Hirings

SACRAMENTO, Calif. — The board of the $197.5 billion California Public Employees' Retirement System approved a commitment of up to $400 million to Aetos Capital Asia II, a real estate fund, according to a summary of the board's May 16 closed-session meeting. The board also approved commitments of up to $125 million in Blum Strategic Partners III, a corporate governance fund, and up to $100 million to City View American Fund, a real estate fund, according to the summary. All three investments are subject to negotiations.

The system also committed €150 million ($185 million) to Bridgepoint Europe III, a buyout fund making investments in Western European middle-market companies; $100 million to CVC Capital Partners Asia Pacific II, which takes equity stakes in large, pan-Asian companies; and $50 million to Energy Investors Funds Group's United States Power Fund II, which will invest in small- to mid-market U.S. power assets.

CalPERS' absolute-return program invested $50 million in the Chatham Asset High Yield Offshore Fund and $50 million in the Wayzata Recovery Fund, a distressed debt fund.

FITCHBURG, Mass. — Fitchburg Retirement System invested $4.7 million in the American Century Small Company Fund. The $74.1 million plan had a small-cap investment in a pooled fund run by Dreyfus, but Dreyfus officials announced the fund was being liquidated, said Diane Vieweg, administrator. Segal Advisors assisted.

NASHVILLE, Tenn. — The National Fraternal Order of Police launched the Blue Line 457 Plan and hired ICMA Retirement Corp. as bundled provider for all lodges that adopt the plans. The plans are available only to members of the Fraternal Order of Police under new IRS guidelines that allow public-sector union members to set up deferred compensation plans in addition to an employer's plan.

LONDON — ICI U.K. Pension Fund rehired JPMorgan Worldwide Securities Services as global custodian and fund accountant, said a company spokeswoman. Officials of the £6.5 billion ($11.6 billion) pension fund think it's "good practice" to review the fund's business relationships every few years. Thomas Murray Network Management assisted.

CHICAGO — Illinois State Board of Investment hired hedge fund-of-funds managers Grosvenor Capital, Ivy Asset, Mesirow Advanced Strategies, Rock Creek and Suoritus to run a combined $415 million, said William Atwood, executive director. The hirings are the $10.8 billion fund's first move into hedge funds. Grosvenor, Ivy, Mesirow and Rock Creek each will receive $100 million; Suoritus will get $15 million. The fund could invest another $125 million next year in other funds of funds after evaluating its experience with the strategy, Mr. Atwood added.

Funding will come from taking about $207 million each from S&P 500 index funds run by Amalgamated Bank and RhumbLine, leaving each with about $622 million. Marquette Associates assisted.

LOS ANGELES — Los Angeles City Employees' Retirement System hired Capital Prospects to manage a $25 million domestic equity emerging manager fund of funds, said Wayne Ige, investment officer of the $8.8 billion system. Funding came from reducing S&P 500 index funds managed by BGI and RhumbLine that have a combined $1.6 billion.

The fund also committed $15 million to CVC European Equity Partners IV and $9 million to Spark Capital LP, both private equity funds. Hamilton Lane made the investments through a discretionary private equity mandate to invest around $616 million of plan assets.

MEMPHIS, Tenn. — The $2 billion Memphis City Retirement System hired Delaware Investments to run $120 million in active domestic large-cap growth equities, said Charles Williamson, city finance director. Delaware will replace Transamerica Investment Management, which was terminated for organizational reasons. Transamerica ran $125 million for the fund in a similar strategy; the additional $5 million will go to Paradigm Asset Management, raising its active domestic large-cap growth equities portfolio to $30 million.

Wilshire Associates assisted.

WORCESTER, England — Metal Box Pension Trustees Ltd. hired PIMCO Europe to manage £100 million ($181 million) in active global fixed income, said Philip Read, U.K. pensions manager. Officials at the £1.4 billion scheme wanted to increase returns and achieve greater diversification, he said. Funding came from rebalancing, Mr. Read said; no managers were terminated. Watson Wyatt assisted.

LONDON — Reuters Pension Fund hired Bank of New York as global custodian, confirmed Greg Meekings, fund chairman. Officials at the £650 million ($1.18 billion) scheme wanted one custodian instead of having its asset managers also provide custody services, Mr. Meekings said. Watson Wyatt assisted.

ST. LOUIS — The Metropolitan St. Louis Sewer District Employees' Pension Plan hired PENN Capital Management to run $7.5 million in active domestic core fixed income and Fidelity Investments to manage a $7.5 million market-neutral equity hedge fund portfolio, said Karl Tyminski, secretary-treasurer of the sewer district. Both strategies are new for the $152 million plan, and funding came from a general trimming of other asset classes. No managers were terminated.

New England Pension Consultants assisted.

LONDON — Scandinavian Airlines System (Investments) Ltd. Pension and Assurance Scheme hired SEI Investments (Europe) to run the plan's £27 million ($48.8 million) in pension assets as a manager of managers, said Marie Lunden, SAS business controller for the U.K. and Ireland. She said it is "part of (SAS') normal process to re-evaluate the fund management from time to time." The plan's previous manager, which she declined to identify, did not use a manager-of-managers strategy, Ms. Lunden said.

MAHWAH, N.J. — Sharp Electronics Corp. selected Schwab Retirement Plan Services as the bundled provider for its $135 million 401(k) plan and two defined benefit plans totaling $90 million. Schwab replaces Ameriprise Financial, formerly known as American Express Retirement Services.

RICKMANSWORTH, England — Skanska UK hired Standard Life Investments to manage an £80 million ($143.5 million) active U.K. pooled bond portfolio for the company's £210 million pension scheme, said Tanya Barnes, Skanska UK spokeswoman. It is a new investment, and funding came from cash and general rebalancing. No managers were terminated.

Lane Clark & Peacock assisted.

SPOKANE, Wash. — The $206 million Spokane Employees Retirement System hired Principal Financial Group and Duff & Phelps as REIT managers, said Leo Griffin, executive director. The board will determine how much to invest with each firm once an asset allocation study is completed in September, he said. The board previously approved a decision to commit roughly $20 million to REITs, he said.

CORONA, Calif. — Tamarack Scientific Co. Inc. hired Diversified Investment Advisors as bundled provider of its 401(k) and profit-sharing plans, which have a combined $8 million, said Debbie Blanchard, controller. The plans switched from Union Bank of California because officials at the plans were not satisfied with the bank's service, Ms. Blanchard said. She declined to elaborate. Joanne Curran, spokeswoman for Union Bank, did not return calls by press time.

SIOUX CITY, Iowa — Terra Industries Inc. hired UBS Global Asset Management to run its $160 million in U.S.-based pension assets in a global securities portfolio, according to a news release. Joe Ewing, vice president of human resources and corporate communications for Terra, said the company has been reviewing the management of its pension assets since it acquired Mississippi Chemicals Corp. in December. The assets of both plans have been combined in the UBS portfolio, according to Mr. Ewing. UBS will also manage the company's $103 million U.K.-based pension plans in a separate customized portfolio. Mr. Ewing declined to identify managers that had handled the company's pension plan assets in both the U.S. and the U.K., although UBS has managed about $50 million of Terra's U.K. assets since 2003.

IRVINE, Scotland — UPM Kymmene UK Ltd. hired Hymans Robertson as investment consultant to its £84 million ($149.8 million) pension plan, said Val Hughes, U.K. pensions manager. Hymans Robertson replaces Aon Consulting, which still provides administration services to the plan.

LOS ANGELES — Weingart Foundation hired Northern Trust as its first global custodian for its $700 million in assets, according to Deborah M. Ives, vice president and treasurer of the foundation. Northern Trust will also provide securities lending.

MADISON, Wis. — State of Wisconsin Investment Board hired Heitman Real Estate Securities and AEW Capital Management to manage $50 million each in REITs, said Vicki Hearing, public information officer of the $68.2 billion retirement fund. Funding will come from SWIB's $2.4 billion real estate equity portfolio.

Worcester Regional

WORCESTER, Mass. — Worcester Regional Contributory Retirement System hired State Street Global Advisors to run $30 million in the plan's first S&P 500 index allocation. Funding will come from rebalancing the $327 million system's domestic equities portfolio, said Kevin Leonard, the Segal Advisors consultant who assisted. Michael Donoghue, chairman and chief executive of the system, did not return calls.