ALLENTOWN, Pa. - City of Allentown hired Vanguard to run $15 million in the Total Stock Index fund and Lazard Asset Management to manage $6 million in active domestic small-cap core equities, said Michael Cosack, managing director at consultant PFM Advisors. Funding came from rebalancing, he said. The plan has $113 million.
LITTLETON, Colo. - The $128 million Arapahoe County Employees Retirement Trust hired UBS Realty Investors to manage a $7.5 million real estate portfolio, said Adrian B. Ciazza, treasurer and chairman of the county investment board. Watershed Investment Consultants assisted.
GREENWOOD VILLAGE - The $2.1 billion Fire & Police Pension Association of Colorado hired Fiduciary Asset and Legg Mason to manage $90 million to $100 million each in active domestic large-cap core equities, pending contract negotiations, said William Morris, chief investment officer. Funding will come from reducing three index funds run by State Street Global Advisors. The change is a result of a change in the passive/active equity split to 60%/40%, from 70%/30%, he said.
Pension Consulting Alliance advised.
DENVER - The Denver Public Schools Retirement System hired Axiom International to manage $50 million in active international large-cap growth equities, pending contract negotiations, said David A. Stella, executive director at the $2.2 billion plan. Funding came from terminating T. Rowe Price, which ran $50 million in a similar style. Hewitt assisted.
BEDFORD, England - Exel PLC Retirement Plan hired State Street Global Advisors to run £115 million ($188 million) in enhanced passive Pan-European equities for the £1.1 billion plan, said Jimmy Walker, scheme pensions manager. The customized, low-alpha portfolio aims to beat the FTSE Pan European index.
Funding came from terminating Pictet Asset Management, which ran the assets in active Pan-European equities. Mr. Walker would not say why Pictet was dropped. Hewitt, Bacon & Woodrow advised.
AMARILLO, Texas - Cal Farley's Boys Ranch Foundation hired BlackRock to manage $16 million in active domestic small-cap value equities for the $330 million foundation, said David Saultz, vice president for finance and chief financial officer. Funding came from terminating a $16 million portfolio managed in a similar style, Mr. Saultz said, but he declined to provide further details. Angeles Investment advised.
SPRINGFIELD, Ill. - The $22 billion Teachers' Retirement System of Illinois hired Fidelity Management Trust to manage $430 million in active international equities. Martin Currie was terminated for performance and organizational reasons; officials there couldn't be reached by press time.
Three fixed-income managers were removed from the watch list because of improved performance: Payden & Rygel; PIMCO ($1.4 billion in core plus fixed income); and Weiss Peck & Greer.
Also, the fund allocated $25 million to Smith Whiley's SW Pelham Fund II (subordinated debt); $50 million to GTCR Golder Rauner's GTCR Fund VIII (buy-outs); and $50 million to Carlyle Group's Carlyle Europe Real Estate Partners Fund. Funding came from cash flow. Callan Associates assisted.
INDIANAPOLIS - Indiana State Teachers' Retirement Fund hired Northern Trust as global custodian for the $6 billion pension plan, said C. Philip Barnes, assistant CIO. National City Bank, which was dropped as custodian, will continue to handle the fund's disbursements. Fund officials sought a custodian with more sophisticated global services, Mr. Barnes said.
BALTIMORE - The $24.6 billion Maryland State Retirement and Pension System hired Western Asset Management and Payden & Rygel to run $1.5 billion and $1 billion, respectively, in active domestic core-plus fixed income, confirmed Joe Coale, spokesman. Funding will come from a Lehman Aggregate bond fund run by State Street Global Advisors and from an internal fixed-income portfolio. The hirings are the result of an asset allocation review conducted by consultant Ennis Knupp.
PHILADELPHIA - The $3.9 billion Philadelphia Public Employees' Retirement System hired Ark Asset, Seneca Capital and Wells Capital to manage $60 million each in active domestic large-cap growth equities, said Tony Johnson, chief investment officer. plan partially funded the hirings by reducing Northern Trust Global Investments' Russell 1000 growth index fund by $130 million to $200 million; the remainder came from Turner Investment Partners, which was asked to give up its $50 million active domestic large-cap growth equity portfolio. Turner still runs $32 million in active domestic small-cap growth equities and $50 million in active domestic midcap growth equities. Mr. Johnson said pension fund officials felt Turner had too many mandates, so it asked the manager to resign from one of them. Mercer Investment Consulting assisted.
KANSAS CITY, Mo. - Pipefitters, Local 533, hired Diversified Investment Advisors as manager of managers for its $130 million pension plan, said Herb C. Millard, executive director. Plan officials wanted a more streamlined, quicker process for changing managers, he said. Consultant Merrill Lynch was terminated, Mr. Millard said. No consultant was used.
SAN ANTONIO - San Antonio Fire & Police Pension Fund hired New England Pension Consultants to conduct an asset-liability study that will be finished in August, said Warren J. Schott, investment officer. Separately, the $1.2 billion plan hired active domestic growth equity managers Goldman Sachs to manage $90 million in large-cap and Waddell & Reed to manage $50 million in small-cap, Mr. Schott said. Goldman Sachs replaces Alliance Capital, which was terminated because of performance concerns and personnel changes. Funding for Waddell & Reed comes from a $40 million portfolio that had been managed in a similar style by Husic Capital, which was terminated several months ago, he said. The remaining funding came from cash. Smith Barney advised.
John Meyers, vice president corporate communications manager at Alliance, declined to comment.
SAN DIEGO - San Diego County Employees Retirement Association's board hired PIMCO and Colchester Partners to manage equal portions of the $4 billion fund's 10.3% global fixed-income allocation, said Jerry Woodham, chief investment officer. The board hired Capital Institutional Services as fixed-income transition manager.
Funding came from terminating international fixed-income managers Rogge and Rothschild because the fund changed its allocation from international to global fixed income and because there were problems with the managers' strategies, styles and returns, Mr. Woodham said.
"We were surprised with their decision because our returns have been good," said Jonathan Dow, Rogge's director of marketing. Phone calls to officials at Rothschild were not returned by press time.
Separately, the board hired Ashmore Investment Management to run the fund's 4.1% allocation to emerging market debt, Mr. Woodham said.
SAN FRANCISCO - The $10.5 billion San Francisco City & County Employees' Retirement System hired Portfolio Advisors as its new alternative investments consultant, replacing Cambridge Associates. The selection has been mired in controversy because Cambridge and Pacific Corporate Group, which had withdrawn from a similar search a year ago amid political allegations, were also finalists. The pension fund has $1.2 billion in the alternatives portfolio.