Barberton Foundation
BARBERTON, Ohio - Barberton Community Foundation hired six managers and a trustee for its $75 million in assets.
The newly formed foundation hired Oak Associates for large-capitalization growth; Fox Asset for large-cap value; Dean Investment Associates for mid- and small-cap value; Scott & Stringfellow for mid- and small-cap growth; Gelfand Partners for fixed income; and Templeton for international investments.
The foundation board allocated $8 million to each large-cap manager, $10 million each to the mid-and small-cap managers, and $25 million to fixed income. Templeton will manage approximately $10 million, but it has yet to be decided if the assets will be managed in a mutual fund or a separate account.
All hirings are dependent on contract negotiations, said John Shannon of Legacy Strategic Asset Management, who assisted the asset allocation study. The National City Bank of Cleveland was hired as trustee.
The foundation board also is continuing its search for an executive director.
Benefits Connection Group
WASHINGTON - The Benefits Connection Group added nine options to its defined contribution plan and moved to daily from monthly valuation, said Jim Brodsky, president.
Options added were from Dreyfus, Templeton Investment Counsel, Fred Alger Management and Certus Asset Advisors. Dreyfus will manage most of the new funds, which are an S&P 500 fund, a small-cap fund, a discount brokerage fund and three lifestyle funds. Templeton will manage an international fund; Alger, a growth fund; and Certus, a stable value fund.
Participants of the $250 million plan formed focus groups and decided there was a need for better access to funds and more diversity in options to match employees' level of involvement, Mr. Brodsky said.
Evaluation Associates assisted.
Charles Machine Works Inc.
PERRY, Okla. - Charles Machine Works Inc. hired one manager and increased the assignment of another for its $75 million combined profit-sharing and ESOP plan, said Michael Stodola, manager-accounting and trust administration.
PaineWebber was hired to manage a balanced portfolio. It was assigned $10 million. Goldman Sachs was given an additional $6 million, bringing its total assignment to $11 million, also for a balanced portfolio.
Funding came from Massachusetts Mutual and Diversified Investment Advisors, which were dropped.
Diebold Inc.
CANTON, Ohio - Diebold Inc. hired six new managers and a new trustee and record keeper as a result of a yearlong restructuring of its defined benefit plan. Fund officials decided to boost equities and add international equities and domestic small-cap stock to the $230 million plan's asset mix as part of its "corporate culture that fosters change," said Timothy McDannold, director of treasury services.
Managers hired were: Ark Asset Management and MacKay-Shields Financial for domestic equities; Strong Capital Management and Loomis Sayles for domestic fixed-income; and Capital Guardian Trust and Bank of Ireland Asset Management for international equities.
Each will split evenly their mandates as detailed by the fund's new asset mix: 50%domestic stock, 30%fixed income, 20%international equities.
All of Diebold's previous managers were terminated. Mr. McDannold would not disclose their names.
Mellon Trust will replace Key Trust as master trustee and record keeper. Mellon was a better fit for the growing fund, he said.
Mercer and PaineWebber Consulting both assisted.
First Farmers National
CONVERSE, Ind. - First Farmers National Bank in Converse, with $145 million in trust assets, has hired First Third Bank to provide custody.
Company officials declined to name the former provider.
Gates Rubber Co.
DENVER - Gates Rubber Co. hired Boston Partners Asset Management to handle a $12 million small-cap equity allocation.
The assets came from another manager, said Marlin Dorhout, manager of the $330 million defined benefit plan; he declined to identify the manager. Donald Ibsen, of Mercer Investment Consulting's Denver office, assisted in the search.
No other searches are planned.
Humana Inc.
LOUISVILLE, Ky. - Humana Inc. added two new options and replaced one manager for its $360 million defined contribution plan.
Fund officials added a domestic fixed-income fund from PIMCO and a large-cap equity fund from IDS, bringing the number of fund options to nine, said James W. Doucette, vice president and treasurer.
Mercer assisted in adding a balanced fund by INVESCO, which is replacing a similar fund managed by Fidelity Investments. The firm was terminated because of poor performance, Mr. Doucette said. Fidelity officials would not comment on its performance.
Separately, Humana hired John A. Levin Co. as the first outside money manager for its $67.5 million foundation.
The firm ultimately will manage $4.5 million in large-cap value domestic stocks, Mr. Doucette said. The rest of the foundation's assets will continue to be managed internally. The expertise of Humana's in-house investment team in fixed-income investments prompted the foundation to bring an equity manager onboard, he said.
The search was conducted in-house.
Intergraph Corp.
HUNTSVILLE, Ala. - Intergraph Corp. added five Dreyfus funds to its $200 million defined contribution plan, said Beth Medley, manager of employee investments. Funds added were: a short-term bond fund, a balanced fund, a small-cap fund, an appreciation fund and an international equity fund managed by Templeton through a special alliance with Dreyfus.
Fund officials didn't terminate any other fund managers, although some of the new funds will overlap with existing offerings. Fidelity currently manages a balanced fund; Boston Co., a bond fund; and Smith Barney Investment Advisors, an appreciation fund.
It is possible some managers could be terminated in the future depending upon how participants direct their assets, said Ms. Medley.
Iowa State University
AMES, Iowa - Iowa State University hired Alliance Capital Management to run $40 million in an enhanced S&P 500 index fund for its $138 million endowment.
Alliance will replace INVESCO, which had managed the $40 million in an active large-cap equity portfolio. The termination of INVESCO was not related to performance, but because fund officials wanted to switch to an index fund, said Thomas C. Hawkins, vice president of development services.
Iron Workers
PITTSBURGH - Iron Workers Pension Plan of Western Pennsylvania, Pittsburgh, hired two new domestic value equity managers.
Oppenheimer Capital and Delaware Management will split a $20 million equity portfolio that had been managed by Systematic Financial. Systematic was terminated because of performance, said Boe Gillespie, administrator of the $130 million fund. Systematic officials would not comment on the termination.
Prudential Securities assisted.
Johnson & Higgins
NEW YORK - Johnson & Higgins, New York, hired two bond managers for its $400 million defined benefit plan and two equity managers for its supplemental plan.
Loomis Sayles and Miller Anderson Sherrerd were awarded $35 million each from the defined benefit plan, following an asset allocation study. Assets came from the rollover of internally managed GICs, said Paul Bush, vice president investments.
For the supplemental plan, Vanguard will handle domestic equity in its Preferred Stock Fund, while Brown Brothers Harriman will manage a tax-efficient portfolio. Mr. Bush would not disclose the amounts each firm is receiving or the size of the plan.
Both searches were conducted in-house.
J&L Specialty Products
PITTSBURGH - J&L Specialty Products Corp. added five options to both its 401(k) plan for hourly workers and its defined contribution plan for salaried workers. T. Rowe Price is the bundled provider for the plans, which have a combined $35.5 million in assets, and will manage the new options.
Added were: The Science and Technology Fund, a sector-based equity fund; New Horizons fund, a mid- and small-cap fund; the Small-Cap Fund; Spectrum Growth and Value Fund, an equity funds of funds; and the Spectrum Income Fund, a fixed-income fund of funds. The options bring the total fund options to 11.
Henry J. Kaiser Family
MENLO PARK, Calif. - Henry J. Kaiser Family Foundation, Menlo Park, hired three domestic mid- and small-cap equity mangers to manage $20 million.
Hired by the $500 million foundation were: Sloate, Weisman, Murray for $10 million in midcap equities; Artisan Partners for $5 million in small-cap equities; and John A. Levin for $5 million in midcap stock.
Assets came from a $40 million domestic midcap portfolio previously managed by Hudson Capital, which closed last year. The remaining $20 million was given to Fischer Francis Trees & Watts, an existing fixed-income manager, said Bruce W. Madding senior vice president and CFO.
The search was conducted in-house.
John & Stella Kenedy Memorial
CORPUS CHRISTI, Texas - The John & Stella Kenedy Memorial Foundation hired Denver Investment Advisors as a domestic small-cap equity manager.
The firm will manage $10 million in new money that the $145 million foundation has received. Denver was hired to increase exposure to small-cap stocks, said Paul Baen, controller. The search was conducted in-house.
King Industries
NORWALK, Conn. - King Industries Inc. hired T. Rowe Price to provide bundled investment management and record-keeping services for its $2 million 401(k) plan, said Floyd Wilber, vice president-controller. T. Rowe Price will manage the 10 investment portfolios that will be offered to participants.
The plan dropped Smith Barney, which had provided bundled services.
Milwaukee Employes
MILWAUKEE - Board members for the $2.8 billion Milwaukee Employes' Retirement System selected incumbent domestic custodian, Northern Trust, to act as its global custodian, said Pat Cronin, financial manager.
Northern was selected over two other finalists, Mellon Trust and Chase Manhattan.
The switch to a global mandate anticipates a possible move into active international equity management, although that would not happen until after educational meetings for trustees in February and March, Mr. Cronin said.
National Affiliated Corp.
BETHESDA, Md. - National Affiliated Corp. Inc. hired Conseco Capital Management to manage $15 million in domestic fixed income, which includes the assets of its insurance subsidiaries Southern Life Insurance and National Affiliated Investor's Life Insurance. CCM also entered into an alliance to provide acquisition advice and support to National Affiliated and manage assets of any future acquisitions made by the firm, a holding company specializing in buying and turning around small life insurance companies. The search was done in-house.
NADA Retirement Trust
MCLEAN, Va. - The National Automobile Dealers and Associates Retirement Trust, with $2.9 billion in assets, revamped its 401(k) plan and will offer nine investment choices through State Street Global Advisors as of April 1, said Carl LaRoche, director of marketing and field services. NADART will continue administering the plan and will offer daily valuations and transfers among the various investment options.
The approximately 4,000 participating dealers and their 150,000 employees will be able to choose from six core funds and three asset allocation funds. The core funds are stable value fund, indexed bond fund, a S&P 500 index fund, an S&P 400 MidCap index fund, a Russell 2000 index fund, and an international stock index fund. The three asset allocation funds are an income and growth fund, and two balanced growth funds.
Currently, pre-tax employee contributions and employer matches are invested in a conservative fund, split 60%40%between stable value investments and stocks. Post-tax employee contributions go into a separate income fund, which is invested solely in guaranteed investment contracts and money market investments. The funds were managed in-house.
New Bedford Retirement
NEW BEDFORD, Mass. - The New Bedford City Retirement System, hired its first international managers and a new U.S. fixed-income manager, due to a restructuring of the $100 million plan.
Boston Co. and Irish Life Investments will split $6 million in international equity, while ARM Capital Advisors will handle $27 million in core fixed-income. The new international allocation will come from a $26 million bond securities portfolio now managed by MFS Asset Management. ARM will be replacing BankBoston, which will continue to manage $20 million in growth equities and was retained because of good performance, he said.
Separately, Robert Allain will be replacing Christine Tetreault as executive director. Ms. Tetreault left to join the Fall River (Mass.) Retirement System. Mr. Allain had been the workers' compensation risk manager for the city for four years prior to joining the retirement system.
New York City Deferred
NEW YORK - New York City Deferred Compensation Plan hired Morgan Grenfell Asset Management to manage $10 million in an intermediate-term bond fund.
The $2 billion plan hired the firm to replace Vanguard, whose contract expires June 30, said Lou Porpora, contract supervisor and operations manager.
Vanguard did take part in the search, but was not one of the three finalists selected, he said. Mercer assisted.
Ochsner Clinic
NEW ORLEANS - The Ochsner Clinic hired NWQ Investment Management to handle a $12 million equity portfolio for its $90 million defined benefit plan. Assets came from a terminated equity manager officials declined to name. Post Oak Capital Advisors, Houston, assisted.
Oklahoma Public Employees
OKLAHOMA CITY - The $3.4 billion Oklahoma Public Employees' Retirement System hired two emerging markets equity managers in its first allocation to the asset class. Capital International and Genesis Asset Management will manage portfolios of $35 million each.
Steve Edmonds, executive director, said funding is from a reshuffling of assets.
Strategic Investment Solutions assisted.
St. Olaf College
NORTHFIELD, Minn. - St. Olaf College hired Washington Square Advisers to manage $15 million in domestic bonds for its $90 million endowment fund.
Assets came from a manager that Alan Norton, treasurer, declined to identify. However, he said the manager still handles $27 million in a balanced portfolio.
DeMarche Associates assisted.
Thomson Holdings
STAMFORD, Conn. - Thomson Holdings hired Schroder Capital Management International as its first emerging markets equity manager. Schroder will manage 5%of the $750 million defined benefit plan.
Also, Putnam Investments will manage about $112 million in international equities, an increase from 8% said James A. Loring, director of benefits.
The moves were prompted by an asset allocation study that called for an increase in international holdings.
The study was conducted following the acquisition of West Publishing.
Towers Perrin assisted.
United Dominion Industries
CHARLOTTE, N.C. - United Dominion Industries Inc. hired a midcap domestic equity manager and two international equity managers for its $170 million defined benefit plan following an asset allocation study.
The study, the first in five years, called for a new midcap equity mandate of $15 million, said Thomas J. Snyder, vice president and treasurer.
Putnam Investments will be managing the midcap portfolio. Assets came from a reduction in large-cap stocks, but no managers were terminated.
Also hired were T. Rowe Price and SpruceGrove Investment Management to split a target international allocation of 15% The pair will replace an unidentified manager that had been terminated.
Mercer assisted with the asset allocation study and hires.
