ANNAPOLIS, Md. — The $1.04 billion Anne Arundel County Retirement System committed $20 million to Mariner Investment Group and $10 million to K2 Advisors, the system's first hedge fund-of-funds allocation.
AUSTIN, Texas — The Austin City Employees' Retirement System hired Principal Real Estate Investors to run $60 million in an open-end commingled fund, its first real estate investment, said Stephen C. Edmonds, executive director. The $1.25 billion system will fund the move by reducing its fixed-income allocation to 30% from 35%, as recommended by a recent asset allocation study; no managers will be terminated. Summit Strategies Group assisted.
SACRAMENTO, Calif. — The $161 billion California Public Employees' Retirement System committed $22 million to Markstone Capital Partners and $15 million to Emergence Capital Partners. Funding came from the system's Alternative Investment Management Program. Markstone has raised $450 million of a targeted $500 million to invest in old-economy companies based in or generating revenues from Israel. Emergence Capital is raising its first venture capital fund to invest in early stage companies delivering technological and infrastructure services. The fund had its first closing of $68 million in April and has a $100 million target. Hamilton Lane assisted with the Markstone Capital commitment; Grove Street Advisors assisted with the Emergence Capital commitment.
OAKLAND, Calif. — The University of California hired Fidelity Investments Tax-Exempt Services to provide record keeping, administration and investment education for its new 457(b) tax-deferred savings plan and its two other defined contribution plans, with a combined $9.5 billion in assets, said Paul Schwartz, university spokesman. Record keeping and administration of the two existing plans had been handled internally. "We were at capacity in terms of our administrative capabilities," said Mr. Schwartz. Investment options are provided through Fidelity's MasterRecordkeeper service.
SAN SALVADOR, El Salvador — Central de Deposito de Valores hired Bank of New York as global custodian for its $1 billion in international assets, said Kevin Heine, BNY spokesman. Bank of New York also intends to offer custody outsourcing to members and participants of CEDEVAL, which has roughly $3 billion in total assets under custody, Mr. Heine said. Officials at CEDEVAL could not be reached by press time for details.
CHICOPEE, Mass. — The $112 million Chicopee Contributory Retirement System picked EARNEST Partners to run $5.5 million in its first active domestic small-cap value equity portfolio, subject to contract negotiations, said Kevin Leonard, the plan's consultant at Segal Advisors. Funding will come from reallocating within the system's equity portfolio.
TORONTO — The CPP Investment Board hired Barclays Global Investors Canada and Goldman Sachs Asset Management to handle C$500 million (US$375.6 million) each in CPP's new active overlay program, said John Cappelletti, manager of communications and stakeholder relations. The board, the equity investment arm of the C$73.2 billion Canada Pension Plan, Ottawa, began the program to gain "incrementally higher returns through active management," Mr. Cappelletti said.
CHICAGO — The Illinois State Board of Investment hired Harris Investment Management and Fort Washington Investment Advisors to manage $250 million each in high-yield bonds, said William Atwood, executive director. Funding will come from restructuring the $10.1 billion fund's core-plus fixed income assignments with BlackRock, Western Asset and Harris. BlackRock and Western, which currently manage $469 million and $481 million, respectively, will have active portfolios benchmarked to the Lehman Aggregate index, while Harris, which currently manages $199 million, will have an active portfolio benchmarked to the Lehman Intermediate Government/Credit index. The remainder will come from reducing a $790 million Lehman Intermediate Government/Credit index fund run by Northern Trust Global Investments. Marquette Associates assisted.
SPRINGFIELD, Ill. — The $31 billion Illinois Teachers' Retirement System committed $20 million to Capri Select Income Fund II, a mezzanine real estate fund, said John Day, spokesman.
JACKSONVILLE, Fla. — The Jacksonville General Employees Pension Fund rehired consultant Merrill Lynch, said Camille Cossa, pension administrator. The $1.6 billion fund had issued an RFP; Merrill Lynch's contract was due to expire Sept. 30.
LOS ANGELES — The Los Angeles City Employees' Retirement System hired CS Capital Management to provide independent fiduciary services for the conversion of a $70 million INVESCO real estate portfolio to a commingled fund from a separate account. The $7.7 billion system also renewed its contract with Pacific Financial Research, which manages $230 million in active publicly traded domestic large-cap value equities. No RFP was issued.
PASADENA, Calif. — The $26 billion Los Angeles County Employees' Retirement Association committed up to $75 million to Providence Equity Partners V, said Christopher J. Wagner, senior investment officer, alternative assets. Funding will come from cash.
JEFFERSON CITY, Mo. — The $5.9 billion Missouri State Employees' Retirement System committed $75 million to Global Forest Partners to run in international timber, said Meg Cline, manager of investment policy and communications. This is its first international timber investment. Earlier this year, the pension fund committed $10 million to Resource Management Services, which will manage a portfolio of timber properties in the southeastern United States and also hired Campbell Group to run $100 million in domestic timber. General investment consultant Summit Strategies and specialty timber consultant TimberLink assisted.
NEW YORK — The New York City Deferred Compensation Plan named NISA Investment Advisors as administrator of its $1 billion wrap option, said Dean Weltman, plan compliance officer. The $5.6 billion plan terminated the previous administrator, Aegon; Mr. Weltman would not say why Aegon was terminated. NISA had been interim administrator.
TIGARD, Ore. — The Oregon Public Employees Retirement System hired CitiStreet as the first record keeper for the $400 million defined contribution portion of its hybrid retirement plan, started in January, said David Crosley, communications officer.
Separately, CitiStreet was rehired as record keeper for the $675 million Oregon Savings Growth 457 plan for a three-year contract. The fund was required by state law to issue an RFP. Marsha Bacon, customer service division administrator, cited CitiStreet's track record with the 457 plan as "one of the key reasons" the firm was chosen for the hybrid plan.
PLYMOUTH, Mass. — The $89 million Town of Plymouth Contributory Retirement System committed an undetermined amount to Intercontinental Real Estate Fund IV, a closed-end real estate fund, subject to contract and regulatory approval, said Debra Sullivan, director-retirement. Funding will come from the system's $5.7 million allocation to the Massachusetts Pension Reserves Investment Management Trust. Segal Advisors assisted.
TORONTO — RBC Financial Group hired CB Richard Ellis to subadvise its real estate portfolio. Beja Rodeck, RBC spokeswoman, would not disclose the size of the portfolio. CB Richard Ellis will provide portfolio management for RBC Centura, RBC Builder Finance, RBC Mortgage, RBC Global Private Banking and the U.S. operations of RBC Capital Markets and RBC Insurance, all real estate units of RBC. Each subsidiary had its own subadviser, which Ms. Rodeck would not identify. CB Richard Ellis was the incumbent for one of the subsidiaries, she said.
ST. PAUL, Minn. — St. Paul Electrical Construction hired ASB Capital Management for its $100 million pension plan and $90 million money-purchase plan; ASB will run up to $5 million for each plan in a new pooled real estate equity fund, said Donald Callies, plan administrator. Each plan has 5% a target allocation to real estate. The pooled fund will primarily consist of commercial real estate, said Mr. Callies.
ASB also runs $13.8 million in an S&P 500 index fund for the pension plan and $9.7 million in an S&P 500 index fund for the money-purchase plan. Alpha Investment Consulting Group assisted.
PHOENIX — Salt River Project added the T. Rowe Price Growth Stock fund as an investment option in its $392 million 401(k) plan, replacing the Janus Fund, said Sue Ann Perkinson, assistant treasurer, funds administration. The Janus Fund was dropped for performance and organizational reasons, she said. Janus is "disappointed to lose any client, especially in light of the progress we've made" on both a performance and from a regulatory standpoint, said Shelley Peterson, Janus spokeswoman.
Plan officials also dropped the American Century Heritage fund as an option because of performance, Ms. Perkinson said. Money in the fund will be moved into another of the plan's options, the American Century Small-Cap Value fund. Chris Doyle, American Century spokesman, didn't comment.
Separately, the American Century Strategic Allocation lifestyle funds were added as the plan's first lifestyle offerings.
J.H. Ellwood & Associates is assisting.
COLUMBUS, Mont. — Stillwater Mining Co. hired MassMutual Financial Group as the bundled provider for both of its 401(k) plans, said Lori Holtz, human resources representative. CitiStreet Retirement Services was record keeper and Smith Barney was financial adviser and provider for the $39 million and $24 million plans, which mirror each other. Hobbs Group Investment Advisors assisted.
DALLAS — Southwest Airlines Pilots' Association hired The 401(k) Co. as bundled provider of its $850 million defined contribution plan, confirmed a spokesman for the association. The firm will provide record-keeping, trust and investment services, said Michelle LeCates, a sales consultant at The 401(k) Co. She said the plan's previous bundled provider was Hewitt Associates.
NEW YORK — TIAA-CREF hired State Street Corp. as master custodian and securities lending agent for $110 billion in pension assets, confirmed Carolyn Cichon, State Street spokeswoman. The previous custodian was Deutsche Bank; TIAA-CREF issued an RFP when State Street acquired Deutsche Bank's custody business in 2003, Ms. Cichon said. "After a thorough due-diligence process, State Street emerged as the provider with the most robust services to fulfill our needs," Gary Chinery, TIAA-CREF vice president and treasurer, said in a news release.
WARWICK, England — Warwickshire County Council Pension Fund hired State Street Global Advisors to manage £105 million ($192 million) in U.K. equities, according to a statement from SSgA. Executives at the pension plan could not be reached for details by press time.
The mandate is to outperform the benchmark FTSE All Share Index plus 1.5% to 2%, the statement said.
CHICAGO — Winston & Strawn LLP added four more Fidelity Freedom funds as investment options in its $150 million profit-sharing plan and $85 million 401(k) plan, said David McDonald, director of retirement services. Fidelity is the bundled provider for the 401(k) plan, which offers 20 investment options plus the Freedom funds.