London Borough of Bexley Superannuation Fund hired BlackRock to run £50 million ($79.3 million) in active global bonds, said Terry Pearce, financial resource manager for the £447 million plan.
Funding comes from terminating UBS Global Asset Management from a £134 million balanced mandate. UBS kept £84 million of the mandate to be run in U.K. equities, while the bond assets were parked with the fund's other balanced manager, Newton Investment Management, which will run £288 million after the hire.
Aon Hewitt assisted in a search that began in March.
London Borough of Camden
London Borough of Camden Pension Fund hired real estate managers CB Richard Ellis Investors and Partners Group to run a combined £75 million ($119 million), according to the £809 million fund's website.
CBRE will manage £45 million in U.K. real estate, while Partners Group will handle £30 million in overseas real estate.
Funding came from cash and by reducing the fund's equity portfolio by £30 million in part to “consolidate gains made in the equity markets,” according to the fund's website. It could not be learned which managers had their mandates reduced, but when the search began in November, Ken Bumpus, pensions officer for investments, said Legal & General Investment Management's passive U.K. equity portfolio would provide funding.
The fund's most recent asset allocation was 77% equity, 14% bonds, 5% real estate and the rest cash.
Mr. Bumpus could not be reached for further information.
Connecticut 529 plan
State of Connecticut hired Hartford Financial Services Group as provider for the first state-sponsored adviser-sold 529 plan, confirmed Timothy Benedict, a spokesman for Hartford Financial, in an interview.
The new plan, CHET Advisor, Hartford, is available through financial advisers for Connecticut residents, according to a joint news release from Hartford Financial and Connecticut State Treasurer Denise Nappier.
TIAA-CREF will continue to manage the Connecticut Higher Education Trust, a direct-sold 529 plan initiated in 1998, the news release said.
An RFP was issued in spring 2009, said Christine Shaw, director of government relations for the state treasurer's office, in an interview. She said the program, which took effect Oct. 4, operates on a seven-year contract with a three-year renewal option.
Eaton Vance hired Richard Bernstein Advisors to subadvise the new Eaton Vance Richard Bernstein Multi-Market Equity Strategy mutual fund, confirmed Eaton Vance spokeswoman Robyn Tice.
The fund, due to be launched later this week, will be the second mutual fund offered by Eaton Vance this year to be subadvised by a non-affiliated money manager. The first, the Eaton Vance Commodity Strategy Fund, subadvised by Armored Wolf, was launched in April.
Richard Bernstein Advisors, a boutique equity manager created by Richard Bernstein, former chief investment strategist at Merrill Lynch, has $25 million in assets under management, according to its most recent SEC filing.
Henderson Global Investors
Henderson Global Investors hired DB Advisors to subadvise the £3.3 billion ($5.2 billion) Henderson Liquid Assets Fund, an institutional money market fund, effective Oct. 12, according to Henderson spokesman Richard Acworth.
Henderson had managed the assets internally and will continue to run other money market strategies, including the Henderson Cash Fund and the Henderson Money Market Unit Trust, which are variable net-asset-value funds. In comparison, the Henderson Liquid Assets Fund provides a constant net asset value with a seven-day LIBOR return.
“The appointment of DB Advisors follows a review by Henderson of its cash investment business in light of potential changes to the way that the money market industry is regulated,” according to a news release.
Regulators in the U.S. and Europe have either proposed or implemented significant changes affecting money market funds, particularly those with a constant NAV target.
Illinois State Board
Illinois State Board of Investment, Chicago, hired Garcia Hamilton & Associates to manage $50 million in active intermediate government/credit fixed income, said William R. Atwood, executive director.
Funding will come from taking $25 million each from active intermediate-duration fixed-income managers LM Capital Group and Chicago Equity Partners, leaving the managers with $382 million and $380 million, respectively.
An RFP for a minority-owned manager to run the portfolio was issued in August, Mr. Atwood said. Consultant Marquette Associates assisted.
The board oversees $10 billion in assets.
Massachusetts Pension Reserves Investment Management Board, Boston, hired core real estate manager AEW Capital Management to run $400 million.
Just over $225 million of that total comes from eight of the 21 properties that RREEF had been managing for PRIM when the board terminated that firm's $678 million mandate in June, citing continued portfolio manager turnover. The remaining $175 million in cash commitments are for future investments by AEW, said Timothy V. Schlitzer, the $45.5 billion system's senior investment officer for real estate and timber.
The remaining 13 properties managed by RREEF will be allocated to the board's four current core real estate managers — Invesco Realty Advisors, J.P. Morgan Investment Management, LaSalle Investment Management and TA Associates Realty — with each getting between two and four. The amount of money allocated to each will depend on the number of properties each receives.
Separately, the board approved $298 million in new private equity investments: a $150 million commitment to GTCR X, €60 million ($83 million) to Montagu IV; $50 million to Insight Venture Partners VII; and $15 million to Insight Venture Partners Coinvestment Fund II.
NTUC Income, a Singapore-based insurance company, hired Northern Trust as global custodian, John O'Connell, Northern Trust spokesman, said in a telephone interview.
Assets under custody were not disclosed.
“NTUC Income has undergone a major transformation over the last three years,” Jonathan Chai, NTUC Income's senior vice president and head of finance, was quoted in a Northern Trust news release. “Part of this transformation entails putting in place systems, processes and practices that are aligned with the standards of global financial institutions. Our tie-up with Northern Trust will strengthen our risk management infrastructure, help us adhere to the highest standards of corporate governance and manage our future growth more effectively.”
NTUC had about $23 billion in assets under management as of Dec. 31.
Efforts to reach Mr. Chai or other NTUC officials for further details, including who the previous global custodian was, were unsuccessful.
Nykredit Asset Management
Nykredit Asset Management hired Investec Asset Management as subadviser of a new emerging markets debt fund launched earlier this month with about €250 million ($348 million) in assets, Investec spokeswoman Vian Sharif said.
The fund is available to retail and institutional investors and invests in locally denominated emerging markets debt and currencies. Investec manages about $3 billion in such strategies globally.
Oregon Investment Council
Oregon Investment Council, Tigard, which manages the $51 billion Oregon Public Employees Retirement Fund, Salem, hired BlackRock to run $119 million in its MSCI All Country World Index fund.
Funding came from terminating AllianceBernstein, which ran the assets in a similar-style fund, according to James Sinks, spokesman for the council, and a staff memo to the council.
AllianceBernstein was also terminated from running $305 million in its Global Research strategy. The assets will be used as a source of cash to meet future retirement fund liquidity needs.
The council terminated the firm because of staff turnover at the manager, according to Mr. Sinks.
The council kept AllianceBernstein to run $770 million in the firm's Global Strategic Value strategy. However, in the next three to six months, the council plans to review its value equity manager structure, including a search to determine whether to replace AllianceBernstein with another value equity manager. No RFP will be issued, Mr. Sinks stated in an e-mailed response to questions.
Separately, the council committed $100 million each to Sheridan Production Partners II-B and Apollo Financial Credit Investment I subject to successful contract negotiations, said Mr. Sinks.
Sheridan is a joint venture between private equity firm Warburg Pincus and Lisa Stewart, CEO of Sheridan, according to a staff memo to the council.
The council committed $100 million to an earlier partnership in April 2007. The general partner is committing $50 million, which is about 4% of the fund. It has a $1.3 billion target with a $1.75 billion hard cap, according to a memo from PCG Asset Management, one of the council's private equity consultants.
The Apollo fund is a special purpose investment fund set up for a small group of institutional investors to buy a portfolio of life settlement policies from an unnamed European bank, according to agenda materials. Apollo"s plan is to buy the portfolio at an “attractive distressed value,” fund the insurance premiums in part with a credit facility, and eventually see positive cash flow after a period of underperformance. PCG assisted.
Teamsters Central States
Central States, Southeast & Southwest Areas Pension Fund, Rosemont, Ill., hired Mellon Capital Management to run $926 million in an MSCI EAFE index fund, according to a filing in U.S. District Court in Chicago.
The $18.5 billion fund also added $715 million to an existing S&P 500 index fund managed by Mellon, increasing it to $4.6 billion, according to the filing.
In addition, $5.54 billion managed by Goldman Sachs Asset Management was moved to Northern Trust Global Advisors, raising its assignment to about $9.2 billion. Goldman Sachs resigned as named fiduciary of Central States in June, leaving Northern Trust as the sole named fiduciary, as previously reported by Pensions & Investments.
As named fiduciaries, Goldman Sachs and Northern have discretion to allocate funds they oversee to managers they select, although they cannot manage money themselves for the fund.
Under the new allocation, Northern Trust will oversee 50% of the assets in a diversified allocation and Mellon will manage the rest, split up with 25% in the S&P 500 index fund, 20% in an existing Barclays Aggregate Bond index fund, and 5% in the new MSCI EAFE fund.
Under its previous allocation, GSAM and NTGA each oversaw 30% of the fund's assets in diversified allocations, while Mellon Capital managed 20% in the S&P 500 fund and 20% in the Barclays Aggregate Bond fund.
Information was not available on how Northern Trust allocates the portion of the Central States funds under its control or how it handled the proceeds from Goldman Sachs in terms of terminating or retaining the investment advisers managing those funds.
U.S. District Court Judge Milton I. Shadur on Sept. 21 approved the Central States changes. The fund operates under federal court supervision through a consent decree dating to 1978 with the Department of Labor overseeing the management of the fund, which was the target of corruption investigations.
Mark Angerame, Central States CFO, couldn't be reached for comment.
John O'Connell, Northern Trust spokesman, was unable to respond immediately with any details.
UBS Global Asset Management
UBS Global Asset Management hired Standard Life Investments to run $117 million in its multiasset global absolute-return portfolio, part of its PACE Alternative Strategies Investments retail fund, a UBS spokesman confirmed.
SLI is an addition to the manager roster; no manager was terminated, the spokesman said.
Vanguard Group hired Wellington Management and Delaware Investments as subadvisers on the $3.7 billion Vanguard U.S. Growth Fund.
The managers will each subadvise one-third of the fund's assets, according to a Vanguard news release. William Blair manages the remaining third.
AllianceBernstein, which had subadvised two-thirds of the fund, was terminated due to performance. In the news release, Bill McNabb, Vanguard's CEO, noted that the U.S. Growth Fund — with a bottom-quartile showing in the Lipper Large-Cap Growth Fund universe for the 10 years through June — was one of only five of Vanguard's 22 active equity offerings that haven't outperformed their respective benchmarks over that period.
Wellington subadvises on a number of Vanguard offerings, but the U.S. Growth Fund is Delaware Investments' first subadviser assignment with Vanguard. Vanguard has 29 money management subadvisers.
AllianceBernstein was also terminated as subadviser of the fund's $235 million annuity clone, said spokeswoman Rebecca Katz.
AllianceBernstein remains a subadviser for Vanguard, managing portions of the firm's U.S., international and global value equity offerings. AllianceBernstein remains “deeply committed to our valued relationship with Vanguard ... and we'll work to further enhance our partnership with them,” said spokesman John Meyers.