PHOENIX Arizona Public Safety Personnel Retirement System committed $125 million to a short-duration fixed-income limited partnership with Goldman Sachs, said James Hacking, executive director of the $7 billion fund. The new limited partnership was created to take advantage of opportunities in the credit market, Mr. Hacking said.
Arizona Public Safety puts $125 million in fixed income deal with Goldman
PHOENIX Arizona State Retirement System hired Deutsche Asset Management and Mellon Capital Management to run $500 million each in global TAA, pending contract negotiations, confirmed Gary Dokes, chief investment officer of the $28.3 billion system. Funding comes from the 2007 termination of Goldman Sachs Asset Management, which ran $1.4 billion in a similar style portfolio. Of that, $400 million was added to GTAA manager Bridgewater's portfolio, raising it to almost $2 billion.
Separately, the system committed $75 million to BlackRock's Mortgage Investors Fund, which invests in mortgage-backed securities. Funding comes from reducing an enhanced U.S. debt Lehman Aggregate index fund run by BGI.
AUSTIN, Texas Austin Police Retirement System committed $10 million to the Ashmore Investment Management Emerging Markets Corporate High Yield fund, said Sampson Jordan, pension administrator for the $510 million plan. The spread for these corporate bonds has increased 400 (basis points) post-subprime, and therefore opportunities exist to make 15% or more returns, according to recently released minutes of the system board's March 26 meeting. Funding comes from rebalancing other emerging markets fixed-income funds run by Ashmore and by terminating Snow Capital Management from a $15 million active domestic deep value all-cap equity portfolio for performance. A call to Snow Capital for comment was not returned by press time.
The system increased its fixed-income investments in the past year to 25% from 17%, to escape equity-market volatility and capture higher yields caused by credit crunch dislocations, Mr. Jordan said.
The system's board also approved a $9 million purchase of timberland in East Texas through Timberland Investment Resources.
CHATTANOOGA, Tenn. Chattanooga General Pension Fund hired WEDGE Capital Management as a large-cap value manager, according to recently released minutes of the fund's March 20 board meeting. Consulting Services Group assisted the $248 million fund. According to the 2008 Money Market Directory, NWQ Investment Management was a large-cap value manager for the fund as of August 2007. Further information was not available. Chattanooga City CFO Daisy Madison did not return a phone call or e-mail requesting information. Pat Snow, the fund's consultant at CSG, referred questions to the fund. Phone calls to WEDGE were not returned by press time.
OKLAHOMA CITY EDGE Trust Fund hired AXIA Investment Management to run $48 million in active domestic fixed income and Westwood Management to handle $32 million in active domestic smidcap core equities, said James Wilbanks, director of revenue and fiscal policy for Oklahoma Treasurer Scott Meacham. Gregory.w.group assisted in the search. The $162 million trust fund was created in 2006 to promote development of Oklahoma businesses in biotechnology research, weather and other areas.
DALLAS Holly Corp. hired Principal Financial Group as record keeper for its $135 million 401(k) plan, said Terri Hale, spokeswoman for Principal. Nancy Hartmann, vice president of human resources for Holly, did not return calls. According to the 2007 Money Market Directory, Merrill Lynch was the plan's record keeper as of December 2005.
INDIANAPOLIS Indiana Public Employees' Retirement Fund hired T. Rowe Price to run $600 million in a fundamental enhanced index fund, said Jeffrey D. Hutson, director of outreach and communication for the $15.76 billion fund. Funding will come from reducing a Russell 1000 enhanced index fund managed by BGI to $2 billion. By making the move, the board is balancing out PERF's quantitative enhanced index mandate with a fundamental enhanced index mandate, Mr. Hutson said. Mercer, the fund's consultant, assisted.
Separately, the system committed a total of $115 million to four private equity funds, according to Mr. Hutson. GSO Capital Opportunities Fund will receive $50 million; Crestview Partners II, $35 million; and A.M. Pappas Life Science Ventures IV and Scale Venture Partners III, $15 million each. The commitments are pending final due diligence. Strategic Investment Solutions, the fund's private equity consultant, assisted.
KANSAS CITY, Mo. Kansas City Police Employees' Retirement Systems hired Gresham Investment Management and PIMCO to run a total of $40 million in commodities, said Jim Pyle, pension manager for the $805 million systems. Assets will come from rebalancing. The board approved a 5% allocation to commodities, meaning the system's $715 million police fund could invest up to $35 million in Gresham's actively managed ETAP Fund, and the $90 million Civilian Employees' Retirement System of the Police Department could invest $5 million in PIMCO's actively managed CommodityRealReturn Strategy Fund. The move to commodities was made for diversification and because of the low correlation to equity and fixed-income markets, Mr. Pyle said. DeMarche Associates assisted.
LOS ANGELES Los Angeles City Employees' Retirement System committed up to €14 million ($21.7 million) to CVC European Equity Partners V, a private equity fund that will invest in buyouts, recapitalizations and growth equity investments. The new CVC fund has a target of €11 billion and can invest 25% in countries outside the U.S. and Europe, 15% in U.S. and 5% alongside CVC Asia Funds. The system has invested in four prior CVC funds.
PASADENA, Calif. Los Angeles County Employees Retirement Association committed $100 million to TPG Partners VI and €65 million ($100 million) CVC European Equity Partners V.
Separately, the $42 billion system named JPMorgan Private Equity Group, Hamilton Lane and Fairview Capital as finalists in a search for a separate account fund-of-funds manager to invest a discretionary $150 million portfolio of private equity emerging managers, said Christopher J. Wagner, senior investment officer, private equity. The LACERA board is scheduled to interview executives from the three firms May 28, Mr. Wagner said.
BATON ROUGE, La. Louisiana State Employees' Retirement System hired Capital Guardian Trust to run $180 million in active international small-cap core equities, subject to contract negotiations, said system CIO Bobby Beale. The $9 billion system's board terminated the portfolio's previous manager, Boston Co. Asset Management, because of organizational changes at the firm. Consultant NEPC assisted.
Separately, the board decided to invest between $180 million and $200 million in the TCW Opportunistic Mortgage Backed Securities Fund. Funding will come from adjusting the system's overall fixed-income portfolio; no managers will be terminated, Mr. Beale said.
BATON ROUGE, La. Teachers' Retirement System of Louisiana committed about $125 million to the CVC European Equity Partners V fund and $75 million to the Crow Holding Realty Partners fund, said Bob Leggett, CIO of the $15.2 billion system. Hamilton Lane Advisors, the fund's private equity consultant, assisted.
JEFFERSON CITY, Mo. Missouri Local Government Employees Retirement System committed $30 million to a Tailwind Capital Partners buyout private equity fund, $20 million to real estate manager CBRE's Strategic Partners Opportunity Fund V and $10 million to the CBRE Strategic Partners Value Fund V, said Brian Collett, CIO of the $4 billion fund. The plan increased its real estate and private equity target allocations to 5% each in 2007; each asset class currently has 2.5% invested.
OKLAHOMA CITY Oklahoma Teachers' Retirement System selected Aldus Equity Partners to run $450 million in a private equity fund of funds, pending contract negotiations, said Tom Beavers, executive secretary of the $9 billion fund. The funding source has not been determined. Partners Group and Grove Street Advisors were the other finalists. The system has a 5% private equity allocation.
NEW YORK International Union of Operating Engineers Local Union 94-94A-94B, AFL-CIO hired Putnam Investments as bundled provider for its $600 million Taft-Hartley fund, said Laura McNamara, spokeswoman for Putnam. Details on the previous provider were not available at press time; James F. Berg, employer trustee for Local 94, did not return calls seeking information. Morgan Stanley assisted with the search; a Morgan Stanley spokesman referred calls to the fund.
HARRISBURG, Pa, Pennsylvania Public School Employees' Retirement Board committed $1.88 billion to real estate, private equity and debt funds at its May 2 meeting, according to the $67.4 billion fund's website. The board approved commitments of up to $500 million in Sankaty Credit Opportunities IV, up to $400 million in Morgan Stanley Real Estate Fund VII Global, and up to €200 million ($309 million) in Avenue Europe Special Situations Fund.
Other commitments were $175 million to RCG Longview Debt Fund IV, up to $150 million each in Landmark Equity Partners XIV and Paladin Realty Latin America Investors III, and up to $100 million each in Evergreen Pacific Partners II; AvalonBay Value Added Fund II, a REIT; and Strategic Capital Partners' Strategic Partners Value Enhancement Fund II.
PHOENIX Phoenix Employees' Retirement System hired Milliman to conduct a second actuarial valuation, something the $1.9 billion system plans to do every five years or so, said Greg Fitchet, investment manager. The plan has no problem with the performance of its chief actuary, Rodwan Consulting, which signed a three-year contract July 1. The plan was 83.9% funded as of June 30, up from 81.3% the previous year. R.V. Kuhns & Associates assisted.
AUSTIN, Texas Texas Teacher Retirement System committed $262.5 million to Parkway Properties Office Fund II, pending partnership agreement negotiations, according to Parkway's website. Parkway CFO Mitchell Collins could not be reached by press time. TRS spokesman Howard Goldman did not return a call on the matter by press time.
OLYMPIA, Wash. Washington State Investment Board committed up to $850 million in real estate and private equity, said Liz Mendizabal, spokeswoman for the $84.8 billion board. The board approved a $600 million commitment to the Lone Star Fund VI, a real estate fund; with commitments to private equity funds of up to $100 million to the Banc Fund VIII; $50 million each to HarbourVest's International Private Equity Partners VI Asia Pacific fund and International Private Equity Partners VI Emerging Markets fund; and up to $50 million to the KSL Capital Partners Supplemental II fund. The board's real estate consultant is Courtland Partners, and its private equity consultant is Capital Dynamics.