HOUSTON American Bureau of Shipping hired JPMorgan Worldwide Securities Services as custodian for its $440 million in pension, not-for-profit and operating assets, a JPMorgan spokeswoman said. JPMorgan will also provide performance measurement, compliance monitoring and other services. Jeff Weiner, senior vice president and CFO of the American Bureau of Shipping, didnt return a call seeking more information.
Separately, Cognex Corp., Natick, Mass., hired JPMorgan as custodian for the firms $200 million in corporate treasury assets, and Burke Rehabilitation Hospital, Mamaroneck, N.Y., hired the firm as custodian to its $40 million in pension and not-for-profit assets. Officials at those companies didnt return calls.
LONDON Altis Partners hired Horizon Cash Management to implement a cash management strategy for a $71 million hedge fund, confirmed Stephen Hedgecock, a principal at Altis. This is the first time Altis has used a cash manager for this fund, Mr. Hedgecock said.
BROCKTON, Mass. Brockton Contributory Retirement System will hire D.E. Shaw and Independence Investments to manage $25 million each in enhanced S&P 500 index accounts, said Harold Hanna, executive director of the $397 million plan. Funding will come from Brocktons active domestic large-cap equity allocation, in line with the plans goal of reducing the domestic equity portion of its risk budget, he said. Mr. Hanna declined to identify the manager or managers Brockton will terminate.
Carroll Hospital Center
WESTMINSTER, Md. Carroll Hospital Center hired Diversified Investment Advisors as bundled provider of its $34 million 403(b) plan, confirmed Christina Arenz, director of benefits and compensation. Diversified will provide 15 core investment options, replacing Metropolitan Life. Plan officials conducted a search to see what else the market had to offer, she said.
First State Investments
LONDON First State Investments (U.K.) hired RBC Dexia Investor Services to provide global custody, fund administration and shareholder services for its new European Diversified Infrastructure Fund.
Fonds de Reserve
PARIS Fonds de Reserve pour les Retraites appointed BlackRock and Vanguard Investments Europe to run at least €500 million ($681.99 million) each in passive North American large-cap and midcap equities, a fund spokeswoman confirmed. BGI was appointed as a standby manager.
Vanguard had run a e640 million passive U.S. large-cap equity strategy, according to the €33.4 billion funds 2006 annual report. BGI was the standby manager. Both contracts were due to expire this year, the spokeswoman said. Fund officials want to broaden the passive large-cap equity portfolio to include a passive midcap component.
The remaining assets for the two managers will come from cash and rebalancing, the spokeswoman said.
ICI Specialty Chemicals
LONDON ICI Specialty Chemicals Pension Fund, London, hired JPMorgan Worldwide Securities Services as global custodian of the £400 million ($811.18 million) plan and to provide investment accounting services for the fund, confirmed an ICI spokeswoman. JPMorgan replaces Bank of New York; the spokeswoman declined to comment further.
LONDON London Pensions Fund Authority hired ING Real Estate to manage a new £150 million ($308 million) active global real estate portfolio, said Philip Jones, investment manager of the £3.6 billion fund. Funding came from cash and an internally managed U.K. real estate strategy.
The main reason for the changes was risk diversification. The rest of our portfolio is globally invested, and there is no obvious reason why real estate should be different, Mr. Jones explained in an e-mail.
Mercer Investment Consulting assisted.
Mercer Super Trust
AUCKLAND, New Zealand The NZ$1.2 billion (US$914.5 million) Mercer Super Trust selected BNP Paribas Securities Services as its first custodian. The hiring was made after an RFP process and due diligence, according to Investment & Technology.
Montana Public Employees
HELENA, Mont. Montana Public Employees Retirement Board selected Wilshire Associates as investment consultant for its $31 million 401(a) plan and its $260 million 457 plan, confirmed Roxanne Minnehan, executive director of the $3.5 billion system. Incumbent Arnerich Massena was invited to rebid but was not among the finalists, she said.
National Pension Service
SEOUL South Koreas National Pension Service hired Morgan Stanley Investment Management and Credit Suisse Asset Management to run portions of its $220 billion in assets, press officials for both firms confirmed. MSIM will manage $500 million and Credit Suisse, $450 million. No further information was available as to what asset classes and/or strategies they will be managing. Both firms will also provide support and training to NPS staff as they seek to improve their in-house money management operations.
NPS officials previously outlined a plan to boost the funds equity allocation over several years to 30% of assets from 11.6%; alternatives, to 10% from less than 1%; and overseas investments, to 20% of assets from 10%. The remaining assets are invested in both Korean and overseas fixed income, according to the NPS website.
Separately, NPS hired State Street Corp. to provide global custody, securities lending and other financial services, according to a State Street news release. Information on the funds previous custodian was not available at press time.
Nevada Deferred Comp
CARSON CITY, Nev. Nevada Deferred Compensation Fund, rehired Hartford Investment Management and ING Investment Management Americas as providers of bundled administrative services and unbundled investment management services for its $355 million 457 plan, confirmed Brian Davie, chairman. Hartford runs roughly 80% of the assets, and ING, about 20%. Under state law, the plan must solicit bids on the contracts every five years. Segal Advisors assisted.
Nevada Tuition Trust
CARSON CITY, Nev. Nevada Higher Education Tuition Trust Fund hired Bank of New York Mellon as sole investment manager of the $100 million fund, pending approval by the states board of examiners. The asset allocation will be 55% equities and 45% fixed income. BNY Mellon replaces Government Investment Foundation, which was invited to rebid but did not, said Diane Vansickle, deputy treasurer of investments for the state, which administers the fund.
New Mexico Investment
SANTA FE, N.M. New Mexico State Investment Council committed e30 million ($40.97 million) to Apax Europe VII, $25 million to Levine Leichtman Dee Value, and $15 million to Tullis-Dickerson Capital Focus IV, all private equity funds, said Charles Wollmann, public information officer for the $16 billion fund.
New Mexico Public
SANTA FE, N.M. The New Mexico Public Employees Retirement Association hired Principal Global Investors to manage $200 million in active international small-cap equities, said Robert Gish, chief investment officer of the $13 billion fund. The portfolio will eventually be increased to 4% of plan assets. Funding will come from the portfolios of current managers of the funds $3.8 billion international equity portfolio. Those managers are: Capital Guardian, which runs a $1.3 billion active core portfolio; JPMorgan, $600 million, active growth; and AllianceBernstein, $500 million in active emerging markets and $1 billion in passive EAFE. The three firms were invited to bid. Fund officials have not determined which portfolios will be reduced or terminated, he said.
Separately, the board committed $30 million to EnCap Energy Fund VII, an inflation-protected real asset fund, and $35 million to multistrategy hedge fund manager Stark Investments. Funding for both investments will come from reductions to the $3.47 billion fixed-income portfolio.
New York State Teachers
ALBANY, N.Y. New York State Teachers Retirement System committed $75 million to Avenue Special Situations Fund V and e50 million ($68.62 million) to Industri Kapital 2007 fund I, both private equity funds. Funding will come from cash from the $100 billion systems investment gains.
BISMARCK, N.D. North Dakota State Investment Board committed up to $35 million to Capital International Private Equity Fund V, an emerging markets fund, said Steve Cochrane, executive director. It is the first emerging markets private equity investment for the board, which oversees $4 billion in pension assets. Funding will come from cash.
Ohio Police & Fire
COLUMBUS, Ohio The $12.7 billion Ohio Police & Fire Pension Fund committed $10 million to Primus Capital Fund VI. Funding will come from rebalancing, said spokesman David Graham.
Omaha Police and Fire
OMAHA, Neb. Omaha Police and Fire Retirement System trustees hired four managers for three new asset classes, said Carol Ebdon, city finance director. They are: Lazard Asset Management for active emerging market equities; Dimensional Fund Advisors for international small cap; and TimberVest and RMK Timberland Group for timber.
The $517 million fund allocated 5% of total assets to each new strategy.
The changes follow an asset allocation review that reduced domestic equity and fixed-income exposure. DeMarche Associates assisted.
SANTA ANA, Calif. Orange County Employees Retirement System hired Hancock Timber Resource Group to manage $100 million and RMK Timberland Group to manage $40 million. The timber hires are part of the $7.6 billion systems real return allocation.
City of Phoenix
PHOENIX The City of Phoenix Deferred Compensation Fund picked the Allianz NFJ Dividend Value Fund to replace the Van Kampen Comstock fund, one of the $878 million 457 plans 16 investment options, according to Kathy Walczak, benefits analyst. The Van Kampen fund had been on watch for performance for several quarters, Ms. Walczak said. Van Kampen spokeswoman Erica Platt declined to comment.
Mercer Investment Consulting assisted.
Universite du Quebec
MONTREAL Universite du Quebec hired RBC Dexia Investor Services as global custodian and securities lending provider for the C$2.3 billion (US$2.2 billion) pension fund, according to an RBC Dexia spokesman. Richard Laflamme, general director of the fund, was not available for comment at press time.
Suffolk County Council
IPSWICH, England Suffolk County Council Pension Fund retooled its equity manager lineup, hiring Newton Investment Management and JPMorgan Asset Management to run £170.5 million ($350.67 million) each in active global equities, and BlackRock to manage £85.3 million in active U.K. equities, said Peter Edwards, corporate finance manager of the £1.3 billion plan. Funding came from terminating Capital International, which had managed global equities for the plan, and Societe Generale, which had run U.K. equities.
The changes followed a 2006 asset allocation review that prompted the fund to reduce U.K. equity exposure to about 40% from 50% of equities, and to increase overseas equities to about 60% from about 50%, Mr. Edwards said.
Hymans Robertson advised.
CHESTERFIELD, Mo. Thermadyne Holdings Corp. rehired Diversified Investment Advisors as bundled provider of its $63 million 401(k) plan, said Jim Welsh, director of global compensation. Mr. Welsh declined to provide further information.