Arizona Public Safety Personnel Retirement System, Phoenix, committed up to $125 million to alternatives managers.
The $6 billion retirement system committed up to $75 million to hedge funds-of-funds manager GAM USA, a move aimed at increasing its portable alpha strategy, confirmed administrator James Hacking.
He said the investment would help balance the system's equity exposure, which is largely indexed.
“We've got to add alpha,” Mr. Hacking said in a telephone interview. “We don't want all the eggs in one basket, so we're looking at different types of portable alpha strategies.”
Also at its March 31 board meeting, the system approved an investment of up to $20 million in DFJ Mercury Fund II, an early stage venture capital fund that focuses on companies in the Midwest, Mr. Hacking said. “We liked this one because it furthers our diversification in the private equity space.”
Another investment of up to $20 million was awarded to Hawker Capital Harrier Master Fund, a commodity-focused fund.
The fund also approved adding $10 million to Millennium Technology Value Partners II, which specializes in secondary direct investments in venture-backed technology companies. The fund made an initial investment of $20 million to the fund in February.
All the commitments are subject to due diligence and execution of legal documents, Mr. Hacking said.
Arkansas Teachers commits to RE, PE, EM
Arkansas Teachers Retirement System, Little Rock, committed a total of $190 million to investments in real estate, private equity and debt and emerging markets, said George Hopkins, executive director of the $10.2 billion fund.
The fund added $50 million each to its allocations to two real estate funds — UBS Trumbull Property Fund, which already had $109 million from Arkansas Teachers, and J.P. Morgan Strategic Property Fund, which had $94 million.
Those investments were recommended by the fund's general consultant, Ennis Knupp, and by fund staffers, Mr. Hopkins said.
Arkansas Teachers also made the following new commitments:
• up to $40 million to the Mason Wells Buyout Fund III, which acquires small and middle-market companies in the Midwest;
• up to $25 million in the Audax Mezzanine Fund III, a private debt fund; and
• up to $25 million to the Franklin Park International Fund 2010, an emerging markets private equity fund of funds. Franklin Park, the system's private equity consultant, is providing the system access to the fund at its cost without management fees, Mr. Hopkins said.
AustralianSuper rebalances core property portfolio
AustralianSuper, Melbourne, committed A$500 million (US$466 million) to QIC Property Fund, according to a news release from the retirement fund.
The investment is part of a rebalancing of the retirement fund's core property portfolio and increases its allocation in the Australian retail market, Mark Delaney, deputy CEO and chief investment officer at AustralianSuper, said in a news release. The investment will represent 15.2% of the plan's total property investments.
AustralianSuper has more than A$30 billion in assets, according to the fund's website.
Matthew Smith, an AustralianSuper spokesman, could not be reached by press time for further details.
Welsh fund hires Schroder, Partners Group
Carmarthenshire County Council Dyfed Pension Fund, Carmarthen, Wales, hired Schroder Investment Management and Partners Group to run a combined £90 million ($138 million) in pan-European real estate, according to European public procurement website Tenders Electronic Daily.
The £889 million fund began the search in May 2009.
Hymans Robertson assisted.
Anthony Parnell, treasury and pensions investment manager, could not be reached for further details.
Eaton Vance picks subadviser for commodities-based mutual fund
Eaton Vance Management hired Armored Wolf as subadviser of a new commodities-focused mutual fund.
The new offering is Eaton Vance's first fixed-income fund to be subadvised by a firm not affiliated with the manager, said Robyn Tice, Eaton Vance spokeswoman.
The fund, designed to offer investors protection in an inflationary environment, seeks “total return primarily through exposure to commodities-related investments backed by long and short positions in fixed-income securities,” including global inflation-linked securities and emerging markets bonds, according to an Eaton Vance news release.
Iowa Municipal Fire & Police goes with Dimensional
Iowa Municipal Fire & Police Retirement System, West Des Moines, hired Dimensional Fund Advisors to manage $5 million to $10 million in the system's first active emerging markets equities portfolio, pending contract negotiations, said Dennis L. Jacobs, executive director.
The move was a result of the $1.6 billion system's practice of evaluating other strategies of existing managers, Mr. Jacobs said. DFA manages $68 million in active U.S. small-cap equity for the system.
Funding will come from cash.
Summit Strategies, the system's investment consultant, assisted.
Loomis Sayles get the nod from Kansas Public Employees
Kansas Public Employees Retirement System, Topeka, hired Loomis Sayles to run $200 million in domestic high-yield fixed income, confirmed Robert “Vince” Smith, chief investment officer of the $12 billion system.
The new strategy will be funded from reducing the system's domestic equities, Mr. Smith said in a telephone interview. He said the mandate is likely to be expanded over the next few months.
Loomis Sayles also runs about $400 million for KPERS in medium-grade fixed income, Mr. Smith said.
He said the KPERS board approved the strategy in March.
ING to keep records for Kentucky Public DC authority
Kentucky Public Employees' Deferred Compensation Authority, Frankfort, hired ING U.S. Retirement Services as record keeper for the $1.6 billion supplemental retirement savings program, confirmed Robert Brown, executive director.
Nationwide Financial Services had been third-party administrator for five years, a three-year contract with two one-year extensions, Mr. Brown said in a telephone interview. The system was required by law to put the contract out for bid after the two one-year extensions. Nationwide was allowed to rebid.
ING will also provide communication and marketing services, according to an ING news release.
The authority oversees a $965.9 million 401(k) plan, a $632.5 million 457 plan and a $6.7 million IRA plan.
Neptune, Threadneedle, Schroder, get the global equity call
Lincolnshire County Council Pension Fund, Lincoln, England, hired Neptune Investment Management, Threadneedle Asset Management and Schroder Investment Management as active global equity managers, according to according to public procurement website Tenders Electronic Daily. The £1 billion ($1.53 billion) fund began a search in August for at least one global equity manager to run a total of £200 million. JLT assisted.
Ms. Ray was out of the office and unavailable for further information.
BNY Mellong takes Ohio State custody mandate from State Street
Ohio State University, Columbus, hired BNY Mellon Asset Servicing as global custodian for the university's long-term investment pool, which includes its $1.9 billion endowment, confirmed Jonathan Hook, vice president and CIO of the university.
BNY Mellon replaces State Street Bank, which served as custodian for more than 10 years, Mr. Hook said.
“It had been a long time and (the contract) had not been looked at,” Mr. Hook said.
BNY Mellon also will provide performance and risk analytics services and administrative support for the university's private equity program, according to a BNY Mellon news release.
Oregon Council OKs Sageview investment
Oregon Investment Council, Tigard, which manages the $51.5 billion Oregon Public Employees' Retirement Fund, Salem, gave final approval for $100 million to Sageview Capital's Community Bancorp LLC, said James Sinks, spokesman.
The council approved the move at its Feb. 24 meeting but didn't make a commitment until April 8 while council officials negotiated more favorable deal terms, Mr. Sinks said. He declined to provide details on the improved terms.
Sageview is raising capital to fund Community Bancorp, a bank holding company formed to buy the assets and liabilities of failed banks and thrifts from the Federal Deposit Insurance Corp. It hopes to raise $1 billion from state pension funds and similar institutions that will then own stakes in the banks.
Oregon's commitment is contingent on Community Bancorp raising a minimum of $500 million. Under the original proposal, Sageview would earn a structured fee of 1% of total commitments per year, in consideration for serving as structuring adviser. Community Bancorp would pay Sageview 3% of aggregate commitments raised per year, according to a memo by Jay Fewel, senior private equity investment officer for the council.
Perpetual hires Ramius as HF subadviser
Perpetual Investment Management hired Ramius Alternative Solutions as a hedge fund subadviser within the Australian company's multimanager investment group.
Ramius will manage a combined US$125 million in two new customized hedge funds of funds that will serve as subcomponents of the existing Perpetual Defensive Alternatives and the Perpetual Growth Alternatives funds, confirmed Chris Kittredge, a Ramius spokesman. Both manager-of-managers funds invest in a range of alternatives, including private equity, private real estate, infrastructure, specialist credit and hedge funds.
“We believe that partnering with Ramius can create significant benefits and opportunities for our alternative investments funds to meet the investment objectives of our clients,” said Damien Webb, head of Perpetual's multimanager business, in a joint news release with Ramius.
San Bernardino looks to Europe for buyouts
The $5.1 billion San Bernardino County (Calif.) Employees' Retirement Association committed €25 million ($33.69 million) to Standard Life's European Strategic Partners 2008, a European buyout fund of funds.
Eagle replaces OFI for active domestic small-cap growth stocks in Santa Barbara
Santa Barbara County (Calif.) Employees' Retirement System hired Eagle Asset Management to manage $40 million in active domestic small-cap growth equities.
Eagle replaces OFI Institutional Asset Management, which was terminated by the $1.7 billion system after the firm's small-cap growth team, which was responsible for the association's portfolio, left to join AlphaOne Capital Partners.
The RFI was issued in the third quarter.
SEC hires Jennison, Income Resaerch as subadvisers
SEI Institutional Investments Trust hired Jennison Associates as a subadviser on SEI's core fixed-income fund and Income Research & Management as a subadviser on its long-duration fund, according to an SEC filing.
Jennison joins J.P. Morgan Asset Management, Metropolitan West Asset Management, Wells Capital Management and Western Asset Management as subadvisers of the core fixed-income fund. Income Research & Management joins Jennison and Metropolitan West as subadvisers of the long-duration fund.
SEI spokeswoman Dana Grosser said her company doesn't provide details about the size of the funds or the portion of each fund overseen by specific subadvisers.
Theresa Miller, a spokeswoman for Jennison parent Prudential Financial, declined to comment on client-related matters. An IR&M spokeswoman wasn't immediately available for comment.
Tennessee Consolidated considering property investments
Tennessee Consolidated Retirement System, Nashville, is considering committing $100 million each to the J.P. Morgan Strategic Property Fund and the UBS Trumbull Property Fund, according to a report prepared for pension board trustees cited by Bloomberg.
Townsend Group, the $29 billion system's real estate consultant, is recommending the commitments.
The system wants to invest $1 billion in real estate over the next five years, according to the report.
The J.P. Morgan fund is estimated to return a dividend of 4.25% after fees, and the UBS fund is expected to yield 4%. The gross asset value of the J.P. Morgan fund was $14.8 billion and the UBS fund, $9.7 billion, according to the Tennessee report.
Kris Kagel, a spokesman for UBS, and Jacqueline Meere of J.P. Morgan both declined to comment.
Vontobel goes with Northern Trust as global custodian for new fund
Vontobel Asset Management hired Northern Trust as global custodian and administration services provider for a new Luxembourg-based emerging markets equity institutional fund Vontobel launched April 13 for institutional investors in Europe and Asia, confirmed John O'Connell, Northern Trust spokesman.
Northern Trust already handles “non-portfolio management-related investment operations” for Vontobel, including ”trade processing and settlement, reconciliation, portfolio accounting, client valuations and reporting, foreign exchange and other aspects of post-trade execution support,” according to a news release.
Peter Newell, managing director and senior portfolio manager with Vontobel, couldn't immediately be reached for comment.
West Sussex fund also picks Northern Trust for custody
West Sussex County Council Pension Fund, Chichester, England, hired Northern Trust as global custodian, said Rachel Wood, pension fund investment strategist for the £1.5 billion ($2.3 billion) pension fund.
Northern replaced State Street Corp., whose contract expired.
The fund has 65% in equities, 20% in fixed income, 10% in real estate and 5% in private equity. The fund's next asset allocation review is expected to begin in about a year.