MUNICH - Allianz Dresdner Asset Management hired State Street Corp. to provide investment operations services for $100 billion in insurance assets under management, said Hannah Grove, State Street spokeswoman. State Street already provides investor services for $400 billion in assets under management by PIMCO; Allianz Dresdner and PIMCO are both Allianz Group subsidiaries. Christian Lawrence, Allianz Dresdner spokesman, could not say if State Street replaced another investment operations services provider or if Allianz Dresdner had handled the operations in-house.
BALTIMORE — Baltimore City Fire & Police Employees' Retirement System hired Pinnacle Associates to run $90 million in active domestic small-cap to midcap growth equities; Hotchkis & Wiley to handle $80 million in active domestic midcap value equities; Pareto Partners to manage $75 million in high-yield fixed income; and William Blair to run $60 million in international growth equities.
Funding came from the termination earlier this year of Boston Co., which ran $100 million in active domestic large-cap value equities; Putnam, $90 million in international growth equities; Alliance Capital, $75 million in active domestic large-cap growth equities; and INVESCO, $40 million in international core equities.
Putnam and Alliance were terminated for performance; Boston Co. and INVESCO were dropped "due to the portfolio restructuring," said Thomas P. Taneyhill, executive director of the $1.9 billion system.
The changes were the result of an asset allocation study. Summit Strategies Group assisted.
BATON ROUGE, La. — Baton Rouge and East Baton Rouge Parish Retirement System hired ING Clarion to run $40 million in the firm's Clarion Lion Properties commingled real estate fund, said Jeff Yates, retirement administrator. The fund is "broadly diversified" in U.S. office, retail, residential and industrial properties, he said.
Officials at the $830 million system, which has not had a real estate allocation in several years, wanted to get back into the asset class for diversification, Mr. Yates said. Funding will come from reducing the fund's fixed-income portfolio. RREEF and Principal Real Estate were the other finalists.
The system's asset allocation is 67% equity and 33% fixed income. Summit Strategies assisted.
SACRAMENTO, Calif. — Staff at the $166 billion California Public Employees' Retirement System committed up to $305 million to five private equity funds: $200 million to Hellman & Friedman Capital Partners V, a buyout fund; $10 million to Landmark Equity Partners XI, a secondary private equity fund headed by Francisco Borges, former Connecticut state treasurer; $10 million to Leeds Weld Equity Partners IV, a middle-market buyout fund; $54 million to Polish Enterprise Fund V; and $31 million to Richard Financial Group Private Equity, a Canadian fund.
PHILADELPHIA — The Mary Louise Curtis Bok Foundation hired Atalanta/Sosnoff Capital to run $7.2 million in an active domestic large-cap core equities, according to a news release from Atalanta/Sosnoff.
In addition, Curtis Institute of Music, Philadelphia, which is funded by the foundation, hired Atalanta/Sosnoff to run $2.7 million, also in active domestic large-cap core equities. Ron Wormser, vice president of finance and administration at the institute, declined to comment.
Consulting Services Group assisted. Further information could not be learned by press time.
GLOUCESTER, Mass. — Gloucester Contributory Retirement System hired INTECH to manage $6 million in active domestic large-cap growth equities, said Linda Geary, executive secretary and trustee. Partial funding came from terminating Freedom Capital for performance of a $4.8 million large-cap growth equity portfolio; the remainder will come from trimming the portfolios of the $48 million plan's other managers. New England Pension Consultants assisted.
Eugene Durgin Jr., director of client services at Freedom Capital, did not return a call by press time seeking comment.
SPRINGFIELD, Mass. — Hampden County Board of Retirement allocated a combined $9 million to the Massachusetts Pension Reserves Investment Trust and the New Boston Funds, to be run in real estate, said Julianne Bartley, executive director. Funding will come from rebalancing and from distributions from the $175 million system's existing closed-end real estate fund, which she didn't name.
Officials began the search in March to reach its 5% target real estate allocation. Segal Advisors assisted.
HANNOVER, Germany — Hannover Re hired ING/BNY Securities Services to provide global custody for €1.5 billion ($1.83 billion), confirmed Eric Schuh, Hannover associate director of corporate communications. He would not identify the previous provider.
The custodian is a joint venture between ING Group and Bank of New York.
KENNER, La. - Heat & Frost Insulators & Asbestos Workers Local 53, hired SEI Investments to run the plan's $45 million in assets as a manager of managers, said Jim Pratt, administrative manager for the plan.
The plan will maintain its asset allocation of 60% equity and 40% fixed income.
DEERFIELD BEACH, Fla. — JM Family Enterprises Inc. hired Western Asset Management to handle $30 million in active core-plus fixed income, said Allen Browdy, vice president, treasury.
The $300 million profit-sharing plan terminated the portfolio's previous manager for several reasons, including performance, and wanted to hire a manager with a "different style," Mr. Browdy said. He would not name the previous manager.
The plan's asset allocation is 45% large-cap equity, 10% small-cap equity, 10% international equity, 22% domestic fixed income, 10% international fixed income and 3% cash.
New England Pension Consultants assisted.
PHOENIX — Karsten Manufacturing Corp. hired Charles Schwab as bundled provider of its 401(k) plan, effective Oct. 1, said Stacey Pauwels, vice president. It will also add the Schwab Managed Retirement Income lifecycle funds, increasing the plan's investment options to 17.
Previous bundled provider Putnam was terminated; Ms. Pauwels would not say why. Sinead Martin, Putnam spokeswoman, said Putnam is disappointed by the plan's decision. "We hope to have a chance to manage investments for them in the future," she added.
The 401(k) plan has $96.2 million in assets, according to Money Market Directory.
Wurtz & Associates assisted.
ST. PAUL, Minn. — Minnesota State Board of Investment allocated up to $100 million to a new Prudential Capital mezzanine debt fund. Howard J. Bicker, executive director of the $47 billion investment pool, said funding will come from cash.
STARKVILLE, Miss. — Mississippi State University Foundation hired REIT manager Cohen & Steers and hedge fund-of-funds firm Pointer Management and made a commitment to Private Advisors' small-company buyout fund.
David Easley, chief financial officer at the $130 million foundation, would not say how much each firm will run but said the hirings were the final part of a plan to increase the fund's alternative investment portfolio to 25% of assets, from 10%.
Funding comes from reducing the foundation's domestic equity and fixed-income portfolios, although Mr. Easley would not provide an exact breakdown. Fund officials wanted to lower the fund's volatility and increase diversification. Fund Evaluation Group assisted.
OKLAHOMA CITY — Oklahoma City Employee Retirement System hired AIG Global Investment Group to manage up to $20 million in a low-volatility fund of funds for the $399 million system, said Rena Hutton, retirement system manager.
The current asset allocation is 65% equity and 35% fixed income. Asset Consulting Group is assisting.
SALEM, Ore. — The Oregon Public Employees Retirement Fund allocated $250 million to a joint venture with multifamily manager General Investment & Development and committed at least $200 million to Lone Star Fund V, a real estate opportunity fund. The source of funding is not known yet. Pension Consulting Alliance consulted on the real estate commitments.
HELLERUP, Denmark — Pensionskassernes Administration hired State Street Global Advisors to manage $100 million in active Japanese equities, according to a PKA news release. SSgA was hired earlier this year to manage an enhanced screened U.S. equity index portfolio for PKA. PKA runs 82 billion Danish kroner ($13.5 billion) for eight Danish occupational pension plans. Fund officials weren't available for comment by press time.
ERIE, Pa. — Saint Vincent Health System hired Diversified Investment Advisors as bundled provider of its $50 million defined benefit plan and combined $34 million defined contribution plans, said John Mashinski, senior vice president.
Salomon Smith Barney was the previous defined benefit plan provider, while Fidelity was provider of Saint Vincent's 403(b) plan and Merrill Lynch was provider of the system's two 401(k) plans. Fidelity rebid, but DIA was chosen because of lower fees, Mr. Mashinski said. SSB and Merrill Lynch could not administer all of the plans, he added.
Further details could not be learned by press time.
MADISON, Wis. — The State of Wisconsin Investment Board hired international core equity managers AllianceBernstein, Fidelity and LSV Asset Management to run $400 million each and Acadian and American Century to run $100 million each. All will invest in developed markets.
The $63.6 billion board obtained funding by reducing a Barclays Global Investors international index fund to $3.9 billion and trimming portfolios of three active international equity managers: Baillie Gifford, to $484 million; Capital Guardian, to $627 million; and Morgan Stanley, to $820 million, according to Vicki Hearing, public information officer.
LONDON — YMCA Pensions and Life Assurance Plan hired Northern Trust Global Investments to manage £26 million ($46.7 million) as a manager of managers, including equities and fixed income.
Officials at the £30 million scheme funded the move by cutting the portfolios of Legal & General Investment Management and Schroder Investment Management, which had each run half of the plan's assets; they now jointly run 10% of plan assets, split evenly, said Juliette England, YMCA spokeswoman.