SACRAMENTO, Calif. CalPERS hired long-only manager Redwood Investment Management to run $200 million and also committed $150 million to FIS Group, a manager of emerging managers, confirmed spokesman Clark McKinley. Redwood is the second hire for the $244.8 billion California Public Employees' Retirement System's Manager Development Program II, in which CalPERS takes an equity stake in emerging firms. FIS, the first firm funded for CalPERS' manager-of-emerging-managers program, was placed on a pre-approved list in August by the Sacramento-based system. The funding sources haven't been determined.
HIRINGS: CalPERS hires Redwood to run $200 million
CHATTANOOGA, Tenn. Chattanooga General Pension Fund committed $2.5 million with Diversified Trust and $1.5 million with Montagu Newhall Associates, both private equity funds of funds, Daisy Madison, city chief financial officer, said in an e-mail. The plan has only 2.2% of assets dedicated to private equity, but has a target allocation of 5%, she said. Consulting Services Group assisted the $248 million fund.
DURHAM, England Durham County Council Superannuation Fund hired five managers and reappointed another firm in an overhaul of the £1.5 billion ($2.9 billion) fund's investment portfolio, confirmed Paul Turner, principal accountancy assistant. Edinburgh Partners will run about £435 million of the fund in active global equities; Royal London Asset Management, about £300 million in active U.K. bonds; BlackRock, about £285 million in active U.K. equities; AllianceBernstein, about £240 million in active global bonds; and CB Richard Ellis, about £120 million in a new allocation to active global real estate.
Baring Asset Management was rehired to manage about £120 million in a dynamic asset allocation strategy. Baring, along with Legal & General Investment Management and Morley Fund Management, had managed the entire £1.5 billion portfolio in a balanced strategy that was split equally among the three managers, Mr. Turner said, declining further comment.
Plan officials made the move to help stabilize the fund's volatility while continuing to seek returns similar to equities, according to a statement released by the pension fund. Consultant Psolve advised.
TALLAHASSEE, Fla. Florida State Board of Administration selected Federated Investors to manage up to $35.5 billion in short-term funds, including the $8.9 billion Local Government Investment Pool A and the estimated $2 billion LGIP Pool B, said Michael P. McCauley, director of investment services and communications. The hiring is pending contract negotiations, he said.
The board initiated the search to replace internal management in light of subprime-related problems. BlackRock had managed the pools in the interim; BlackRock and Bank of New York Mellon were the other finalists in the search.
SCOTTSDALE, Ariz. ING Funds rehired BNY Mellon Asset Servicing as global custodian for roughly $117 billion of that firm's institutional and retail assets, said BNY Mellon spokesman Mike Dunn. In a news release, BNY Mellon said it will continue to provide fund accounting, securities lending, risk reporting, foreign exchange and shareholder servicing to the ING Funds. ING spokeswoman Tracy Gordon confirmed the appointment.
WINNIPEG, Manitoba Manitoba Teachers' Retirement Allowances Fund committed US$25 million to Adams Street Partners 2008 Global Opportunities Portfolio, said Jeff Norton, president and CEO of the C$4.6 billion (US$4.6 billion) plan.
Funding comes from rebalancing.
LINCOLN, Neb. Nebraska Investment Council committed $75 million to BlackRock Mortgage Investors Fund, $25 million to New Mountain Partners III and $15 million to Wayzata Opportunities II, said David Bomberger, state investment officer. Ennis Knupp is investment consultant to the $15.3 billion council.
TRENTON, N.J. New Jersey's State Investment Council will invest $100 million in Resolute Fund II and $75 million in Carlyle Mezzanine Partners II, both private equity funds; and $100 million in the AEW Core Open-End Fund, a real estate fund. The council, which manages $82 billion in assets, also will invest $75 million each in hedge funds Level Global and Pendragon Lancelot II fund, according to Mark Perkiss, a spokesman for the New Jersey Treasurer's office.
ALBANY, N.Y. The New York State Teachers' Retirement System committed €100 million ($146 million) to CVC European Equity Partners V; up to $100 million each to Lehman Brothers Real Estate Mezzanine Partners II and the CS/NYSTRS Cleantech Fund, a private equity co-investment with Credit Suisse; $75 million to Carbon Capital Fund III, managed by BlackRock; €50 million to Perella Weinberg Real Estate fund; and $50 million each to Cerberus Institutional Real Estate Partners Series Two and PLA Residential Fund III, managed by Prudential. Funding for all commitments came from cash, and no managers were terminated, said John Cardillo, spokesman for the $103.6 billion fund.
HALIFAX, Nova Scotia Nova Scotia Power Inc. pension plan hired American Century Investments to manage C$80 million (US$79.5 million) in global growth equities, confirmed Peg Van Wagoner, vice president, institutional consultant relations at American Century. Margaret Murphy, spokeswoman for the C$600 million plan, did not return calls.
SANTA ANA, Calif. Orange County Employees Retirement System hired BlackRock Alternative Advisors and Pacific Alternative Asset Management to run a combined $200 million in an absolute-return hedge fund-of-funds mandate, said Shanta Chary, CIO for the $8 billion system. Selections were made following a search conducted by consultant Callan Associates.
TIGARD, Ore. Oregon Investment Council which manages the $64.9 billion Oregon Public Employees' Retirement Fund, Salem, committed $500 million to Lone Star Fund VI US LP, $400 million to Grove Street Advisors for a discretionary private equity portfolio, and $100 million each to Lone Star Real Estate I and KTR Industrial, said Ley Garnett, spokesman. Lone Star VI, with a $5 billion fundraising target, will invest in distressed debt and in financial operating companies. Lone Star Real Estate I has a $1.5 billion target and will invest in opportunistic real estate. KTR Industrial is a closed-end real estate fund with a $750 million fundraising target. Separately, the council tabled until its Feb. 27 meeting a decision on committing $750 million to TPG VI.
The council also hired Northern Trust Global Investments for an emerging markets equity portfolio, expected to be between $200 million and $300 million, said CIO Ron Schmitz in an e-mail. Funding will come from reducing its $16.1 billion domestic equity portfolio, which exceeds the council's domestic equity target.
SAN FRANCISCO San Francisco City & County Employees' Retirement System hired European Investors and ING Clarion Real Estate Securities to run a combined $150 million in publicly traded real estate securities, a new investment for the $1.63 billion real estate portfolio. Funding will come from reducing the $16.9 billion pension fund's allocations to domestic and international equities, according to a previous board agenda.
The system also will invest up to $30 million each to ABRY VI, which invests in the media, entertainment and communications industry; Advent International GPE VI, a global middle-market buyout fund; and Actis Emerging Markets 3; as well as up to $10 million to Clarus Lifesciences II, which invests in biopharmaceuticals and medical devices.
NEW YORK Scholastic Inc. hired Wachovia Retirement Services as directed trustee, responsible for master custody and investments of its $110 million cash balance plan, said Gil Dickoff, vice president and treasurer. Wachovia replaces HSBC, which exited the business in 2007, Mr. Dickoff said. No consultant assisted.
SAN FRANCISCO Charles Schwab hired Mondrian Investment Partners to run two new institutional funds, the Laudus Mondrian Institutional Emerging Markets and Laudus Mondrian Institutional International Equity funds, according to an SEC filing. Mondrian will be the only subadviser for the two funds. Mondrian also subadvises Schwab's $50 million Laudus Mondrian International Fixed Income Fund and $18 million Laudus Mondrian Emerging Markets Fund.
ATTLEBORO, Mass. Sensata Technologies Inc. hired Putnam Investments to manage its $40 million 401(k) retirement plan, said Laura McNamara, Putnam spokeswoman. Susan Gorius, Sensata's global human resources director, said in a news release that the plan's default option will be Putnam Retirement Choice, its age-based investment offerings invested in funds from multiple underlying managers. Ms. Gorius wasn't immediately available for further comment.
MONTEVIDEO, Uruguay Banco Central de Uruguay hired BNY Mellon Asset Servicing as global custodian for $4.5 billion in assets, according to a news release from BNY Mellon. The firm will also provide investment accounting, performance and risk analytics and securities lending services for the bank. Officials at Banco Central de Uruguay could not be reached for comment by press time.
WOLVERHAMPTON, England West Midlands Metropolitan Pension Fund hired JPMorgan Chase's foreign exchange and rates division to manage £1.3 billion ($2.5 billion) in a passive currency overlay, JPMorgan Chase spokesman John Johmann confirmed. The new mandate will be overlaid on the £7.9 billion fund's allocation to non-U.K. equity investments.