CHICAGO — Amalgamated Bank of Chicago hired Transamerica Investment Management to subadvise a new investment-grade fixed-income portfolio for Amalgamated's union, multiemployer and Taft-Hartley clients, said David Lubchenco, principal and managing director at Transamerica Investment Management, which has $17.4 billion in assets under management. Robert Wrobel, Amalgamated president and chief executive officer, could not be reached for further details.
GUATEMALA CITY — Banco de Guatemala hired State Street Corp. as global custodian, confirmed Carolyn Cichon, a State Street spokeswoman. State Street will also provide accounting and performance measurement services for the bank's $3.3 billion in assets.
"We went through a rigorous selection process to consolidate our global custody services with one single provider," Edwin Matul Ruano, general manager of Banco de Guatemala, said in a news release.
Further information was not available.
CHICAGO — The Chicago Transit Authority's Retirement Plan for CTA Employees hired hedge fund-of-funds firms Attucks Asset Management, Lyster Watson and BlackRock as well as Deerfield Capital Management and two other hedge fund firms to run a combined $65 million in the plan's first allocation to hedge funds, said Andrew Kelsen, director of alternative investments at plan consultant Gray & Co. Mr. Kelsen would not identify the two hedge funds, and he declined to say how much each firm would run for the $1.2 billion system.
Funding will come from a general rebalancing of plan assets and no managers will be terminated, according to Mr. Kelsen. Gray & Co. conducted the shortlist search at the direction of the plan's investment committee.
John Kallianis, executive director of the retirement system, referred questions to Mr. Kelsen.
WASHINGTON — The $260 million District of Columbia 401(a) Defined Contribution Plan hired CitiStreet as third-party administrator, said Randy Taylor, senior vice president at CitiStreet. CitiStreet is replacing ING, said Mr. Taylor. ING spokesman, Mark Goedbloed, did not return calls. CitiStreet will provide 18 investment options, up from 13.
Lasana K. Mack, acting District of Columbia treasurer, could not be reached by press time.
WASHINGTON — The Federal Retirement Thrift Investment Board hired Ennis Knupp as investment consultant, said Tom Trabucco, spokesman. Ennis Knupp will review the indexes to be used for four of the five investment options in the $164.8 billion Thrift Savings Plan, a preliminary step to conducting a routine search for managers of the four funds. The four indexes now in use are the S&P 500 for the C fund, the Lehman Brothers Aggregate Bond for the F fund, the Wilshire 4500 for the S fund and the MSCI EAFE for the I fund. The system invests the G fund in government securities.
Ennis Knupp also will look at whether the plan should use separate firms for securities lending; conduct a cost-benefit analysis of separate accounts vs. commingled funds; and gauge whether the plan should hire a separate custodian for any of the funds. Also, Ennis Knupp will examine whether the plan should invest in real estate, as recommended by Rep. Jon Porter, R-Nev., chairman of the House Federal Workforce and Agency Organization Subcommittee. Mortgage-backed securities now comprise 37% of the F fund and REIT investments make up 8% of the S fund.
The three-year contract is renewable for two additional years at the board's discretion, Mr. Trabucco said.
SAVANNAH, Ga. — Electrical Workers, IBEW, Local 508, hired Sawgrass Asset Management to run the pension fund's $9 million active fixed-income portfolio, said Stephen J. Lange III, managing principal with Investment Performance Services, the $25 million plan's consultant. Previous manager ICC Capital Management, which ran the money in a balanced portfolio, was terminated for performance, Mr. Lange said. ICC continues to handle $12 million in active domestic large-cap core value equities for the plan. Willie McLaughlin, business manager at the pension fund, confirmed the hiring and referred questions to Mr. Lange. Richard Rundell, fixed-income portfolio manager at ICC, declined to comment.
Investment Performance Services conducted the invitation-only search, Mr. Lange said.
LONDON — Liontrust Asset Management rehired State Street Corp. as global custodian, confirmed Vinay Abrol, chief operating officer. of Liontrust. State Street already provides fund accounting and trustee services to the firm, which has more than £4 billion ($7.4 billion) in assets under management. Also, State Street subsidiary WM Performance Services will provide Liontrust with monthly and quarterly performance reports and analysis.
NASHVILLE, Tenn. — Metropolitan Government of Nashville and Davidson County rehired Segal Advisors as investment consultant for the $1.6 billion Metropolitan Employee Benefit System, said Celia Yancey, metropolitan government treasurer. City and county rules limit contracts to five years and require an open search when a contract expires. Segal Advisors signed a new five-year contract; an RFP was issued in April.
NASHVILLE, Tenn. — The Metropolitan Board of Public Education Teacher Retirement Plan hired Brandes Investment Partners to manage the $87 million plan's first active emerging markets equities portfolio, said Celia Yancey, metropolitan government treasurer.
She could not specify the size of the mandate, but Tom Eddlemon, assistant metropolitan government treasurer, previously said plan officials were searching for a manager to run about $4 million in emerging markets equities. The funding source has not been determined, Ms. Yancey said.
An RFP was issued earlier in the third quarter. Plan consultant Dahab Associates assisted.
NEW ORLEANS — New Orleans City Employees Retirement System hired Wentworth Hauser and Violich to run $10 million in active international equities and Sentinel Real Estate to manage $5 million in residential apartment real estate assets, said Jerry Davis, board chairman. Officials of the $390 million plan will fund the international equity portfolio by reducing its equity portfolio; the real estate portfolio will be funded from cash and equities. No managers were terminated. Plan consultant Morgan Stanley assisted.
HARRISBURG, Pa. — The Pennsylvania State Employees Retirement System committed up to $20 million each in the Eureka II and Lime Rock Resources private equity funds, pending final contract approval, according to Robert Gentzel, system spokesman. The $27 billion system also will make follow-on commitments to four private equity managers: up to $150 million for Blackstone Capital Partners V, bringing its total commitment to Blackstone to $365 million; up to $50 million in Vestar Capital Partners V, raising the total commitment to Vestar funds to $175 million; and up to $40 million each for Apollo Investment Fund VI, raising its total Apollo commitments to $165 million, and OCM Opportunities Fund VI, increasing its total OCM commitments to $284 million. All new and follow-on commitments were funded from cash.
PennSERS had 29% of its total assets, or $7.7 billion, in alternative investments as of Dec. 31. More than $5 billion was invested in private equity funds, with $2.7 billion in venture capital.
ST. LOUIS — Firemen's Retirement System of St. Louis invested $20 million in Principal Global Investors' U.S. Property Account, a commingled direct-property real estate equity fund, said Vicky Grass, executive director. It is the $400 million plan's first real estate investment. Consultant Summit Strategies, which conducted the shortlist search, recommended a real estate investment for additional diversification and to increase returns. Funding will come from a general rebalancing; no manager was terminated, Ms. Grass said.
SANFORD, Fla. — City of Sanford Police Officers' Pension Fund hired Great Lakes Advisors to manage $5 million in active domestic large-cap value equities, said Ben Crawford, spokesman. Buckhead Capital and Crawford Capital were the other finalists. Funding will come from terminating a Russell 1000 Value index account managed by State Street Global Advisors. The assets had been moved to SSgA temporarily after Fox Asset Management was terminated earlier in the year for performance reasons, Mr. Crawford said. Doug Edler, managing director at Fox Asset, could not comment by press time. Officials at the $20 million plan issued an RFP in the first quarter. Dahab Associates assisted.
SAN FRANCISCO — San Francisco City & County Employees Retirement System committed up to $50 million to GMAC Institutional Advisors' Asia Co-Investment Program and also will commit $20 million to the Apollo Investment Fund VI, a buyout fund. Funding will come from "existing resources," said David Kushner, deputy director for investments at the $13 billion plan.