BRADENTON, Fla. — Beall's Inc. added the Dodge & Cox Balanced and Lord Abbett Small-Cap Value funds as investment options in its $62 million 401(k) plan, said Michael Maddaloni, divisional vice president-treasurer. The plan dropped the MFS Total Return and American Century Small Cap Value funds because of performance, and plan officials also were concerned about market-timing allegations against MFS, Mr. Maddaloni said. Mercer Investment Consulting assisted. Both John Reilly, MFS spokesman, and Laura Kouri, American Century spokeswoman, declined comment.
Beall’s adds Dodge & Cox, Lord Abbett funds as options
INGELHEIM, Germany — Boehringer Ingelheim Corp. hired Mellon Financial as bundled provider for the company's $300 million U.S. pension and $500 million U.S. 401(k) plans, confirmed Ed Gadowski, Mellon spokesman. He said Mellon Financial will provide trust and domestic custody for the plans while Mellon Human Resources & Investor Solutions will serve as administrator and consultant to the plans. Additional details were not available.
SALT LAKE CITY — Deseret Mutual Benefit Administrators hired The 401(k) Co. as record keeper and trustee of its 401(k) and 403(b) plans, which have a combined $1.3 billion in assets, said Mark Siegel, director of financial benefits. The previous record keeper was Howard Johnson, which was acquired by Merrill Lynch in 1998; the two firms' record-keeping systems were consolidated last year. The fund launched a search because "at that point, we thought we should look around to see what was out there," said Mr. Siegel. Wells Fargo was the previous trustee.
DETROIT — Detroit Policemen & Firemen Retirement System hired North Point Advisors as its general consultant, said Walter Stampor, the fund's assistant administrative supervisor. The $3 billion system replaced Gray & Co. when Adrian Anderson, who was the plan's lead consultant, left the firm to open North Point.
MISSION VIEJO, Calif. — James Hardie Building Products hired NYLIM Retirement Plan Services as bundled provider of its $41 million 401(k) plan, according to John Campbell, principal at Benefit Funding Services Group, which advised on the selection. The previous provider was Great-West, which rebid. Mr. Campbell said James Hardie chose NYLIM mainly because of the depth of the consulting group at parent company New York Life Investment Management, and its technology platform.
DENVER — Holland & Hart LLP added the Capital Guardian U.S. Equity fund as an investment option in its $140 million 401(k)/profit-sharing plan, said Vickie Gordon, benefits and compensation manager. The plan dropped the Fidelity Magellan fund because of underperformance. Vin Loporchio, Fidelity spokesman, said his company has no comment regarding the matter.
Also, the plan will replace the Fidelity Low-Priced Stock fund with a similar mutual fund; Ms. Gordon wouldn't identify the new fund because it hasn't yet been announced to participants. Mercer Investment Consulting assisted.
SPRINGFIELD, Ill. — Illinois State Treasurer's office hired Northern Trust Global Advisors to run $50 million in a state Technology Development venture capital fund, confirmed Carolyn Barry Frost, spokeswoman for state Treasurer Judy Baar Topinka. Details were not available by press time.
WICHITA, Kan. — Koch Industries hired J.P. Morgan Retirement Plan Services as bundled provider of its $630 million 401(k) plan, according to Dawn Qualls, manager of employee benefits. Previous bundled provider Putnam was terminated because "there were concerns because of the situation Putnam had with the regulators. But we were very happy with Putnam," Ms. Qualls said.
"We're disappointed about their decision but hope that we will have the opportunity to manage assets again for them in the future," said Laura McNamara, Putnam spokeswoman.
LOS ANGELES — The $7.7 billion Los Angeles City Employees' Retirement System hired Segal Co. as actuarial consultant, said Sally Choi, assistant general manager. Incumbent Gabriel Roeder Smith's three-year contract expired June 30; the firm was allowed to rebid, Ms. Choi said.
Separately, the system invested $30 million in the J.P. Morgan Strategic Property Fund. Assets came from a $100 million INVESCO real estate separate account; the remainder of that account was moved to an INVESCO core open-end commingled fund, according to Wayne Ige, LACERS investment officer.
PASADENA, Calif. — The $26 billion Los Angeles County Employees Retirement Association committed $40 million to OCM Opportunities Fund V, said Shelly P. Tilaye, senior investment analyst. Funding comes from the system's alternatives allocation, Ms. Tilaye said.
BROOKLYN, N.Y. — Manhattan & Bronx Surface Transit Operating Authority Pension Plan hired Mellon Capital Management to run $55 million in a global tactical asset allocation portfolio, a new allocation for the $700 million pension plan, said Walter Weinert, deputy controller-NYC transit. Funding came from closing the plan's U.S. TAA portfolio, also handled by Mellon Capital, following an asset allocation review, Mr. Weinert said. New England Pension Consultants assisted.
NAPLES, Fla. — City of Naples hired Loomis Sayles to run a total of $21 million in intermediate-duration core bonds for the city, police and fire pension funds, whose combined assets exceed $60 million, said William R. MacIlvaine, pension administrator. The assets came from a balanced portfolio managed by Montag & Caldwell, which was terminated for performance. The equity portion is now handled by Baird Investment Management. Lana M. Jordan, senior vice president and director of marketing, wasn't available for comment; James L. Deming, the portfolio manager in charge of the account, declined to comment.
ALBANY, N.Y. — New York State Teachers' Retirement System rehired active international equity managers Causeway Capital to manage $356 million; Harris Associates, $339 million; Arnhold & S. Bleichroeder, $335 million; Mercator, $313 million; and Artisan Partners, $281 million.
Also rehired was Progress Investment Management, which runs $728 million in an active domestic small-cap and midcap equity fund of funds, and Prima Capital Advisors, $50 million in commercial mortgage-backed securities.
OKLAHOMA CITY — OGE Energy Corp. will add the Fidelity Small Cap Stock and Calamos Growth funds as investment options in its $320 million 401(k) plan, said Margaret Walsh, manager of benefits. The plan added the Fidelity fund because small-cap equity "wasn't well-represented," and the Calamos fund replaces the INVESCO Dynamics fund, which is being dropped because of performance, she said. Bill Hensel, spokesman for INVESCO parent AMVESCAP, declined to comment.
Merrill Lynch assisted.
COLUMBUS, Ohio — Ohio Police & Fire Pension Fund rehired Wilshire Associates as its general investment consultant, according to a news release from the $8.1 billion system. David Graham, system spokesman, said an RFP was issued in April because of personnel changes at Wilshire earlier this year. "The search … reinforced the belief that Wilshire is the best fit for our system," William J. Estabrook, executive director, said in the news release. Key selection criteria included personnel, services offered, references and fees.
COLUMBUS, Ohio — The $58.7 billion Ohio Public Employees Retirement System hired Fidelity Investments and Smith Breeden to run about $300 million each in active domestic core fixed income, said Richard Baker, fund spokesman. Funding comes from an internally managed core-plus fixed-income portfolio.
Separately, the system committed $75 million to Hellman & Friedman Capital Partners V, a corporate finance fund, and $50 million to OCM Principal Opportunities Fund III, a distressed debt fund, Mr. Baker said.
OMAHA, Neb. — The $394 million Omaha Police and Fire Retirement System hired three managers to run $34 million each in active domestic large-cap value equities, said Carol Ebdon, finance director. Brandywine Asset Management, Hotchkis & Wiley Capital Management and DePrince Race & Zollo will replace two large-cap managers Ms. Ebdon declined to identify. Pension fund officials decided to make the change after a general review of the retirement system's objectives, she said. DeMarche Associates assisted.
ORLANDO, Fla. — City of Orlando hired TCW to run $25 million in an active global blended portfolio for its $150 million general employees pension plan, said Kent R. Olson, treasurer. Funding will come from rebalancing. Kalson & Associates is consultant.
ST. LOUIS — Saint Louis University hired Bank of New York to provide master custody, performance measurement, securities lending and related services for $535 million of its $800 million in endowment and operating funds, confirmed Clayton Berry, director of university media relations. The firm replaces State Street Corp., whose three-year contract with the university expired.
SAN ANTONIO — SBC Communications Inc. committed $600 million to Opportunity Real Estate Group over the next two to three years to reach its 5% real estate target, and it invested an initial $125 million in a non-core real estate portfolio, said Edward Schwartz, a principal at Opportunity Real Estate. Larry Solomon, spokesman for the $28 billion pension fund, declined comment.
KANSAS CITY, Mo. — Shook, Hardy & Bacon LLP hired J.P. Morgan Retirement Plan Services as bundled provider of its $120 million 401(k) plan, according to Dale Chaffin, chief operating officer. J.P. Morgan replaced Principal, Mr. Chaffin said. Plan officials had issued an RFP to see what was available, and "J.P. Morgan came out on top of all the firms we heard from," said Mr. Chaffin.
AUSTIN, Texas — University of Texas Investment Management invested $50 million in ArcLight Energy Partners Fund II, according to Sara McMahon, a managing director. She said UTIMCO, which invests $16.3 billion in endowment and operating funds for the University of Texas system, has a target allocation of 15% for private equity and venture capital, and its current allocation is 10%. She said UTIMCO has $25 million invested in ArcLight Energy Partners, which is closed.
ROSEMONT, Ill. — United Dairy Industry Association invested its $17 million pension plan in five mutual funds, said Bill Cusick, vice president-human resources. There are four equity funds — Dodge & Cox Stock, INTECH Large Cap Growth, Royce Premier and Julius Baer International Equity — and one fixed-income fund, PIMCO Low Duration.
The fund had been managed by Stein Roe Investment Counsel. Plan officials wanted to reconsider the manner in which they diversified equity styles and wanted "to be able to look for the best-in-class" funds, Mr. Cusick said. Performance was not an issue, he said.
Consultant J.H. Ellwood & Associates assisted.