ABILENE, Texas Abilene Firemen's Relief and Retirement Fund made its first emerging markets investments by investing in two mutual funds, said Rodney Goodman, board president for the $44 million fund. The board is investing about $2 million each in the Vanguard Emerging Markets Stock Index fund and the SEI International Emerging Markets Debt fund. The allocation was approved in March. Vanguard's allocation came from high-yield bond mutual fund manager American Funds, which was terminated for performance.
Abilene Firemen's Relief takes first emerging markets step
WELLINGTON, New Zealand Accident Compensation Corp. of New Zealand hired JPMorgan Investor Services to provide custody and administration services for the corporation's NZ$1 billion (US$757 million) Australian portfolio, according to a JPMorgan news release. The fund was created by the New Zealand government to administer accident compensation assets. Thomas Murray assisted with the search.
CALGARY, Alberta Brickburn Asset Management Inc. selected RBC Dexia Investor Services for global custody, fund valuations and record-keeping services for mutual funds managed by subsidiary Brickburn Funds Inc., said William D. Bonner, president of Brickburn Asset Management. RBC has been global custodian for the Dominion Equity Resource Growth Fund, which has $26 million in assets, and Brickburn added four new mutual funds. RBC Dexia has US$2.9 trillion in assets under administration.
SACRAMENTO, Calif. California Public Employees' Retirement System invested a total of $2.5 billion with four private equity funds and two corporate governance funds in April, according to recently released documents on the $245.4 billion pension fund's website.
In private equity, CalPERS invested $1 billion in the Apollo Credit Opportunities Fund; $500 million in the Capital Link Fund II run by Centinela Capital Partners; $400 million in the Yucaipa American Alliance Fund II and $300 million in TowerBrook Investors III. The two corporate governance investments are $200 million in Taiyo Cypress Fund, a joint venture between Taiyo Pacific Partners and WL Ross & Co.; and $100 million in Lazard Korea Corporate Governance Fund, according to the CalPERS website.
CINCINNATI Cincinnati Retirement System hired Opus Capital Management for a $50 million active domestic small-cap value portfolio, said John Boudinot, executive director of the $2.7 billion fund. Funding comes from a passive domestic equity portfolio managed by RhumbLine Advisors. RhumbLine will retain about $65 million.
The fund made the change on the recommendation of consultant, Marquette Associates.
ATLANTA Cooperative Baptist Fellowship hired StanCorp Financial Group as third-party administrator of its $20 million 403(b) plan, according to a spokesman from StanCorp. The plan has 250 participating ministries.
ERIE, Pa. The Erie County Employees' Retirement System hired Allegiant Asset Management as an active domestic core bond manager to run $13 million, said Frank Burnette, principal and senior consultant at Morrison Fiduciary Advisors, in an e-mail. Morrison assisted with the search. The $175 million pension plan terminated the previous manager, which Mr. Burnette declined to identify. .
LONDON Hermes Fund Managers, which manages assets for the £38.8 billion ($75.6 billion) BT Pension Scheme, hired Northern Trust to provide fund administration and global custodial services, confirmed a Hermes spokeswoman. Assets under custody, which include assets of the BT plan, will be more than £45 billion. Information on which firm had previously provided the services could not be immediately learned. Consultant Morse assisted.
WINDSOR, England InterContinental Hotels U.K. Pension Plan, hired Schroders to manage £20 million ($39 million) in global equities, according to a news release from Schroders. The money will be placed in the Schroder QEP Global Active Value Fund, managed by the firm's quantitative equity products team. The plan had £304 million in assets as of Dec. 31, 2006, according to the company's 2007 annual report. .
FRANKFORT, Ky. Kentucky Retirement Systems hired ORG Real Property as real estate consultant, said CIO Adam Tosh. The $15.9 billion Frankfort system issued an RFP in January. In addition to ORG, the system uses Strategic Investment Solutions as an alternatives consultant. An RFP for a general consultant was issued in May.
Separately, the board committed $100 million to Blackstone Capital Partners Fund VI, a large buyout fund, and $30 million to the Tenaska Power Fund II, an energy buyout fund, at its meeting June 16. Strategic Investment Solutions assisted.
PHILADELPHIA Lincoln Financial Group hired SSgA to subadvise eight asset-allocation portfolios for its variable annuity, variable life insurance and defined contribution clients, said Laurel O'Brien, Lincoln spokeswoman.
SSgA will offer four passive cap-weighted strategies tracking the S&P 500 index and small-cap equities, international equities and bonds.
SSgA will also propose four rules-based strategies aimed at capturing the traditional value and small-capitalization premiums, covering large-cap domestic equities, small/mid cap domestic equities, non-U.S. developed market equities and emerging market equities, said Michael Dalis, managing director of SSgA's U.S. institutional subadvisory business.
PASADENA, Calif. Los Angeles County Employees Retirement Association hired Analytic Investors for a $250 million large-cap U.S. equity 130/30 strategy. The selection was made following an RFI last year.
The funding source has yet to be determined, said Lisa Mazzocco, CIO of the $40 billion association. The board also committed up to $100 million to Starwood Capital Global Hospitality Fund II, a real estate investment fund, and up to $75 million to Onex Partners III, a private equity fund.
BELLSHILL, Scotland The Manweb Group section of the Electricity Supply Pension Scheme appointed Mercer as investment consultant of the £800 million ($1.58 billion) fund, confirmed Mercer spokeswoman Mags Andersen. Manweb's parent company, Scottish Power, hired Mercer in 2007 as investment consultant for its £2 billion pension fund, also based in Bellshill.
MEDFORD, N.J. Medford Leas Retirement Community hired Diversified Investment Advisors as record keeper of its $12 million 401(k) plan, said Nina Dietrich, spokeswoman for Diversified.
HELENA, Mont. The Montana Board of Investments committed $95 million to private equity and real estate, according to recently released minutes from its May 13-14 meeting. The board committed $25 million each to private equity funds Madison Dearborn Capital VI and Performance Venture Capital II, and $10 million to Portfolio Advisors Private Equity Fund V. Madison Dearborn is a buyout fund, while the others are venture capital funds of funds. Real estate commitments were $15 million to opportunistic fund O'Connor North American Properties Fund II and $10 million each in value-added co-investments with AREFIN and Hudson Realty Capital Fund IV.
LONDON Navy, Army and Air Force Institutes Pension Fund appointed Buck Consultants as investment consultant for the £325 million ($636 million) fund, confirmed Buck spokeswoman Terri-Ann Humphreys. Further information was not available.
OKLAHOMA CITY Oklahoma Tobacco Settlement Endowment Trust Fund hired Martin Currie to run about $60 million in active international equities and rehired Post Advisory Group to handle $45 million in high-yield fixed income, said James Wilbanks, director of revenue and fiscal policy for state Treasurer Scott Meacham. International equity incumbent Philadelphia International Advisors did not rebid.
The $425 million trust oversees investments of Oklahoma's share of the national tobacco settlement. NEPC assisted with the searches.
SANTA ANA, Calif. Orange County Employees Retirement System invested an initial $25 million each in real estate core open-end funds of AEW Capital Management and Morgan Stanley Real Estate Advisors, according to Robert Kinsler, public relations analyst for the $7 billion system. At a meeting June 16, board members also approved an additional $75 million to AEW Capital by the end of the year. ING Clarion Partners and Prudential Real Estate Investors were designated as alternates if fund officials don't reach agreement with the other two firms. No RFP was issued.
TIGARD, Ore. The Oregon Investment Council, which manages the $63.4 billion Oregon Public Employees' Retirement Fund, Salem, hired Pyramis Global Advisors for a $300 million high-alpha large-cap core domestic equity portfolio, said council spokesman Ley Garnett. The funding source has not been determined, Mr. Garnett said. No RFP was issued. Consultant Strategic Investment Solutions assisted.
Separately, the council committed $100 million each to private equity funds Providence TMT Special Situations Fund and BlackRock Credit Investors II. Another $25 million is being invested in the JPMorgan Venture Capital Fund IV, a fund of funds.
SAN JUAN, Puerto Rico Employees' Retirement System of the Puerto Rico Electric Power Authority selected Northern Trust for global custody, compliance monitoring and securities-lending services, according to a Northern Trust news release. Alexis Geocaris, Northern Trust spokeswoman, could not be reached by press time. The public fund has $1.5 billion in assets and covers electric power employees.
VIENNA, Austria Raiffeisen Capital Management appointed Investec Asset Management to subadvise five global and regional equity portfolios totaling €1 billion ($1.5 billion), confirmed Investec spokeswoman Vian Sharif. The assets were previously managed by Capital International, which was terminated, Raiffeisen spokesman Stephan Meier said in an e-mail. Capital International has worked with Raiffeisen since 1995.
SAN FRANCISCO At its June 10 meeting, the board of the $16 billion San Francisco City and County Employees' Retirement System approved commitments of $40 million each to the First Reserve Fund XII, a buyout fund that will invest in energy companies, and to Five Arrows Realty Securities V fund, a private equity fund that invests in real estate operating companies.
AUSTIN, Texas The Teacher Retirement System of Texas will invest $250 million with BlackRock Inc. in a mortgage-related fund. T. Britton Harris IV, CIO of the $110 billion teachers fund, said in an e-mail that the deal offers the system the potential for outsized returns over the next three to five years. No RFP was issued.
DILI, Timor-Leste Banking and Payments Authority of Timor-Leste which oversees the country's $2.7 billion Petroleum Fund, hired JPMorgan Worldwide Securities Services as its global custodian, according to Investment & Technology newspaper. Further information was not available.
MALVERN, Pa. Vanguard Group has named Century Capital Management LLC a subadviser of the $11 billion Vanguard Explorer fund, said Vanguard spokeswoman Linda S. Wolohan. Century Capital becomes the fund's seventh subadviser, following Vanguard quantitative equity group, which oversaw 25% of the portfolio's assets as of April 30; Granahan Investment Management, with 22%; Kalmar Investment Advisers and Wellington Management Company, with 14% each; AXA Rosenberg Investment Management, with 13%; and Chartwell Investment Partners, with 9%. Vanguard Explorer has been closed to new investors since February 2006. Century Capital will initially look after some of the remaining 3% of assets held in cash, Ms. Wolohan said.