AMP Capital
SYDNEY, Australia — AMP Capital Investors selected Putnam Investments to subadvise a $450 million active global fixed-income portfolio, said Putnam spokeswoman Laura McNamara in Boston.
In a news release, Sean Henaghan, AMP’s director, international and future directions funds, cited the sector rotation strengths of Putnam’s investment process as a factor in hiring the firm.
Further details on the source of the funding weren’t immediately available.
ARINC
ANNAPOLIS, Md. — ARINC Inc. hired BlackRock and JPMorgan Asset Management to run $87.5 million each in long-duration fixed income, said Dave Erculiani, director of pension management for the $372.9 million defined benefit plan. Officials at the plan wanted to move to a liability-driven investment strategy, Mr. Erculiani said.
Funding comes from reducing the plan’s equity allocation, Mr. Erculiani said; he would not elaborate.
CalSTRS
SACRAMENTO, Calif. — CalSTRS hired TIAA-CREF as global custodian for an existing $170 million 403(b) plan and three supplemental savings plan that will be offered in the coming year, confirmed Richard Hiller, managing director of institutional client services at TIAA-CREF.
The $171.1 billion California State Teachers’ Retirement System plans to add a 457(b) plan in October, and a Roth 403(b) and Roth IRA, although an exact launch date has not been set. CalSTRS issued an RFP in February.
Sherry Reser, spokeswoman at the fund, could not be reached for details before press time.
Colorado Public Employees
DENVER — Colorado Public Employees Retirement Association hired Institutional Shareholder Services and KLD Research & Analytics to advise on socially responsible investing, according to recently released minutes of the $40 billion fund’s April 20 meeting.
The fund issued an invitation to negotiate in March, said PERA spokeswoman Katie Kaufmanis, to comply with a new law requiring the plan to divest roughly $137 million in investments tied to Sudan.
Fonds de Reserve
PARIS — Fonds de Reserve pour les Retraites hired UBS Global Asset Management and rehired Vanguard Investments Europe and Barclays Global Investors to run passive eurozone large-cap equity portfolios of at least e500 million ($673 million) each. UBS replaces Credit Agricole Asset Management, according to a news release from the e32 billion fund. Fund officials declined to comment on why CAAM was replaced.
CAAM continues to run an active eurozone small-cap and midcap equity portfolio, and also has a standby mandate to run an active eurozone bonds strategy.
Gartmore Investment Mgmt.
LONDON — Gartmore Investment Management tapped Marsico Capital Management to replace Nationwide Investments as subadviser of the $394 million Gartmore U.S. Opportunities Fund, $82 million Gartmore SICAV US Opportunities Fund and $72 million Gartmore U.S. Growth Fund, according to a Gartmore news release.
The switch reflected Gartmore’s need “to find the best quality manager to oversee our large- and midcap U.S. funds,” with Marsico being an “obvious choice,” Paul Feeney, Gartmore’s head of distribution, said in the release.
Nationwide Financial sold its U.K.-based Gartmore operations to a management team working with private equity firm Hellman & Friedman Advisors late last year and subsequently renamed the U.S. half of its asset management operations Nationwide Investments.
Harbor Funds
TOLEDO, Ohio — Harbor Funds hired Cohen & Steers as the subadviser to the $741 million Harbor Large Cap Value Fund. Cohen & Steers replaces Armstrong Associates, according to a news release on Harbor Funds’ website. Richard Helm, senior vice president at Cohen & Steers, will be the lead portfolio manager.
John Hoff, spokesman for Harbor, could not be reached for further details.
Idaho Public Employees
BOISE, Idaho — Idaho Public Employee Retirement System hired Fortis Investments to manage $250 million in active global equities, said CIO Robert Maynard. Funding came from reducing a Russell 3000 index fund and a MSCI EAFE index fund, both run by Mellon Global Investments, by $125 million each, leaving $1.8 billion and $550 million respectively in those funds, he said.
Officials at the $11 billion plan were pleased with how Saker Nusseibeh, CIO for global equities at Fortis, ran money for the fund when he worked at TCW Group, Mr. Maynard said. Mr. Nusseibeh joined Fortis in October 2005.
Illinois Municipal
OAK BROOK, Ill. — Illinois Municipal Retirement Fund committed $100 million each to Morgan Stanley Prime Property Fund and BlackRock Granite Property Fund, both open-end core real estate funds, said Walter J. Koziol, director-investments. The $24 billion fund also committed $25 million to a Muller & Monroe private equity fund of funds that invests in funds run by emerging managers, he said.
Funding for the commitments will come from cash, Mr. Koziol said. Ennis Knupp assisted with the searches.
Illinois State Universities
CHAMPAIGN, Ill. — Illinois State Universities Retirement System selected Credit Suisse to provide securities-lending services and incumbent Northern Trust as master custodian for the $16.1 billion fund, pending contract negotiations, said Daniel L. Allen, chief investment officer.
The board chose Credit Suisse because the system will receive a greater share of the securities-lending revenue than under its previous arrangement with Northern Trust, which had provided securities lending as part of its custodial services to the system. Mr. Allen declined to provide details.
Ennis Knupp assisted.
University of Kentucky
LEXINGTON, Ky. — The University of Kentucky hired Northern Trust as master custodian, replacing incumbent Allegiance Financial Group, confirmed Jay Blanton, spokesman for the $990 million endowment. Ennis Knupp assisted.
Mr. Blanton was not able to provide further details.
Knoxville City Employees
KNOXVILLE, Tenn. — Knoxville City Employees’ Pension Fund hired Pinnacle Associates to manage $35 million in active domestic small-cap growth equities, pending contract negotiations, confirmed Michael Cherry, executive director of the $540 million fund. The money had been parked in a Russell 2000 Growth index fund managed by State Street Global Advisors. Summit Strategies assisted in the invitation-only search.
Los Angeles County Employees
PASADENA, Calif. — Los Angeles County Employees Retirement Association hired Batterymarch Financial Management and Genesis Investment Management to run $250 million each in active emerging markets equities, said Juan Almaguer, principal investment officer, public markets, for the $40 billion system. Both portfolios will be benchmarked to the MSCI Emerging Markets index.
Funding will come from reducing a $600 million emerging markets equity index fund managed by BGI. An RFP was issued Feb. 16. The board wanted to switch some emerging markets equity assets to active management, Mr. Almaguer said.
Louisiana State Employees
BATON ROUGE, La. — Louisiana State Employees Retirement System hired JPMorgan Chase to replace Wells Capital Management as manager of a $300 million high-yield fixed-income portfolio, said Bobby Beale, chairman of the $9 billion fund.
Mr. Beale said personnel changes at Wells prompted fund executives to replace the firm. An RFP was issued in December with New England Pension Consultants assisting.
Missouri Local Government
JEFFERSON CITY, Mo. — Missouri Local Government Employees Retirement System allocated $135 million each to BGI’s fixed-income global alpha absolute return strategy and a pure alpha absolute return strategy run by Bridgewater, confirmed CIO Brian Collett. The $4 billion system funded the new allocations by closing BGI’s alpha credit and alpha mortgage fixed-income portfolios, with a combined $270 million.
Separately, the fund committed $50 million to Global Infrastructure Partners’ private equity infrastructure partnership. Funding comes from a general redistribution.
All changes were made for diversification, and are pending contract negotiations. No RFPs were issued and no consultant assisted.
North Dakota
BISMARCK, N.D. — North Dakota State Investment Board committed $45 million to TCW Energy Fund XIV, a limited partnership mezzanine debt fund, according to Steve Cochrane, executive director. The board, which oversees $4 billion in pension assets, is also considering committing up to $35 million to Capital International Private Equity fund V; the investment will likely be discussed at the July 20 investment committee meeting.
Northamptonshire County
NORTHAMPTON, England — Northamptonshire County Council Local Government Pension Scheme hired Fauchier Partners and Partners Group to each run £28 million ($56 million) in hedge funds of funds, said Paul Tysoe, pension fund manager. Mercer Investment Consulting advised.
The £1.1 billion plan funded the move by reducing its bond exposure; Mr. Tysoe would not say which managers’ portfolios were reduced.
According to the fund’s investment principles statement in July 2006, Aberdeen Asset Management ran active fixed income and UBS Global Asset Management managed a multiasset fixed-income portfolio. At the time, the fund’s total exposure to bonds and cash was 23% of assets.
Oregon Investment Council
TIGARD, Ore. — Oregon Investment Council committed $125 million to Fortress Fund V; $100 million to OCM Opportunity Fund VIIb and $50 million to OCM Op Fund VII; $100 million to Gores Capital Partners II; and $4 million to HRJ Global Real Estate III.
Separately, the council committed $50 million to the Oregon Investment Fund, a $100 million private equity fund of funds managed by Credit Suisse, said Ley Garnett, spokesman for the $60 billion Oregon Public Employees Retirement Fund, Salem.
In February, the council declined to add $50 million to the fund which makes private equity investments in mostly in-state companies over concerns by some council members on the length of the fund’s track record.
Overland Park Police
OVERLAND PARK, Kan. — Overland Park Police Department Retirement Plan hired Sawgrass Asset Management to run $5 million in active domestic large-cap growth equities, according to recently released minutes of the plan’s May 16 board meeting. The $43 million fund issued an RFP in March with consultant Dahab Associates assisting. The other finalists were Bahl and Gaynor Investment Counsel and Cadence Capital Management.
Sawgrass replaces Holt-Smith & Yates, according to the minutes.
Mike Russo, manager of retirement plans, was not available to provide further details.
Rio Tinto America
MAGNA, Utah — Rio Tinto America Inc. replaced four mutual-fund investment options in its three 401(k) plans, according to Jack Welch, manager of cash and investments.
The plans, with total assets of $612 million, are for Rio Tinto America and subsidiaries U.S. Borax, Valencia, Calif., and Kennecott Holdings Corp., also in Magna.
The Harbor Capital Appreciation Fund replaces the Putnam Voyager Large-cap Growth Fund; Wells Fargo Midcap Value Fund replaces the Dreyfus Midcap Value Fund; Dodge & Cox International Fund replaces the Morgan Stanley International Equity Fund; and the SSgA S&P 500 replaces the Putnam S&P 500 Index Fund. Assets from the previous fund options have been mapped to the new options, he said.
Mr. Welch declined to comment on a reason for the terminations. Consultant Bidart & Ross assisted with the shortlist search.
Russell Canada
TORONTO — Russell Investments Canada hired Cornerstone Capital Management as a subadviser for the Russell U.S. Equity Fund and Sovereign U.S. Equity Pool, according to a Russell news release. Cornerstone replaced Ark Asset Management on both portfolios, according to the release.
No further information was available.
Russell spokesman Dennis Trittin was not available for comment at press time.
San Diego County Employees
SAN DIEGO — The $8.4 billion San Diego County Employees Retirement Association committed $10 million to Capital International Private Equity Fund V, a private equity fund.
San Joaquin County
STOCKTON, Calif. — San Joaquin County Employees’ Retirement Association, Stockton, Calif., hired INTECH to run $200 million in active large-cap growth equities, confirmed Annette St. Urbain, assistant retirement administrator.
The $2 billion fund will terminate TCW Group, which runs a similar mandate, because TCW’s concentrated strategy introduced too much risk into the portfolio, Ms. St. Urbain said.
Trustees also approved investments in three real estate funds — $35 million to AMB Institutional Alliance REIT III, $20 million to Legacy Partners Realty Fund III and $15 million to Walton Street Fund VI. Partial funding comes from redemptions from two RREEF funds due to personnel changes at the firm.
Shetland Islands Council
LERWICK, England — The Shetland Islands Council hired Schroders to run £20 million ($39.8 million), according to a Schroders news release.
Shetland Islands Treasury Manager Colin Bain was not available for comment at press time.
Skandia Investment
LONDON — Skandia Investment Management hired active European equities managers Argonaut Capital Partners to handle £89 million ($178 million) and AllianceBernstein to run £65 million, about half for Skandia’s £4.8 billion ($9.59 billion) multimanager program, and the rest in life insurance, pension and offshore funds, Skandia spokesman Alex Jones confirmed. Funding comes from portfolios run by BlackRock, Cazenove and AXA Rosenberg, Mr. Jones said.
No further information was available.
Waltham Contributory
WALTHAM, Mass. — Waltham Contributory Retirement System hired Loomis Sayles to run $7.5 million in global fixed income and UBS Realty to run roughly $4 million in private real estate, confirmed Joseph Juppe, board administrator of the $156 million fund.
Loomis Sayles replaces Wellington Management, which was terminated for performance; Wellington spokesman John Steinberg declined to comment.
Funding for the real estate portion will likely come from cash. Segal Advisors assisted.
