SACRAMENTO, Calif. — CalPERS committed $40 million to Paladin Private Equity Partners I, a clean technology fund that targets small-cap to midcap companies, according to a news release from Paladin. The commitment marks the $206.1 billion California Public Employees' Retirement System's second investment in its environmental technology program, Leon Shahinian, CalPERS' senior investment officer, said in the release. CalPERS will be the lead investor in the fund, expected to total $200 million.
LONDON — Capita Financial Group hired Bank of New York to provide global custody, depository and trustee services for its $21 billion in fund assets, a Capita spokeswoman confirmed. Bank of New York replaced State Street and JP Morgan Chase; Capita was looking to consolidate the services under one provider, she said.
CHICAGO — The $11 billion Chicago Public School Teachers' Pension & Retirement Fund's investment committee recommends the pension plan invest $35 million in Walton Street Fund V, a non-core real estate equity fund, said Kevin Huber, executive director. The plan would fund the commitment from distributions of other Walton Street funds in which it invests; it has a total of $52 million with the firm.
BOSTON — Columbia Management hired Deutsche Asset Management to subadvise six collateralized loan obligation strategies, according to a news release. DeAM will now manage the roughly $2 billion in CLO assets that have been managed by Columbia and its Flagship Capital Management affiliate.
As part of the agreement, members of Columbia's CLO investment team will move to DeAM, said Bart Grenier, managing director and global head of fixed income at DeAM. Ten of Columbia's investment professionals will be joining DeAM before the end of the first quarter, Mr. Grenier said.
Tom Gariepy, Columbia spokesman, confirmed Columbia is now effectively moving out of the CLO business. Columbia officials decided the strategies were not part of the firm's "core competencies" and did not present the same growth opportunities as other fixed-income strategies, he said. Mr. Gariepy declined to say whether other CLO investment professionals will remain at Columbia or identify any of the team members that are leaving.
DETROIT — The $3 billion Detroit Police and Fire Retirement System will invest up to $20 million in the AA Capital Partners Alternative Asset Fund, a venture capital fund, according to the system's website. Cynthia Thomas, manager, did not return calls by press time.
CINCINNATI — Fifth Third Asset Management hired Fort Washington Advisors to subadvise a new high-yield bond mutual fund, confirmed Charissa Brinkman, Fifth Third spokeswoman. Fifth Third now offers a total of 35 mutual funds that have $12 billion in assets under management. Overall, Fifth Third manages $21.5 billion in assets.
DES MOINES, Iowa — The $1.5 billion Iowa Municipal Fire and Police Retirement System selected Julius Baer Investment Management, AllianceBernstein and PIMCO to manage $50 million each in tactical fixed income, pending contract negotiations, said Dennis L. Jacobs, executive director. The system's board made the change to improve fixed-income returns. Funding will come from reallocating among fixed-income managers; none will be terminated.
Separately, the system selected Principal to manage $28 million in its Enhanced Core Real Estate equity fund, pending contract negotiations, said Mr. Jacobs. Funding will come from reallocating among REIT managers; none will be terminated.
Summit Strategies is consultant.
JERSEY CITY, N.J. — Employees Retirement System of Jersey City hired PENN Capital Management to run $10 million in an active domestic small-cap to midcap core equities, according to Stephen A. McGuire, chief investment officer of the $71 million fund. The money was run internally, he said.
KANSAS CITY, Mo. — The $800 million Kansas City Employees' Retirement System hired LSV Asset Management to run $10 million in active emerging markets equities, said Rick Boersma, the plan's executive officer. Fund officials are moving the money from a similar-style portfolio managed by Capital Guardian Trust for diversification; CapGuardian will continue to manage about $20 million in the asset class. LSV specializes in deep value, whereas the Cap Guardian fund is more core with a slight growth tilt, he explained.
Ennis Knupp is assisting.
LEEDS, England — Leeds Building Society hired Bank of New York as global custodian for $4 billion in assets, confirmed Bank of New York spokesman Ivan Royle. "We appointed the Bank of New York as it demonstrated a clear understanding of the sector we operate in," Paul Riley, head of group treasury at the building society, said in a news release. Gary Brook, public relations manager at the society, wasn't available for additional comment.
LONDON — Legal & General Group hired HSBC Securities Services, a unit of HSBC Holdings, as global custodian for £21 billion ($37 billion) in fixed-income assets, confirmed Steve Leach, senior public relations manager at Legal & General. He declined to say which firm HSBC replaced.
LOS ANGELES — Los Angeles Fire & Police Pension System committed $10 million each to private equity funds Blackstone Capital Partners V and Charterhouse Capital Partners VIII, said Tom Lopez, chief investment officer of the $13 billion system. Funding comes from cash.
KUALA LUMPUR — Employees Provident Fund of Malaysia hired Bank of New York as master custodian, confirmed Bank of New York spokesman Kevin Heine. The fund has more than $60 billion in assets. Further information was not available by press time.
DARESBURY, England — Milk Pension Fund hired AXA Investment Managers to run £146 million ($261 million) in active U.K. fixed income, according to a news release. Aon Consulting assisted. No further information was available. Richard Thornton, pension fund manager and secretary, could not be reached for comment by press time. The plan has £273.7 million in assets, according to Pension Funds and their Advisers.
JEFFERSON CITY, Mo. — The $3.4 billion Missouri Local Government Employees Retirement System hired active domestic large-cap equity managers INTECH to run $200 million in growth and Aronson + Johnson + Ortiz to handle $100 million in value, said Brian Collett, chief investment officer. Funding will come from a general rebalancing; no managers will be terminated.
JEFFERSON CITY, Mo. — Missouri Public Employees' Deferred Compensation Commission, Jefferson City, hired ING to run a roughly $600 million hybrid fixed annuity and stable value portfolio, confirmed Allen Scott, employee benefits manager. The plan issued two RFPs last year, one for an annuity fund manager and another for a stable value fund manager for its 457 and two 401(a) plans, which have combined assets of $1.2 billion. The fund previously offered fixed annuity funds from Prudential Financial and Nationwide Retirement Solutions; it had not offered a stable value option. Mercer Human Resource Consulting assisted.
HARRISBURG, Pa. — Pennsylvania Public School Employees Retirement System committed up to $200 million to Blackstone Real Estate Partners V and up to $100 million to Lubert-Adler Real Estate Fund V, confirmed Evelyn Tatkovski, spokeswoman for the $53.7 billion system. Both investments are pending contract negotiations.
The system also committed up to $100 million to Catterton Partners VI, a private equity fund; $55 million to $62.5 million to Strategic Partners Value Enhancement Fund, a private equity fund. Both investments are pending final contract negotiations.
HARRISBURG, Pa. — Pennsylvania State Employees' Retirement System will make follow-on commitments to six alternative investment funds, according to Robert Gentzel, spokesman. Pending final contract negotiations, the $28 billion system committed up to $100 million to TA Associates X; up to $75 million to Madison Dearborn Capital Partners V; up to €60 million ($73.8 million) to Charterhouse Capital Partners VIII; up to $50 million to Polaris Venture Partners V; up to $35 million to Great Hill Equity Partners III; up to $30 million to the ABRY Senior Equity II; and up to $20 million to AG Capital Recovery Partners V. Funding will come from cash.
PHILADELPHIA — The $4.3 billion Philadelphia Public Employees Retirement System hired emerging hedge fund-of-funds managers Rock Creek Group to run $5 million and Attalus Capital and NewMarket Capital Partners to handle $3 million each. Christopher McDonough, interim chief investment officer, said the system has a target hedge fund allocation of 6% with about two percentage points still to invest in the asset class. CRA RogersCasey assisted.
PINELLAS PARK, Fla. — The $26.7 million Pinellas Park Police Officers' Pension Fund rehired incumbent Merrill Lynch as its investment consultant, confirmed Denise Cowdrick, the plan's pension specialist. Merrill Lynch is also the sole consultant to the city's two other pension plans, the $38.3 million General Employees' and $30.2 million Firefighters' pension plans.
RICHMOND, Va. — Richmond Jewish Foundation hired SEI Investments to handle its $30 million in assets, confirmed Dan Weintraub, executive director. The firm was recommended by the Capital Advisory Group, the foundation's investment consultant, Mr. Weintraub said. The foundation was managed by a brokerage firm, which Mr. Weintraub declined to name, that invested the assets in retail mutual funds. Capital Advisory Group will continue to advise the foundation on its investment policy and provide evaluations of SEI products and services, Mr. Weintraub said.
SAN DIEGO — San Diego County Employees Retirement System hired Mellon Global Securities Services to provide global custody and cash management, foreign exchange, securities lending and other analytical services, confirmed Brian White, spokesman for the $6.9 billion pension plan. Mellon replaced Bank of New York.
AUSTIN, Texas — Employees Retirement System of Texas hired JPMorgan Asset Management and Fisher Investments to run a total of $1.4 billion in active international equities, according to Mary Jane Wardlow, spokeswoman for the $22.4 billion system. Initially, JPMorgan will manage about two-thirds of the money, and Fisher will handle the rest. The two managers replace DuPont Capital Management, which was terminated in September by mutual agreement.
SALT LAKE CITY — The State of Utah hired Fort Washington Investment Advisors as adviser for the Utah Fund of Funds, said Stephen Baker, vice president of private equity for Fort Washington. The firm will have near full discretion in selecting managers and making other decisions for the fund, Mr. Baker said.
The Utah Fund of Funds was established by the Legislature in 2003 to invest in venture capital and private equity funds making investments in Utah businesses; it has an initial capitalization of $100 million from contingent tax credits, according to a joint press release by Fort Washington and the Utah Capital Investment Corp., which was created to oversee the fund.
Mr. Baker said Fort Washington will help select 10 to 15 managers for the fund of funds. Manager hirings will start sometime in the second quarter. Application materials and information for prospective fund managers is available at http://goed.utah.gov/fund_of_funds/index.html.
SALT LAKE CITY — Utah State Retirement Systems Savings Plans added a self-directed brokerage account from Charles Schwab to its 401(k) and 457 plans, with a combined $2.2 billion in assets. The brokerage window will be added to the plan's 11 existing core fund options, according to the plan's website. Bruce Cundick, chief investment officer, did not return calls seeking more information.
YORK, Pa. — City of York Municipal Pension Fund hired Prime, Buchholz & Associates as investment consultant to replace Smith Barney, confirmed Donald Murphy, treasurer. The $72 million pension fund had used Smith Barney as its investment consultant since 1989, but "the board just wanted to go in a different direction," Mr. Murphy said. The new consultant will review the investment policy and asset allocation for the fund.