At Deadline

The $5 billion Orange County (Calif.) Employees Retirement System added emerging markets equities, TIPS and global TAA to its asset mix, said Keith Bozarth, executive director. Domestic stocks and bonds were slashed to fund the new asset classes.

Treasury inflation protected securities will account for 10% of the asset mix; emerging markets equities and global tactical asset allocation, 5% each. Domestic stocks were cut to 18% of assets from 33%; domestic fixed income, to 19% from 34%.

At the same time, the fund increased its international equity allocation to 18% of assets from 14%, doubled its international fixed-income allocation to 10% and increased real estate one point to 10%. Alternatives were left unchanged, at 5%.

The $26 billion Tennessee Consolidated Retirement System is considering increasing its international equity exposure to 15% of assets from 10%, said Tom Milne, CIO.

The state Council of Pensions and Insurance is expected to approve the change — recommended by consultant Callan after a recent asset allocation study — in mid-July. Funding would come from cutting domestic fixed-income exposure, Mr. Milne said. Fund officials will likely distribute the additional money among its seven existing international equity managers.

Larry Kochard was named Georgetown University's first chief investment officer, overseeing a $661 million endowment. He had been managing director of equity and hedge fund investments at the $39.7 billion Virginia Retirement System; there are no plans to replace him.

The $10.3 billion Illinois State Board of Investment plans to create a database of emerging managers, including minority- and women-owned firms, said William Atwood.

The database is part of fund officials' efforts to include more emerging managers in searches and hirings for public-market equity and fixed-income assignments.

The board allocated about $500 million to emerging managers in recent months, but so far has placed only $80 million with three firms, Mr. Atwood said.

John G. AbuNassar will become executive vice president of client services, sales, retirement plan services and product management activities, a new position, at the institutional asset management unit of National City Corp.

Mr. AbuNassar was previously head of the institutional asset management group of BancOne Investment Advisors until mid-October last year.

He will relocate to National City's Cleveland headquarters from Chicago and will start July 12.

The $1.4 billion San Mateo County (Calif.) Employees' Retirement Association picked Barclays Global Investors to manage a $298 million domestic large-cap enhanced index equity portfolio and Goldman Sachs Asset Management to run an $80 million U.S. small-cap enhanced index equity portfolio.

Funding for BGI will come from reducing a Russell 1000 index fund BGI already manages for the fund.

Funding for the Goldman mandate will come from the remaining half of a Russell 2000 index fund run by BGI; the other half was awarded to active small-cap managers Brandes and Chartwell last month.

Strategic Investment Solutions was consultant.

Texas Teacher Retirement System will commit up to $100 million to Bain Capital Co-Investment Fund VIII, up to $75 million to Oak Investment Partners XI, and up to $50 million to Bain Capital Fund VIII, all private equity funds.

The fund has 4% of assets allocated to private equity. Pathway Capital, the $86 billion plan's private equity consultant, assisted.

Separately, TRS staff and hedge fund consultant Tremont Capital approved Endeavour Capital Offshore Fund and Vega Relative Value Fund as potential investments.

The $1.5 billion San Antonio Fire and Police Pension Fund hired Donaldson & Co. as transition manager, said Warren Schott, executive director. Donaldson is also the fund's commission recapture broker.

Its first assignment will be to move $60 million into an internally managed S&P depository receipt portfolio from an active domestic large-cap core equity portfolio run by Fortis Investments, which was terminated last week, Mr. Schott said.

PGGM hired Aegon to manage €1 billion ($1.21 billion) in European state debt.

Officials for the €54 billion pension fund wanted more diversification and more external management.

U.S. foundations enjoyed improved total annual returns last year — an average 17% net of fees — compared with an average -8.7% in 2002, according to the new Commonfund Benchmarks Study Foundations 2004, which surveyed 270 institutions.

The largest U.S. foundations (those with assets of more than $1 billion) returned an average 20.5% net of fees in 2003, up from -7.7% the year before.

Smaller foundations (with assets between $50 million and $100 million) returned an average 15.5% net of fees, compared with -10.3% for the previous year.

Brian Storms will become vice chairman of Mercer Human Resource Consulting, a new position.

He will be in charge of global development and operational management of Mercer's fund-of-funds business and bundled pension plan management services. In April,

Mr. Storms left UBS Global Asset Management Americas, where he had been president and chief executive officer.

The $10.3 billion Illinois State Board of Investment and $26.4 billion Los Angeles County Employees Retirement Association will oppose the proposed merger of WellPoint Health Networks and Anthem, citing excessive pay packages for WellPoint executives.

Also, Maine State Treasurer Dale McCormick, a trustee of the $7 billion Maine State Retirement System, said she has asked State Street Global Advisors and Barclays Global Investors, which run the index funds through which the state is invested in WellPoint and Anthem, to vote against the merger.

Michael Fitzgerald, Iowa state treasurer, said he will recommend the $15.8 billion Iowa Public Employees Retirement System and $220 million Iowa Peace Officers Retirement System oppose the merger.

The $600 million AFSCME Employee Pension Trust of the American Federation of State County and Municipal Employees will also vote against the merger, as will the $160.9 billion California Public Employees' Retirement System.

The vote is June 28.