SANTIAGO, Chile — Banchile Administradora General de Fondos selected Bank of New York as global custodian for $120 million in assets currently held by its international mutual funds. Banchile, an affiliate of Banco de Chile, offers mutual funds in the local market. Bank of New York will provide Banchile direct access to American, European and Latin American markets as well as settlement and processing services, according to a release from Bank of New York.
BAY CITY, Mich. — The Bay County Employees' Retirement System hired Wentworth, Hauser & Violich to run $20 million in active domestic large-cap core equities, pending contract negotiations, said Michael J. Regulski, county finance officer and system secretary. Funding came from the performance-based termination of Independence Investment, which ran a similar portfolio for the $215 million plan, Mr. Regulski said. Becker, Burke assisted. Lovleen Johnson, spokeswoman for Independence Investment, did not respond to a request for comment by press time.
OAK RIDGE, Tenn. — BWXT Y-12 hired Sands Capital Management to run $135 million in active domestic large-cap growth equities, said Maureen Williams, manager-pension and savings investments. The $2.7 billion pension plan terminated State Street Research because of performance, Ms. Williams said. Towers Perrin assisted with the shortlist search. Alyson Riley, SSR spokeswoman, did not return a call seeking comment by press time.
SACRAMENTO, Calif. — CalPERS and Strategic Investment Group selected Stux Capital Management to manage an initial $200 million active domestic large-cap equity allocation as part of CalPERS' $3 billion Manager Development Program, said Brad Pacheco, spokesman for the $165 billion California Public Employees' Retirement System, Sacramento. The portfolio will include both growth and value strategies, he said.
So far, CalPERS has awarded $2.2 billion to 14 emerging managers in the program. The fund previously hired SIG to find managers to run $2 billion of the fund, and Progress Investment Management to find managers for the remaining $1 billion. It hasn't yet been determined whether the remaining $800 million will be used for add-ons or new hires, Mr. Pacheco said.
CORAL GABLES, Fla. — The $208 million Coral Gables Retirement System hired Wells Capital Management to run $15 million in active domestic small-cap to midcap value equities, said Kimberly Groome, administrative manager. The plan funded the hire by terminating AllianceBernstein for performance, Ms. Groome said. UBS Financial assisted. John Meyers, Alliance spokesman, did not respond to a request for comment by press time.
CHICAGO — The Illinois State Board of Investment hired six active domestic small-cap equity managers to run a total of $450 million, said William Atwood, executive director. IronBridge Capital and Segall Bryant & Hamill will handle $90 million each in core; EARNEST Partners and Martingale Asset, $90 million each in value; Fifth Third Bank Investment Advisors, $80 million in small-cap and microcap value; and Opus Capital Management, $10 million in value. The board classifies EARNEST as a minority-owned manager and Opus as an emerging minority-owned manager.
Funding will come mostly from equity managers terminated last spring; the assets had been parked in Northern Trust's Russell 1000 growth and Russell 1000 value index funds.
Marquette Associates assisted.
ST. PETERSBURG, Fla. — Raymond James Consulting Services added Transamerica Investment Management's large-cap growth equity strategy in its separately managed retail and institutional fee-based account platform, said a spokeswoman at Raymond James. The platform has more than 36 options, the spokeswoman said.
JERSEY CITY, N.J. — The Jersey City Deferred Compensation Plan added the Van Kampen Growth and Income fund as an investment option in its $88 million 457 plan, said Stephen A. McGuire, pension fund manager. Plan officials wanted to offer two large-cap value equity options; the plan already has the AllianceBernstein Growth and Income fund, Mr. McGuire said. The plan now offers 19 investment options. Prudential, the plan's bundled provider, assisted.
LINCOLN, England — The Lincolnshire County Council hired J.P. Morgan Investor Services as global custodian for its £740 million ($1.4 billion) in pension fund assets, said Ralph Gould, investment manager. J.P. Morgan replaced incumbent Global Investor Services, which was the other finalist in the search, Mr. Gould said. The GIS contract will expire March 31; the county requires a search every five years, he said. No consultant was used.
HELSINKI — Finland's Local Government Pensions Institution hired Grove Street Advisors to invest $125 million in a U.S. venture capital portfolio, a new allocation, said Kimmo Lehto, associate director. The $17.5 billion system has $1.1 billion in alternative investments.
BATON ROUGE, La. — The Louisiana Municipal Police Employees' Retirement System rehired Summit Strategies as investment consultant to the $1.1 billion plan, said Virginia Eckert, director. The system issued an RFP in October. Summit will not immediately begin any studies or searches, she said.
BENSALEM, Pa. — Macsteel Service Centers USA Inc. hired Wells Fargo as trustee and Prudential Financial and Merrill Lynch to run about $24 million each in balanced portfolios for its $48 million pension plan, said Ed Lazar, vice president-human resources. Wells Fargo replaced Mellon, which was dropped because fees had increased, Mr. Lazar said. Previous managers 1838 Investment Advisors and Roxbury Capital, which ran $32 million and $16 million, respectively, both in active domestic equities, were terminated for performance, he said. No consultant was used.
Kevin Brown, director of finance for 1838 Investment parent MBIA Inc., did not return a call seeking comment by press time. Roxbury officials declined to comment.
BOSTON — The Massachusetts Pension Reserves Investment Management Board hired high-yield bond managers Shenkman Capital Management and Seix Investment to run $375 million each. The funding came from rebalancing, and no managers were terminated, according to a fund official. The $32 billion system had issued an RFP in October.
MERCED, Calif. — The $385 million Merced County Employees Retirement Association committed a total of $20 million to private equity funds of funds run by INVESCO Private Capital, Adams Street Partners and Pomona Capital, said Richard Stensrud, CEO/plan administrator. INVESCO will run $10 million; Adams Street and Pomona will run $5 million each, pending contract negotiations, Mr. Stensrud said. The pension plan will fund the commitments, its first in private equity, mostly from its fixed-income portfolio, he said. Milliman USA assisted.
The plan's asset allocation is 51% domestic equity, 30% fixed income, 7% international equity, 6% real estate, 5% private equity and 1% cash.
MISSOULA, Mont. — The University of Montana Foundation hired Delaware Investment, Systematic Financial and Pacific Income Advisers as new active managers, and committed money to the Vanguard S&P 500 Index fund, said Ted Delaney, vice president for operations.
Delaware will run domestic small-cap to midcap growth equities, and Systematic will run a domestic small- to midcap value portfolio for the $90 million endowment, Mr. Delaney said. Pacific Income will run a domestic fixed-income mandate, he said. He declined to provide the portfolio sizes; the money had been in Vanguard index mutual funds, he said. Smith Barney assisted.
NEW YORK — The New York City Deferred Compensation Plan hired Smith Breeden to manage $170 million in the synthetic portion of the $5.2 billion plan's stable value fund, said Dean Weltman, plan compliance officer. The previous synthetic manager, Credit Suisse Asset Management, was terminated because of organizational changes, although it was allowed to rebid, Mr. Weltman said. Mercer Investment Consulting assisted.
ALBANY, N.Y. — The New York State Teachers' Retirement System hired State Street Global Advisors to run $479 million in passive international equities, said Dave Daly, spokesman for the $79 billion system. The portfolio's previous manager, AllianceBernstein, was terminated because of market-timing issues, Mr. Daly said. The firm had been on watch. John Meyers, Alliance spokesman, declined to comment.
Separately, the system authorized up to $475 million in new private equity commitments: up to $150 million each to Abbott Select Buyouts Fund and Lexington Middle Market Investors; up to $50 million each to Parish Capital I, Silver Lake Partners II and Capri Select Income II; and up to $25 million to Kelso Investment Associates VII. Funding will come from cash.
COLUMBUS, Ohio — The $58.7 billion Ohio Public Employees Retirement System hired LaSalle Investment Management, Great Point Investors and Sarofim Realty Advisors as real estate managers to run a combined $500 million. Allocations have not yet been determined, Mary Beth Shanahan, assistant investment officer, said in a news release. Great Point already manages $46 million for OPERS. The system has roughly $3.6 billion invested in real estate with a target of 9% of fund assets, or about $5.3 billion, according to Michele Kowalik, spokeswoman Funding will come from cash.
OKLAHOMA CITY — Oklahoma Commissioners of the Land Office hired Fountain Capital to run $139 million in a corporate BBB bond portfolio, said Stephen Coit, acting director of investments. That portfolio, part of the CLO's $1.1 billion in permanent fund assets, had been internally managed, Mr. Coit said. Fountain Capital also runs $118 million in high-yield fixed income for the CLO. Holbein Associates assisted.
Omaha School Employees
OMAHA, Neb. — Omaha School Employees' Retirement System hired Tortoise Capital Advisors to manage $20 million in master limited partnerships, said Michael W. Smith, executive director of the $792 million fund. Further information was not available at press time.
COPENHAGEN — PFA Pension hired J.P. Morgan Investor Services as global custodian for its 149 billion krone ($25 billion) in assets under management, said Stuart Thompson, J.P. Morgan Investor Services head of new business development for the Nordic region. J.P. Morgan replaced two global and two Danish custodians, Mr. Thompson said; he declined to identify the firms. "By using one single provider, we have been able to streamline our operation process," Hasse Jorgensen, CIO of PFA Pension, said in a news release. No consultant was used, Mr. Thompson said.
SPOKANE, Wash. — Spokane Employees' Retirement System hired Allegiance Capital, McDonnell Investment and WEDGE Capital to run $15 million each in active domestic fixed income, said Dan M. Daniels, director. The $200 million pension plan also hired Chase Investment Counsel, Edgewood Management and Trusco Capital to run $10 million each in active domestic large-cap growth equities, he said.
Sirach Capital, which ran $45 million in active domestic fixed income, was terminated for performance, and trustees also decided hiring three managers would limit their liability, Mr. Daniels said. The equity money had been in the Frank Russell Equity I mutual fund, he said; trustees wanted more active management.
Brian Tipple, Sirach Capital president, could not be reached for comment by press time.
Merrill Lynch assisted.
NORTHFIELD, Ill. — Stepan Co. hired Russell Investment Group as manager of managers for its pension and employer-directed profit-sharing plans, which have combined assets of $60 million, said Jim Hurlbutt, vice president and corporate controller. Plan officials "wanted to get out of the business" of overseeing external managers, Mr. Hurlbutt said. He declined to name the previous managers, which were the same for both plans, he said. No consultant was used.
The Money Market Directory lists both plans' managers as of March 2000 as Putnam Investments and Vanguard.
CARDIFF, Wales — Tesco PLC hired Bank of Ireland Asset Management (U.K.) to manage a global equity mandate for the £1.5 billion ($2.6 billion) pension scheme, according to David Boal, a managing director of Bank of Ireland. Tesco spokeswoman Deborah Watson could not give the size of the mandate, but said no manager was terminated.
DETROIT — Wayne State University hired RhumbLine, IronBridge Capital and Goldman Sachs to run a total of $63 million in domestic equities for its $155 million endowment, said David Harmon, assistant director-endowments. RhumbLine will manage $25 million in an S&P 500 index fund; IronBridge, $21 million in active domestic small cap; and Goldman, $17 million in large cap.
Partial funding for the RhumbLine portfolio came from a $19 million Barclays Global Investors S&P 500 Tobacco Free fund, which was closed in late 2003; the remainder came from rebalancing and from new gifts, Mr. Harmon said. IronBridge replaced previous active domestic small-cap managers J.&W. Seligman, which ran $14.5 million in value, and Paradigm Asset, which handled $6.5 million in growth; trustees wanted to use only one small-cap manager, he said. Goldman Sachs replaced Fayez Sarofim, which ran a similar portfolio; Mr. Harmon declined to give the reason for that change.
Ennis Knupp assisted.