Southern California UFCW Union & Food Employers pension fund, Cypress, Cailif., selected Mellon Trust as its new custodian and may add a separate global custodian, said Joel Meltz, chief financial officer of the $3.8 billion fund. Mellon replaces Wells Fargo.
A global custodian may be hired to accommodate the fund's new $150 million allocation to international equities, Mr. Meltz said. He said an international manager also has been selected, but he declined to name the firm until contracts have been signed. R.V. Kuhns & Associates assisted with both selections.
Vermont State Employees' Retirement System, Montpelier, with around $800 million in assets, has hired HLM Management as a small-cap growth manager and Rothschild Asset Management as a small-cap value manager to run about $60 million, said James H. Douglas, state treasurer. The money will come from cutting back allocations to other equity managers, but Mr. Douglas declined to identify the managers until they have been notified.
Atmos Energy Corp., Dallas, hired two managers for its $268 million defined benefit plan. Cadence Capital will run $40 million in small-cap growth equities. Funding will come from the rebalancing of assets that follows the Atmos Energy plan's merger with the $88 million United Cities Gas plan effective Nov. 1. Also, Montag & Caldwell, a former manager for the United Cities plan, will run $60 million in large-cap growth sticks, replacing Columbus Circle Investors.
Columbus Circle had been "lagging behind its peers," said Steve Harmon, manager of employee benefits. Columbus Circle officials could not be reached for comment.
Businessmen's Assurance Co. of America, Kansas City, Mo., hired Sanford C. Bernstein to run a large-cap value portfolio for its $75 million pension fund, said Robert Sawyer, senior vice president and CIO. The size of the assignment wasn't available. Funding will come from a reallocation. DeMarche assisted.
Sierra Technologies Inc., Buffalo, N.Y., hired M&T Capital to manage its $30 million defined benefit plan using a balanced style, said Jeffrey Miller, vice president. Sierra decided that having one manager run the pension fund would increase efficiency. Previously, the fund was advised by the Wellesley Group, but all transactions were handled in-house.