Derbyshire Pension Fund, Matlock, England, rehired BNY Mellon Asset Servicing as global custodian, according to Tenders Electronic Daily, a European procurement website.
An RFP was issued in May.
Graham Hunt, director of finance for the £1.8 billion ($2.9 billion) plan, did not return calls seeking additional information.
Eagle Asset Management hired J.P. Morgan Worldwide Securities Services to provide custody, fund administration and related securities services for its Eagle Mutual Funds.
The funds had more than $3 billion in assets and roughly 642,000 total shareholder accounts as of mid-September, according to a news release.
Richard Rossi, president and co-COO of Eagle Asset Management, said the functions previously had been handled internally but hiring J.P. Morgan promised greater operational efficiencies.
Illinois State Universities
Illinois State Universities Retirement System, Champaign, hired active core-plus bond managers Neuberger Berman and LM Capital Group to handle $250 million and $50 million, respectively, confirmed Daniel L. Allen, chief investment officer.
Funding came from terminating Western Asset Management, which ran a $380 million core-plus portfolio.
The moves are in line with the SURS board's push to emphasize the “anchor to windward” role of the $12.3 billion system's fixed-income allocation, which came to $2.7 billion as of Aug. 31, Mr. Allen said. In an e-mailed response to questions, he said the latest allocation changes were aimed at reducing “the risk level of the fixed-income portfolio to address the (system's) increasing liquidity needs to fund benefits.”
A WAMCO spokeswoman declined to comment.
Mr. Allen said that of the remaining WAMCO money, $25 million each will be added to existing managers Taplin, Canida & Habacht's core-plus bond portfolio and Pugh Capital Management's core bond mandate. As of June 30, Taplin, Canida had $33.4 million in the core-plus bond strategy and Pugh had $49.6 million in the core bond portfolio, the most recent data available. The rest of the WAMCO money will be used to help cover monthly benefit payments, he said.
Separately, the system increased non-U.S. equity manager Pyramis Global Advisors' portfolio to $235 million from $135 million, while Martin Currie's international equity portfolio was trimmed to $189 million from $389 million and BlackRock's non-U.S. Alpha Tilts mandate was cut to $276 million from $476 million. The remaining $300 million will go into an existing BlackRock international passive strategy, as well as being used to pay benefits and rebalance the portfolio, Mr. Allen said. BlackRock had $623 million in the passive international strategy as of June 30, the most recent data available.
Illinois Teachers' Retirement System, Springfield, hired MFS Investment Management and Levin Capital Strategies to manage $250 million each in active domestic large-cap core equities.
The board of the $31.3 billion system also approved hiring Franklin Advisors to run from $250 million to $275 million in emerging markets debt.
Also an existing S&P 500 index fund managed by RhumbLine Advisors was increased to $2.14 billion from $1.25 billion.
Altogether, new and expanded domestic equity mandates announced come to $1.8 billion, or more than 20% of Illinois Teachers' $8.9 billion domestic equity allocation as of June 30. Spokesman Dave Urbanek said the new allocations “are entirely internal to the domestic equity portfolio,” with money being shifted in line with Illinois Teachers' goal of streamlining its manager lineup. He declined to say which of the system's other domestic equity managers lost mandates or had their allocations trimmed.
In other asset classes, the system also committed $75 million to the PIMCO Bank Recapitalization and Value Opportunities fund, which invests in financial institutions that acquire distressed or failed lenders. It also committed up to $100 million each to the Baring Private Equity Asia fund and the GTCR Fund X, a growth technology fund; and $75 million to Trident V, a midmarket private equity fund managed by Stone Point Capital.
Also, Houlihan Lokey,
LP Capital Advisors and PCG Asset Management were hired to advise the system's staff on its new private equity co-investment program. According to a news release, “using multiple firms as advisers will provide greater flexibility to match investment opportunities with the skill set of each firm.”
The A$13 billion (US$12.9 billion) multimanager ipac hired Morgan Stanley to run A$738 million in global corporate bonds; Kapstream Capital to manage A$228 million in absolute return; Old Mutual to handle A$114 million in global sovereign bonds; and Antares to run A$90 million in inflation-linked bonds, according to Investment magazine, Sydney.
Funding came from terminating global fixed-interest mandates from BlackRock and AllianceBernstein as part of a restructuring of ipac's A$2.8 billion fixed-income portfolio to gain more control over risks in debt markets.
The multimanager now allocates to three sectors: government bonds, which includes Australian and global sovereign debt and domestic inflation-linked bonds; multistrategy fixed interest, containing absolute-return and fixed-income strategies; and cash.
Its former sectors were domestic bonds, global bonds, alternative income and cash.
James Murray, senior investment manager at ipac, said the multimanager wanted to clearly demarcate risks in fixed-interest markets, and use these exposures as asset allocation “levers” to better meet return objectives in its diversified funds.
Lonmodtagernes Dyrtidsfond, Copenhagen, Denmark, hired eight new active managers and rehired LD Invest, a manager owned by the 54 billion Danish kroner ($10.1 billion) pension fund, to run a combined e5.7 billion ($8 billion), according to a news release.
MFS Investment Management and Wellington Management will manage a combined e1.25 billion in global equities, Western Asset Management will run e500 million in a credit portfolio and Schroder Investment Management will handle e200 billion in emerging markets equities.
Nordea Investment Management will run e125 million in short-term Danish bonds, Impax Asset Management will manage e75 million in environment and climate-themed equities, and Fischer, Francis, Trees & Watts will run e50 million in global inflation-linked bonds.
LD Invest, which had managed most of the e5.7 billion prior to the restructuring, will jointly manage e2.6 billion in Danish high-grade bonds with Nordea and will share an e850 million Danish equity portfolio with Carnegie Asset Management, as well as retain a e50 million Danish money market mandate. Information on the split between managers in the joint mandates was not available at press time.
“In the long run, the agreements ensure that we will be able to maintain a low cost level,” Carsten Koch, managing director of LD, said in the news release.
Mr. Koch couldn't be reached by press time for further comment.
Consultants PPCmetrics and PA Consulting Group advised.
Los Angeles City Employees
Los Angeles City Employees' Retirement System committed up to $10 million to Spark Capital III, a venture capital fund, according to a notice on the $9 billion system's website.
Spark Capital III invests in web and digital media companies. System officials committed $9.75 million to Spark II in 2007.
New Mexico State Investment
New Mexico State Investment Council, Santa Fe, hired Aetos Capital Management to manage a $150 million hedge fund-of-funds portfolio. Funding will come from redemptions.
The selection follows an RFP launched by the $14 billion council in June.
New York State Teachers
New York State Teachers' Retirement System, Albany, hired manager of managers Leading Edge Investment Advisors to run $250 million in all-cap domestic equities.
The $76 billion system also committed $100 million to the HIPEP Select Asia Fund, a private equity fund managed by HarbourVest Partners and up to $125 million to the HarbourVest/NYSTRS Co-Invest Fund.
John Cardillo, system spokes-man, wrote in an e-mailed response to questions that the system has previously committed a total of $881 million to seven other HarbourVest funds.
The allocations are pending completion of due diligence, according to the website.
Separately, Iridian Asset Management was removed from the system's watchlist; performance of the $520 million active midcap domestic equity portfolios Iridian runs had improved, Mr. Cardillo said.
The system also renewed Hewitt EnnisKnupp as general investment consultant and StepStone as private equity consultant, both for one year effective Feb. 1, 2011. The system's contract with the former Ennis Knupp & Associates took effect Feb. 1; StepStone has been a consultant with NYSTRS since Feb. 1, 2008.
Office Depot Inc., Boca Raton, Fla., selected Fidelity Investments as bundled provider for its 401(k) plans and deferred compensation plans, confirmed Mindy Kramer, spokeswoman for Office Depot.
Vanguard Group had been the bundled provider for the company's $336 million in 401(k) and deferred compensation assets, Ms. Kramer said. The company decided to have one company administer its retirement savings plans, long-term incentive stock compensation plan, and health and welfare plan, she said.
Morgan Stanley Smith Barney was administrator of the stock plan, and Convergys has been running the health plan.
“We weren't dissatisfied with the three,” she said. “Fidelity offered one-stop shopping.”
Fidelity assumed responsibility for the 401(k) plans and the stock plan on Oct. 1; it will begin administering the health and welfare plan on Jan. 1.
Railpen Investments hired Schroder NewFinance Capital to run $125 million in commodities, confirmed Schroders spokeswoman Estelle Bibby.
The mandate is new.
NewFinance Capital will run the money in its Opus Commodities Core Plus A fund, which invests in agriculture, livestock, energy, and industrial and precious metals.
No RFP was issued.
Railpen's sole client is the £20.4 billion ($32.7 billion) Railways Pension Scheme, London, the third-largest pension fund in the U.K.
Richard Moon, Railpen investment manager, was out of the office and could not be reached for comment. Railpen spokeswoman Catherine Hancock did not respond to a request for further information.
Russell Investments named Bank of New York Mellon affiliate Ankura Capital as subadviser for the Russell Australian Shares Enhanced Income Fund, according to Investment magazine, Sydney.
Ankura, a quant manager, joins equity manager Perennial Value as subadviser.
Shropshire County Pension Fund, Shrewsbury, England, selected Aon Hewitt as investment consultant, said Martin Stevens, pensions committee officer.
Aon Hewitt replaces Russell Investments, which held the role since 2000. The £920 million ($1.5 billion) fund is expected to undergo a strategic asset allocation review this month. Mr. Stevens did not know when the review might be completed. Graham Chidlow, head of finance, was out of the office and could not be reached.
An RFP was issued in July.
Tyne & Wear Pension Fund, Hebburn, England, hired six active equity managers to run a combined £1.31 billion ($2.1 billion), said Ian Bainbridge, assistant head of pensions at the £4.3 billion fund.
J.P. Morgan Asset Management and Sarasin & Partners will each run £425 million in global equity, while BlackRock and Mirabaud Investment Management will each run £160 million in U.K. equity. Lazard Asset Management will handle £90 million in Japan equity, and TT International will manage £50 million in Asia ex-Japan equity.
Funding comes from terminating Schroder Investment Management — which ran £235 million in active Japan equity and £87 million in active Pacific Rim equity — and Capital International from a £378 million active global equity mandate. The terminations followed a strategic asset allocation review, Mr. Bainbridge said. He declined to say why the two were terminated.
Further funding came from reducing UBS Global Asset Management's pan-European active equity portfolio by £163 million. UBS now runs £424 million. The remaining assets used to fund the hires had been parked in passive U.S. and U.K. equity funds run by Legal & General Investment Management.
Hymans Robertson assisted.