ARLINGTON, Va. Arlington County Employees Retirement System hired Oaktree Capital Management for a $75 million domestic convertible bond portfolio, said Greg Samay, executive director and chief investment officer of the $1.4 billion system. Funding comes from terminating incumbent Advent Capital Management. We believe Oaktree Capital has a better chance of beating the benchmarks, Mr. Samay said.
Edward Johnson, chief operating officer and principal of Advent, said the firm doesnt comment on client relationships.
Ashford Consulting assisted.
BRISTOL, England Avon Pension Fund appointed five hedge fund-of-funds managers to run a total of £200 million ($399 million), according to Tony Worth, investments officer. Man Group will manage £90 million; Gottex Fund Management, £50 million; Signet Capital Management, £40 million; and Stenham Asset Management and Lyster Watson, £10 million each.
Funding will come from terminating an active multiasset portfolio managed by Capital International, Mr. Worth said. Simon Levell, Capital Internationals spokesman based in London, declined to comment.
Baltimore City Employees
BALTIMORE City of Baltimore Employees Retirement System hired Chicago Equity Partners and Turner Investment Partners to run $45.8 million each in large-cap growth equities, and TimesSquare Capital to run $33 million in midcap equities, according to Roselyn H. Spencer, executive director of the $1.3 billion fund.
Funding for the large-cap portfolio came from terminating incumbent TCW Group and a re-evaluation of the systems equity allocation, Ms. Spencer said. Funding for the midcap portfolio came from terminating incumbent J&W Seligman. Ms. Spencer said both were terminated for performance.
Kevin Danaher, spokesman for J&W Seligman, did not return calls requesting comment by deadline; Michael Utley, a spokesman for TCW, said the firm doesnt comment on client-related matters.
Callan Associates assisted.
SACRAMENTO, Calif. CalSTRS hired Pension Consulting Alliance as alternative investment consultant for its $11 billion private equity portfolio, confirmed spokeswoman Sherry Reser. The contract of incumbent McKinsey expires June 30; McKinsey did not rebid. Details about the contract, such as fees, are still being negotiated, she said. Staff at the $162 billion California State Teachers Retirement System were asking for a three-year contract with two one-year extension options.
City of Cincinnati
CINCINNATI The City of Cincinnati Retirement System invested $65 million each in the JPMorgan Strategic Property Fund and the Morgan Stanley Prime Property Fund, said John Boudinot, executive director of the $2.6 billion fund. The hires are part of a reallocation process that began in January.
TORONTO Claymore Investments selected RBC Dexia to provide global custody, fund administration and securities lending services for nine new exchange-traded funds, confirmed Jeff Logan, vice president at Claymore. RBC Dexia already provides these services for the firms existing Canadian ETFs and closed-end funds, Mr. Logan said.
He was not able to provide the amounts under management in the funds.
Essex County Council
CHELMSFORD, England Essex County Council Pension Fund hired AllianceBernstein to run £150 million ($300 million) in unconstrained global equities, according to a news release. The £2.6 billion fund also appointed Record Currency Management and Mellon Global Investments to run active currency portfolios with notional values of £500 million each. Hymans Robertson assisted. Efforts to reach pension fund executives for further details were unsuccessful.
Fort Worth Employees
FORT WORTH, Texas The $1.9 billion Employees Retirement Fund of the City of Fort Worth hired Northern Trust as its global custodian and to manage $30 million in an S&P index fund, according to a news release from Northern Trust. Northern Trust will also provide securities lending, foreign exchange, performance and risk analysis, benefit payments and compliance services. Ruth Ryerson, executive director for the fund, was not available to provide further details.
MELBOURNE, Australia The Future Fund hired Northern Trust as global custodian, according to a posting on the US$42 billion schemes website. The fund was created last year to cover the Australian governments unfunded public service pension liabilities. Thomas Murray assisted.
LONDON HSBC Investments selected State Street to provide collateral management services for derivatives in the U.K., confirmed Jenne Mannion, an HSBC Investments spokeswoman in London. There was no incumbent provider.
Kentucky Retirement Systems
FRANKFORT, Ky. Kentucky Retirement Systems committed a total of $200 million to three alternative investment funds, confirmed Adam Tosh, chief investment officer of the $16 billion system. The systems board approved commitments of $75 million each to distressed debt fund Avenue Special Situations V and buyout fund New Mountain Partners III, and a $50 million commitment to distressed debt fund MatlinPatterson Global Opportunities Partners III. Funding will come from cash. Mr. Tosh said the investments are part of a program to increase the funds private equity allocation to between 5% and 7% of assets from the current 1%.
ST. HELENS, England Knauf Insulation outsourced the management of its £15 million ($29.94 million) defined contribution plan to Mercer Human Resource Consulting. The plan was managed by Fidelity Investments, according to a statement from Mercer.
Mercers appointment will significantly reduce the workload and day-to-day involvement of trustees, Joe Rogers, Knauf finance director and chairman of the trustees of the pension plan, said in a statement. Further details were not available.
Louisiana State Employees
BATON ROUGE, La. Louisiana State Employees Retirement System selected Nomura Asset Management to run $250 million in domestic high-yield fixed income, said Bobby Beale, chief investment officer of the $8 billion fund. Nomura replaces W.R. Huff Asset Management, which managed a $256.4 million high-yield portfolio. Information about the remaining $6.4 million was not available. New England Pension Consultants assisted.
Louisiana State Police
BATON ROUGE, La. Louisiana State Police Retirement System selected GAM USA and UBP Asset Management to run $10 million each in its first hedge fund allocation, confirmed Irwin Felps, executive director of the $440 million system. Funding will come from fixed income, but Mr. Felps declined to say which managers will see portfolios reduced. He added the change was a strategic move and not related to poor performance. Capital market projections show that there is no way we could meet our actuarial rate of return if we just did traditional investing. Mr. Felps said. UBS Prime Asset Consulting Group assisted.
The fund may invest in timber in the next few months, he added.
BATON ROUGE, La. Teachers Retirement System of Louisiana committed up to $75 million to Carlyle Partners V, a private equity fund, confirmed Phil Griffith, deputy chief investment officer of the $14.7 billion system. Funding will come from cash. Hamilton Lane Advisors, the funds private equity consultant, assisted.
New Mexico Educational
SANTA FE, N.M. New Mexico Educational Retirement Board hired active international value equity managers AllianceBernstein and Baring Asset Management to manage $325 million each in value and growth, respectively, and Mellon Capital to run a $100 million portable alpha portfolio, said Frank Foy, deputy chief investment officer of the $9.3 billion fund.
Funding comes from terminating Capital Guardian from a $750 million active international core equity portfolio. The firm rebid. The change was made for diversification.
New Mexico State Investment
SANTA FE, N.M. New Mexico State Investment Council committed $25 million to KH Growth Equity Fund, a new strategy for venture capital manager Kline Hawkes, and $30 million to Thomas Lee Equity Fund VI, a buyout fund, said Charles Wollmann, public information officer for the $15 billion council.
RALEIGH, N.C. North Carolina Retirement System hired Mellon Financial as global custodian, confirmed Sara Lang, spokeswoman for the North Carolina Department of Treasury, which oversees the states $75 billion in retirement assets. Mellon will also provide foreign exchange services and performance analytics. The previous custodian was State Street.
University of Oklahoma
NORMAN, Okla. The $600 million University of Oklahoma Foundation hired Wells Capital to run $26 million in active domestic small-cap value equities and Farallon Capital Management to run $15 million in a hedge fund of funds, confirmed Ron Burton, president and CEO.
Funding for the small-cap portfolio came from terminating Dalton Greiner Hartman, Maher, which ran a similar portfolio, for performance, Mr. Burton said. A woman who answered the phone at Dalton said the firms policy is not to comment. Ellwood Associates assisted in the search.
Farallon replaces Steel Partners, which ran $11 million in a hedge fund of funds; the remainder came from cash. Steel Partners will manage a $20 million absolute-return portfolio, a new allocation.
Foundation officials plan to hire two more absolute-return managers to run $20 million each within the next few months. Ellwood will assist.
Pennsylvania Public Schools
HARRISBURG, Pa. Pennsylvania Public School Employees Retirement System will invest up to a total of $1.375 billion in private equity and venture capital funds, according to a posting on the systems website.
The $62 billion system will commit up to $300 million to Platinum Equity Capital Partners II; up to $200 million each to Capital International Private Equity Fund V, Beacon Capital Strategic Partners V, Fortress Investment Fund V LP, and Clarity Partners II; up to $125 million to OCM Opportunities Fund VIIb; and up to $75 million each to OCM Opportunities Fund VII and Lehman Brothers Venture Partners V. In addition, the retirement system increased its investment in the Greenpark International Investors III LP to e100 million ($136 million) from f75 million.