AT&T Inc., Dallas, hired Fidelity Investments as sole provider of administration and record-keeping services for the company's defined benefit and defined contribution plans, confirmed Jeffrey Lagarce, executive vice president of sales and relationship management for Fidelity's workplace services business.
Fidelity already was providing administration and record-keeping services for AT&T's 343,000 DC plan participants, as well as roughly 420,000 defined benefit participants, but over the past year the company conducted a search for a single provider to cover those participants and an additional 250,000 associated with companies acquired in the past five years, Mr. Lagarce said. He said the combined $80 billion AT&T retirement plan account, with roughly 1 million participants, will be Fidelity's largest.
Fidelity spokesman Michael Shamrell declined to identify the firms being replaced.
In a news release, Marty Webb, AT&T's vice president-benefits, said “AT&T's leadership has determined that a single provider to meet the retirement needs of our employees and retirees is the best strategy for our company,” and Fidelity's experience with complex plans made it the right choice. Efforts to contact Mr. Webb for further comment were unsuccessful.
Italy's Banca Mediolanum hired State Street Corp. as its global custodian, according to a news release from State Street.
The bank has about e43 billion ($60 billion) in assets.
Banca Mediolanum spokesman Roberto Scippa could not be reached for information about the bank's previous custodian.
LaSalle Investment Management
LaSalle Investment Management hired State Street Corp. to provide fund administration for LaSalle Property Fund, its new open-end real estate fund, said Allan Marques, CFO of the new fund.
This is the first time LaSalle has hired an outside service provider for its fund because the majority of LaSalle's real estate funds are closed-end, he said.
State Street's Alternative Investment Solutions group will provide administration and transfer agency services for the LaSalle Property Fund.
Los Angeles Fire & Police
Los Angeles Fire & Police Pension System committed $25 million each to Bertram Growth Capital II, Energy Capital Partners II and Institutional Venture Partners XIII.
The $13.2 billion system also committed $20 million to Insight Venture Partners Co-Investment Fund II, according to a quarterly private equity report to the system's board.
Bertram Growth is a buyout fund that invests primarily in industrial, manufacturing, business services and health-care businesses in North America. Energy Capital is a North American energy infrastructure buyout fund, Institutional Venture is an information technology venture capital fund with a focus on Silicon Valley companies; and Insight Venture is a venture capital fund that would invest in growth-stage software, software-enabled services and Internet companies.
National Trust Retirement
National Trust Retirement and Death Benefits Scheme, Swindon, England, hired Punter Southall as its £12 million ($18.8 million) defined contribution plan's first consultant, confirmed Nicholas Clapp, client relations manager at Punter Southall.
The fund began a shortlist search in April. No consultant assisted.
The scheme needed a consultant to help it prepare for auto-enrollment requirements expected in 2012, as the National Trust's employee roster nearly doubles in the summer with temporary workers, Mr. Clapp said.
Judith Alborough, assistant director of payroll and pensions at the National Trust, could not be reached by press time for further information.
Network Rail Pension Schemes, London, hired P-Solve as fiduciary manager for its £20 million ($32 million) career-average defined benefit plan and as consultant for its £100 million defined contribution plan, confirmed Rebecca Broughton, a director at P-Solve.
The defined benefit plan was created in 2008; P-Solve will be its first fiduciary manager, Ms. Broughton said.
Legal & General Investment Management runs all of the DB plan's assets in various funds, although P-Solve will control asset allocation within limits set by the plan's trustees and advise on manager selection. LGIM will likely continue to be the fund's only manager, Ms. Broughton said.
P-Solve is also advising Network Rail on a restructuring of its DC investment options, including a customized lifestyle fund. P-Solve replaces Mercer as DC consultant. Damian Stancombe, also a director at P-Solve, said the custom lifestyle option would employ dynamic asset allocation and derisk gradually over many stages before retirement.
Chris Hannon, head of pensions for Network Rail, was out of the office and could not be reached for further information.
Non-Government Schools Superannuation Fund, Adelaide, Australia, allocated A$30 million (US$29.6 million) to Colonial First State Global Asset Management's Global Resources Fund, according to Investment magazine, Sydney.
NGS Chief Investment Officer Tim Hughes said the resources fund was an indirect way of accessing emerging markets growth, by tapping into their demand for hard commodities as they industrialize.
“The mandate we have given to CFS GAM is totally benchmark unaware ... only around 10% of the world's resources industry is in Australia, and we see major opportunities in places like Mongolia, Africa, Latin America and Kazakhstan,” Mr. Hughes said.
NGS Super, with A$3 billion in total assets, is believed to have funded the global resources mandate with a redemption from its Australian equities portfolio.
N. Ireland Local Government
Northern Ireland Local Government Officers' Superannuation Committee, Belfast, selected Edinburgh Partners to run £200 million ($316 million) in active global equities, said Deane Morrice, CEO and secretary for the £3.6 billion fund.
Funding came from reducing a passive global equity mandate run by Legal & General Investment Management to about £600 million. The move was made to get back into active management, Mr. Morrice said.
Aon Hewitt assisted in a search that began in January.
Ohio Police & Fire
Ohio Police & Fire Pension Fund, Columbus, committed $35 million to GTCR Fund X, confirmed spokes-man David Graham.
It is the first time the $11.2 billion fund has invested with the private equity firm, he said.
Oregon Investment Council
Oregon Investment Council, Tigard, at its Oct. 27 meeting committed $100 million each to private equity distressed debt funds Centerbridge Capital Partners II and WLR Recovery Fund V, said spokesman James Sinks.
The Centerbridge fund has a target of $3.75 billion. The council committed $200 million to Centerbridge's first fund, according to agenda materials from the meeting. Blackstone Group's placement agent subsidiary, Park Hill Group, is helping to raise Centerbridge's second fund.
The WLR fund has a $4 billion target to make control investments in companies that are bankrupt or reorganizing, according to the agenda materials. The council already has committed $200 million to WLR's fourth recovery fund.
The commitments are all subject to satisfactory contract negotiations.
The council manages the $54 billion Oregon Public Employees' Retirement Fund, Salem.
Pennsylvania State Employees
Pennsylvania State Employees' Retirement System, Harrisburg, hired global fixed-income managers Brandywine Global Investment Management to run $150 million, and Colchester Global Investors and Franklin Templeton to run $75 million each, confirmed Robert Gentzel, spokesman.
The board of the $24 billion system funded the hirings from cash.
TWU Super, Melbourne, Australia, hired SG Hiscock for a “benchmark unaware” Australian property securities mandate, according to Investment magazine, Sydney.
The move returns the A$2.5 billion (US$2.47 billion) fund's listed property portfolio to a 50-50 split between domestic and overseas securities.
Two years ago, the fund terminated the domestic component of the portfolio, on the advice of consultant JANA Investment Advisors, according to TWU Chief Investment Officer Andrew Killen.
Prices in the sector have declined to the point where “listed property has become marginally more attractive,” said Ken Marshman, head of investment outcomes at JANA.
Funding for the SG Hiscock hiring came from terminating a mandate with Perennial's Global Property Securities Trust.
Meanwhile, the fund also increased its exposure to emerging markets to 20% from 15% of its overseas equities portfolio; the assets will go to Russell Investments' emerging markets multimanager trust.