University of Alabama System, Tuscaloosa, hired VALIC as a bundled provider for the system's 403(b) plan, Linda Skolnick, a spokeswoman for VALIC confirmed.
VALIC will join TIAA-CREF, previously the plan's lone provider, Ms. Skolnick said.
The asset size of the plan could not be learned by press time.
Abby Cohen, a spokeswoman for TIAA-CREF, said in an interview: “We respect the University of Alabama's decision, and we are pleased to continue to help their employees reach a safe and secure retirement.”
Ms. Cohen said TIAA-CREF and VALIC continue to be providers on the UAS tax-deferred annuity plan.
Ms. Skolnick referred other questions to Jon Garner, the system's human resources administrator, who was unavailable for comment by press time.
Bridgewater gets nod from Arizona Public for global equities
Arizona Public Safety Personnel Retirement System, Phoenix, hired Bridgewater Associates to manage $120 million in a global tactical asset allocation strategy, confirmed James Hacking, administrator of the $6.1 billion system.
The mandate, which will be part of the system's global equity portfolio, gives Bridgewater the flexibility of moving between domestic and international equities.
“The whole strategy is designed to increase diversity and add value over and above market returns,” he said.
Funding comes from internally managed assets; no managers were terminated.
The system also committed up to $35 million to Sterling Group Partners III, a private equity fund; up to $25 million to Alcion Real Estate Partners Master Fund II, a real estate private equity firm; and a $50 million follow-on commitment to the existing $285 million real estate mandate run by manager Desert Troon.
As of Dec. 31, about 50% of system assets were in equities; 9.5% in real estate and almost 7% in private equity, Mr. Hacking said.
The manager selections were based on recommendations from internal investment staff and the system's various consultants, Mr. Hacking said.
Australian fund hires Walter Scott for international equities
The A$1 billion (US$905 million) AvSuper, Canberra, Australia, hired Walter Scott to manage about 20% of its A$250 million international equities portfolio in global equities, according to Investment & Technology newspaper.
The fund replaces AllianceBernstein, which was terminated in early 2009, said Michelle Griffiths, CEO of AvSuper.
Walter Scott joins MFS, Wellington, AQR and GMO in AvSuper's international equities roster. All the mandates are active. Consultant JANA assisted in the search.
Ms. Griffiths said AvSuper was impressed by Walter Scott's “concentrated style.” She said the fund was also developing a "conservative growth' investment option for members, which would allocate 30% of members' savings in growth assets, and the remainder in defensive holdings.
“We experienced increasing demand from members who wanted to move from the stable growth option, but not to cash,” she said.
The fund also reappointed NAB Asset Servicing as its custodian after a review by consultant Brett Elvish of Financial Viewpoint, according to Investment & Technology.
NAB Asset Servicing has been the Canberra-based fund's custodian for about 12 years.
Baltimore picks Great-West for record keeping
City of Baltimore 457 Deferred Compensation Plan hired Great-West Retirement Services to provide record-keeping and administrative services for the $230 million plan, confirmed Edward J. Gallagher, city finance director and chairman of the city's deferred compensation committee.
Great-West replaces ING Group. “We weren't dissatisfied with ING,” Mr. Gallagher said. “Great-West won the bid.”
Joseph Loparco, spokesman for ING, said in an e-mail: “We've appreciated the City of Baltimore's business and respect their decision. We hope to serve the city and its employees again in the future.”
Canada fund hires CIBC Mellon as global custodian
Canada Council for the Arts, Toronto, hired CIBC Mellon Global Securities Services as global custodian for the council's C$229.1 million (US$216.5 million) in endowments, special funds and Killam Investment Funds, confirmed Carole Boileau, the council's head of finance.
CIBC Mellon will also provide accounting services
The council's endowments and special funds were valued at C$183 million and its Killam Investment Funds were valued at C$47 million, both as of March 31, according to the council's annual report.
Ms. Boileau said the custodian contract is put out to bid every five years. Previous custodian Northern Trust was invited to rebid, she said.
CPP commits to VC and PE fund of funds
Canada Pension Plan Investment Board, Toronto, has committed C$400 million (US$377 million) to Northleaf Capital Partners, a Canadian venture capital and private equity fund of funds, according to a news release from the C$123.8 billion fund.
Northleaf already runs C$400 million in smaller Canadian venture capital and private equity firms for the board.
The additional investment will focus on Canadian small and midmarket buyout, venture capital and growth equity funds that aim to raise C$750 million or less in capital commitments, according to the news release.
“Expanding our investment in a Canadian fund-of-funds is a highly effective way for us to access small to middle-market Canadian private equity transactions and top Canadian venture capital managers. We believe that these investments will generate attractive risk-adjusted returns over time,” Mark Wiseman, senior vice president of private investments for the CPP Investment Board, said in the release.
CPPIB spokeswoman May Chong could not be reached for comment.
Putnam hired by Cinemark for 401(k)
Cinemark Holdings Inc., Plano, Texas, hired Putnam Investments as bundled provider for its $37 million 401(k) plan, confirmed Putnam spokesman Jon Goldstein.
Cinemark spokesman James Meredith could not be reached by press time for further details.
FRR goes with Goldman, Russell for transitions
The €32 billion ($44 billion) Fonds de Reserve pour les Retraites, Paris, hired Goldman Sachs Group and Russell Implementation Services as transition managers, according to a news release from FRR.
Both firms will “negotiate financial instruments on behalf of FRR, on a centralized basis, with the aim of building portfolios under the best possible cost and confidentiality conditions,” according to the release. A fund spokeswoman could not be reached by press time for further information.
The RFP was issued in May 2009.
Aussie firm hires Five Oceans for Chindia fund
Garnaut Private Client Advisers, Melbourne, Australia, appointed global equities boutique Five Oceans to run its AV Chindia Fund, targeting companies within and outside the Asian region that are positioned to profit from the economic growth of China and India, according to Investment & Technology newspaper.
The initial funding was A$50 million (US$45.2 million); the total mandate is expected to be A$150 million.
“We're quite bullish on the technology story coming out of Asia, particularly Taiwan, and the rise of the Asian consumer, especially in China. We're tending to be less focused on the exports, given that the rest of the world is problematic,” said Five Oceans' CEO Ross Youngman.
GE picks Fidelity as provider for its 401(k)
General Electric Co., Stamford, Conn., hired Fidelity Investments to provide record-keeping and administration services for the company's Savings & Security 401(k) plan, confirmed Fidelity spokeswoman Jenny Engle.
A GE spokesman could not be reached for comment.
Record keeping and administration for the plan had been handled internally, Ms. Engle said.
Hancock switches subadvisers
John Hancock Life Insurance hired Templeton Investment Counsel as subadviser of the overseas equity portfolio option available to investors in its variable life insurance contracts and Jennison Associates as subadviser of its all-cap growth portfolio, confirmed spokeswoman Beth McGoldrick.
Templeton replaces Capital Guardian Trust on the overseas equity option, while Jennison replaces Invesco on the all-cap portfolio.
The changes were revealed in a recent SEC filing.
Ms. McGoldrick would not say why the changes were made and couldn't immediately provide details on the asset size of the portfolios.
Capital Guardian spokesman Chuck Freadhoff declined to comment. Invesco spokesman Bill Hensel couldn't immediately be reached for comment.
Indiana teachers goes with Aksia for hedge fund consulting
Indiana State Teachers' Retirement Fund, Indianapolis, hired Aksia as its hedge fund consultant, according to Tim Walsh, chief investment officer.
The Indiana Teachers' $4.6 billion defined benefit fund has a 4% policy allocation to absolute-return strategies. The system oversees a total of $7.9 billion.
Further details were unavailable.
KPERS commits to real estate fund
Kansas Public Employees Retirement System, Topeka, committed $100 million to LaSalle Property Fund, a new core real estate fund by Jones Lang LaSalle, confirmed Robert “Vince” Smith, chief investment officer of the $11.8 billion system.
Mr. Smith said KPERS is the first investor in the fund, which aims to raise $1 billion to $1.5 billion.
The system is underweight real estate with an actual allocation of 5.7% and a 10% target, he said. Core real estate is currently at 2.5% of assets with a 5% target.
“The timing of the (real estate) recovery is still uncertain, but we know we're somewhere near the bottom,” Mr. Smith said.
The system also hired Molpus Woodlands Group to manage $60 million in timber, confirmed Mr. Smith. The investment is the system's first in timber and is part of its 14% real-return target allocation, Mr. Smith said. Actual real-return investments totaled 12% of assets as of Dec. 31.
Townsend Group, the system's real estate, timber and infrastructure consultant, assisted.
LACERS puts up to $20 million to private equity
Los Angeles City Employees' Retirement System committed up to $20 million to Enhanced Equity Fund II, according to a notice on the agenda for the board's Jan. 26 meeting.
Hamilton Lane, the $9.69 billion system's private equity consultant, has discretion to make capital commitments as long as staff concurs and the commitment fits within the system's investment guidelines.
Hamilton Lane gets a callback from Mass PRIM
Massachusetts Pension Reserves Investment Management Board, Boston, rehired Hamilton Lane as the $42.7 billion fund's private equity consultant for a new three-year contract effective through February 2013.
The RFP was issued Oct. 19.
Metal Technologies to go all LDI
Metal Technologies Inc., Auburn, Ind., hired Sage Advisory Services to manage the company's $17.5 million in defined benefit pension plan assets in a liability-driven investment strategy, according to Deborah Draeger, a marketing associate with Sage.
Greg Riker, Metal Technologies' CFO, confirmed the mandate, while referring questions about the details to Sage.
Michigan Muni picks emerging manager
Michigan Municipal Employees' Retirement System, Lansing, hired AMBS Investment Counsel to manage $25 million in active domestic large-cap value equities in the $6 billion fund's ongoing emerging managers program.
Between $250 million and $300 million has been set aside for the program, said Jeb Burns, MERS' chief investment officer. About $100 million has been allocated among six managers, including AMBS, Mr. Burns said, noting that the program is designed over time to “graduate” emerging managers into running regular mandates.
Mr. Burns said MERS' investment staff is working on a full risk analysis of the portfolio, which precedes the plan's regular five-year asset allocation review.
The results of the review will be presented to MERS' board in July. Mr. Burns said he expects changes will be made to the portfolio, likely including consolidation of asset classes.
New York fund commits $446.3 million to managers
New York State Common Retirement Fund, Albany, committed a total of $446.3 million to money managers in December, according to a monthly report from State Comptroller Thomas P. DiNapoli, sole trustee of the $126 billion fund.
The retirement fund made four private equity commitments: $25 million to Bunker Hill Capital II and $30 million to the Relativity Fund. Both commitments are through the Pioneer Partnership Fund, part of the state fund's emerging manager program. The Common Retirement Fund also made follow-on commitments to SAIF Partners IV and Clearlake Capital Partners II, of $100 million and $5 million, respectively. The Clearlake transaction also was through the emerging manager program.
Also in December, the Common Retirement Fund committed $125 million to Pennant Windward Fund, an equity long-short fund, and $100 million to the Invesco Mortgage Feeder Funds. It also made a $50 million follow-on commitment to the Oaktree PPIP Private Fund.
The retirement fund also made three transactions in its real estate portfolio totaling $11.3 million for affordable housing projects in Buffalo, N.Y.; Lysander, N.Y.; and Ithaca, N.Y.
N.Y. State Teachers makes PE commitments
New York State Teachers' Retirement System, Albany, authorized private equity investments of up to $65 million in the Sterling Group Partners III fund and up to $25 million in the Wynnchurch Capital Partners III fund, confirmed John Cardillo, spokesman for the $80.7 billion fund.
Both commitments are pending due diligence, Mr. Cardillo said in an e-mail response to questions.
StepStone, the system's private equity consultant, assisted.
DIversified gets hired by hospital in North Carolina
North Carolina Baptist Hospital, Winston-Salem, N.C., hired Diversified Investment Advisors as a bundled provider for the hospital's 403(b) and 457(b) retirement plans totaling $208 million, confirmed Wendy Daniels, a spokeswoman for Diversified.
Marc Sears, director of benefits for North Carolina Baptist Hospital, did not return a call seeking further details.
Aussie government fund moves small-cap mandate to Schroder
The A$5 billion (US$4.7 billion) NSW Local Government Superannuation Scheme, Sydney, moved its A$50 million international small-caps mandate to Schroder Investment Management, from Chifley Financial Services, the services provider it partly owns, according to Investment & Technology newspaper.
Schroder was chosen to replace Chifley because of its “good track record and commitment to sustainability principles,” said Peter Lambert, CEO of the fund.
Oregon commits to Lewis Sanders' new fund
Oregon Investment Council, Tigard, which manages the $51.5 billion Oregon Public Employees Retirement Fund, Salem, committed $200 million to Sanders Capital Value Fund, a growth alternative investment fund, and agreed to invest $100 million in a customized secondary private equity program managed by its private equity consultant, PCG Asset Management, said council spokesman James Sinks.
The Sanders fund is the first from the new firm started by Lewis Sanders, former chairman and CEO of AllianceBernstein. In July 2008, the council had committed $200 million in the AllianceBernstein Deep Value Fund, which was to be managed by Mr. Sanders, but the fund was dissolved after Mr. Sanders resigned from AllianceBernstein in December 2008.
The council decided to set aside $100 million to buy private equity interests on the secondary market, only if the right opportunities are offered, Mr. Sinks said.
Sankaty gets commitment from Penn. school employees fund
Pennsylvania Public School Employees' Retirement System, Harrisburg, committed up to $500 million to Sankaty Advisors for a loan managed account, according to minutes from the $45.7 billion system's board meeting last month.
Calls to spokeswoman Evelyn Tatkovski were not returned by press time.
