LIVONIA, Mich. — AAA Life Insurance Co. hired Northern Trust to provide domestic custody, securities lending and performance measurement for $1.1 billion in insurance assets, confirmed Keith Terhall, manager of investment reporting and cash management at AAA. Comerica was the previous provider; the change was part of the insurance company's normal review process, he said.
MILWAUKEE — Actuant Corp. hired Francis Investment Counsel as investment consultant for the company's $51.4 million 401(k) plan, said Andy Lampereur, executive vice president and chief financial officer. The plan didn't previously have an outside investment consultant.
Strong Financial is bundled provider to the plan, which offers 16 investment options.
CALGARY, Alberta — ARC Financial Corp. hired RBC Global Services as domestic custodian for the ARC Energy Venture Funds, a group of private equity funds with a combined $844 million in assets. Nancy Smith, ARC senior vice president, director and chief financial officer, did not return calls for comment.
MELBOURNE — The Australian Primary Superannuation Fund hired Perennial Investment Partners to manage an A$80 million (US$62.6 million) active Australian core-plus fixed-income portfolio, said Chris Hoey, chief executive of the A$670 million fund. The core-plus portfolio is a new allocation, part of a major reorganization of the plan's asset management. Funding will come from rebalancing.
SACRAMENTO, Calif. — The California Public Employees' Retirement System made commitments to five private equity funds. Officials for the $177.8 billion system committed $150 million to New Mountain Partners II, $50 million to OCM Opportunities Fund V, $30 million to Ironbridge Capital 2003/04, $25 million to Carlyle Strategic Partners and $10 million to Giza Fund IV.
WASHINGTON — The Federal Retirement Thrift Investment Board hired Mercer Investment Consulting to help develop lifecycle funds for the $143 billion Thrift Savings Plan, according to Tom Trabucco, plan spokesman. The board hasn't finished its search for a vendor to provide educational materials explaining lifecycle funds to plan participants. Mr. Trabucco said the education provider will probably be hired by the end of the year, and the lifecycle funds should be available to participants by mid-2005.
LONDON — JO Hambro Capital Management hired Bank of New York to provide global custody, transfer agency, fund accounting and depository services to the firm's first U.K. onshore mutual fund, according to Helen Vaughan, JO Hambro's chief operating officer. Bank of New York provides global custody for other JO Hambro assets.
CHICAGO — The Illinois State Board of Investment hired State Street Global Advisors and William Blair to manage $125 million each and GlobeFlex to run $50 million, all in active international small-cap equities, pending contract negotiations, including fee terms. It is the $10.3 billion fund's first allocation to the asset class. Funding will come from the performance-based termination of Capital Guardian, which ran $300 million in active international large-cap equities. Charles Freadhoff, media relations coordinator for CapGuardian, said the firm's policy is not to comment about clients.
Separately, the board selected three managers to run mortgage-backed securities. ULLICO will run $75 million; Amalgamated Bank, $40 million; and AFL-CIO Housing Investment Trust, $35 million. Funding will come from reducing the portfolios of core fixed-income managers BlackRock and Western Asset Management by $75 million each, to $425 million each, said William Atwood, executive director.
Marquette Associates assisted.
CHARLOTTESVILLE, Va. — The Investment Fund for Foundations hired alternatives investment consultant Cliffwater as an additional consultant to conduct allocation work across all asset classes, said David Salem, chairman of TIFF, a manager-of-managers for charitable foundations with about $3 billion in assets under management. "We hired Cliffwater because we admire the rigor they use in their research process and asset allocation work," Mr. Salem said.
JACKSONVILLE, Fla. — Jacksonville Police and Fire Pension Fund hired Boston Co. Asset Management to manage a portion of $45 million in active international equities, subject to contract negotiations, said Dick Cohee, deputy executive director. Officials of the $900 million fund are negotiating with another international equity manager which will run the remaining assets, Mr. Cohee would not identify the firm because it's too early in the negotiation process.
Funding will come from a $45 million EAFE index fund run by Northern Trust. The money was parked there after plan officials terminated Putnam Investments, the portfolio's previous manager, last year because of market-timing allegations.
Merrill Lynch is assisting.
LOS ANGELES — The Los Angeles City Employees' Retirement System committed $20 million to Providence Equity Partners V and $8.5 million to Trident Capital Fund VI, both private equity funds. Funding came from the $7.85 billion system's cash reserves.
BATON ROUGE, La. — The $1.2 billion Louisiana Municipal Police Employees' Retirement System hired LaSalle Investment Management to run $35 million in a commingled value-added real estate portfolio, said Virginia Eckert, director. Funding will come from rebalancing and reducing the pension fund's fixed-income allocation to 35% from 39%. Trustees sought a new manager to complement a $70 million internally managed open-end diversified core real estate portfolio.
Dan Holmes, managing director of consultant Summit Strategies, said the system's target real estate allocation was increased to 10% from 7%.
NASHVILLE, Tenn. — Metropolitan Board of Public Education Teachers' Retirement Fund selected Dahab Associates as independent investment consultant, subject to contract negotiations, said Tom Eddlemon, assistant metropolitan government treasurer. An administrative retirement committee for the $100 million pension plan also interviewed finalists PFM Group, R.V. Kuhns and Segal Advisors at a Nov. 11 meeting.
Plan officials issued an RFP for a consultant in August after auditor KPMG recommended that the plan seek competitive bids. Prior consultant AXA Advisors did not rebid, Mr. Eddlemon said.
CONCORD, N.H. — The $4.5 billion New Hampshire Retirement System hired Thornburg Investment Management and Walter Scott & Partners to manage a combined $250 million in international equities, said Ed Theobald, chairman. Funding came from terminating the portfolio's previous managers, Artisan Partners and Bank of Ireland Asset Management, for performance, Mr. Theobald said. Evaluation Associates assisted with the invitation-only search. Karen Guy, spokeswoman for Artisan, and Anne Banks, spokeswoman for Bank of Ireland Asset Management, declined to comment about client relationships.
LONDON — Orange Group hired JPMorgan Fleming Asset Management to handle £20 million ($37 million) in assets for the £135 million Orange Pension Scheme, said Sarah Taylor, spokeswoman for Orange Group. Plan officials replaced previous manager Deutsche Asset Management as part of a "routine annual review," Ms. Taylor said; she declined to provide further details.
JPMorgan Fleming will invest the defined contribution plan's assets in both equity and fixed-income pooled funds, according to a news release from JPMorgan Fleming.
HSBC Actuaries & Consultants assisted.
SPRING HILL, Australia — The Queensland Building Union Superannuation Scheme hired Perennial Growth Management to run A$50 million (US$39.1 million) in active Australian large-cap to midcap growth equities, said Marsha Beck, manager, investment services, at parent Perennial Investment Partners. Ms. Beck said the previous manager was Alpha Investment Management; she didn't know why the firm was terminated.
Paul Byrne, chief executive officer of the A$454.3 million fund, did not respond to a request for additional information by press time.
BRISBANE, Australia — Queensland Investment hired three active managers to run a total of A$2.75 billion (US$2.12 billion) in active U.S. equity, said John Gethin-Jones, general manager, global equities. T. Rowe Price will run A$1.7 billion in a "structured research strategy," and Legg Mason and Arnhold & S. Bleichroeder will each manage large-cap value portfolios of about A$500 million. The money had been passively managed in an MSCI World (U.S. component) index fund run by Barclays Global Investors and an enhanced MSCI World index (U.S. component) account run by DSI International. He said Queensland sought active management in an effort "to lift the alpha." Queensland has A$35 billion in assets under management, of which A$11 billion in non-Australian equity is subadvised.
BATON ROUGE, La. — Plumbers, Local 198, hired SEI Investments to manage its $230 million plan, said Gene Pourciau, fund administrator. SEI will oversee the asset allocation and invest plan assets through its manager-of-managers program. The plan's previous investment managers were Oak Associates, Jamison, Eaton & Wood and Smoot, Miller, Cheney.
TALLAHASSEE, Fla. — The $860 million Tallahassee City Employees' Pension Fund hired AEW Partners, Heitman and UBS Realty Investors to run a combined $23 million in real estate, said Jim Cooke, deputy city treasurer-clerk. UBS and Heitman will each manage $9 million in value-added portfolios, and AEW will run a $5 million opportunistic portfolio. Funding will come from a Heitman closed-end commingled real estate fund, which is being closed, as well as cash, Mr. Cooke said. RREEF and CNL had also been on a shortlist of candidates compiled by consultant Segal Advisors.
Lewis Ingall, executive vice president at Heitman, confirmed the Heitman Group Trust V fund is closing and proceeds from the real estate sales will be distributed to investors.
AUSTIN, Texas — The University of Texas Investment Management hired Ironbridge Capital to handle $50 million in active domestic small-cap equities. UTIMCO, which manages the Austin-based university's $16 billion endowment, also committed an additional $50 million to the Eminence Fund, bringing its total investment in the hedge fund to $100 million; and added $30 million to the Oaktree Capital hedge fund, bringing the total investment to $97.5 million. Funding was from cash flow.
The investment decisions were not due to any strategic change in policy, said UTIMCO spokesman Greg Lee. "We made a decision that we want to continue to grow these funds. They've been very beneficial in the past."
BLOOMINGTON, Minn. — The Toro Co. hired JPMorgan Retirement Plan Services as record keeper and administrator of its $445 million 401(k) plan, according to a news release from JPMorgan. Putnam Investments was the previous provider. Laura McNamara, a Putnam spokeswoman, said, "We are disappointed about their decision but hope we will have an opportunity to manage resources again for them in the future."
Joyce Lilienthal, director-compensation and benefits at Toro, did not return calls for comment.