SACRAMENTO, Calif. — The $210 billion California Public Employees' Retirement System committed $45 million to Lombard Asia III, a $153.5 million private equity fund focusing on non-controlling stakes in the Asia Pacific region (ex-Japan). CalPERS also committed $23.8 million to ITU Ventures III, a $160 million seed capital and early stage venture capital firm investing in technology businesses.
CHICAGO — Chicago Policemen's Annuity and Benefit Fund hired Taplin, Canida & Habacht to run $50 million in active domestic core fixed income and LM Capital Group to manage $25 million in core-plus fixed income, confirmed John Gallagher Jr., executive director. Core-plus is a new allocation for the $3.9 billion pension fund. Taplin replaced Holland Capital Management, which was terminated because of performance, according to a news release from the fund. Allison Grant Williams, Holland's client service and marketing director, was not available for comment at press time.
Additional funding for the new mandate will come from rebalancing the fund's $36 million foreign equity portfolio. No managers will be terminated.
Ennis Knupp assisted with the search, Mr. Gallagher said.
LONDON — Citigroup-United Kingdom hired Standard Life Investments as investment manager for four defined contribution schemes with a combined £700 million ($1.3 billion) in assets, according to a news release. Citigroup is provider of the four plans. Barry Cameron, spokesman for Standard Life, could not be reached by press time to provide details.
DETROIT — Detroit Police and Fire Retirement System hired Seneca Capital Management and PENN Capital Management to handle $50 million each in high-yield fixed income, according to the $3 billion retirement system's website. Both investments will be funded from cash. Cynthia Thomas, assistant executive secretary, was not available to provide further details.
Separately, the system will invest up to $10 million with hedge fund Oracle Partners, according to the website. Walter Stampor, executive secretary, did not return calls seeking further details.
FALKIRK, Scotland — Falkirk Council Pension Fund appointed Newton Investment Management to run £170 million ($316.1 million) in global unconstrained equities, said Alastair Redpath, pension fund manager.
Officials of the £850 million fund started appointing specialist managers late last year. All the assets had been managed in balanced mandates by Henderson Global Investors, Capital International and Schroders. Henderson was terminated as part of the restructuring; Capital and Schroders were retained, with Capital now managing £255 million in global equities and Schroders managing £425 million in U.K. equities, bonds and property.
HEERLEN, Netherlands — Stichting Federatief Pensioenfonds appointed Goldman Sachs Asset Management to manage the entire €330 million ($419.5 million) pension plan in a multiasset mandate, said Eric-Jan Reemers, adviser to the plan board.
The plan had been administered and managed by Fortis Investment Management, which plan trustees decided to terminate because of poor investment performance, he said. Fund officials also appointed Northern Trust as global custodian; Fortis was the previous custodian. Fortis Executive Director Jan Lodewijk Roebroek said he would not comment on individual clients.
CLEVELAND — First Trust Portfolios hired Valhalla Capital Partners as subadviser to the $167 million First Trust Strategic High Income Fund, according to First Trust spokeswoman Jane Doyle. Valhalla replaces Hilliard Lyons Asset Management; several managers at Hilliard bought out the firm's high-yield portfolio and formed asset management company Valhalla, according to Ken Mathis, managing partner at Valhalla.
LONDON — Harrods Ltd. Group Pension Plan hired Insight Investment to manage £46.5 million ($85.6 million) in active domestic fixed income, confirmed Andrew Welch, head of institutional client services at Insight. Mr. Welch declined to identify the previous manager or provide further details. Michael Mann, Harrods spokesman, was unavailable for comment at press time. Harrods Group Pension Plan has £178 million in assets, according to the 2005 Pension Funds and Their Advisers.
HONOLULU — Hawaii Employees Retirement System hired CS McKee to run $250 million in active domestic large-cap value equities, said Kimo Blaisdell, chief investment officer of the $9.9 billion fund. It is a new allocation resulting from the "continuation of changes" introduced into the system's $1.1 billion overall value portfolio, over a period of time, Mr. Blaisdell said. Funding came from rebalancing.
CHAMPAIGN, Ill. — The Illinois State Universities Retirement System plans to add a series of seven TIAA-CREF lifecycle funds as investment options for its $396 million participant-directed 401(a) plan, said Daniel L. Allen, chief investment officer.
Iowa Public Employees
DES MOINES, Iowa — Iowa Public Employees' Retirement System hired Gabriel Roeder Smith to conduct an actuarial audit. The $19.3 billion system is evaluating the actuarial work provided by its current actuarial consultant, Milliman, including valuation of accrued liability and actuarial assumptions. Gabriel Roeder Smith is expected to present its report to the board in September, said Melinda Prince, spokeswoman, in a statement.
LEICESTER, England — Leicestershire County Council Pension Fund hired Goldman Sachs Asset Management to run a £270 million ($496 million) active global equity portfolio as part of a restructuring that also includes the fund's first active currency strategy, according to Colin Pratt, investments manager.
Following a strategic review conducted by investment consultant Hymans Robertson, the board of the £2 billion pension fund decided to discontinue a £402 million passive multiasset portfolio that has been managed by Barclays Global Investors since 1992. The decision was not related to performance, Mr. Pratt said in a prepared statement.
The money was used to fund the GSAM portfolio, in addition to bolstering existing portfolios — Standard Life Investment received an additional £70 million for its U.K. active equity portfolio; Morley Fund Management received another £35 million in an active bonds/property portfolio; and UBS Global Asset Management is running an additional £27 million in an active multiasset portfolio.
The fund's management board also hired Millennium Global Investments and Mellon Capital Management to each manage a £340 million active currency portfolio. Millennium will also run a £680 million passive currency portfolio that seeks to hedge 70% of its currency exposure related to overseas equity.
LOS ANGELES — Los Angeles Fire & Police Pension System hired REIT managers Adelante Capital Management, Principal Global Investors and Morgan Stanley Investment Management to run $70 million each, said Tom Lopez, chief investment officer of the $13.8 billion system. These are the system's first REIT-only managers. Funding will come from the system's $4.7 billion large-cap stock portfolios. No further information was available.
The system also committed $5 million to Rustic Canyon/Fontis Partners Fund I, said Mr. Lopez. The fund is a late-stage private equity fund investing mainly in companies serving ethnic communities in the Western United States.
HELENA, Mont. — Montana Board of Investments hired Western Asset Management, Goldman Sachs Asset Management, Enhanced Investment Technologies and T. Rowe Price to manage $125 million each as part of a new enhanced domestic equity index allocation, pending contract negotiations, said Carroll South, executive director. Funding will come from reducing the $7 billion board's internally managed $1.6 billion domestic equity allocation. The new allocation was made for diversification. R.V. Kuhns assisted.
ALBANY, N.Y. — New York State Teachers' Retirement System committed $126 million to Permira IV; $100 million each to TPG Partners V and Parish Capital Fund II; $75 million to Ares Corporate Opportunity Fund II; $38 million to Parish Capital Europe Fund I; and $35 million to ABRY Senior Equity II, all private equity funds. The $88 billion system also committed $50 million to Blackstone Real Estate Partners V.
HARRISBURG, Pa. — Pennsylvania Public School Employees' Retirement System will invest $1.1 billion in real estate and private equity funds, according to the $54 billion retirement system's website. It committed up to €300 million ($378.18 million) in the Permira IV private equity fund; up to $200 million in TPG Partners V; up to $112.5 million to Gleacher Mezzanine Fund II; up to $100 million each to ARCap Real Estate Special Situation Mortgage Fund and Quaker BioVentures II; and up to $75 million to LEM Real Estate Mezzanine Fund II. The system also will invest up to $150 million in Apollo Real Estate Finance Corp.
The fund had roughly 9.4% of its assets in private equity and 4.8% in real estate as of Sept. 30, according to data supplied to Pensions & Investments.
SAN FRANCISCO — San Francisco City & County Employees' Retirement System will invest up to $25 million in Fox Paine Capital Partners III and up to $20 million in Windjammer Senior Equity Fund III. The board of the $14.6 billion fund also approved a recommendation to renew the system's contract with real estate consultant The Townsend Group for five years, Mr. Kushner said. The current contract expires in June.
GLASGOW — Strathclyde Pension Fund hired Millennium Global Investments, Mellon Capital Management and Record Currency Management to each manage an active £150 million ($278 million) currency portfolio seeking returns of 100 to 150 basis points net of fees, according to a news release. Hymans Robertson advised. The fund's asset allocation is 75% equities, including active and passive U.K., global and emerging markets; 15% global bonds; and 10% real estate. David Crum, CIO of the £8.5 billion fund, could not be reached by press time for comment.