SEARCHES & HIRINGS
San Jose (Calif.) Retirement System is searching for a large-cap growth equity manager for both its $1.3 billion police and fire fund and $900 million federated employees plan.
The search follows the termination of Chancellor LGT, which ran $70 million for each fund. Chancellor continues to suffer a loss of staff and the fund is not comfortable with the lack of stability at the firm, said Ed Overton, retirement administrator for both funds. Mercer and Callan, consultants for the police fund and federated plan respectively, are compiling lists of managers to be considered.
Norfolk County Retirement Sys-tem, Dedham, Mass., picked Bank of America, Freedom Capital and Brinson Partners as finalists in its search for a large-cap value manager; and Morgan Stanley, Windham Capital and Harbor Capital in its search for a large-cap growth manager, said Timothy Cahill, county treasurer.
The $309 million fund will select managers at its March 19 meeting. Funding will come from existing passive managers. The fund has about $50 million in U.S. large-stocks in passive portfolios with State Street Global and RhumbLine Advisers. It probably will keep $30 million of that in passive, and allocate the balance $20 million to active managers, to be split evenly between growth and value, he said.
Trustees of the fund also agreed to send out RFPs for a U.S. small-cap value manager.
Lucent Technologies Inc., Morristown, N.J., added Fidelity's series of five asset allocation funds to its $11.8 billion 401(k) plan. Freedom Funds comprise a series of funds based on a fund-of-funds approach designed to coincide with the retirement goals of participants. The addition brings the number of investment options to 13. Fidelity is Lucent's bundled provider.
California State Teachers' Retirement System, Sacramento, committed up to $150 million to Kelso Investment Associates VI, a domestic buyout fund; up to $50 million to Summit Ventures V, a private equity venture fund; and up to $200 million in Thomas H. Lee Equity Fund IV, an equity investment fund.
CalSTRS, with $82 billion in assets, has 4.4% of its assets invested in private equity. Investments are subject to acceptance of final documentation and legal review. Pathway Capital, assisted.
Teachers' Retirement System of Illinois, Springfield, hired eight managers.
Hired by the $18 billion system for large-cap value stocks were: Institutional Capital for $265 million; Sanford C. Bernstein for $265 million; and Fox Asset Management for $175 million. Bond managers hired were: Miller Anderson & Sherrerd for $275 million; Conseco Capital for $275 million; Strong Capital for $200 million; Forstmann-Leff for $100 million; and Taplin, Canida & Habacht for $75 million. Also, Joseph J. Blake and Associates was hired for real estate appraisal.
Rhode Island State Investment Commission, Providence, with $5.54 billion in assets, committed $10 million to the Apollo Real Estate Investment Fund III, an opportunistic fund. Funding will come from investment income. Pacific Corporate Group assisted.