AUSCOAL Super, Warners Bay, Australia, hired Acadian Asset Management to run A$97.5 million (US$88.9 million) in managed volatility global equities, according to an Acadian news release.
“We are attracted by the managed volatility concept because we expect it will reduce the risk within our portfolio without sacrificing returns,” Bruce Watson, CEO of the A$5.2 billion fund, said in the release. He could not be reached for additional information.
Nigel Adam, Acadian spokesman, could not be reached for further information by press time.
Babcock International Group
Babcock International Group PLC, London, hired Northern Trust as global custodian for its four pension plans with a combined £2.1 billion ($3.3 billion) in assets, said Andrew Birkett, pensions manager.
“Previously, all four (pension plans) had their own custody arrangements and we wanted to bring them under one global custodian,” Mr. Birkett added.
Information on each plan's previous custodian was not available at press time.
Daiwa SB Investments hired RS Investments to manage the growth equity portion of the Tokyo-based firm's new Twin Accelerator Fund, according to an RS news release.
RS portfolio managers Jim Callinan and Allison Thacker, working with six investment analysts from the RS growth team, will oversee 40% of the $469 million fund.
Neither John Lopez, a spokesman for RS, nor officials at Daiwa could be reached for further comment.
Florida State Board
Florida State Board of Administration, Tallahassee, committed a total of $852 million to private equity and debt funds, according to Dennis D. MacKee, communications director.
The board committed $150 million to ABRY Senior Equity III, a corporate mezzanine fund, and $100 million to Varde Fund X, an opportunistic debt fund. Cambridge Associates, the board's hedge fund consultant, assisted in both.
Also, it committed $100 million to Bayview Opportunity Master Fund IIB, a residential whole mortgage fund. Townsend Group, the board's real estate consultant, assisted.
Other commitments were $100 million each for opportunistic debt funds Oaktree Capital Management Opportunities VII and Blackstone/GSO Capital Solutions; Audax Credit Opportunities, a senior loan fund; and Pantheon Global Secondary IV, a private equity fund.
In addition, it committed e40 million ($52 million) to Riverside Europe IV, a private equity fund, and $50 million to Oaktree Capital Management Opportunities VIIIB, an opportunistic debt fund.
Hamilton Lane, the board's private equity consultant, assisted in the other commitments.
The board oversees a total of $138.4 billion, including the $112.2 billion Florida Retirement System.
London Borough of Islington
London Borough of Islington Pension Fund hired real estate managers Threadneedle Asset Management and Franklin Templeton to run a combined £70 million ($109.3 million), according to Tenders Electronic Daily.
Threadneedle will manage £45 million in U.K. real estate, while Franklin Templeton will manage £25 million in global real estate.
Mercer assisted in the search, which began in July 2009.
Joana Marfoh, head of treasury and pension fund management at the £550 million fund, did not respond to requests for further information by press time.
New Mexico Public Employees
New Mexico Public Employees Retirement Association, Santa Fe, hired Metropolitan West Capital Management and Dimensional Fund Advisors to jointly run $200 million to $300 million in active small-cap value equity, said Joelle Mevi, chief investment officer at the $10.6 billion association.
The exact size of each manager's mandate has not been determined.
Funding will come from a $200 million portfolio formerly managed by Rothschild, which the association terminated in April. The remainder would come from trimming a $205 million passively managed small-cap portfolio managed by SSgA, Ms. Mevi said.
The association's board on July 29 committed $30 million each to hedge funds Claren Road and LIM Advisors, and $20 million each to venture capital fund JMI Equity Fund VII and real asset fund EnerVest Energy Institutional Fund XII.
Claren Road is a long-short credit focused hedge fund and LIM is an Asia multistrategy hedge fund.
Board members also increased commitments to four hedge funds: Diamondback Capital, by $5 million to $42 million; Ascend Capital by $5 million to $44 million; Angelo Gordon by $10 million to $46 million; and Och-Ziff by $10 million to $45 million.
The board decided to add to the funds as a result of a June rebalancing in which the board increased alternatives to 20% of total assets from 15%. Over the next six months, the board will be asked to make additional hedge fund commitments, at least on an interim basis, as a way of quickly increasing its alternatives allocation, Ms. Mevi said.
NSW Local Government
New South Wales Local Government Super, Sydney, appointed Impax Asset Management to run A$50 million (US$45.7 million) mandate in a global equity portfolio focused on sustainability, according to I&T News, Sydney.
The A$6 billion fund is looking to reduce environmental, social and governance risks in its global equities portfolio, said Craig Turnbull, chief investment officer at LGS.
The mandate, while small, is expected to have a significant impact on the portfolio's tracking error and will be monitored closely, Mr. Turnbull said.
“These guys are a specialist thematic manager. Just like we put on a tilt to emerging markets, small-cap or value equities, this is a tilt to environmental,” Mr. Turnbull said.
Impax targets companies in the alternative energy, water and waste industries that it sees as likely beneficiaries from problems caused by environmental degradation, resource scarcity and climate change.
The investment with Impax was funded from LGS' cash flow and a partial redemption of an existing mandate with Lazard.
Mr. Turnbull said sustainability factored into most of the investment decisions made by LGS.
“With all the managers that we employ, we like managers who are at least thinking about ESG risks. If they don't, we won't hire them.”
New York State Common Retirement
The $132.6 billion New York State Common Retirement Fund, Albany, made a $200 million commitment in absolute return to Rock Creek Empire Fund, a captive fund-of-funds within an emerging manager program, and a e20 million ($26 million) commitment to Gilde Buyout Fund IV.
New York State Teachers
New York State Teachers' Retirement System, Albany, hired Aberdeen Asset Management to manage up to $250 million in international equities, John Cardillo, a spokesman for the $76.5 billion system, wrote in an e-mail response to questions.
Funding will come from the “relocation of funds from our ADR portfolio,” Mr. Cardillo wrote. No managers were terminated to provide the funding.
The system also renewed the contract of BlackRock Institutional Trust, which runs $3.4 billion in enhanced index international equity, for one year starting Sept. 21, Mr. Cardillo wrote.
Other one-year contract renewals were Cohen & Steers Capital Management, $125.7 million in the preferred securities of REITs and real estate operating companies, effective Sept. 13; Prima Capital Advisors, $145.6 million in CMBS, effective Oct. 1; and T. Rowe Price, $312 million in enhanced domestic equity, effective Oct. 30.
Separately, the system also committed up to $75 million each for the Lone Star Real Estate Fund (U.S.) and Lone Star Fund VII (U.S.); up to $50 million for the Cornerstone Patriot Fund; and up to £30 million ($48 million) to the Inflexion 2010 Buyout Fund, according to information posted on the system's website.
Oregon Investment Council
Oregon Investment Council, Tigard, committed $200 million to Blackstone Capital Partners VI and $100 million to Angelo Gordon Asia Realty Fund II.
The $200 million commitment is the first made to a Blackstone fund by the council, which oversees the $51.5 billion Oregon Public Employees' Retirement Fund, Salem. Blackstone said last month it probably will raise about $13.5 billion for the fund.
Tony James, Blackstone president and COO, told the Oregon council on July 28 that his firm had agreed to a “special fee structure” for Oregon, which he subsequently will offer to other investors.
The new fund is about 40% smaller than Blackstone's most recent pool, which had $21.7 billion in commitments and was raised in 2007.
Most of Angelo Gordon fund's investments will be in China, while Japan will get about 30% and South Korea 10% to 15%, said Keith Barket, senior managing director for Angelo, Gordon.
“I've known Angelo, Gordon over the years domestically and they have a very good fundamental approach to real estate investing,” Brad Child, the council's senior investment officer for real estate, told the council.
Phoenix City Employees' Retirement System is moving 18%, or about $55 million, of the overall international equities portfolio to an SSgA ACWI World index ex-U.S. non-lending fund, Mr. Fitchet said in a telephone interview.
Funding will come from reducing two international large-cap managers — GMO, which runs $124 million in value, and Pyramis, which handles $125 million in growth. Each will be reduced to 35% of the international equities portfolio.
The remaining funding will come from trimming an international small-cap equity portfolio formerly run by AXA Rosenberg, parked in a BlackRock MSCI EAFE small-cap index fund since May. That fund will be cut to 18% of the international equities portfolio, Mr. Fitchet said.
The moves are aimed at diversifying the portfolio, he said.