Aon Asset Management
LONDON - Aon Asset Management's Umbrella Fund, a Dublin-domiciled multimanager fund, hired State Street Corp. as administrator and custodian, according to Tommy Garvey, Aon Asset head of institutional business. The fund, with £300 million ($485 million) in assets, was launched in March.
AUSTIN, Texas - The $250 million Austin Police Retirement Fund committed $5 million each to INVESCO, CB Richard Ellis and New Boston real estate opportunity funds, said Sampson Jordan, pension administrator. Funding came from trimming $5 million each from three active equity portfolios: Brandes, international value, to $24 million; Nicholas-Applegate, domestic large-cap value, to $20 million; and Davis Hamilton Jackson, domestic large-cap growth, to $13 million.
The plan raised its real estate allocation to 20% from 15% and cut its equity allocation to 35% from 40%; fixed income remains at 45%. Monroe Vos Consulting assisted.
BROCKTON, Mass. - The Brockton Contributory Retirement System hired EARNEST Partners to run $10 million in active domestic small-cap value equities, said Harold P. Hanna, executive director. The $160 million pension plan terminated Phoenix Investment Counsel, which ran the assets in a similar style, for performance, Mr. Hanna said. Wainwright Investment Council advised.
Stacy Johnson, spokeswoman for Phoenix parent Phoenix Investment Partners, did not return calls seeking comment by press time.
California Public Employees
SACRAMENTO, Calif. - The $131 billion California Public Employees' Retirement System will invest in the Ares Corporate Opportunities Fund, a distressed debt fund focusing on middle-market companies. The investment will be $50 million or 10% of the total fund size, whichever is higher. Ares was called Lion Advisors; it was an affiliate of private equity firm Apollo Management.
Catholic Health Initiatives
DENVER - Catholic Health Initiatives hired INTECH to manage $172 million in active domestic large-cap growth equities for its $900 million pension plan, $350 million insurance fund and $2.2 billion operating fund, said Jennifer Neppel, director, cash and investments. Funding came from terminating Cohen Klingenstein & Marks, which ran a similar portfolio, for performance, she said. Richard Blum, marketing director at Cohen Klingenstein, did not return a call seeking comment by press time.
Summit Strategies advised.
OMAHA, Neb. - Contractors, Laborers, Teamsters & Engineers, Pension Fund hired McMorgan & Co. to manage $10 million in core fixed income, said Richard S. Blecker, administrator. Funding came from reducing a portfolio run by Morgan Stanley in a similar style, leaving it with $40 million. Smith Barney advised.
DALLAS - The $1.8 billion Dallas Employees Retirement Fund hired Systematic Financial Management to run $75 million in active domestic small-cap style-neutral equities, according to Randy Stalnaker, chairman. Northern Trust ran the money in a Russell 3000 index fund; Mr. Stalnaker said the plan is seeking higher incremental returns through active management. Wilshire assisted.
Data Transmission Network
OMAHA, Neb. - Data Transmission Network Corp. hired Strong Retirement Plan Services as bundled provider for its $15 million 401(k) plan, said Sheri Viner, director of human resources. Strong was chosen to replace First National Bank of Omaha because Strong offered more advanced technology, she said. Aon Consulting advised.
Electrical Workers, Local 357
ST. LOUIS - Electrical Workers, IBEW, Local 357 hired McMorgan to manage $5 million in the MIREF I pooled real estate fund, confirmed John Elliot, consultant at Marco Consulting, adviser to the $91 million Plan A Pension Trust Fund. Most of the funding will come from reducing the fund's $18 million investment in a Lehman Aggregate index fund run by State Street Global Advisors; a small portion may also come from reducing an $18 million core-plus fixed-income portfolio run by Payden & Rygel. The portfolio reductions are strategic and not based on performance, he said.
Fairfax County Uniformed
FAIRFAX, Va. - The $600 million Fairfax County Uniformed Retirement System hired fixed-income managers Peregrine Capital and TCW to run $38 million each, said Jeff Willison, investment manager. Peregrine will use a positive return strategy, and TCW Group will run a strategic mortgage-backed securities portfolio. Funding came from reducing fixed-income portfolios managed by PIMCO and Payden & Rygel, leaving them with $76 million each, Mr. Willison said. CRA RogersCasey is the consultant.
Fonds de Reserve
PARIS - Fonds de Reserve pour les Retraites hired Mercer Investment Consulting to advise on its manager selection program later this year. The e13.1 billion ($14.9 billion) pension scheme's assets are managed by France's debt management agency. In March, Francis Mayer, scheme chairman, announced that 55% of the assets would be invested in equities, with the remaining 45% in fixed income.
Hartford Financial Services
HARTFORD, Conn. - Hartford Financial Services Group added eight investment options managed by Capital Research to the 401(k) program Hartford offers plan sponsors through its Director Advantage program. Director Advantage now offers 80 investment options.
INVERNESS, Scotland - Highland Council Pension Scheme hired Legal & General Investment Management to temporarily run up to £300 million ($476 million) in a passive multiasset mandate for the £400 million plan, according to EU filings. The fund is searching for managers as it moves to a specialist money manager structure. Funding came from terminating a balanced portfolio managed by Rothschild Asset Management, according to a source. Rothschild was acquired by Insight Investments in December.
Brian Williams, head of capital accounting at the Highland Council, could not be reached for comment by press time.
Hymans Robertson advised.
BIRMINGHAM, England - IMI PLC Pension Fund switched to a specialist structure and reappointed balanced managers Merrill Lynch Investment Managers and UBS Global Asset Management to specialized portfolios, said Peter Flanagan, group pensions manager. Merrill Lynch now will run £150 million in U.K. equities and £260 million in global bonds and cash. It also retained UBS Global Asset Management, which now runs £150 million in U.K equities and £70 million global equities. Further information was not available.
Partial funding for the global bond and cash portfolio came from terminating Henderson Global Investors for performance; it ran £120 million in a global bond mandate, Mr. Flanagan said. A spokeswoman for Henderson did not return calls seeking comment by press time.
Hewitt Bacon & Woodrow advised the £700 million scheme.
Jones Apparel Group
NEW YORK - Jones Apparel Group, New York, hired Bank of New York to run its $15 million defined benefit plan, said Thimio Sotos, senior vice president and treasurer. The assets had been run by seven managers: Alliance Capital; Reich & Tang; J.P. Morgan Fleming; Barclays Global Investors; Morgan Stanley; Capital Guardian; and PIMCO. Mr. Sotos said it didn't make sense to have so many managers for the plan, the assets of which shrank from $60 million in 1998 after the company restructured and paid out lump sums to retiring employees. The Jones plan is frozen and will shrink even more as additional payouts are made, he added. All new employees are enrolled in the $75 million defined contribution plan, for which Merrill Lynch is bundled provider, said Mr. Sotos.
Los Angeles County
PASADENA, Calif. - The $24 billion Los Angeles County Employees Retirement Association committed $10 million to Falcon Mezzanine Partners, said Christopher J. Wagner, investment officer, alternative assets. Assets will come from cash.
Los Angeles Water & Power
LOS ANGELES - The Los Angeles Water & Power Employees' Retirement Plan hired INTECH and Fred Alger to manage $212 million each in active domestic large-cap growth equities, subject to contract negotiations, said Duamel Vellon, retirement plan manager. Funding will come from reducing a $1.2 billion portfolio run in similar style by Boston Co. The $5.2 billion system is reorganizing the portfolio.
Separately, the plan hired Bank of New York for transition services for the fund's $1.4 billion in passive investments, replacing Northern Trust and Merrill Lynch.
National Automotive Dealers
MCLEAN, Va. - National Automotive Dealers Association hired FBR National Bank & Trust as master custodian and trustee for its $2.6 billion retirement trust. The NADA trust had used FBR in conjunction with SunTrust and plan officials decided to consolidate, said Robert Peden, executive director.
CARDIFF, Wales - NCM UK Pension Scheme hired KAS Bank as global custodian following a review of the £40 million ($64.5 million) defined benefit plan's investment arrangements, replacing Bank of New York, said Sarah George, pension manager.
North Carolina 401(k)
RALEIGH, N.C. - North Carolina's $2.3 billion 401(k) plan is replacing most of its 10 investment options. The board added Van Kampen Equity and Income A and Growth and Income A; Vanguard Institutional Index; Capital Research Growth Fund of America and EuroPacific Growth Fund; Oppenheimer Main Street Small Cap A; Prudential Jennison Equity Opportunity Z funds; a large-cap blended option co-managed by Vanguard, Capital Research and Van Kampen; and a stable value portfolio managed by Prudential. It dropped the Fidelity Balanced, Spartan Index, Magellan and Equity Income funds; Putnam New Opportunities; T. Rowe Price International Stock; and BB&T Small Company Growth, Money Market and BIC funds. The board retained the Fidelity Intermediate Bond fund.
Prudential Retirement Services is the plan's bundled provider. Bolton Partners Investment Consulting Group assisted.
Ohio Public Employees
COLUMBUS, Ohio - The Ohio Public Employees' Retirement System hired J.P. Morgan Fleming Asset Management to run $230 million in active international large-cap growth equities, Farouki Majeed, deputy director of investments for the $47 billion fund, said in a news release. Funding came from an active international large-cap equity mandate run by Driehaus Capital Management, which was terminated because of organizational changes and poor performance, Mr. Majeed said. Driehaus officials declined to comment. Ennis Knupp assisted.
PEKIN, Ill. - The $11 million Pekin Firefighters' Pension Fund hired Mitchell, Vaught & Walker to manage the entire fund, said Charles E. Lauss, pension board president. Plan officials terminated Hoisington, which ran $6.5 million in active domestic fixed income; 1838 Investment Advisors, $1.5 million in active domestic large-cap core equities; Oppenheimer Capital, $839,000 in active domestic large-cap value equities; and Alliance Capital, $775,000 in active large-cap growth equities. The remaining assets in the plan were in mutual funds, about which Mr. Lauss could not provide details. The plan also terminated consultant Smith Barney, he said; it is not searching for a new consultant. Plan officials want to reduce costs and change to a less risky, more diversified strategy, he said.
NEW YORK - Scudder Investments, a unit of Deutsche Asset Management, hired State Street Corp. to provide fund accounting and fund administration services for Scudder's family of open- and closed-end mutual funds, funds of funds, variable annuity and defined contribution products, said Judy Inosanto, a DeAM spokeswoman.
Sheet Metal Workers, Local 10
ST. PAUL, Minn. - Sheet Metal Workers, Local 10, hired Disabato Associates as consultant for the union's $132 million 401(a) plan and $118 million pension plan, said Martha Edstrom, plan administrator. The contract of previous consultant Jeffrey Slocum & Associates had expired; the firm did rebid. Disabato is conducting manager performance reviews of both plans, said Ms. Edstrom.
Southern Africa Fund
NEW YORK - Southern Africa Fund hired Investec Asset Management to handle its $55 million as a closed-end enhanced index equity fund, said Donald Crawshaw, spokesman for the fund's board of trustees. Retaining the manager beyond Oct. 1 will be subject to shareholder approval.
Alliance Capital Management, the fund's previous investment manager, stepped down earlier this month in a dispute with trustees on whether the fund should be liquidated or restructured into an exchange-traded fund. Alliance Capital recommended in February that the fund, which invests in South African equities, go into liquidation. A spokesman at Alliance Capital declined to comment.
WALTHAM, Mass. - The $103 million Waltham Contributory Retirement System hired Grantham Mayo Van Otterloo to manage $10 million in active international equities, said Joe Juppe, executive director. Funding came from cash. The pension plan had not invested in that style for several years and officials wanted to diversify, Mr. Juppe said. Wainwright Investment Counsel advised.
WARWICK, R.I. - The Warwick Retirement System invested $10 million each in the Capital Research EuroPacific Growth A and the Julius Baer International Equity A funds, said Oscar Shelton, personnel director and retirement board secretary. The $199 million system also hired active domestic small-cap equity managers Turner Investment Partners to run $8 million in core and Westfield Capital to handle $8 million in growth, Mr. Shelton said.
Funding for the investments came from reducing an active domestic large-cap growth equity portfolio managed by Loomis Sayles to $25 million from $50 million; the firm also was put on watch for performance, Mr. Shelton said. The system also trimmed a $26 million active domestic small-cap core equity portfolio run by Rothschild Asset to $14 million and changed its style to value, he said. Christopher Lazzaro, vice president of public relations at Loomis Sayles, did not return calls seeking comment by press time.
UBS PaineWebber-Prime Consulting advised.
Westland Police & Fire
WESTLAND, Mich. - Westland Police & Fire Retirement System is investing $2 million each in the Midland Multifamily Equity REIT and Intercontinental Real Estate Investment Fund III, said Diane Klinebriel, plan administrator. Funding came from reducing an active domestic fixed-income portfolio managed by Loomis Sayles to $35 million. Officials at the $95 million pension plan wanted to diversify, she said.
LONDON - Woolworths PLC hired Hewitt Bacon & Woodrow as investment adviser to its £136 million Woolworth Group Pension Scheme defined benefit plan and its Woolworths Group Retirement Trust defined contribution plan, said Johnathan Davies, head of group reward. Both plans were formed in April 2002 when Woolworths spun off from the Kingfisher PLC Group. Assets were transferred to the new plans in December, said Mr. Davies. Watson Wyatt remains the plans' actuary Further details were not available by press time.