ACT Treasury
CANBERRA, Australia — ACT Treasury hired Russell Investment Group as the new asset consultant for its A$2.1 billion (US$1.8 billion) Superannuation Provision Account and A$900 million Territory Banking Account, replacing incumbent Frontier Investment Consulting, whose contract had expired.
The treasury of the Australian Capital Territory is required to review and seek bids for consultants when each contract expires.
Seven consulting firms responded to the latest RFP, according to Investment & Technology newspaper.
Alabama Trust Fund
MONTGOMERY, Ala. — Alabama Trust Fund hired Aberdeen Asset Management to run $100 million in core-plus fixed income.
The $3 billion fund wants to invest more in core-plus fixed income “so we have more flexibility to move in and out of different markets,” said Anne Elizabeth McGowin, the state’s assistant finance director. Funding comes from reductions in the trust fund’s other portfolios; Ms. McGowin said no managers were terminated.
The fund also switched its fixed-income portfolios with Western Asset Management and Pyramis Global Advisors to core plus, Ms. McGowin said. The $423 million run by Western and the $341 million managed by Pyramis had been in core fixed income.
The state of Alabama oversees the fund. The fund’s principal comes from oil and gas capital payments paid to the state.
CalPERS
SACRAMENTO, Calif. — CalPERS committed $546 million to European Strategic Partners-Golden Bear Europe Fund, a private equity fund of funds run by Standard Life Investments, according to a news release from the $247.7 billion California Public Employees’ Retirement System. CalPERS has $17.8 billion in private equity. Clark McKinley, spokesman, could not be reached for comment.
CalSTRS
SACRAMENTO, Calif. — CalSTRS hired managers to run a combined $225 million in four sustainable investment portfolios. New Amsterdam Partners will run $75 million in active domestic large-cap equities; Acuity Investment Management, $50 million in active Canadian equities; Generation Investment Management, $50 million in active global equities; and Light Green Advisors and RhumbLine Advisors will handle a total of $50 million in active large-cap U.S. equity portfolio. The firms will consider environmental factors in their stock-selection processes, according to a news release from the $169 billion California State Teachers’ Retirement System, Sacramento. Funding will come from cash, said spokeswoman Sherry Reser.
“Through this program and with these partners, we are using our members’ dollars to help address such environmental issues as climate change while generating sound returns,” CalSTRS Chief Executive Officer Jack Ehnes said in a news release.
The pension fund already invests $285 million in clean technology through its $11.7 billion private equity program.
China Southern
BEIJING — China Securities Regulatory Commission approved the hiring of BNY Mellon Asset Management to subadvise a global equity fund of China Southern Fund Management, China’s third-largest asset management company, said Jon Little, BNY Mellon vice chairman.
BNY Mellon will be the first non-Chinese money manager to offer subadvisory services to a domestic Chinese asset management company, he said. The fund will have about 60% of its assets in developed market equities and 40% in emerging markets, employing ETFs, active equity funds and derivatives, including futures and forward contracts. BNY Mellon’s investment subsidiaries will manage the money.
DSG
HEMEL HEMPSTEAD, England — DSG Pension Trustees Ltd. hired JPMorgan Worldwide Securities Services to provide global custody and currency overlay services for the company’s pension plan, JPMorgan spokeswoman Juliana Wheeler said. The former custodian was Bank of New York Mellon, she said. DSG reported £4.4 billion ($8.9 billion) in total assets as of April 5, according to its website. Officials at DSG could not be reached by press time.
Fonds de Reserve pour les Retraites
PARIS — Fonds de Reserve pour les Retraites rehired State Street Global Advisors to manage a tactical asset allocation and foreign currency hedging strategy, according to a spokeswoman for the €33.4 billion ($45.3 billion) fund. Information on the size of mandate could not be learned.
Indiana Public Employees
INDIANAPOLIS — Indiana Public Employees’ Retirement Fund hired its first hedge fund-of-funds managers. Blackstone Alternative Asset Management and Pacific Alternative Asset Management will handle $150 million each, and Dorchester Capital Advisors, $50 million. The hirings are subject to due diligence and legal review, said Jeffrey D. Hutson, director of communications for the $17.14 billion pension fund. Funding will come from a reallocation of the fund’s portfolios. Strategic Investment Solutions assisted.
The system also invested a total of $109 million in four private equity funds, Mr. Hutson said. The fund committed $34 million to Lion Capital II, which invests primarily in consumer companies in Western Europe; $30 million each to Avenue Special Situation V, which invests in financially troubled companies, and Vista Equity Partners III, which invests in software companies; and $15 million to ARCH Venture Fund VII, which invests in early seed-stage technology companies stemming from university, national and corporate research laboratories in the United States. Funding will come from a reallocation of the fund’s portfolios as commitments are drawn down, he said.
Strategic Investment Solutions assisted.
Jacksonville Police & Fire
JACKSONVILLE, Fla. — City of Jacksonville Police & Fire Pension Fund picked Grau & Associates as its external auditor after incumbent Deloitte & Touche did not bid for the four-year contract, said Dick Cohee, deputy executive director of the $1.1 billion fund.
“We were very happy with (Deloitte),” Mr. Cohee said. “But the big (accounting firms) aren’t as interested in governmental work as they used to be. It appears the smaller firms are filling in the void.”
Deloitte spokeswoman Deborah Harrington said the company is not moving away from governmental work, noting the firm has a “large public-sector practice.” She would not comment on the Jacksonville account.
Los Angeles Fire and Police
LOS ANGELES — Los Angeles Fire and Police Pension System renewed the contracts of active domestic large-cap equity managers Delta Asset Management and Robeco Boston Partners for three years each, said Michael A. Perez, general manager of the $16 billion fund. Delta manages $436 million in growth, and Robeco Boston Partners, $420 million in value. Pension Consulting Alliance assisted.
Separately, the fund committed up to $30 million each to Capri Urban Investors and Rothschild Five Arrows Realty Securities V, both real estate funds. The Townsend Group assisted.
The fund also committed up to $20 million to Oak Hill Capital Partners III, a private equity fund. Portfolio Advisors assisted.
New Jersey
TRENTON, N.J. — The New Jersey Division of Investment hired Lehman Brothers to create the New Jersey Directed Investment Fund, a $105 million private equity fund for the $82.4 billion system. The private equity fund will invest in companies based in New Jersey or have interest in the state, said Lehman spokesman Randall Whitestone. New Jersey officials could not be reached for further details.
New Orleans Employees
NEW ORLEANS — New Orleans Employees’ Retirement System hired five firms to run a total of $19 million in hedge funds of funds, said Jerry Davis, chairman of the $406 million fund’s board of trustees. It will invest $5 million with Societe Generale Asset Management, $5 million with Hatteras Investment Partners, $3.5 million with Union Bancaire Privee Select Invest, $3.5 million with Deutsche Asset Management and $2 million with Archery Capital. Funding comes from rebalancing. The board decided to make the move for further diversification and hopefully boost returns, Mr. Davis said.
Morgan Stanley assisted.
Pleasant Ridge Manor
ERIE, Pa. — Pleasant Ridge Manor Employees’ Pension Plan selected Dimensional Fund Advisors to run a $10 million balanced portfolio, confirmed Frank Burnette, principal and senior consultant at Morrison Fiduciary Advisors, the fund’s consultant. The plan had $23 million in assets at the end of 2005, the most recent information available.
City of Pontiac
PONTIAC, Mich. — City of Pontiac General Employees Retirement System hired Sawgrass Asset Management to run $38 million in active domestic large-cap growth equities for the $500 million fund, said Ellen Zimmermann, system administrator. Ms. Zimmermann said funding would come from an index fund, but she declined to give further details. Consultant Gray & Co. conducted the search.
St. Louis Sewer
ST. LOUIS — Metropolitan St. Louis Sewer District Employees’ Pension Plan is expected to pick Kennedy Capital Management to handle $10 million to $15 million in active domestic smidcap core equities, said Karl Tyminski, district secretary-treasurer who oversees the $185 million fund.
The hiring was recommended by the fund’s investment committee; the board will decide on the hiring at its Oct. 11 meeting. The move to smidcap is part of a diversification strategy begun in early 2006. A small-cap manager will be terminated; Mr. Tyminski wouldn’t name the firm.
New England Pension Consultants assisted.
Seattle City Employees
SEATTLE — Seattle City Employees Retirement System hired Quellos Group to run $10 million in a portable alpha strategy, said Mel Robertson, chief investment officer of the $2.1 billion fund. This is the fourth Quellos hedge fund in which Seattle invests.
Funding comes from terminating Bear Stearns, which ran an $80 million active domestic hybrid equity portfolio for the fund. Bear Stearns was terminated for lagging performance and personnel changes at the firm, Mr. Robertson said. Russell Sherman, a Bear Stearns spokesman, did not return a phone call by press time seeking comment.
The fund will put $60 million of the Bear Stearns portfolio into an existing Russell 3000 index fund managed by BGI, which now has $120 million. The remaining $10 million will go into the system’s internally managed portable alpha test program, raising it to $20 million.
Shelby County
MEMPHIS, Tenn. — Shelby County Retirement System rehired Consulting Services Group as general consultant, said David Pontius, manager of pension investments. An RFP was issued in May as part of the $1 billion system’s due diligence, said Mr. Pontius.
Taylor Wimpey
LONDON — Taylor Wimpey PLC hired JPMorgan Worldwide Securities as global custodian, replacing Bank of New York Mellon, said JPMorgan spokeswoman Juliana Wheeler. The former custodian was Bank of New York Mellon; she was not able to disclose the size of the plan.
Officials at Taylor Wimpey could not be reached by press time.
Texas Municipal
AUSTIN, Texas — Texas Municipal Retirement System will hire R.V. Kuhns as its first general investment consultant, pending contract negotiations, confirmed spokesman Bill Wallace. The $13.1 billion fund’s board had originally selected Ennis Knupp, but “issues” arose during contract negotiations, Mr. Wallace said. He declined to elaborate, and Ennis Knupp spokeswoman Harmony Watling did not return a call seeking further details.
TNO
RIJSWIJK, Netherlands — Stichting Pensioenfonds TNO hired BlackRock as fiduciary manager for its fixed-income portfolio, according to a statement from BlackRock. The manager will also be responsible for interest-rate and inflation matching, currency hedging and global tactical asset allocation overlay for the €2 billion ($2.7 billion) pension plan, said Andre van den Heuvel, head of institutional sales-Benelux at BlackRock. TNO executives will continue to hire and monitor managers for its equity and alternative investment portfolios, and BlackRock will assist pension fund staff in the risk reporting process for the external money managers. According to TNO’s 2006 annual report, 35.2% of plan assets were invested in fixed income as of Dec. 31. TNO executives could not be reached for comment by press time.
