PHOENIX Arizona Public Safety Personnel Retirement System hired Benchmark Plus, BNP Paribas, Morgan Stanley and Western Asset Management to run 90% of the $7 billion fund's assets in a master managers program using index-plus strategies, said James Hacking, executive director. The selections are contingent on successful contract negotiations with the firms as well as further due diligence on the master manager program that the fund's board tentatively approved at a three-day meeting April 16-18. Due diligence includes ensuring the fund will have adequate monitoring capabilities of the master managers. Final approval of the program is not expected until June, Mr. Hacking said. Eight managers had been interviewed. As of Sept. 30, 93% of the plan's assets were run internally.
Arizona Public Safety hires four for master managers program
AUCKLAND, New Zealand ASB Investments hired Vanguard to run NZ$400 million (US$319 million) in indexed global equities for its flagship Easyplan and Superannuation master trusts, as reported in Investment & Technology, an Australian newspaper. Ainsley McLaren, ASB head of investments, said Vanguard replaced AMP Capital. Vanguard now manages NZ$420 million for the ASB group, which invests solely in index products.
Ms. McLaren said AMP Capital also was terminated as manager of its New Zealand equities mandate with the funds management arm of its parent company, Colonial First State. We've also changed the benchmark (from New Zealand-only) to an Australasian index a blend of the NZX 50 and the ASX 200, she said.
A spokesman for AMP Capital said the firm might adopt a broader MSCI benchmark or an enhanced passive approach later this year.
SACRAMENTO, Calif. CalPERS invested $718 million with four private equity funds in February, according to recently released data on the pension fund's website. The fund invested $368 million with KKR European Fund III, $150 million with CVC Capital Partners Asia Pacific III, $125 million with Essex Woodlands Health Ventures Fund VIII and $75 million with Clarus Lifesciences II.
The $240.1 billion California Public Employees' Retirement System, Sacramento, also doled out $153.3 million to nine domestic equity emerging managers in January. AH Lisanti Capital Growth received $14.7 million for small-cap growth; Atlanta Life Investment Advisors, $15.8 million for large-cap value; DSM Capital Partners, $14.9 million for large-cap growth; Mastrapasqua Asset Management, $15 million for large-cap growth; and Moody Aldrich Partners, $15.8 million for all-cap value. OakBrook Investments received $15.2 million for large-cap core and $15.5 million for midcap core; Paradigm Asset Management, $15.5 million for large-cap value; Profit Investment Management, $15.5 million for small-cap core; and Rushmore Investment Advisors, $15.4 million for a large-cap growth.
HONOLULU Hawaii Employees' Retirement System hired Northern Trust as global custodian and as provider of securities lending, cash sweep and performance reporting, according to a Northern Trust news release. According to the 2008 Money Market Directory, State Street Bank was the fund's custodian as of June 2007. Further information was not available. Neither Rod June, chief investment officer of the $11 billion system, nor David Shimabu-kuro, administrator, returned calls by press time seeking comment.
BALTIMORE Maryland State Retirement & Pension System committed a total of $302 million to four private equity funds, said Dean Kenderdine, executive director.
The $37.5 billion fund committed $150 million to Madison Dearborn Capital Partners VI; €50 million ($79.6 million) to CVC European Partners V; $40 million to Advent International VI and €20 million to Advent's Central & Eastern Europe IV. Madison Dearborn is an upper/middle-market buyout fund focused primarily on the U.S.; CVC is a large-market buyout fund focused primarily on Europe; Advent International is a large-market buyout fund focused primarily on Europe and North America; and Advent Central is a middle/large-market buyout fund focused primarily on Europe, Mr. Kenderdine said.
HELENA, Mont. Montana Public Employee Retirement Administration replaced some mutual fund investment options in its $330 million 401(a) and $288 million 457 plans, said Executive Director Roxanne Minnehan. Prudential's Target Small Capitalization Value Portfolio will replace the Hotchkis & Wiley Small Cap Value Equity Fund, and the Principal Investors International Growth Fund will replace the SSgA International Growth Opportunities Fund in the 401(a) plan. The Columbia Mid Cap Value Fund will replace the Hotchkis & Wiley Mid-Cap Value Fund in the 457 plan. The changes were made because of performance. Wilshire conducted an invitation-only search.
ALBANY, N.Y. The $154.5 billion New York State Common Retirement Fund invested a total of $717.7 million in real estate, private equity and absolute-return strategies in March, according to Robert Whalen, a spokesman for Comptroller Thomas DiNapoli, the $154.5 billion plan's sole trustee.
In real estate, the fund invested $606 million in self-storage group Shurgard Europe, through its Public Storage joint venture. In private equity, it made a $75 million commitment to Performance Venture Capital Fund II.
In absolute-return strategies, the system invested a combined $36.7 million in the following funds through an unnamed fund-of-funds manager: $12 million to Millennium Global Credit fund; $9 million to an event-driven Xerion Fund; $5 million each to global macro funds Clarium Capital and GLG Emerging Currency & Fixed Income fund; $2.5 million to event-driven Paulson Advantage Plus; $2.5 million to Whitebox Hedged High Yield fund; and $700,000 to Global Undervalued Securities equity hedge fund.
ROANOKE, Va. Roanoke Pension Plan hired active domestic equity managers Essex Investment Management, Westfield Capital Management and Thompson, Siegel & Walmsley to run $10 million each, said Andrea Trent, retirement administrator for the $350 million pension fund. Essex will manage small-cap growth; Westfield, midcap growth; and Thompson Siegel, midcap value. Funding will come from rebalancing; no managers will be terminated, she said.
DILLARD, Ore. Roseburg Forest Products Co. hired New York Life Retirement Plan Services to manage a $225 million defined benefit plan, said Hank Snow, Roseburg's vice president of human resources. New York Life Retirement already is bundled provider for a combined total of $215 million in DB and DC assets for Roseburg. Mr. Snow said Roseburg decided to switch its other DB plan to New York Life because it was dissatisfied with the service provided by its previous provider. He declined to name the firm.
SAN BERNARDINO, Calif. San Bernardino County Employees' Retirement Association committed $30 million each to Angelo Gordon Capital Recovery Partners VI, a distressed corporate credit fund, and the Waterfall Victoria Fund, which invests in distressed mortgages and is managed by M.D. Sass, said Timothy Barrett, executive director and chief investment officer of the $6.2 billion system.
SAN FRANCISCO The San Francisco City & County Employees' Retirement System committed $60 million to two private equity funds, confirmed David Kushner, deputy director for investments at the $16.9 billion fund. The board approved an investment of $30 million each to the Madison Dearborn VI fund, a large market buyout firm, and to Riverstone/Carlyle Global Energy and Power IV fund, at a meeting April 8.
The board also rehired Portfolio Advisors as consultant for the pension fund's $4 billion private equity portfolio. Its current contract expires in June and officials at the fund issued an RFP on Feb. 19. The new contract will likely have a five-year duration, Mr. Kushner said.
RICHMOND, Va. Virginia Retirement System committed $300 million to Security Capital Income Opportunity Investors real estate fund and $50 million to Solus Core Opportunities Fund II, a credit strategies fund, said spokeswoman Jeanne Chenault. The $56.4 billion system also made the following private equity commitments: €66 million ($104.5 million) to Summit Partners Europe Private Equity Fund; $70 million to Angelo Gordon Capital Recovery VI; $50 million to Summit's Subordinated Debt Fund IV; $30 million to Adams Street Direct Co-Invest Fund II; and $20 million to Abry Partners VI. All of the new hires were funded from cash, Ms. Chenault said.