Banca Fideuram hires GLG Partners to run at least $3 billion

ROME — Banca Fideuram hired GLG Partners to run at least $3 billion in three UCITS III 130/30 accounts, according to a news release from GLG. The UCITS status allows the investments to be marketed to retail investors throughout the European Union. Banca Fideuram already has $250 million invested with GLG. “GLG has a proven track record of alpha generation capability and our existing relationship gives us great confidence in their ability to manage this important new mandate and create additional value for our investors,” Tommaso Corcos, Banca Fideuram’s asset management chief executive officer, said in the release. Officials at Banca Fideuram could not be reached by press time.

SACRAMENTO, Calif. — CalSTRS officials plan to hire Leading Edge Investment Advisors, Community Capital Management and Access Capital Strategies for the system’s new developing manager program for fixed income, pending contract negotiations.

Leading Edge is a manager of managers, while Community Capital and Access Capital are direct investment managers. Sherry Reser, spokeswoman for the $164 billion California State Teachers’ Retirement System, said the exact amounts to be awarded to each firm have not been determined.

Under the program, $300 million to $500 million total will be awarded to developing managers that each have less than $2 billion under management. The eventual mandates will focus on core-plus and high-yield bond strategies, as well as special situations in the mortgage and municipal markets related to housing investments in California, according to a CalSTRS news release.

Community Capital Management and Access Capital use social screens to build portfolios of high-quality bonds that support community goals such as affordable housing and education.

Progress Investment Management and Third Stage Investment Group were named standby firms that will serve as future additions and replacements for the program.

CHICAGO — Chicago Firemen’s Annuity and Benefit Fund hired Evergreen Investments to run $50 million in active domestic large-cap value equities, said Chief Investment Officer Michael Moran. Funding comes from a similar style portfolio run by Mesirow Financial. Officials at the $1.3 billion fund wanted to reposition some of the portfolios after an asset-liability study by consultant Mercer came out in March; performance was not a factor, Mr. Moran said. Mesirow still manages $5 million in private equity for the fund, he said.

HAVERHILL, England — International Flavors & Fragrances Inc. hired Buck Consultants to provide investment consultant services for its two U.K. pension funds, confirmed Terri-Ann Humphreys, spokeswoman for Buck Consultants. The plans — IFF Pensions and Life Assurance Schemes, Haverhill, and the Bush Boake Allen Pension Scheme, acquired by IFF in 2000 — have a combined £250 million ($492 million) in assets. Philip Gardner, IFF’s finance director, could not be reached by press time for further information.

LOS ANGELES — Los Angeles City Employees’ Retirement System’s board hired Batterymarch Financial Management to run $130 million in emerging markets equities, according to a source close to the $10.95 billion system. A search was launched last June. Funding would come from decreasing Boston Co.’s non-U.S. equities portfolio to $190 million, with the balance coming from trimming the $543.5 million active European equities portfolio managed by Capital Guardian.

Separately, the board reinstated Marvin & Palmer as manager of $100 million in active international core equities. The board had decided to terminate the firm in June 2007 but postponed redeploying the assets, pending the adoption of a new non-U.S. equity allocation. The manager outperformed its benchmark by 1,640 basis points for the year ended March 31.

The board also committed $10 million each to private equity funds Element Partners II and NGEN Partners’ NGEN III, and $5 million to StarVest Partners II.

Separately, the board broadened the mandates of Thomson, Horstmann and Bryant’s $320 million active small-cap core equity portfolio and Aronson + Johnson + Ortiz’s $450 million active large-cap value equity portfolio to allow the managers to use 10% of their existing portfolios in 130/30 strategies.

RENSSELAER, N.Y. — New York Independent System Operator hired Diversified Investment Advisors as record keeper for its $30 million 401(k) plan, said Nina Dietrich, spokeswoman for Diversified. Linda Pedi, compensation and benefits specialist for NYISO, which manages the state’s electricity transmission grid, did not return calls by press time seeking details.

ALBANY, N.Y. — New York State Common Retirement Fund hired Aksia as a consultant for the $154.5 billion fund’s absolute-return portfolio for the next three years, said Robert Whalen, a spokesman for state Comptroller Thomas DiNapoli, the fund’s sole trustee. Aksia replaces Consulting Services Group.

“The CSG contract is up in June, so we went through an RFP process to see what other opportunities existed in terms of consultancy services,” Mr. Whalen said. “We have an evolving strategy and we brought in Aksia for this purpose, to give us some new options that they want to explore.”

Mr. Whalen said $5 billion is invested in absolute return, with a 5% target allocation.

NORMAN, Okla. — University of Oklahoma Foundation hired MetWest Asset Management and PIMCO as domestic bond managers, confirmed Ron Winkler, vice president and treasurer of the $590 million foundation. The size of the portfolios could not be learned. Funding came from liquidating a Vanguard money market account. Mr. Winkler referred further questions to Dan George of investment consultant Ellwood Associates, who did not return a call.

SAN FRANCISCO — San Francisco City & County Employees’ Retirement System will commit $37.5 million to the Capmark Financial High Return fund and $25 million to Capmark’s Apartment Income and Growth fund, part of the system’s plans to allocate up to $200 million into non-core real estate by June 30, 2009, according to an annual plan outlined at a board meeting May 14. The balance will be funneled into value and high-return, non-U.S. investments, said Micolyn Yalonis, principal at the Townsend Group, the $16.4 billion system’s real estate consultant.

The system’s board also approved investments of $30 million each to private equity fund Sankaty Credit Opportunities Fund IV and Weston Presidio Capital VI, a late-stage venture capital fund.

AUSTIN, Texas — Texas Municipal Retirement System hired BlackRock to run $13.8 billion of the fund’s $14.7 billion in assets as an active domestic non-discretionary fixed-income manager. The system plans to shorten the duration of its bond portfolio and prune it to 88% of total assets by year-end, confirmed Bill Wallace, system spokesman. Until last year, the fund’s assets were entirely run internally in fixed income. The fund plans to move 1% of total assets into equities each month so that by the end of the year there will be a 12% allocation to stocks. At the end of April, the fund had moved 5% of total assets into equity, split between domestic and international.

Separately, the fund hired Gabriel, Roeder, Smith as actuary, replacing Segal Co., whose contract expires at year-end. Segal held the position for more than a decade. Segal rebid after an RFP was issued in February.

CRANBERRY TOWNSHIP, Pa. — TRACO hired Diversified Investment Advisors as record keeper for its $37 million 401(k) plan, said Nina Dietrich, spokeswoman for Diversified. Tony Pietranton, vice president of human resources for TRACO, did not return calls by press time seeking further details.

MALVERN, Pa. — Vanguard Group hired Edinburgh Partners as a subadviser to the $9.3 billion Vanguard International Value Fund, confirmed Vanguard spokeswoman Linda Wolohan. Sandy Nairn, Edinburgh chief executive officer and investment partner, and Christine Montgomery, investment partner, will serve as portfolio managers. The fund’s existing subadvisers are AllianceBernstein, Lazard Asset Management and Hansberger Global Investors.

RICHMOND, Va. — The $57.5 billion Virginia Retirement System committed $75 million to Madison Dearborn Capital Partners VI, said Jeanne Chenault, a spokeswoman for the fund.