PHOENIX — Arizona State Retirement System hired Jacobs Levy Equity Management to manage $200 million in active domestic long-short equities, confirmed Gary Dokes, CIO. The $25 billion plan funded the move by reducing a $2 billion S&P 500 index fund, managed by Barclays Global Investors.
SACRAMENTO, Calif. — CalPERS committed $400 million to Breeden Partners, a new corporate governance fund started by former SEC Chairman Richard C. Breeden, according to Brad Pacheco, spokesman for the $200.7 billion pension fund. The California Public Employees' Retirement System made its commitment during its closed session on March 13. The investment was disclosed in a recent SEC filing by Breeden Partners. Funding is coming from cash.
DELRAY BEACH, Fla. — Delray Beach Police and Firefighters' Retirement Fund hired Pioneer Investment Management to manage $10 million in active domestic midcap equities, said Charles Jeroloman, chairman of the $110 million fund's board. Pioneer replaces Private Capital Management, which was terminated for performance, he said. Chad Atkins, Private Capital general counsel, declined to comment.
TERRE HAUTE, Ind. — International Brotherhood of Electrical Workers, Local 725, Supplemental Pension Plan hired Putnam Investments as bundled provider of its $25 million defined contribution plan, said Nancy Fisher, Putnam spokeswoman. Todd Thacker, the plan's business manager, declined to name the previous provider.
SPRINGFIELD, Ill. — Illinois Teachers' Retirement System approved a $50 million investment in the RLJ Lodging Fund II, which specializes in hotel investments. Funding will come from cash and a reduction in the $36.8 billion system's passive and enhanced index accounts.
INDIANAPOLIS — Indiana Public Employees Retirement Fund committed $125 million to private equity fund Lindsay Goldberg & Bessemer II, which invests in "well-managed closely held or family-owned businesses," according to a statement from the $14.5 billion pension fund. Indiana PERF has a 4% allocation to private equity, including venture capital and distressed debt.
LONDON — London Borough of Bromley Pension Fund hired Credit Agricole Asset Management to run £40 million ($73 million) in an absolute return strategy, Martin Reeves, group accountant, said in a telephone interview. The £320 million pension plan funded the hiring by reducing two multiasset portfolios managed by Baillie Gifford and Fidelity Investments to £140 million each.
"We wanted to add a bit of security at a time when equities aren't performing as well," Mr. Reeves said. Consultant bfinance assisted.
LONDON — The Superannuation Arrangements of the University of London hired Newton Investment Management to manage £70 million ($129 million) in European equities, according to a news release from Newton. Penny Green, CEO of SAUL Trustee Co., which oversees the £975 million pension scheme, was not available for details. Peter Metcalfe, secretary to the trustees, declined to comment.
LOS ANGELES — Los Angeles City Employees' Retirement System made commitments of up to $20 million to Lindsay, Goldberg & Bessemer II, up to $15 million to GTCR IX and up to €11 million ($14 million) to Permira IV. All three are private equity funds; funding came from cash.
PASADENA, Calif. — Los Angeles County Employees Retirement Association committed $250 million to Morgan Stanley Alternative Investment Partners for its first private equity co-investment fund, said Christopher J. Wagner, the $34 billion system's senior investment officer, private equity.
Morgan Stanley and members of Morgan Stanley Alternative Investment Partners' senior management team will invest alongside LACERA on deals, he said.
LOS ANGELES — Los Angeles Fire & Police Pension System committed up to $10 million each to private equity funds First Reserve Fund XI and GTCR Fund IX, and $5 million to Doll Capital Management V and, said Tom Lopez, system CIO. Funding came from cash.
The board of the $13.2 billion system also selected Segal Co. as the fund's new actuary, replacing Gabriel Roeder Smith, whose contract expired June 30.
LOS ANGELES — Los Angeles Water & Power Employees' Retirement Fund hired NorthPointe Capital and Paradigm Capital to manage $50 million each in active domestic small-cap growth equities, said Sangeeta Bhatia, retirement plan manager for the $6 billion fund. The portfolio's previous manager, BNY Asset, was terminated in April because of personnel changes, she said. Pension Consulting Alliance assisted.
ST. LOUIS — Worker Benefit Plans of the Lutheran Church-Missouri Synod hired AllianceBernstein Institutional Investment Management to run $200 million in active global all-cap equity, according to Thomas Neely, the $3 billion plans' CFO and CIO. Partial funding will come from closing a $75 million active domestic large-cap growth equity portfolio run by AllianceBernstein, with the remaining assets coming from rebalancing other global equity portfolios run by Wellington Management and Capital Research & Management, which manage $230 million each. No managers will be terminated, Mr. Neely said.
The change was made to broaden the portfolio for greater flexibility, Mr. Neely said. Ennis Knupp assisted.
MACON, Ga. — The City of Macon General Employees Pension Fund rehired CapTrust Financial Advisors, formerly Palmer & Cay, as consultant to the $63 million plan, pending contract negotiation, confirmed Dorothy Tuggle, assistant clerk of city council.
The plan issued an RFP early this year following several changes at the firm, including personnel and name changes, Ms. Tuggle said.
ALBANY, N.Y. — The New York State Teachers' Retirement System committed a total of $380 million to new private equity and real estate investments, according to the minutes of its board meeting Tuesday. The $84 billion system committed $100 million each to private equity funds GTCR Fund IX and HarbourVest Partners VIII, $75 million to J.C. Flowers II and $55 million to the Rockpoint Finance Fund I; as well as $50 million to the ING Real Estate China Opportunity Fund.
BISMARCK, N.D. — The North Dakota State Investment Board selected Prudential Financial to run $50 million in global core-plus fixed income for the system's $1.5 billion Workforce Safety & Insurance Fund, said Executive Director Steve Cochrane. Prudential Financial already runs a $75 million private placement fixed-income portfolio for the board's $3.5 billion pension trust.
The move was made for diversification, Mr. Cochrane said. Funding will come from reducing a $150 million Lehman Government/Credit Bond index fund managed by the Bank of North Dakota.
The state investment board oversees $5 billion in total assets.
COLUMBUS, Ohio — Ohio Police & Fire Pension Fund committed $100 million each to the JPMorgan Strategic Property Fund and the Prudential PRISA real estate fund, said Amy Hite, a spokeswoman for the $10.5 billion fund. Funding will come from cash. The plan has a 5% allocation to real estate, with about 3% of total assets invested, she said.
OKLAHOMA CITY — The Oklahoma Firefighters Pension and Retirement System hired hedge fund-of-funds managers Grosvenor Capital Management to run $75 million and Cadogan Management to handle $50 million, said Herb Bradshaw, deputy director of the $1.5 billion fund. Partial funding is coming from a $58 million long-short equity portfolio managed by CapitalWorks Investment Partners, which the board terminated July 21 for performance, Mr. Bradshaw said. Mark Correnti, a principal at CapitalWorks, was not available for comment at press time.
Pequot Capital's $65 million long-short equity portfolio also is being reduced to $31 million. Reductions also are being made to a $97 million equal-weighted core index fund and a $94 million investment in the Flagship Fund, an S&P 500 index fund; both are managed by State Street Global Advisors, Mr. Bradshaw said. The size of the SSgA reductions has not been determined.
The plan already has $83 million in a hedge fund of funds run by Private Advisors. The new hirings were done for further diversification Mr. Bradshaw said. Asset Consulting Group assisted.
HARRISBURG, Pa. — Pennsylvania State Employees' Retirement System will make up to $285 million in total follow-on commitments to five private equity funds. The $30 billion retirement system will invest up to $100 million in HarbourVest Partners VIII; up to $60 million in First Reserve Fund XI; up to $50 million each to Lime Rock Partners IV and Berkshire Fund VII; and up to $25 million to Brait IV, managed by Brait Capital Partners.
The system will also make two follow-on real estate fund investments: $50 million to the Westbrook Real Estate Fund VII and $15 million to the Fillmore East Fund.
PennSERS had roughly 9% of its total assets invested in private equity and 7% in real estate at the end of 2005.
CIRENCESTER, England — St James's Place Group hired Newton Investment Management and AXA Framlington as subadvisers after restructuring its range of funds, said Nitya Bolam, St. James's Place spokeswoman. Newton will run £450 million ($831 million) in a global balanced portfolio and AXA Framlington will manage a balanced managed fund, said Ms. Bolam. She could not provide further details. The assets had been managed by Schroders in its Select Managed Fund. Schroders continues to manage money for the high-net-worth fund manager as a subadviser. Stamford Associates advised.
ST. LOUIS — The Firemen's Retirement System of St. Louis hired Aberdeen Asset Management to manage a domestic core fixed-income portfolio, according to Vicky Grass, executive director of the $420 million plan. She did not have details on the amount of the portfolio or the source of funding. The allocation was added for diversification; no managers were terminated.
Consultant Summit Strategies assisted.
SAN DIEGO — San Diego City Schools hired AIG VALIC as bundled provider for its new 457 plan, said Linda Skolnick, spokeswoman for AIG VALIC. Ruth Peshkoff, the schools' chief human resources officer, did not return calls seeking additional information.
STOCKTON, Calif. — San Joaquin County Employees Retirement Association hired Alpine Woods Capital Investors to run $20 million in a non-U.S. REIT, the $1.9 billion pension fund's first move into international real estate securities, said Robert Palmer, retirement administrator. Plan trustees also increased their investment with Mesa West Real Estate Income Fund I to $30 million from $20 million.
The plan will take $23.5 million from a $205 million active international equities portfolio run by Capital Guardian Trust to fund the real estate investments. The rest will come from cash, Mr. Palmer said.
ORG Real Estate was the consultant.
CINCINNATI, Ohio — Touchstone Investments hired Westfield Capital Management to subadvise its $114 million Touchstone Growth Opportunities Fund, according to a news release. Westfield replaces Mastrapasqua Asset Management. William Muggia, president and CIO of Westfield, is the lead portfolio manager on the Touchstone fund. Sharon Karp, spokeswoman for Touchstone, did not return a call by press time seeking comment on the changes.
MALVERN, Pa. — Vanguard Group hired Lazard Asset Management as a subadviser to the $5.9 billion Vanguard International Value Fund, said spokesman Michael J. Smith. The Lazard team, led by Senior Managing Director Gabrielle Boyle and Managing Director Michael Powers, will join existing subadvisers Hansberger Global Investors and Sanford C. Bernstein. Mr. Smith said Lazard runs about $250 million in fund assets that had been in cash, and will get a portion of any new clash flows.