JUNEAU, Alaska — Alaska State Pension Investment Board hired ING Investment Management and MacKay Shields to run $100 million each in high-yield bonds, representing the first move into the asset class. Funding will come from rebalancing.
LONDON — British Airways PLC hired State Street Corp. as global custodian, securities lending agent and fund accountant for its £10 billion ($19.3 billion) pension fund, confirmed John Birch, managing director. State Street will also provide performance measurement and evaluation.
The business had been handled by Deutsche Bank's Global Securities Services, which State Street acquired in 2003. According to a news release from State Street, British Airways put the business up for bid earlier this year. Thomas Murray assisted.
BROOKLINE, Mass. — The $180 million Brookline Contributory Retirement System hired EARNEST Partners to run an active domestic midcap core equity portfolio, said Frank Zecha, executive director. It is a new asset class for the system. The size of the portfolio hasn't been determined, although it will likely be $10 million to $15 million, according to the RFP issued in August. Funding will likely come from cash. Meketa Investment Group assisted.
SACRAMENTO, Calif. — The $118.7 billion California State Teachers' Retirement System committed $400 million to Lone Star V, a $5 billion real estate fund. The CalSTRS board also committed $100 million to RLJ Urban Lodging, a $200 million specialized real estate fund.
VILLA PARK, Ill. — DuPage County Cement Masons, Local 803, hired Chicago Equity Partners to manage a $7 million active domestic midcap core equity portfolio, said Rich Priester, administrator.
Funding will come from reducing a $14.2 million S&P 500 index fund run by State Street Global Advisors.
The $70 million pension fund made the change to increase diversification. The plan's asset allocation is 45% equities, 45% bonds and 10% real estate.
Marco Consulting assisted.
MINNEAPOLIS — First American Investment Funds shareholders approved the hiring of JPMorgan Investment Management as subadviser to the $1.3 billion First American International Fund, according to a news release issued by U.S. Bancorp Asset Management, the investment adviser of First American.
JPMorgan will replace Clay Finlay.
Cheryl Stone, U.S. Bancorp Asset Management spokeswoman, was not available for comment by press time.
ATLANTA — The $55 million Haverty Furniture pension plan invested $30 million in the Vanguard S&P 500 index fund, said Bonnie Webb, assistant vice president of human resources.
State Street Global Advisors had managed the money in an active domestic core equity portfolio, but fund officials wanted to switch to passive management to keep costs lower.
"Historically, you can make a strong case for passive equity management," Ms. Webb said.
Mercer Investment Consulting assisted.
VTL replaces The Consulting Group, a division of Salomon Smith Barney.
VTL is a new firm formed by Vince Lowry, who was a top consultant with The Consulting Group, and Mr. Morris said Independence wanted to continue working with Mr. Lowry.
JACKSONVILLE, Fla. — Jacksonville General Employees' Pension Fund hired JPMorgan Fleming Asset Management to run about $100 million in active international equity, said John Hudson, senior city investment analyst.
The money had been parked in a Northern Trust EAFE index fund for roughly a year after officials of the $1.6 billion pension fund terminated Putnam Investments, the portfolio's prior manager, because of market-timing allegations.
Merrill Lynch assisted.
KANSAS CITY, Mo. — Kansas City Firefighters' Pension System hired American Century to run $30 million in active domestic small-cap value equities, said Rick Boersma, the retirement system's executive officer.
The portfolio's prior manager, High Rock Capital, was terminated because it is closing at the end of the year, Mr. Boersma said. Steve Wilner, vice president of operations at High Rock, did not return a call by press time seeking comment.
The plan's asset allocation is 65% equity, 30% fixed income and 5% real estate.
FRANKFORT, Ky. — The Kentucky Deferred Compensation System will add the American Funds Growth Fund of America as an option in both its 401(k) and 457 plans, which have combined assets of about $1.1 billion, said Robert Brown, executive director.
The plans, which mirror each other, will terminate the Putnam Voyager fund and MFS Massachusetts Investors Growth fund, he said, citing both performance issues and market-timing allegations against the two money management firms. Each plan will offer 31 investment options.
Nationwide Retirement Solutions assisted.
LOS ANGELES — The $5.9 billion Los Angeles Water & Power Employees' Retirement Plan hired Mellon Bank as its master custodian, replacing Bank of New York, said Robert Rozanski, acting retirement plan manager. He said the transfer will happen at the start of next year.
MIAMI — Miami Fire Fighters' & Police Officers' Retirement Trust hired active domestic small-cap core equity managers Champlain Investment Partners and Eagle Asset Management, pending contract negotiations, said Bob Nagle, administrator.
The board has not determined the size of the portfolio, which will be split evenly between the two managers.
Officials for the $1.25 billion pension fund terminated NL Capital Management, which ran a $65 million small-cap core equity portfolio, because the investment team working with the fund moved to Champlain, Mr. Nagle said. Champlain is currently running the $65 million.
Milliman USA assisted.
LONDON — NewSmith Asset Management hired Bank of New York to provide global custody and trustee services to its new Dublin-based, long-only hedge fund, according to a news release from Bank of New York.
"In reviewing our custody and trustee services requirement, we were conscious of the need for a scalable service platform that can accommodate our growth in funds under management," Ron Carlson, COO of NewSmith Asset Management, said in the release. Officials at NewSmith were not available for comment by press time.
SAN DIEGO — The San Diego County Employees Retirement System hired Cliffwater as a consultant to oversee its $285 million managed futures and $500 million currency overlay strategies.
David Deutsch, chief investment officer of the $5.5 billion fund, said Cliffwater will monitor the managers of those strategies, make strategic recommendations and hire managers when necessary. The fund's general investment consultant remains Cambridge Associates.
Separately, the system's board by Jan. 6 is expected to select its first external law firm to provide investment-related legal services, said Mr. Deutsche. The deadline for the search has passed.
SANTA CLARA, Calif. — Sun Microsystems Inc. hired JPMorgan Retirement Plan Services as record keeper and trustee for its $2.3 billion 401(k) plan, according to Jing-Mei Li, 401(k) plan manager.
The plan's previous record keeper was Merrill Lynch/Howard Johnson. Howard Johnson had been record keeper since 1993, before its acquisition by Merrill Lynch in 1997. Sun officials decided to do a search after it was announced last year that Howard Johnson's operations would be combined with Merrill Lynch, Ms. Li said.
The plan offers 12 investment options.
SWAMPSCOTT, Mass. — The $27 million Swampscott Contributory Retirement System hired Independence Investment to manage about $1.5 million in an active domestic small-cap core equity portfolio, said Richard DiPesa, retirement administrator.
The firm replaces Gabelli Asset Management, which was terminated earlier in the year.
TAUNTON, Mass. — Taunton Contributory Retirement System hired INVESCO to run $4 million in a private equity fund of funds, said Paul J. Slivinski, executive director.
The $134 million system currently has $1.3 million invested in private equity.
Segal Advisors assisted.
CHICAGO — United Food and Commercial Workers, Local 1546, hired AllianceBernstein to manage up to $140 million in an active international equity portfolio, the first for the $140 million system, said Kenneth R. Boyd, president.
Separately, the fund hired Commonwealth Realty Advisors to run $7.5 million in core real estate and ASB Capital Management to run $7.5 million in core-plus real estate. Fund officials wanted to further diversify the plan's real estate holdings.
Funding for each of the managers will come from rebalancing; there will be no terminations.
Marco Consulting assisted.
RICHMOND, Va. — The $42 billion Virginia Retirement System committed $490 million to six private equity partnerships, hired a high-yield bond manager and switched its equity overlay manager, said Nancy Everett, chief investment officer.
The pension fund committed $250 million to CSFB/VRS Private Equity Fund I; $100 million to New Mountain Partners II; $50 million each to HarbourVest Partners 2004 Direct Fund and Parish Capital I; $25 million to Updata Partners III and $15 million to Three Arch IV.
Fund officials hired Zazove Associates to manage $30 million in high yield; funding will come from cash.
They also hired Russell Investment Group, which is the system's transition manager, to replace Credit Suisse Asset Management as manager of about $1.5 billion in the fund's equity overlay strategy. The change was made "in order to consolidate our U.S. and non-U.S. equity overlay" with Russell, Ms. Everett said.
Separately, the system hired Palmer & Cay as actuarial consultant, subject to contract negotiations, said Forrest Matthews Jr., executive director. The fund's contract with its current actuarial consultant Gabriel Roeder Smith expires at the end of the year, Mr. Matthews said.