CalPERS commits $1 billion
CalPERS will funnel $1 billion of its $246.6 billion into the ARA Asia Dragon Fund, an Asian real estate fund. Half will go into public REITs, and half will be earmarked for potential co-investment in private real estate opportunities.
AXA to manage 3 funds
Royal Cosun hired AXA Investment Managers as fiduciary manager for its three Dutch pension funds, confirmed Hanneke Ketellapper-Veringa, AXA head of Dutch institutional business development. The funds are: the e440 million ($622.4 million) Stichting Pensioenfonds Koninklijke Cosun; the e100 million Stichting Pensioenfonds Aviko; and the e80 million Stichting Pensioenfonds Suiker 2007. AXA will manage about a third of each fund and outsourcing the remainder.
Duke Endowment outsources
Duke Endowment outsourced investment management of nearly all of its $3.2 billion in assets to the Duke Management Co. Gene Cochrane Jr., president of the Duke Endowment, a private foundation, said officials decided to make the change following the departure earlier this year of CIO Stephanie Lynch. Duke Management also runs $7.Duke Universityhe Duke University endowment and other university assets.
41.3% of 401(k)s auto enroll
The Profit Sharing/401k Council of Americas newly released survey on the 2006 plan year shows that 41.3% of 401(k) plans offered automatic enrollment. In addition, 18.4% permitted Roth 401(k) contributions, with 11.6% of eligible participants using the option.
Company contributions averaged 4.7% of payroll, according to the survey of 1,000 plans with a total of more than $600 billion in assets. Employer contributions were highest in profit-sharing plans an average 9.2% of pay and lowest in 401(k) plans an average 3% of pay.
401(k) plans provided an average of 19 investment options in 2006, up from 18 in 2004 and 17 in 2003, the other years for which PSCA had data. The typical plan had about 70% of assets invested in equities, with active domestic equity mutual funds being the most used, at 30.6% of total assets.
W. Virginia chooses specialists
The $10.5 billion West Virginia Investment Management Board hired Franklin Park Associates as private equity consultant and Albourne Partners as hedge fund consultant, said H. Craig Slaughter, executive director. The board also hired a real estate consultant Mr. Slaughter would not identify the firm pending contract negotiations. The consultant hires follow a state law change this year that cleared the way to invest in alternatives.
Rhode Island commits
The $8.3 billion Rhode Island Employees Retirement System approved a $15 million commitment to Fenway Partners Capital Fund III, $15 million to Perseus Partners VII and $5 million to Point Judith Venture Fund II. Pacific Corporate Group assisted.
$20 million from L.A. City
The $11. billion Los Angeles City Employees Retirement System will commit up to $20 million to Kelso Investment Associates VIII. Hamilton Lane assisted.
Richmond mulls moves
The $533 million Richmond (Va.) Retirement System asked consultant RogersCasey to conduct an invitation-only search for domestic core and global fixed-income managers, said Philip R. Langham, executiveBlackRock. BlackRock runs $60 million in core fixed income; Agincourt and Richmond Capital, $13 million each in core bonds; and Fischer Francis, $46 million in global bonds. The search will not necessarily replace the incumbents, Mr. Langham said.
Fidelity merges operations
Fidelity Investments brought together its personal investments and workplace savings operations into a new unit to be run by Abigail Johnson, said spokeswoman Anne Crowley. Ms. Johnson is the daughter of Fidelity Chairman Edward C. Ned Johnson III. The new division will include three main areas: retirement services, led by Scott David, president of Fidelity Retirement Services; product marketing, led by Sanjiv Mirchandani, president of the growth business group; and distribution, led by Steve Akin, executive vice president of corporate services. All three will report to Ms. Johnson.
ABP eyes lifecycle
ABP is considering introducing a lifecycle approach based on the age of its members, said CIO Roderick Munsters. Officials of the e209 billion ($295.4 billion) Dutch plan think tweaking the investment mix for different age groups would give younger members greater exposure to high-risk, high-return assets, and older members greater exposure to hedging assets such as fixed income. The change could come around 2010, if ABP trustees agree.
Colorado to add long bonds
The $41 billion Colorado Public Employees Retirement Association will allocate up to 1% of its total assets to a long-duration bond portfolio, said Katie Kaufmanis, spokeswoman. The portfolio will be managed internally. Funding will come from future bond allocations or cash, she said.