Group hired Mellon Global Investments to manage a total of €397 million ($437 million) in seven passive mandates tracking U.S. and European indexes, said Jamie Brookes, Mellon spokesman. Mellon Equity Associates will manage the equity; Mellon Bond Associates will run the fixed income. Officials for the pension fund asked Mellon not to release the names of the specific indexes that will be tracked. Company officials could not be reached for comment by press time. Information about the fund's asset size was not available.
GARDEN CITY, N.Y. -- Saratoga Capital Management hired Caterpillar Investment as subadviser for the Saratoga Advantage Trust Energy & Basic Materials Portfolio, a new mutual fund distributed by Orbitex Funds, said David L. Bomberger, president at Caterpillar.
Caterpillar Investments already subadvises the Saratoga Advantage Trust Mid Capitalization Portfolio.
Seattle City Employees
SEATTLE -- The $1.2 billion Seattle City Employees' Retirement System committed $10 million to Hearthstone Multi-state III Residential Development Fund, which targets single-family housing in Sun Belt states. Funding will come from a $4.5 million investment in the Frank Russell Real Estate Equity Fund, which is being terminated because of long-term performance, said Mel Robertson, assistant executive director. Additional funding will come from reducing various real estate pools managed by J.P. Morgan Fleming, leaving a total of $23 million.
Frank Russell spokesman Steve Claiborne said the fund had outperformed its benchmark by 169 basis points last year, returning 7.6%.
Separately, the system hired Advent Capital Management to run a $10 million convertible arbitrage portfolio. The portfolio, which will be funded from either cash or fixed income, represents the system's first investment with an independent hedge fund company. It already has more than $60 million in a hedge fund of funds managed by Quellos Group.
Teamsters Local 142
GARY, Ind. -- Teamsters, Local 142 Pension Trust Fund hired Segall Bryant & Hamill to run $10 million in active domestic small-cap core equities, said Jay R. Smith, fund manager. Officials at the $274 million pension plan also added $4 million to Alliance Capital's active domestic large-cap growth equity portfolio, raising it to $26 million. Funding for both allocations came from reducing two active domestic fixed-income portfolios: one, run by Segall Bryant & Hamill, was cut by $7 million to $52 million; the other, run by Banc One, was cut by $7 million to $51 million.
The changes align portfolios with the plan's investment policy, he said. The plan's asset allocation is 55% equity and 45% fixed income.
Segal Advisors assisted.
VALLEY FORGE, Pa. -- Vanguard hired Baillie Gifford Overseas to help manage the $5.4 billion Vanguard International Growth Fund, changing it to a multimanager structure. Baillie Gifford will complement the fund's existing subadviser, Schroder Investment Management North America, which has managed the fund since its inception in 1981. Schroder will run 75% to 80% of the fund; Baillie Gifford will handle the remainder.
Virginia Retirement System
RICHMOND, Va. -- The Virginia Retirement System added three investment options to its 457 and 401(a) plans, which have a combined $468 million in assets. They are: high yield and TIPS funds from Vanguard, and a REIT fund from State Street Global Advisors, according to Laura Pugliese, investment officer. The three-tiered investment menu, which is the same for both plans, offers 18 investment options, up from 15, she said.
Waterford Wedgwood USA
WALL, N.J. -- Waterford Wedgwood USA Inc. hired MassMutual Retirement Services as bundled provider for its $30 million 401(k) plan, according to Don Hendrickson, vice president of administration. The plan now offers 14 investment options, all from MassMutual. Mr. Hendrickson declined to name the previous provider or the number of investment options.
White & Case
NEW YORK -- White & Case LLP added the Torray Institutional Fund as an investment option in its $146 million 401(k)/profit-sharing plan, said Allen L. Marmor, director pension and savings plans.
The plan, which offers 14 investment options, also dropped the Seligman Large-Cap Value Fund. Smith Barney advises on investment options; CitiStreet is record keeper; and State Street Bank is trustee. Administration is handled internally, he said.
SALT LAKE CITY -- R.C. Willey Corp. added three Scudder lifecycle funds as investment options in its $39 million combined 401(k)/profit sharing plan, said Pamela Moser, benefits manager. The plan has 16 investment options, up from 13, she said. Scudder is the plan's bundled provider.