JUNEAU, Alaska — Alaska Permanent Fund Corp. hired Pathway Capital Management as the $26 billion fund's first private equity gatekeeper. The fund's board will discuss a private equity policy at its February meeting; it plans to invest up to 3% of assets in private equity.
ANCHORAGE, Alaska — The $350 million Anchorage Police & Fire Retirement System hired Capital Guardian to run $24 million in a commingled international equity fund, said Charles Laird, director. The plan funded the move by terminating Putnam because of the firm's "integrity and judgment" in relation to alleged market-timing abuses, Mr. Laird said. Putnam ran the money in a similar portfolio. Callan Associates assisted. Putnam officials did not return a call seeking comment by press time.
MUNCIE, Ind. — Ball State University Foundation hired Hammond Associates as investment consultant, said David Bahlmann, president and chief executive. Hammond replaced DeMarche Associates, Mr. Bahlmann said. Hammond will review the $133 million foundation's current asset allocation of 75% equity, 25% fixed income.
MENASHA, Wis. — Banta Corp. hired Frank Russell as manager of managers for its defined benefit plan, said Geoff Hibner, chief financial officer. Frank Russell replaced five external managers, Mr. Hibner said; he declined to identify the firms. Plan officials decided to move to a manager-of-managers approach following the retirement in October of Gerald Henseler, former executive vice president and CFO, Mr. Hibner said.
The plan has $102 million in assets as of Dec. 28, 2002, according to its 10-K report filed with the SEC. Associated Bank, FIRMCO, Putnam, Reams and Roxbury were the plan managers as of December 2001, according to the Money Market Directory.
AMSTERDAM — Blue Sky Group, which manages the $10.5 billion in pension assets of KLM Royal Dutch Airlines hired INTECH to manage $250 million in active domestic enhanced large-cap equities, said Shelley Peterson, spokeswoman for INTECH parent Janus Capital Group. The portfolio will be benchmarked against the S&P 500, Ms. Peterson said. Officials at Blue Sky Group could not be reached for further details.
SACRAMENTO, Calif. — The $156 billion California Public Employees' Retirement System committed $200 million to TPG Partners IV, a buyout fund, and $100 million to Avenue Asia Special Situations III, a distressed debt fund investing in Asian (ex-Japan) companies.
CHICAGO — Chicago Public School Teachers' Pension & Retirement Fund hired Chicago Equity Partners to run $250 million in active domestic midcap core equities, said Michael J. Nehf, executive director. The firm replaced previous midcap core managers William Blair, which ran $115 million, and Iridian Asset, which ran $110 million, Mr. Nehf said. The remaining assets came from cash. Trustees of the $10 billion plan wanted to consolidate midcap core holdings into a single mandate, he said. Mercer Investment Consulting assisted.
TORONTO — CPP Investment Board committed US$150 million to Onex Partners, $100 million in TPG Partners IV and $75 million to Macquarie Essential Assets Partnership, said John Cappelletti, CPPIB spokesman. The Macquarie commitment is the board's first to an infrastructure fund, he said. The board handles all equity investments for the C$64.4 billion (US$48.6 billion) Canada Pension Plan, Ottawa.
COLORADO SPRINGS, Colo. — The El Paso County Retirement Plan hired ING Clarion to manage $9 million in an open-end core real estate portfolio, pending contract negotiations, said Dave Klemmer, plan administrator. Funding will come from reducing the $190 million plan's fixed-income allocation to 30% from 35%, Mr. Klemmer said. Summit Strategies assisted.
SPRINGFIELD, Ill. — Illinois Teachers' Retirement System will invest $65 million in the second distressed debt private equity fund managed by Maitlin/Patterson. The $28 billion system is funding the commitment with $50 million from its regular fund and $15 million from the sale of pension obligation bonds. Also, Hopewell Ventures was awarded an investment of up to $10 million in the firm's first fund, which invests in growth companies in Illinois and the Midwest. The hires were part of ongoing investment in private equity.
PASADENA, Calif. — The Los Angeles County Employees Retirement Association approved investing up to $600 million with private equity adviser Pathway Capital, said Christopher J. Wagner, senior investment officer, alternative assets for the $24 billion fund. Only international investments will need specific board approval.
BOSTON — Massachusetts Turnpike Authority Employees' Retirement System hired State Street Global Advisors to run $8 million in an international bond index account, a new asset class that tracks the Citigroup WGBI non-U.S., said Tom Arcadipane, director. Funding came from reducing an active domestic fixed-income portfolio run by Wellington Management, leaving it with $50 million, Mr. Arcadipane said. Trustees of the $173 million plan made the move for diversification, he said.
New England Pension Consultants assisted.
LONDON — Mitchells & Butlers PLC and InterContinental Hotels Group PLC hired Mercer Human Resource Consulting to provide administration services to Mitchells & Butlers' two defined benefit plans and the plans of InterContinental and subsidiary Britvic, according to Donna Ellis, a spokeswoman for Mercer. The schemes have £1.2 billion ($2 billion) in assets. Mitchells & Butlers and InterContinental were formed following the breakup of Six Continents PLC earlier this year. Mercer HR and Mercer Investment Consulting advised in the breakup.
ALBANY, N.Y. — New York State Common Retirement Fund is committing $30 million to High Peaks Venture Partners, a private equity fund focusing on emerging technology companies, according to a news release from the $111 billion system. Funding will come from its $250 million allocation to New York state-based private equity.
COLUMBUS, Ohio — The $56 billion Ohio Public Employees Retirement System committed a total of $286 million to four private equity funds: $100 million to TPG Partners IV, which invests in large domestic corporate finance deals; $75 million to Castle Harlan Partners IV and $50 million to FS Equity Partners V, both targeting middle market buyout opportunities; and $60.7 million to Permira Europe III, a European buyout fund.
SALEM, Ore. — The Oregon Investment Council hired Strategic Investment Solutions as general consultant to the $40 billion Oregon Public Employees Retirement Fund, Salem. Incumbent Russell, which had consulted to the fund for more than 30 years, declined to rebid because Russell officials believed council members wanted a new consultant, according to a spokesman at Russell. "Russell is not happy this situation has occurred, but we believe our decision is in the best interests of all parties," Russell said in a statement. Russell took a minority stake in SIS earlier this year.
Separately, the board committed $100 million to First Reserve Fund X, a buyout fund.
PHOENIX — Phoenix City Deferred Compensation Trust hired Nationwide Retirement Solutions as administrator of the $494 million 457 plan, said Cathy Gleason, deputy budget and research director. Nationwide replaced ICMA, which was allowed to rebid, Ms. Gleason said. Plan officials are working with consultant Mercer Investment Consulting to develop a new fund lineup. It now offers 39 investment options, and officials expect to reduce that number, Ms. Gleason said.
PHOENIX — Salt River Project hired active core equity managers Wellington and Capital Guardian to run a combined $145 million, said Sue Ann Perkinson, assistant treasurer, funds administration. Wellington will run $115 million in domestic large-cap, while CapGuardian will run $30 million in international, Ms. Perkinson said.
Wellington replaced J.P. Morgan Fleming, which ran the money in an enhanced S&P 500 index fund; CapGuardian replaced Schroder Investment Management, which ran the money in a similar portfolio, Ms. Perkinson said. J.P. Morgan Fleming and Schroder were terminated for organizational issues, she said. J.H. Ellwood assisted the $610 million pension plan.
Separately, the Dodge & Cox Balanced fund was added as an investment option in its $335 million 401(k) plan, replacing the J.P. Morgan Diversified fund, said Sue Ann Perkinson, assistant treasurer, funds administration. The J.P. Morgan fund was dropped for organizational issues, she said. J.P. Morgan Retirement Plan Services is the bundled provider.
SAN DIEGO — The $4 billion San Diego County Employees Retirement System committed $20 million to Northgate Venture Partners and $10 million in Texas Pacific Group IV, said Jerry Woodham, chief investment officer. The system also added $10 million to Stinson Capital Partners, raising its total commitment to $22 million, he said. Funding came from cash.
HARTSVILLE, S.C. — Sonoco Products Co., Hartsville, S.C., hired State StreetGlobal Advisors as manager for a new defined contribution plan starting for employees hired after Jan. 1. Citistreet was hired as record keeper.
Sonoco's fully funded $700 million defined benefit plan will continue only for existing employees; an existing $430 million 401(k) plan will not be affected by the changes.
VALLEY FORGE, Pa. — Vanguard Group added Hotchkis and Wiley as a subadviser to the $25 billion Vanguard Windsor II Fund, said John Demming, Vanguard spokesman. Hotchkis and Wiley becomes the fifth investment adviser to the large-cap value fund and will oversee $1.25 billion of the Windsor II fund's assets, Vanguard said. No other subadviser was terminated.