SEARCHES & HIRINGS
Chrysler Corp., Auburn Hills, Mich., soon will begin a U.S. small-cap equity manager search for its $17 billion U.S. pension plan.
The fund hired Callan to conduct the search, which could result in the hiring of both a small-cap value manager and small-cap growth manager. Officials have increased the small-cap allocation to 6% from 4% of the total fund, said Mark Schmid, director of pension fund investments. The change follows an in-house asset mix review.
Alternative investments and the real estate allocation also will increase by two percentage points. No additional managers are expected to be hired, he said.
Visa USA Inc., Foster City, Calif., is searching for a consultant to review its 401(k) plan options. The company is in the process of receiving RFPs and expects a decision soon, said Lisa Ma, administrator of the $200 million plan. Officials want to conduct ``an independent study to see what other funds are out there'' in addition to the Fidelity funds the bundled plan now offers, she said. Fidelity is likely to remain trustee, regardless of fund changes.
Public Service Electric & Gas Co., Newark, N.J., started a REIT manager search for its $2 billion defined benefit plan.
The search is expected to be completed by the end of June, said Sue Carson, manager of trust investments. A specific REIT allocation has yet to be established, but will be part of an overall real estate allocation of $100 million. Officials also are expected to approve two private equity real estate fund managers at an April 21 committee meeting. Eileen Byrne Associates is assisting.
The PBGC, Washington, picked Ark Asset Management, Brinson Partners and PIMCO as active large-cap U.S. equity managers. Ark will manage $700 million; Brinson Partners will manage $500 million; and PIMCO, $225 million. The agency, with $15.6 billion in investments, has a $6.6 billion equity portfolio.
``As PBGC's assets have increased with strong investment earnings, we (have) expanded our roster of equity managers,'' said N. Anthony Calhoun, PBGC's deputy executive director and CFO.
California Public Employees' Retirement System, Sacramento, hired Richards & Tierney to help it create a completion fund.
The $129 billion system will use the new portfolio to fill in the style gaps left after CalPERS' recent hiring of 10 U.S. equity managers. Richards & Tierney will help create the fund, which CalPERS will manage in-house. CalPERS officials have not determined the size of the completion fund.