BETHLEHEM, Pa. - The $77 million Bethlehem Retirement System hired Philadelphia Trust to manage $40 million in active domestic fixed income and $20 million in active domestic all-cap growth equities, and to be plan custodian, said Dennis W. Reichard, business administrator. Funding came from terminating Columbia Management Group, which ran similar portfolios, Mr. Reichard said. The termination was due to performance, he said. Fleet Bank was the previous custodian. Legg Mason advised. Alexis Richel, spokeswoman for Columbia Management, did not return calls seeking comment by press time.
BURLINGTON, Vt. - The $81 million Burlington Employees' Retirement System hired Lazard Asset Management to run $2 million in active international value equities, said Cynthia Davis, retirement administrator. Lazard already handles a $7 million active domestic midcap value equity portfolio for the plan. Funding will come from reducing an active domestic balanced portfolio managed by Harbor Capital to $61 million. Morgan Stanley advised.
California State Teachers
SACRAMENTO, Calif. - The $92 billion California State Teachers' Retirement System picked Cambridge Associates to recommend U.S. alternative investments, completing an overhaul of the pension fund's advisory relationships in the asset class.
Cincinnati - Chiquita Brands International hired Strong Retirement Plan Services as bundled provider for its newly consolidated, $67 million 401(k) plan. Strong was bundled provider for the company's $30 million Processed Foods 401(k) Retirement Savings Plan and its $7 million Tropical Retirement Savings Plan; Putnam Investments was bundled provider for its $30 million Savings & Investment Plan, said Dennis Hicks, Chiquita's director of benefits. Both firms bid and Chiquita was "happy with Putnam, but we liked the package Strong brought to the table more," Mr. Hicks said.
Colorado Public Employees
DENVER - The $23.2 billion Colorado Public Employees' Retirement Association hired Pareto Partners and Seix Investment Advisors to each manage $90 million in active domestic high-yield fixed income, said Katie Kaufmanis, director of communications. The assets had been managed internally. Mercer Investment Consulting advised.
Separately, the system committed $15 million each to alternative investment funds Jefferson Partners IV and SunTX Fulcrum, and $15 million to the DRA Growth & Income Fund IV, a real estate fund, said Ms. Kaufmanis. Funding came from cash. Alignment Capital Group assisted.
BIRMINGHAM, Ala. - Compass Bancshares Inc. hired The 401(k) Co. as record keeper and administrator for its four defined contribution plans, which have combined assets of $213 million, said Kelcey Wharton, director of compensation and benefits. Benefits Services Corp. was record keeper and administrator, but exited the business.
Denver Public Schools
DENVER - The Denver Public Schools Retirement System hired Northern Trust to run $50 million in a Russell 1000 index fund, said David A. Stella, executive director. Northern Trust already manages a $115 million S&P 400 index fund and a $103 million S&P 500 index fund for the $2.1 billion system. The system also added $10 million to an active international large-cap core equity portfolio managed by Morgan Stanley, bringing it to $120 million, he said.
Partial funding for both placements came from liquidating two mortgage accounts run by Legg Mason and GMAC; the balance came from rebalancing and cash.
DANBURY, Conn. - Ethan Allen Inc. will add eight investment options to its $130 million 401(k) plan and drop six others as of May 1, said James Kotowski, director of insurance and retirement programs. It will add: American Century Select, Ultra, Value, Vista and International Growth; Lord Abbett Developing Growth; Barclays Global S&P 500 Index; and PIMCO Total Return. Portfolio Evaluations advised.
FAIRFAX CITY, Va. - Fairfax City Supplemental Retirement Plan hired Batterymarch Financial Management to run $8 million in active domestic small-cap equities, said David Hodgkins, finance director. Funding will come from terminating active domestic fixed-income managers Banc of America Capital Management for an $11 million portfolio, and Standish Mellon for a $14 million portfolio. Staff turnover and performance, as well as asset allocation changes, were the reasons for terminating Banc of America; and there were performance concerns with the Standish Mellon portfolio, Mr. Hodgkins said. The remaining money already was allocated to Wellington for a core-plus fixed-income portfolio. New England Pension Consultants assisted.
In addition, the $80 million pension plan cut $4 million from a domestic large-cap value equities portfolio run by Standish Mellon, leaving it with $36 million. That $4 million also was allocated to the Wellington portfolio.
Bonnie Benhayon, a spokeswoman for Banc of America, said, "there would be no reason for them to pull the money based on performance," but she added a recent personnel change could have contributed to the move. Officials at Standish Mellon did not return calls seeking comment by press time.
IBEW, Local 212
Cincinnati - IBEW Pension Fund, Local 212, hired Strategic Capital Investment Advisors as consultant, said Anthony S. Carle, administrator. Officials for the $150 million pension plan terminated previous consultant Investment Performance Services. Strategic Capital is conducting asset-liability and asset allocation studies.
SPRINGFIELD, Ill. - The Illinois Teachers' Retirement System hired Grantham Mayo Van Otterloo to manage $230 million in emerging markets equities, and Harris Associates and Artisan Partners to run $215 million each in a return-focused international equity strategy. Funding came from reducing the portfolios of existing active international equity managers Brandeis, Capital Guardian Trust, Delaware Investments, INVESCO and Martin Currie.
The system also committed up to $50 million to Castle Harlan Partners IV, a buyout fund, and up to $50 million to the OCM Opportunities V Fund, a distressed debt fund.
International Data Group
FRAMINGHAM, Mass. - International Data Group Inc. added 10 investment options and eliminated five in its $30 million 401(k)/profit-sharing plan, said Cheryl Talamini, director of benefits. Plan officials added: ING Van Kampen Comstock, American Century Small-Cap Value Portfolio, GNMA Income, ING PIMCO Total Return Portfolio and Stable Asset; Lord Abbett Midcap Value; Franklin Balance Sheet Investment; Baron Growth; Fidelity Advisor Midcap; and MFS Total Return. Kanon Bloch Carre advised.
Lyon Workspace Products
AURORA, Ill. - Lyon Workspace Products hired Fidelity as bundled provider for its $19 million 401(k)/profit-sharing plan, said William J. Hames, controller. Fidelity replaces KeyCorp, which exited the bundled provider business.
MILWAUKEE - MGIC Investment Corp. invested $6 million in the FMI Common Stock Fund and $6 million in the First American Midcap Growth Opportunity Fund for its $90 million pension plan, said James A. Karpowicz, vice president of investments and corporate treasurer. Funding came from an active domestic large-cap growth equity fund and an active domestic aggressive growth equity fund with a combined $12 million in assets. Mr. Karpowicz declined to identify the mutual funds, which were terminated for performance.
Separately, plan officials added $3 million to its Vanguard Institutional index fund investment, increasing it to $19 million, he said. Funding came from rebalancing.
TEMPLE, Texas - McLane Co. Inc. hired INVESCO as bundled provider of its $265 million 401(k)/profit-sharing plan, said Keith Morrison, benefits manager. Plan officials replaced previous record keeper, ADP Retirement Services, and previous administrator and trustee, J.P. Morgan Chase. Monroe Vos Consulting, which assisted in the search, will continue to advise on investment options.
Missouri Highway & Transport
JEFFERSON CITY, Mo. - The $1.3 billion Missouri Highway & Transportation Employees' & Highway Patrol Retirement System hired Northern Trust to provide custodial services and manage a $240 million S&P 500 index fund. UMB Bank had been custodian since the system was created in 1955 and also ran the index fund, Norman Robinson, executive director, said. System officials wanted to consider other vendors, but "not because we were dissatisfied" with UMB, he said.
WORCESTER, Mass. - Morgan Construction Co. added the Diversified Investment Advisors Growth Fund as an investment option in its $90 million 401(k)/profit-sharing plan and will phase out the Fidelity Growth & Income Fund, said Gail Morgan, manager of retirement benefits. Mosse & Mosse advised.
New York City Fire
NEW YORK - The $4.5 billion New York City Fire Department Pension Fund hired Sprucegrove to manage $89 million in active international equities, said Nicole Lise, spokeswoman. Partial funding will come from terminating Invista, which ran $42 million in active international equities, because of organizational changes, said Ms. Lise; the remainder will come from reducing a passive international equity portfolio run by State Street Global Advisors, leaving it with $105 million.
North Penn Community Health
LANSDALE, Pa. - North Penn Community Health Foundation hired SEI Investments to run $14 million in a manager-of-managers program, said Russell Johnson, executive director; he would not provide the size of the foundation. Funding came from the proceeds of the sale of North Penn Hospital, he said.
San Bernardino County
SAN BERNARDINO, Calif. - The San Bernardino County Deferred Compensation Fund rehired ING as bundled provider for its $240 million 457 plan, said Ramona Petersen, employee benefits analyst. SST Benefits Consulting advised.
LONDON - Schroders PLC hired State Street Corp. to provide fund accounting and administration services for its 64 U.K.-based collective investment funds, which have more than £11 billion ($17 billion) in assets, said Andrea Schlaepser, Schroders spokeswoman.
Soo Line Railroad
MINNEAPOLIS - The Soo Line Railroad Co. will add the Wells Fargo Index I and Janus Overseas funds as investment options in its $24 million union employees 401(k) plan, effective April 1, said William R. Johnson, manager-employee benefits U.S. operations for parent company Canadian Pacific Railway, Calgary, Alberta.
SACRAMENTO, Calif. - Sutter Health hired Bank of New York to replace Deutsche Bank as custodian of its $400 million pension fund, said Diane A. Schnabel, director of employee benefits.
USWA District 10
BETHLEHEM, Pa. - USWA District 10 & Pennsylvania Heavy and Highway Contractors Benefit Funds hired three active domestic equity managers: Bear Stearns, to handle $27 million in large-cap value; Waddell & Reed, $20 million in large-cap growth equity; and Eagle Asset, $4 million in small-cap growth, said Joe M. Padavan, president of Local 15253 and plan trustee. Allied Investment Advisors, which had managed the entire $78 million pension plan, will continue to run $23 million in active domestic fixed income.
U.S. Holocaust Memorial
WASHINGTON - The U.S. Holocaust Memorial Museum Endowment hired Grosvenor Capital, a fund-of-funds manager, and Farallon Partners, a multistrategy hedge fund manager, to run $2.5 million each, said Zelda Silberman, investment officer. These are the $95 million endowment's first alternative investments, Ms. Silberman said. Funding came from rebalancing. Madison Portfolio Consultants assisted.
RICHMOND, Va. - The Virginia Retirement System hired Galliard Capital Management, pending negotiations, to run the stable value investment option in its 457 and 401(a) plans, which have combined assets of $468 million.