WELLINGTON, N.Z. Arcus Investment Management appointed RCM to subadvise a US$70 million active global large-cap growth equity portfolio, confirmed Matthew Goldsack, head of research at Arcus, in an e-mail.
Arcus, a subsidiary of AXA New Zealand, has more than US$5 billion in assets under management, including US$1.8 billion in global equity assets, Mr. Goldsack said. RCM was hired because its stock selection focuses on companies that can demonstrate quality and growth prospects at an appropriate valuation, said Mr. Goldsack in a news release. RCM's Global Equity High Alpha team stood out amongst the short-listed managers and provides a complementary style to the existing stable of managers when combined in a diversified portfolio.
Mercer Investment Consulting assisted.
SAN FRANCISCO Barclays Global Investors selected MetLife as the income annuity provider to retirement plans investing in BGI's SponsorMatch program, said BGI spokesman Lance Berg. SponsorMatch, introduced last fall, is an investment category for defined contribution plans that combines a target-date fund with institutional investment strategies managed by BGI and a deferred fixed-income annuity element provided by MetLife. BGI manages the fund with the goal of participating in market gains and securing a certain level of income for retirement. SponsorMatch seeks to control exposure to market risk over time by increasing the funding to the annuity payout as the participant ages.
SACRAMENTO, Calif. CalSTRS committed $200 million to Invesco Private Capital's New and Next Generation Managers II emerging manager private equity fund of funds, confirmed Ricardo Duran, spokesman for the $173.7 billion system. Invesco will invest the money over five years with private equity firms seeking to raise their first, second or third institutional private equity funds. This is double the commitment the California State Teachers' Retirement System made to Invesco Private Capital in 2002 when it committed $100 million to the New and Next Generation Managers Program, which invests in top-performing U.S.-based emerging managers.
DENVER Colorado Public Employees' Retirement Association rehired Northern Trust as global custodian for the $40 billion defined benefit plan, said PERA spokeswoman Katie Kaufmanis. The plan issued an RFP in November and had named Northern Trust and BNY Mellon as finalists. Northern Trust now provides global custody and securities-lending services, but Dresdner Kleinwort and Wachovia were named finalists for third-party securities lending services. The new contracts will begin Oct. 1.
Also, the association selected Rainier Large Cap Growth Equity Fund, a mutual fund, replacing the GMO Large Cap Growth Fund option in its 401(k) and 401(a) defined contribution plans, said Ms. Kaufmanis The move was made for performance, she said. Combined assets for the two DC plans total about $1.7 billion; about $72 million was invested in the GMO option. GMO officials declined to comment through spokesman Tucker Hewes.
DALLAS Dallas Police and Fire Pension System committed $50 million to the Lone Star CRA Fund, according to the $3.5 billion plan's website. Private equity constituted 8.3% of the fund's portfolio as of Nov. 30, according to the website. Richard Tettamant, administrator, and Mike Taylor, CFO, were out of the office and could not be reached for further information. Ed Trissel, spokesman for Lone Star Funds, did not return a call by press time.
PARIS The Fonds de Reserve pour les Retraites appointed Nicholas-Applegate Capital Management and BlackRock to each manage a e250 million ($394 million) active U.S. small-cap equity portfolio, an FRR spokeswoman confirmed.
The hirings represent the e34.5 billion fund's first investments in active U.S. small-cap equities. Funding will come from rebalancing, the spokeswoman said.
FORT WORTH, Texas Fort Worth Employees' Retirement Fund hired Albourne America as hedge fund consultant at its March 26 board meeting to oversee $178 million in direct hedge fund investments, said Ruth Ryerson, executive director and CIO, in an e-mail. Albourne replaced Alternative Investment Strategies, the alternatives consulting division of Consulting Services Group, which is the $2 billion plan's investment consultant.
The move was made not due to any dissatisfaction with ... AIS/ CSG, but to eliminate any appearance of conflict ..., Ms. Ryerson said.
INDIANAPOLIS Indiana Public Employees' Retirement Fund committed up to $300 million total to four real estate managers, according to Jeffrey D. Hutson, director of communications of the $17.2 billion fund. Prudential Real Estate Investors and Morgan Stanley Real Estate got commitments of up to $100 million each for U.S. open-end core programs. Invesco and European Investors received respective commitments of up to $60 million and $40 million for global REITs. Funding will come from a reallocation of the overall fund as commitments are drawn, Mr. Hutson said. Mercer assisted with the searches. The commitments are the result of an RFP issued last fall.
AMSTERDAM Stichting Bedrijfspensioenfonds Voor De Koopvaardij, the pension fund for the Dutch merchant marine, hired Mn Services to manage the fund's e3.2 billion ($5 billion) in assets, confirmed Mn Services spokesman Geert-Jan Cath. Mn Services will advise the fund on investment strategy and pension administration. At this moment, we don't know yet whether the investment portfolio will change, Mr. Cath said. The transaction is scheduled to close within the next two months, after which we will see what to do with asset allocation. Executives of the merchant navy fund could not be reached by deadline.
LOS ANGELES Los Angeles City Employees' Retirement System committed $20 million each to private equity funds Advent International GPE VI and Yucaipa American Alliance Fund II, according to documents on the $11.1 billion system's website. Advent VI is targeted as a e5 billion ($7.71 billion) buyout fund that would invest 75% of its commitments in Europe and 25% in the U.S. Yucaipa American II has a $2 billion target, investing in buyouts of U.S.-based companies. Hamilton Lane, the system's traditional alternative investment consultant, made the commitments under the system's discretionary private equity program.
EDINBURGH Lothian Pension Fund rehired Standard Life Investments to run a £350 million ($700 million) segregated real estate portfolio, confirmed Clare Scott, investment manager of the £3 billion fund. Standard Life has managed the portfolio since 2001, when it was awarded a seven-year contract. The strategy, which targeted mostly direct investments, was restructured to allow Standard Life to make more indirect investments in U.K. and overseas markets. The fund has 12% of total assets invested in real estate, Ms. Scott said. No consultant was used.
BATON ROUGE, La. Louisiana Firefighters' Retirement System committed $45 million to Fletcher Asset Management's FIA Leveraged Fund, a hedge fund, according to recently released minutes of the $1.1 billion system's Feb. 14 board meeting. Steven Stockstill, the fund's executive director, referred all questions to Joe Meals, senior consultant at Consulting Services Group, the fund's consultant. Mr. Meals did not return a call seeking comment by press time.
ST. PAUL, Minn. Minnesota State Board of Investment made commitments totaling $626 million to eight new private equity funds. The board, which oversees $60 billion, committed $200 million to Credit Suisse Strategic Partners; $100 million to Banc Funds Co.; $75 million each to Advent International and Summit Partners; $60 million each to Chicago Growth Partners and Split Rock Partners; $50 million to Gold Hill Capital; and $6 million to Affinity Capital. Howard J. Bicker, executive director, said Advent is the only new manager among the latest private equity hires.
Separately, the board hired SSgA at its March 12 meeting to manage passive U.S. equities as a backstop manager, a place where we can park assets temporarily when the fund has cash on hand and prior to selecting a new manager. SSgA has not been given any assets to date, Mr. Bicker said.
TRENTON, N.J. The New Jersey State Investment Council approved investments of nearly $1.2 billion in hedge funds, private equity and real estate funds, spokesman Thomas Bell said.
On the hedge fund side, the New Jersey council, which oversees $77.7 billion in pension assets, committed $100 million to Knight Vinke Institutional Partners II for long/short equity and $100 million to Marathon Special Opportunities Fund for direct low volatility.
In private equity, the council will invest $400 million with Credit Suisse's CSFB/NJDI Investment and $100 million with CS/NJDI Emerging Opportunities Fund II. Another $200 million was committed to NJHL European Buyout Investment Fund III, and e106 million ($165 million) to AnaCap Financial Partners. In real estate, the council is committing $100 million to the Lehman Brothers Real Estate Partners III.
ALBANY, N.Y. The $154.4 billion New York State Common Retirement Fund committed a combined $145 million to three private equity funds and invested a total of $91 million in absolute-return strategies in February, according to its monthly transaction report.
In private equity, $10 million was committed to Carmel Ventures III; $35 million with Palladium Equity Partners III; and $100 million with CVC Equity Partners Asia Pacific Fund III.
In absolute-return strategies, the fund invested: $30 million with Paulson Advantage, an event-driven fund; $15 million with Ascend Partners Leveraged Fund, an equity hedge fund; $15 million with Emerging Sovereign Master Fund, a multistrategy fund; $10 million with Endeavour Multi-Sector Fund, an equity hedge fund; $5.7 million with Contrarian Emerging Markets, a global macro fund; $5 million with Paulson Advantage Plus, an event-driven fund; $5 million with Whitebox Hedge High Yield Fund, a capital structure arbitrage fund; $3 million with Horseman Global Fund, a global macro fund; $2 million with SOLUS, a fixed-income focused fund; and $300,000 with Southpaw Credit Opportunity Partners, a distressed securities fund.
In real estate, the CRF funded about $3 million for mortgages in four affordable housing properties in the state of New York.
HARRISBURG, Pa. Pennsylvania State Employees' Retirement System committed $75 million to the Oculus Small Cap Real Estate Fund; up to $50 million each to Lime Rock Partners V and Madison Dearborn Capital Partners VI; up to $40 million to ABS Capital
Partners VI; $25 million to the Lubert-Adler Real Estate Fund; and up to $15 million to the Versa Capital Partners II fund, said Robert Gentzel, PennSERS spokes-man. The $35 billion retirement system has previously invested with each of the managers except for Oculus, Mr. Gentzel said.
TACOMA, Wash. Russell Investments hired Jupiter Asset Management to manage a segregated portfolio of U.K. equities as part of Russell's multimanager program, said Jupiter spokeswoman Alicia Wyllie. In a news release, Jupiter said the mandate will be managed as a best ideas portfolio, similar to the London-based company's Jupiter U.K. Alpha fund unit trust, managed by Ben Whitmore. Ms. Wyllie declined to comment on how much client money Jupiter will manage, beyond saying it will be some fraction of flows into Russell's multimanager program.
SAN DIEGO San Diego City Employees' Retirement System committed e20 million ($31.2 million) to Europa Fund III, a global real estate opportunity fund, said Doug McCalla, chief investment officer of the $5.05 billion system. The Europa fund is an e800 million commingled real estate fund investing in European Union countries, Norway and Switzerland. Separately, the system's board expanded RREEF's $122.3 million REIT mandate to include non-domestic real estate securities.
SAN DIEGO The board of the $8.7 billion San Diego County Employees Retirement Association committed $15 million to Trophy Property Development and $75 million to Macquarie Infrastructure Partners II. Trophy is a real estate fund investing in real estate development in China; the firm has a relationship with Chinese real estate developer Shui On Land.
LIVERPOOL, England Universities Superannuation Scheme hired SSgA to manage £200 million ($400 million) in a hedge fund replication strategy, confirmed Lisa Haines, USS spokes-woman. It's the £30 billion fund's second allocation to a hedge fund replication strategy its first was to Partners Group bringing the total invested to about £400 million.