STOCKHOLM AP7 hired two active currency managers to run accounts with a total nominal value of about 15 billion Swedish krona ($2.1 billion), said Svante Linder, head of fund administration. Informed Portfolio Management is running 9 billion krona and Lee Overlay Partners, 6 billion krona. Both managers are allowed to invest in major developed market currencies and will target a return of 1% above the notional amount of their portfolios. The appointments are AP7s first in active currency management.
BROCKTON, Mass. The $378 million Brockton Contributory Retirement System hired Valley Forge Capital Advisors and ICC Capital Management to run $12.5 million each in active domestic all-cap equities, pending contract negotiations. Funding came from a general rebalancing; no managers were terminated. The move is being made for diversification and is the result of an asset allocation study by consultant Evaluation Associates.
AYLESBURY, England Buckinghamshire County Council Superannuation Fund hired ABN AMRO Mellon Global Securities Services as global custodian for the £1.16 billion ($2.3 billion) fund, said Julie Edwards, treasury and pensions manager. The firm replaced the Bank of New York, Ms. Edwards said; BoNYs contract was expiring. Mercer Investment Consulting assisted.
Cincinnati Retirement System
CINCINNATI Cincinnati Retirement System will invest $20 million in a special situation private equity fund-of-funds run by Portfolio Advisors.
The board of the $2.6 billion fund also selected BlackRock, JPMorgan and Morgan Stanley as finalists in its search for two managers to run $65 million each in core real estate. Interviews will take place in May, said Executive Director John Boudinot.
In June, the fund will interview JPMorgan, Principal Global Investors and Prudential in its search for two managers to run $22.5 million each in value-added real estate. The firm is also considering placing $20 million in an international real estate fund of funds managed by Mesirow Financial.
The moves are part of a reallocation process that began in January.
LAS VEGAS, Nev. The Consulting Group, a division of Citigroup Global Markets Inc., hired Metropolitan West Asset Management to subadvise 25% of its $809 million Consulting Group Core Fixed Income Fund, according to an April 1 fund prospectus. The mutual funds other subadvisers are PIMCO, BlackRock and Western Asset Management.
DANVERS, Mass. Danvers Retirement Board hired BPG Properties to run a $3 million real estate portfolio. Funding came from a general rebalancing; no managers were terminated. Morgan Stanley assisted officials at the $83 million pension plan.
DRS Technologies Inc.
PARSIPPANY, N.J. DRS Technologies Inc. hired Diversified Investment Advisors to administer its eight pension plans, said Don Hardman, treasurer of DRS. The plans, which have $170 million in total assets, had several different providers, and plan officials wanted to bring them under one provider. Mr. Hardman declined to identify the firms that were replaced.
FALKIRK, Scotland Falkirk Council Pension Fund hired Baillie Gifford to manage £120 million ($237 million) in active fixed income, said Alastair Redpath, treasury manager for the £900 million fund. The portfolio will consist mostly of U.K. bonds but also can include global bonds and other fixed-income investments. Funding came from terminating a £60 million passive fixed-income portfolio managed by BGI and a £60 million active U.K. fixed-income strategy run by Schroder Investment Management. We wanted to consolidate all of our bonds with one manager, Mr. Redpath said. Hymans Robertson and bfinance assisted.
AMSTERDAM Stichting Pensioenfonds ING, Amsterdam, selected Bank of New York to provide global custody for its €2.2 billion ($2.9 billion) fixed-income portfolio, confirmed Bank of New York spokesman Ivan Royle. BoNY already provides global custody for the €10 billion pension funds mutual fund assets, Mr. Royle said. Ies Poissonnier, European press officer for ING Investment Management, declined to offer details.
FRANKFORT Kentucky Retirement System committed a total of $135 million to three private equity funds, confirmed Adam Tosh, chief investment officer of the $16 billion system. It committed $75 million to OCM Opportunities Fund VIIb; $30 million to IVP Fund XII; and $30 million to DAG Fund III. The funding comes from a rebalancing of assets. Strategic Investment Solutions assisted.
BATON ROUGE Teachers Retirement System of Louisiana selected Hammond Associates as its investment consultant, confirmed Lisa Honore, spokeswoman for the $14.7 billion fund. The previous consultant was Holbein Associates, but the fund decided to look for a replacement when the lead consultant left the firm. An RFP was issued in January.
BOSTON Massachusetts Pension Reserves Investment Management Board approved a total of $365 million in commitments to four private equity funds. The $46.7 billion board committed up to $125 million to Carlyle Partners V; up to $125 million in total to Oaktree Capital Management Opportunities Fund VII and Fund VIIb; up to $100 million to Gores Capital Partners II; and up to $15 million to SCP Vitalife II, PRIMs first investment in Israel.
MEMPHIS, Tenn. City of Memphis Retirement System selected Smith Graham to manage $13 million and Nationwide Retirement Solutions to run $9 million, both in active domestic fixed income, for its 457 deferred compensation plan, confirmed Sam Johnson, investment manager for the system. The firms replace Holland Capital Management, which was terminated for performance. Nationwide Retirement Solutions is the plans administrator and already manages $42 million in active domestic fixed income for the $160 million 457 plan.
Laura Janus, fixed-income portfolio manager at Holland Capital, acknowledged the firm did underperform net of fees and said, We regret losing the account.
MONTGOMERY, Ala. Montgomery County Retirement Fund selected six active equity managers to run a total of $55 million, confirmed John Mitchell, deputy county administrator. The $80 million fund hired Denver Investment Group to run $6.2 million in domestic small-cap core and midcap value; Bennett Lawrence Management, $3 million to $4 million, domestic midcap growth; and Tradewinds Global Investors, $7 million, international equities. Also hired to run a total of $37.8 million in large-cap domestic equities were value manager Snow Capital Management and growth managers Aletheia Research and Management and Calamos; exact allocations to each firm have not been determined.
The $55 million had been run in similar-style portfolios by AmSouth Bank. Mr. Mitchell said he was a little concerned by AmSouths performance but was more concerned that the bank was merging with Regions Financial, whose performance was worse. The fund did an analysis prior to the merger and decided to move the equities management to other managers, Mr. Mitchell said. Nancy Yarbrough, a spokeswoman with Regions Financial, declined to comment.
AmSouth will continue to manage about $25 million in active domestic fixed income for the fund, Mr. Mitchell said. Merrill Lynch assisted.
Ohio State University
COLUMBUS, Ohio The $2.2 billion Ohio State University endowment committed $10 million each to Sun Capital Partners V and Praedium Fund VII, confirmed Tim Michael, assistant treasurer.
OKLAHOMA CITY The Oklahoma City University $70 million endowment fund put $4 million in BGIs iShares Russell 1000 Growth index ETF, according to Brian Holland, CFO. Funding will come from reducing an active domestic large-cap growth equity portfolio run by WCM Investment Management, leaving it with $4.7 million. The reduction was performance-related, Mr. Holland said. He was not able to provide further information at press time. A call to WCM was not returned by press time.
LONDON Paternoster hired State Street to provide collateral management services in addition to the custody and securities-lending services the firm now provides, confirmed a State Street spokeswoman who asked not to be named.
There was no incumbent provider. State Streets collateral management services are designed to help manage, track and provide reports on collateralized transactions to maximize investment flexibility, according to a State Street news release.
Kirsty Fitzpatrick, spokeswoman for Paternoster, an insurance company that takes over risks associated with corporate pension plans, was not available for comment at press time.
San Bernardino County
SAN BERNARDINO, Calif. San Bernardino County Employees Retirement Association committed $20 million each to two real estate funds: Beacon Capital Strategic Partners V and PRISA II. The $5.8 billion associations board also committed $30 million each to two timber funds: GMO Long Horizons Forestry Fund LP and TimberVest Partners II. It also committed $10 million each to two distressed debt funds: Matlin Patterson Global Opportunities Partners III and Tennenbaum Capital Partners Opportunity Fund V, said Don Pierce, investment officer.
San Francisco City & County
SAN FRANCISCO San Francisco City & County Employees Retirement System committed $45 million to two private equity funds, confirmed David Kushner, deputy director of investments. The $16 billion system committed $20 million to Weathergage Venture Capital, a fund of funds that will target the information technology and life sciences sector, and added a $25 million commitment to Merit Energy Partners VI, doubling its investment in that fund, according to a staff memo to the retirement board. Merit has provided an internal rate of return of 19% since the system first invested with the firm in 1992, according to the memo. Both will be funded from cash, said Mr. Kushner.
HOUSTON Triumph Healthcare hired Diversified Investment Advisors as bundled provider of its $12 million 401(k) plan, said Wendy Grono, assistant vice president of human resources. Diversified replaced PNC Financial Services and ING U.S. Financial Services. Plan officials decided they wanted one bundled provider, Ms. Grono said, adding that PNC and ING were invited to rebid.