Nestle USA Inc., Glendale, Calif., hired Putnam Investments as a global balanced manager for its $800 million defined benefit plan.
The new mandate is part of a manager consolidation that resulted in the termination of nine managers. Manfred Lehmann, vice president and treasurer, would not give the names of the firms dropped.
Putnam will manage $110 million. J.P. Morgan was retained to manage a global balanced portfolio of $150 million. J.P. Morgan formerly managed a little less than that in a U.S. stock portfolio and a U.S. bond portfolio. Frank Russell assisted.
Colorado Fire & Police Pension Association, Englewood, committed $10 million to the Apollo Real Estate Investment Fund III. The funding will come from cash. Pacific Corporate Group assisted the $2.1 billion fund.
Tri-State Carpenters Pension Trust Fund, Chattanooga, Tenn., hired First Tennessee Bank and HGK Asset Management as U.S. core bond managers to manage $10 million each. The funding will come from a reallocation among the $170 million fund's existing balanced managers. Officials wanted to hire more specialty managers, said Ronald Dixon, administrator. None of the existing managers were terminated. Investment Performance Services assisted.
Florida Millwrights Pension Fund, Tampa, hired Carl Domino Associates as a large-cap value equity manager.
The firm will manage a $3 million portfolio. The money will come from existing domestic equity manager Loomis Sayles. Portfolio Progress assisted the $35 million fund.
The fund also hired Southern Benefits as administrator in order ``to upgrade service,'' said Marty Bearry, trustee. ABPA had been administrator.
Methuen (Mass.) Contributory Retirement System has hired its first small-cap equity and real estate managers.
The system, with about $49 million in assets, hired Dreyfus to run $3 million in U.S. small-cap stocks, said Kevin Leonard, the Segal Advisors consultant who assisted. Real estate managers Sentinel and the RREEF Funds will manage $2 million each, he said.
Money will come from David L. Babson, which manages 93% of the system's assets in a balanced fund.