SACRAMENTO, Calif. CalPERS picked Pacific Alternative Asset Management, 47°N Capital Management and Rock Creek Group to help the $229 billion system create three customized funds of funds comprising emerging absolute-return managers. A total of $350 million initially will be allocated to the new funds of funds. Mosaic Investment Advisors, CalPERS diversity consultant, will work with each firm. PAAMCO already is a strategic adviser to California Public Employees Retirement Systems $4.3 billion absolute-return program. Funding is expected to come from CalPERS passive global equities program.
In addition, the system hired Lovell Minnick Leading Edge Advisors for inclusion in the pre-approved listing of advisers for the systems Manager Development Program II.
CalPERS also hired Piedmont Investment Advisors to run $100 million in an enhanced U.S. large-cap index equity strategy. Piedmont is the first manager chosen for CalPERS Manager Development Program II. CalPERS and Legato Capital Management, one of the advisers on the program, will take minority stakes in Piedmont. Terms were not disclosed. Legato also will provide strategic advice to Piedmont.
Separately, CalPERS committed $600 million to Hellman & Friedman Capital Partners VI, a buyout fund; $250 million to MHR Institutional Partners, a distressed debt fund, and $40 million to Granite Global Ventures III, a late-stage venture capital fund investing in U.S. and Chinese companies.
SACRAMENTO, Calif. CalSTRS committed e375 million ($495 million) to CVC European Equity Partners Tandem Fund, according to the funds website. In other private equity moves, the $157.9 billion California State Teachers Retirement System, Sacramento, also committed: $300 million to the KKR 2006 Fund; $220 million to Energy Capital Partners I; $200 million to a fund of funds run by CalSTRS and Bank of America Capital that will invest in underserved urban and rural areas; $200 million to Hellman & Friedman Capital Partners VI; $150 million to Affinity Asia Pacific Fund III; up to £45 million ($87 million) to Alchemy Special Opportunities Fund; e30 million to AtriA Private Equity Fund III; $35 million to Bain Capital Hercules Investors; and $30 million each to Paladin Private Equity Investors I and Sofinnova Venture Partners VII.
CINCINNATI Cincinnati Retirement System invested $40 million each in private equity funds of funds run by Fort Washington Capital Partners Group and Piper Jaffray, confirmed John Walsh, investment officer at the $2.6 billion fund. The source of funding has not been determined. Marquette Associates assisted.
Separately, the retirement system agreed to hire The Clifton Group to handle a cash overlay of $30 million to $40 million that had been managed in-house.
Colorado Fire & Police
GREENWOOD VILLAGE, Colo. Fire and Police Pension Association of Colorado, Greenwood Village, hired Hamilton Lane as consultant to its $214 million private equity portfolio, said Bill Morris, chief executive officer and chief investment officer of the $3.2 billion association. Incumbent Pacific Corporate Group was a finalist, Mr. Morris said. PCGs contract expired in January.
DECATUR, Ga. DeKalb Employee Retirement System hired Boston Co. Asset Management to run $58 million in active international equities, Paul Wright, pension administrator for the $1.2 billion fund, confirmed. The allocation was added because the fund did not have exposure to international equity. Funding will come from existing managers; Mr. Wright declined to elaborate. Callan Associates assisted.
Denver Public Schools
DENVER Denver Public Schools Retirement System hired Baring Asset Management to run $100 million in active international equities and committed e15 million ($20 million) to Apax Europe Fund VII and $10 million to Institutional Venture Partners XII, confirmed investment officer Amy McGarrity. The $2.9 billion will fund the investments from rebalancing.
Electrical Workers, Local 5
PITTSBURGH Electrical Workers, IBEW, Local 5 hired MDT Advisers to run $23 million in active domestic all-cap core equities for its $174 million deferred compensation plan, said Meghan McAndrew, spokeswoman for MDT parent Federated Investors. John Chalovich, business manager and financial secretary for the plan, didnt return calls seeking comment.
SPRINGFIELD, Mass. Hampden County Board of Retirement hired SSgA to run $5 million to $10 million in an enhanced S&P 500 index portfolio, confirmed Julianne Bartley, executive director of the $200 million plan. The new allocation is designed to increase diversification. Funding will come from reducing the funds $89 million large-cap core equities portfolio, run by Freedom Capital Management. Segal Advisors assisted.
John Hancock Funds
BOSTON John Hancock Funds hired Epoch Investment Partners to subadvise the John Hancock Global Shareholder Yield Fund and Pzena Investment Management to subadvise the Classic Value Mega Cap Fund, confirmed spokeswoman Beth McGoldrick.
HONOLULU State of Hawaii hired Upromise to manage Hawaiis $39 million 529 college savings plan, said Scott Kami, administrator of the financial services division at the department of budget and finance. The plans previous manager, Delaware Investments, is leaving the college savings plan market, Mr. Kami said. Ayele Ajavon, spokeswoman with Delaware Investments, confirmed the firm is focusing on the primary business of asset management and chose not to renew the contract.
Illinois Bright Start
SPRINGFIELD, Ill. The Illinois state treasurers office selected OppenheimerFunds to administer the $2.1 billion Bright Start College Savings Plan, said Scott Burnham, a spokesman with the treasurers office. The 529 plan is now being administered by Legg Mason, whose contract expires March 27, Mr. Burnham said. A news release from the treasurers office said OppenheimerFunds will provide lower fees and better investment options to gain a better rate of return and overhaul the 529 plan that has come under criticism for its underperforming funds.
Maria Rosati, a spokeswoman with Legg Mason, said that continuing to provide investment services at costs lower than the proposed bid would not have made economic sense for Legg Mason.
LEXINGTON, Ky. Lexington-Fayette Urban County Government Policemens and Firefighters Retirement Fund hired Baring Asset Management and Arcadian Asset Management to run $39 million each in commingled international growth equity funds, Susan Combs, board secretary of the $390 million fund, confirmed via e-mail. The fund also hired a real estate firm to manage $39 million, but Ms. Combs declined to identify it because the board has not approved the contract. The money for the three hirings was previously managed by Bahl & Gaynor Investment Counsel in an active domestic core equity portfolio. Becker, Burke Associates assisted.
Los Angeles County
PASADENA, Calif. Los Angeles County Employees Retirement Association committed up to $25 million to LaSalle Medical Office Fund II, said John D. McClelland, principal investment officer, real estate, for the $37.6 billion fund. Funding came from cash. The fund has about 10% of assets in real estate.
Missouri County Employees
JEFFERSON CITY, Mo. The $230 million County Employees Retirement Fund of Missouri hired TCW Group to run $35 million in active domestic large-cap value equities, pending contract negotiations, confirmed Richard Anderson, investment and DC plan coordinator. The fund terminated incumbent Deutsche Asset Management last month because of personnel changes, Mr. Anderson said. Asset Consulting Group assisted.
WELLINGTON, New Zealand New Zealand Superannuation Fund appointed eSecLending as the third-party manager of its securities lending program. The firm has already conducted a lending auction of the NZ$12.2 billion (US$8.29 billion) funds global equity and fixed-income assets. Fund officials decided to implement a securities trading program last July to boost returns.
Operating Engineers, Local 66
PITTSBURGH Operating Engineers, Local 66, hired MDT Advisers to run $15 million in active domestic all-cap core equities for its $500 million pension fund, said Robert Jack, fund administrator. Funding came from another equity manager, Mr. Jack said, but he declined to provide details.
Pennsylvania State Employees
HARRISBURG, Pa. Pennsylvania State Employees Retirement System will invest in four alternative investment funds, confirmed Robert Gentzel, spokesman. The $30 billion system committed up to $40 million to Insight Venture Partners VI; up to $40 million to OCM Opportunities VII; up to $40 million to OCM Opportunities VIIb; and up to $60 million in a follow-on investment to the Avenue Special Situations Fund V.
The system will also invest up to $25 million in the AG Asia Realty Fund and an undetermined amount in an inflation-protected mandate with Blackstone Alternative Asset Management.
Russell Investment Group
TACOMA, Wash. Russell Investment Group selected T. Rowe Price, ClariVest Asset Management and Altrinsic Global Advisors as subadvisers for Russells new global equity mutual fund, said spokeswoman Kerstin Parkel. The new fund will have greater latitude in country and sector selection than the firms existing U.S. equity and international equity offerings.
St. Louis Firemen
ST. LOUIS Firemens Retirement System of St. Louis hired Pinnacle Associates to run $23 million in active domestic smidcap growth equities, confirmed Vicky Grass, executive director of the $430 million plan. The allocation was added for diversification, and funding comes from terminating StoneRidge Investment Partners, which ran the money in a growth portfolio, Ms. Grass said. The manager was terminated for performance. StoneRidge spokesman John Ward was not available for comment by press time. Summit Strategies assisted.
San Diego City
SAN DIEGO San Diego City Employees Retirement System hired McKinley Capital to manage $325 million in active international large-cap growth equities and GlobeFlex to run $35 million in active international small-cap growth equities. Funding comes from a $360 million active international core equity portfolio with an emerging growth tilt run by Putnam Investments, which was terminated by the $4.8 billion system because of organizational changes at the firm.
Santa Barbara County
SANTA BARBARA, Calif. Santa Barbara County Employees Retirement System committed $5 million to Tennenbaum Opportunities Fund V, said Oscar Peters, retirement administrator for the $1.75 billion system. Funding came from cash.
COLUMBIA, S.C. South Carolina Retirement System Investment Commission will invest $100 million in the Aquiline Financial Services Fund, a venture capital fund. It is the first alternatives allocation, said Reynolds Williams, chairman of the commission, which oversees $26 billion in South Carolina public retirement assets.
A referendum was ratified last month allowing the commission to invest in international equity and private equity for the first time. The commission is designing a plan to carve out an alternative investment allocation that could be between 15% and 25% of the retirement systems assets.
U.S. Army NAF
ALEXANDRIA, Va. U.S. Army NAF Employee Retirement Plan Trust hired New York Life Investment Management and T. Rowe Price to manage $136.5 million each in active domestic large-cap equities benchmarked to the S&P 500 index, confirmed Brian Gormley, chairman of the board for the $830 million pension plan.
Mr. Gormley said partial funding came from terminating State Street Global Advisors, which ran $210 million in an S&P 500 index fund and $70 million in an MSCI ACWI index fund; the board wanted to move to more active strategies. Other assets for the new hires came from rebalancing.
Callan Associates assisted.
LONDON Wellcome Trust hired JPMorgan Worldwide Securities Services to provide global custody for the £13.9 billion ($26.7 billion) charitable foundation, according to JPMorgan spokeswoman Juliana Wheeler.
The previous global custodian was State Street Bank.
JPMorgan will also provide other related services including passive currency management, Ms. Wheeler said. Sandra Robertson, co-head of portfolio management at Wellcome Trust, could not be reached for comment by press time.