FORT WORTH, Texas — AMR Investments hired Boston Co. Asset Management as a subadviser to the American AAdvantage Small Cap Value and International Equity funds. No subadvisers were dropped.
ANN ARBOR, Mich. — The $36 million City of Ann Arbor Retiree Health Care Benefits Plan hired Chicago Equity Partners to manage $11 million in active domestic midcap core equities.
The allocation is new, said Elizabeth Crenshaw, an executive with the plan's consultant, Gray & Co. Officials at the plan couldn't be reached for comment by press time.
APPLETON, Wis. — Appleton Papers Inc. hired Northern Trust Global Advisors as investment manager for the company's $195 million in defined benefit plan assets. Northern Trust already serves as the fund's master trustee, so the move will consolidate administration of the plan's investments while leaving fiduciary responsibility with Appleton's administrators, said Jay Vanderhoof, Appleton assistant treasurer and finance director.
Mr. Vanderhoof said the decision will result in some changes to the money manager lineup, but he declined to give details. The plan also terminated Rocaton Investment Advisors as its consultant.
BATTLE CREEK, Mich. — Battle Creek Police & Fire Retirement System hired NWQ Investment Management to run $14.5 million in active domestic large-cap value equities for the $95 million plan, said Stanley Chubinski, city treasurer. Funding came from terminating previous manager Rorer Asset Management because of performance and for using more of a core style, he said. Smith Barney assisted in the invitation-only search. Ed Rorer, chief investment officer of Rorer, did not return a call by press time seeking comment.
CHAMPAIGN, Ill. — The $41 million Champaign Firefighters Pension Fund invested $2 million in the Julius Baer International Equity mutual fund, said Richard Schnuer, treasurer. Funding came from terminating the MetLife International Equity fund, managed by Bank of Ireland, for performance, Mr. Schnuer said.
Toni Griffin, MetLife spokeswoman, said her firm had no comment. Sara Holland, Bank of Ireland spokeswoman, was not available for comment by press time.
SEATTLE — Electrical Workers, IBEW, Local 46 hired active domestic value equity managers Buckhead Capital to handle small caps and NWQ Investment Management to run small caps to midcaps. Each firm will handle $10 million. Funding came from trimming the $380 million plan's large-cap value and growth portfolios; no managers were terminated. Wurts & Associates assisted.
Dennis Kirkpatrick, fund administrator, declined to comment.
NEWARK, N.J. — The Federal Reserve Employees Benefit System Thrift Plan added the Dimensional International Value Portfolio as an investment option in the $3.3 billion defined contribution plan, said Paul F. Lipson, chief investment officer. Plan officials dropped the T. Rowe Price International Stock Fund, said Mr. Lipson. The plan has seven options.
MINNEAPOLIS — First American Funds hired JPMorgan Fleming Investment Management as subadviser to the First American International Fund, subject to shareholder approval in a vote on Dec. 7, said Cheryl Stone, spokeswoman for parent U.S. Bancorp Asset Management. Clay Finlay currently manages the fund. Further details could not be learned by press time.
STOCKHOLM — Folksam hired Northern Trust as global custodian for $17 billion of the firm's insurance assets and mutual funds, according to a Northern Trust news release. Northern Trust will also provide trustee services through an agreement with Swedish trustee bank Svenska Handelsbanken. Further details could not be learned by press time.
PARIS — Fonds de Reserve pour les Retraites hired State Street Global Advisors to manage a non-euro overlay for a three-year period, said Hannah Grove, SSgA spokeswoman. State Street Global Advisors will manage and hedge currency risk for the non-euro portion of the €16 billion ($19.68 billion) pension fund. Neither Ms. Grove nor reserve fund officials could provide the amount of the overlay. Officials at the pension reserve fund, who wished to remain anonymous, said SSgA is the fund's first overlay manager and referred other questions to the manager.
LONDON — The London Borough of Havering Pension Fund hired State Street Corp. as global custodian for the scheme's £250 million ($450 million) in assets, according to Hannah Grove, State Street spokeswoman.
Roger Ramsey, councilor and lead member for resources at the scheme, did not return a call by press time seeking comment or details on the previous custodian.
CHAMPAIGN, Ill. — The Illinois State Universities Retirement System hired S&P 500 index fund managers RhumbLine Advisers and Zenna Financial Services to manage $450 million and $50 million, respectively, said James M. Hacking, executive director. RhumbLine was also hired to manage $100 million in a Lehman Brothers Aggregate index fund.
The moves were partly in response to a call from the state Senate Select Committee on Public Pension Investments for public pension funds to increase their use of minority- and women-owned investment advisers. Zenna, a startup firm, was given a smaller assignment and placed in the $12.4 billion system's manager development program, targeting emerging minority- and women-owned firms.
Funding for the S&P 500 index funds could come from reducing U.S. equity index funds managed by Northern Trust Global Investments and Barclays Global Investors; Northern Trust runs $1.2 billion and BGI, $2.6 billion. Funding for the fixed-income fund could come from a $744 million fixed-income index fund run by BGI.
Ennis Knupp assisted.
INDIANAPOLIS — The $10.1 billion Indiana Public Employees' Retirement Fund hired Hotchkis & Wiley Capital Management to run $330 million in active domestic large-cap value equities. Funding came from terminating Merrill Lynch, which ran the same style, earlier this year because of personnel departures. Funds were parked in a Barclays Global Investors large-cap index fund. Mercer assisted. Further details could not be learned by press time.
TOPEKA, Kan. — Kansas Construction Trades hired equity managers Voyageur Asset to manage $16 million in active domestic large-cap growth and Brandywine to run $14 million in active international equities, said Gary Muckenthaler, plan administrator. Both are new asset classes for the $140 million plan. Funding will come from reducing fixed-income investments as well as a $34 million State Street Global Advisors S&P 500 Flagship index fund, he said.
The moves are the result of an asset-allocation study by Marco Consulting Group, Mr. Muckenthaler said. The plan's allocation will be 35% large-cap equity, 25% core fixed income, 10% small-cap equity, 10% international equity, 10% real estate equity, 5% stable value, 2.5% high-yield fixed income, and 2.5% international fixed income.
LONDON — Liontrust Asset Management hired State Street Global Advisors to subadvise £75 million ($135.8 million) in passive U.K. equities for Liontrust's Top 100 fund, said Jonathan Harbottle, Liontrust marketing director. Previous subadviser Barclays Global Investors was terminated after raising its fees.
LOS ANGELES — The $7.9 billion Los Angeles City Employees Retirement System allocated $10 million to Parish Capital, a private equity fund, said Wayne Iga, investment officer. Funding came from cash. Separately, the fund's board hired Consultiva Internacional to develop a database of emerging brokerage firms.
NEW YORK — Merrill Lynch hired OppenheimerFunds as a subadviser in its NextGen College Investing Plan, a college investment program administered by the Finance Authority of Maine, Merrill Lynch said in a news release. The 529 program, which is overseen by the Maine treasurer, will offer four age-based portfolios and 27 portfolios with specified investment strategies. NextGen had more than $2.5 billion in assets as of June 30.
HELENA, Mont. — The Montana Board of Investments hired Independent Fiduciary Services to perform a one-time operational review of the $6 billion system. IFS officials will talk with board members at the end of October and are expected to present tentative investment recommendations in late December, said Carroll South, executive director.
CARSON CITY, Nev. — The State of Nevada Deferred Compensation Fund will add the Van Kampen Equity and Income, American Century Small Cap Value and ING VP Index Plus SmallCap Portfolio funds as investment options in its $270 million 457 plan, said Robert Easton, deferred compensation committee member. The funds replace the Hartford Advisers and Skyline Special Equities and ING VP Small Company Portfolio funds, which will be dropped for performance, he said. The terminated funds will be closed to new participants Nov. 1, and assets remaining in those funds will be rolled into the new funds Feb. 1.
Hartford and ING Investment are the plan's two bundled providers; Hartford offers 21 investment options and ING offers 20. Segal Advisors is assisting.
"The Hartford's relationship with the State of Nevada continues to be strong," said Thomasin Mullen, spokeswoman. Michele Brennan, Skyline Asset Management spokeswoman, could not comment by press time. She said Skyline has been managing assets for the fund for 17 years and has been very consistent in its management. Phil Margolis, ING spokesman, did not return a call seeking comment by press time.
CHICAGO — Northwestern Memorial Hospital hired Mellon Human Resources & Investor Solutions to provide actuarial services and benefits administration for its $250 million pension plan, said Dean Manheimer, senior vice president-human resources. Mellon replaced Watson Wyatt as actuary and Aon as benefits administrator. "We thought Mellon had the best solution in terms of technology" and economics, Mr. Manheimer said.
FRAUENFELD, Switzerland — Octane Management hired Hong Kong hedge fund manager Vision Investment Management as subadviser of a new Asian hedge fund of funds. Octane provides consulting advice on hedge fund investing and hedge fund of funds to institutional investors.
BIRMINGHAM, Ala. — Samford University hired Friess Associates to manage active domestic small-cap growth equities, said Lisa Aday, director of investments at the $271 million endowment. She would not say how much Friess will run or whether it replaced another firm. The endowment had been searching for a small-cap manager since April; it did not use a consultant.
SAN FRANCISCO — The $11.8 billion San Francisco City & County Retirement System committed up to $15 million each to Providence Equity Partners V, a communications and media industry buyout fund, and MatlinPatterson Global Opportunity Fund II, a distressed debt fund. Portfolio Advisors assisted.
REDWOOD SHORES, Calif. — The $1.5 billion San Mateo County Employees' Retirement Association hired Western Asset Management to run $143 million in core-plus fixed income. Funding comes from trimming the portfolios of existing bond managers Deutsche Asset Management and Barclays Global Investors to $143 million each; DeAM ran $201 million in core-plus bonds, and BGI ran $249 million in a Lehman Aggregate index fund. The remaining $21 million will be reallocated to equities, said Sid McCausland, chief executive officer.
SARASOTA, Fla. — Sarasota Firefighters' Pension Fund hired Sawgrass Asset Management to handle $10 million in active domestic large-cap growth equities, said Benita Saldutti, pension administrator. Funding came from trimming a $20 million active domestic large-cap growth equity portfolio run by Montag & Caldwell. Merrill Lynch assisted the $85 million plan with the invitation-only search.
COLUMBIA, S.C. — The South Carolina Budget and Control Board approved hiring Nicholas-Applegate and Batterymarch as active domestic small-cap growth equity managers for the $24 billion South Carolina Retirement System. Nicholas-Applegate will handle $90 million, and Batterymarch, $60 million, said Michael Sponhour, spokesman. Funding will come from reducing a $274 million State Street Global Advisors S&P 500 index fund. Mercer Investment Consulting assisted.
KINGSTON-UPON-THAMES, England — Surrey County Council Pension Fund hired Schroders to manage £35 million ($62.8 million) in specialist European equities, said Julian Samways, Schroders group head of corporate communications. The new allocation is part of the £1.1 billion pension fund's move to a core-satellite specialist structure. Watson Wyatt assisted, said Michael Taylor, the council's executive director, performance and resources. The portfolio will be funded from a rebalancing of assets as a result of the new strategy. Deutsche Asset Management and Baring Asset Management have been terminated because of the move to the new structure, said Mr. Taylor.
SEATTLE — Western Conference of Teamsters Pension Trust hired Western Asset Management and BlackRock to handle $500 million each in active domestic core bonds, said Alan Biller, president of Alan D. Biller & Associates, fiduciary and investment adviser for the $29 billion system. The new portfolios will be benchmarked to the Lehman Aggregate Bond index. The money had been parked in other managers' portfolios since the previous core fixed-income manager, PIMCO, was terminated in early 2003, said Steve Center, an associate with Alan D. Biller.
AUSTIN, Texas — Teacher Retirement System of Texas hired Townsend Group as real estate investment consultant to the $86 billion system, according to Howard Goldman, spokesman. Townsend will assist system officials in research evaluation and strategic plan recommendations for its 3% real estate allocation.
Separately, the system's board committed $75 million to Providence Equity Partners V, Mr. Goldman said. Funding will come from cash.
WEST WARWICK, R.I. — Town of West Warwick Pension Plan hired Vontobel Asset Management to run $7 million in active domestic large-cap value equities, said Peter H. Newell, a Vontobel managing director. Funding came from a portfolio run by Columbia Asset Management; further details were not available. Michael E. Goss, vice president at consultant UBS Financial Services, and Charles Salmans, Columbia spokesman, declined to comment; fund officials could not be reached for comment.
MADISON, Wis. — The State of Wisconsin Investment Board hired Hamilton Lane Advisors as a private equity consultant for its primary $58.1 billion pension fund. Hamilton Lane will help the board develop a long-term private equity strategy and a tactical implementation plan. The consultant will also assist the board in finding and analyzing private equity managers and monitoring the board's $1.8 billion private equity allocation. Previous private equity consultant Pathway Capital did not rebid, said Vicki Hearing, public information officer.