GREENWOOD VILLAGE, Colo. — American Medical Response hired Watson Wyatt Investment Consulting as investment consultant to its $165 million 401(k)/profit-sharing plan, said Kurt Ronsen, director of compensation and benefits. Watson Wyatt is reviewing the plan's 11 investment options.
FRESNO, Calif. — Fresno City Retirement Systems hired Northern Trust as global custodian for the $1.6 billion retirement system, according to Stanley McDivitt, retirement administrator. State Street, the previous global custodian, had "come out with some high fees," Mr. McDivitt said. Carolyn Cichon, a spokeswoman at State Street, did not return calls by press time seeking comment.
BOISE, Idaho — The Idaho Endowment Fund Investment Board hired Northern Trust Global Investments to manage about $662 million in indexed assets for the state endowment, insurance fund and capitol permanent fund, said Connie Eshelman, assistant investment officer.
For the endowment, Northern Trust will run $190 million in a Lehman Brothers Aggregate bond fund, $85 million in an S&P 500 index fund and $42 million each in a Russell 1000 Growth fund and a Russell 1000 Value fund. The firm will manage $107 million in a Lehman Brothers Aggregate bond portfolio for the insurance fund, with $103 million in a Lehman Brothers Government/Credit bond fund, $60 million in Lehman Brothers Short Government fund and $30 million in an S&P 500 fund. For the capitol permanent fund, Northern Trust will handle $2.6 million in a Lehman Brothers Aggregate fund and less than $1 million in a Russell 3000 fund.
Funding came from rebalancing.
CHICAGO — The $8.3 billion Illinois State Board of Investment authorized a $25 million commitment to Walton Street Real Estate Fund IV. The commitment will be funded over three or four years, said Scott Richards, the board's senior portfolio manager. Funding came from cash, said William Atwood, executive director. Plan staff and real estate consultant Townsend Group recommended the investments.
SPRINGFIELD, Ill. — The Illinois Teachers' Retirement System hired Dodge & Cox to run $715 million in active domestic core fixed income. Partial funding came from the termination earlier this year of core bond manager Morgan Stanley, which ran $408 million, and $180 million from a Northern Trust Lehman Aggregate fund used for transition management. Callan assisted.
Separately, the $28 billion system allocated $25 million to the Edgewater Private Equity Fund IV from cash flow and $75 million to Texas Pacific Group Partners IV from cash flow and proceeds from the sale of pension obligation bonds.
BATON ROUGE, La. — The $10.7 billion Louisiana Teachers' Retirement System hired Bear Stearns to manage $200 million in active domestic large-cap value equities, said Dan Bryant, chief investment officer. Funding came from rebalancing, he said. Holbein assisted.
CINCINNATI — Midland Co. hired PNC Bank as bundled provider of its $33 million 401(k) plan, said Ed Heskamp, assistant treasurer. Previous provider Key Bank exited the defined contribution business, Mr. Heskamp said.
JACKSON, Miss. — The $15 billion Mississippi Public Employees Retirement System hired AllianceBernstein to manage $450 million in international equities, said Frank Ready, executive director. The plan terminated the portfolio's previous manager, Lombard Odier, for performance. Joe Geiger, Lombard Odier president, could not be reached by press time for comment.
HELENA, Mont. — The Montana Board of Investments hired Nomura Asset Management to handle $90 million in active Asian equities for the board's nine pension plans with a combined $5 billion in assets, said Carroll South, executive director. Funding came from previous manager SG Pacific, which rebid, Mr. South said; the termination was not based on performance.
NEW YORK — Operating Engineers International Union, Locals 94, 94A, 94B Annuity Fund hired Lord Abbett, TCW, INVESCO, Madison Investment Advisors and Killian Asset to manage a total of $50 million in active domestic large-cap equities, said Stephen McGahran, administrator for the $400 million fund. Lord Abbett will manage $15 million in value; TCW and INVESCO will manage $10 million each in growth; and Madison and Killian will run $10 million and $5 million, respectively, in core, Mr. McGahran said.
Funding came from terminating two large-cap growth equity accounts; Mr. McGahran declined to identify the managers, saying they continue to run a total of $100 million in active domestic fixed income for the plan. He said plan officials wanted to "diversify equity styles and reduce risk." Morgan Stanley assisted.
HARRISBURG, Pa. — The $22.5 billion Pennsylvania State Employees' Retirement System committed up to $25 million to Lubert-Adler Real Estate Fund IV and up to $50 million in a follow-on commitment to New Enterprise Associates 11, said Sean Sanderson, PennSERS spokesman.
DAYTON, Ohio — Price Brothers Co. hired Fidelity as bundled provider of its $9 million in retirement assets, said Steven M. Paul, chief financial officer. Fidelity replaced Scudder Retirement Services, Mr. Paul said. Plan officials were concerned about the performance of some Scudder mutual fund investment options over several years, he said; the names of those funds were not available. Judith Inosanto, press officer for Scudder, said in a written statement that while Scudder is "sorry to see any valued client leave, we are confident in the strength and quality of our product platform and services."
Price Brothers sponsors a 401(k) plan for its salaried employees and two 401(k)/profit-sharing plans for separate groups of hourly employees; the three plans mirror each other.
NORTHFIELD, Minn. — St. Olaf College hired State Street Global Advisors, Hotchkis & Wiley, Dimensional Fund Advisors, Morgan Stanley and Grantham, Mayo, Van Otterloo to manage a total of $36 million for the $161 million endowment, said Mark R. Gelle, assistant treasurer.
SSgA will manage $12 million in Treasury inflation-protected securities; Hotchkis & Wiley, $10 million in active domestic midcap value equities; DFA, $7 million in a REIT fund; Morgan Stanley, $4 million in active international equities; and GMO, $3 million in emerging markets, Mr. Gelle said. Partial funding will come from terminating Mellon Capital, which ran $30 million in a tactical asset allocation strategy; the endowment's investment subcommittee decided to get out of TAA, Mr. Gelle said. The remainder will come from cash.
BOISE, Idaho — J.R. Simplot Co. added the following funds as investment options in its two 401(k) plans: American Funds American Balanced and EuroPacific Growth; Dodge & Cox Stock; Hartford Midcap HLS; Lord Abbett Midcap Value; Royce Premier; and three Exeter asset allocation funds. Plan officials wanted to diversify and add lifestyle funds, said Alice Campanella, director, retirement benefits. The company has $258 million in 401(k) plan assets, according to the Money Market Directory.
MAYNARD, Mass. — Stratus Technologies Inc. added the Fidelity Diversified International and Morgan Stanley Institutional International Equity funds as investment options in its $105 million 401(k) plan, said Donna Martin-Ellis, benefits specialist. Fidelity, the bundled provider, assisted.
WYANDOTTE, Mich. — Wyandotte City Employees' Retirement System hired Bank One as global custodian for its $69 million pension plan, said Andrew A. Swiecki, city treasurer and pension commission chairman. Bank One replaced Michigan National Bank, Mr. Swiecki said, because of difficulties the system encountered with Michigan National's 2001 merger with Standard Federal Bank, he said. Morgan Stanley assisted.