Ann Arbor City Employees'
ANN ARBOR, Mich. - Ann Arbor City Employees' Retirement System hired two large-cap growth equity managers.
Montag and Caldwell will manage $35 million and GLOBALT, $10 million. Assets came from the termination of First Chicago NBD, a core equity manager. First Chicago NBD was terminated because the fund wanted to diversify into growth, value and passive mandates, said Robb Hubbs, retirement administrator of the $300 million pension fund.
Callan Associates assisted.
INDIANAPOLIS - Central Newspapers Inc. hired PRIMCO Capital Management to manage a $40 million fixed-interest portfolio for the company's $130 million 401(k) plan, said Kevin Salcido, director-human resources. The portfolio had been run in-house.
CHICAGO - The Public School Teachers' Pension and Retirement Fund of Chicago committed $65.6 million to its real estate portfolio in an effort to reach its 5% target allocation.
Trustees placed the new allocation with three funds in which it already invests. The board added $10 million to RREEF America REIT, $50 million to J.P. Morgan's Real Estate Fund and $5.6 million to CIGNA's Open-End Real Estate Account R. Mercer assisted.
Also, fund trustees terminated two fixed-income managers: NCM Capital Management Group and Morgan Stanley Asset Management. The move was made to consolidate the $7.1 billion fund's fixed-income portfolio. The $50 million managed by NCM and Morgan Stanley's $218 million will be divided between existing managers Miller Anderson & Sherrerd and Wellington Management pending fee negotiations.
Georgia Tech Foundation
ATLANTA - The $317 million Georgia Tech Foundation Inc. hired two international equity managers, said Patrick J. McKenna, secretary. Templeton Investment Counsel received $15 million for an active fund, and State Street Global Advisors got $10 million for an index fund. The move was part of an expansion of the fund's international allocation.
Iron Workers/Northern N.J.
NEWARK, N.J. - District Council of Iron Workers of Northern New Jersey hired Putnam Institutional Management to manage a $45 million balanced portfolio for its defined benefit plan.
Putnam replaced an existing manager, said Rita Szabo, acting executive director. She would not name the manager or reveal the size of the plan. Smith Barney Consulting Group assisted.
Kent County Council
MAIDSTONE, England - The Kent County Council Superannuation Fund picked Prudential Portfolio Managers to manage a (British pounds) 100 million U.K. bond portfolio, said Surjit Lale, investments manager for the (British pounds) 1.05 billion ($1.72 billion) fund. The portfolio will be invested 60%in U.K. index-linked gilts and 40%in U.K. conventional bonds but PPM will have discretion to invest up to 15%in overseas bonds.
Half of the assets will come from two small bond mandates managed by existing balanced managers Baring Investment and PDFM. The remainder will come from balanced briefs managed by Baring and PDFM.
The fund also will rebalance assets among its three balanced managers. Baring, PDFM and Schroder Investment Management each will manage between (British pounds) 290 million and (British pounds) 300 million. The changes are effective April 1.
Watson Wyatt advised on the search.
JACKSONVILLE, Fla. - Longshoremen, ILA Welfare & Pension Administration hired NCM Capital Management Group to manage a $5 million balanced portfolio, said James Henderson, administrator of the $65 million fund. Assets came from a rebalancing.
ST. LOUIS - Mallinckrodt Inc. added 12 investment options and hired a new record keeper for its $232 million 401(k) plan.
The options are State Street Global's international equity index fund; PBHG's growth equity fund; Fidelity's small-cap equity fund; IDS' mid- to large-cap growth fund; American Express Trust Equity Index Fund II; Dodge & Cox's large-cap equity fund; State Street's bond fund; a stable value option that consists of bond funds offered by MetLife, TransAmerica and American Express; and American Express Trust Money Market Fund II. Also offered are three lifestyle funds. A company stock fund will remain part of the plan.
American Express will be record keeper, providing daily valuation and education.
Previously, the fund had two investment options from Vanguard and a blended bond fund from MetLife and TransAmerica. Watson Wyatt was the record keeper.
Callan Associates assisted.
Mass. Painters, Council 35
ROSLINDALE, Mass. - The Massachusetts Painters District Council No. 35 hired Putnam Institutional Management as its first midcap equity manager.
The $8 million mandate is the last in a long line of hires that began in 1995. The $75 million plan funded the hire from an existing equity manager, which will continue to manage 15%of the fund, said Sharon Sagany, fund administrator. Segal Advisors assisted.
Miami Beach General
MIAMI BEACH - The Miami Beach General Employees Retirement System hired RhumbLine Advisers as a domestic equity index manager following an asset allocation study.
RhumbLine was chosen to run $50 million of the $200 million fund's assets after the pension board decided to index half of its assets. Provident Investment Counsel, an active equity manager, was terminated because of the reallocation. The fund's asset mix is 15%value equities, 7.5%small- to midcap equities, 2.5%international equities, 25%passively managed equities, 25%actively managed fixed income and 25%indexed fixed income.
Dorn, Helliesen and Cottle is assisting.
SPRINGFIELD, Mo. - Mid-America Dairymen hired Charles Schwab for investment options and record keeping for its $50 million 401(k) plan.
Fidelity Investments had provided five options and offered Stanwich Benefits Group as record keeper through its Fidelity Advisor 401(k) program. Schwab replaced those funds with similar funds through its OneSource program. Funds selected: Montag & Caldwell's aggressive growth fund, Scudder's growth and income fund, INVESCO's balanced fund, Loomis Sayles' bond fund and Schwab's stable value GIC fund.
Two new funds will be added: Ivy Asset Management's international active equity fund and an S&P 500 index fund from Schwab.
The company wasn't pleased with the program Fidelity was providing, said Les Long, plan administrator. Morgan Keegan assisted.
Minnesota Power & Light
DULUTH, Minn. - Minnesota Power & Light Co. added the Janus Balanced Fund to its $55 million defined contribution plan.
The fund will replace Fidelity Investments' balanced fund, which had been underperforming its benchmark, said Jeweleon Tuominen, manager-employee benefits. The decision to switch to Janus was made by the company's investment committee, he said.
New Haven Retirement
NEW HAVEN, Conn. - New Haven Employees Retirement Fund hired Morgan Stanley as a core international manager. The firm will manage $11 million, which is slated to come from cash reserves and cash raised by balanced portfolio managers Oppenheimer Capital and INVESCO, said Gwendolyn Bell, pension administrator.
She said the board for the $111 million fund liked Morgan Stanley's performance, and the firm already is a manager for the city's police and fire fund. Watson Wyatt assisted.
Separately, the city hired Bankers Trust to handle benefits administration services for the employees and the police and fire systems' 1,700 retirees, Ms. Bell confirmed. That previously was done internally.
BOSTON - Pioneer Funds Distributor Inc. selected United of Omaha's guaranteed interest contract as an investment option for its turnkey 401(k) product. The new option is added to the 18 mutual funds Pioneer already offers.
AUSTIN, Texas - The Texas comptroller selected Texas Commerce Bank and First Southwest Asset Management to administer the state's $6.2 billion TexPool investment fund.
According to a spokesman, fund assets will be invested in short- to intermediate-term fixed income. The firms were selected from among 10 proposals presented in response to a December RFP. The contract will run through the end of the year, when the comptroller will review it for extension.
Principal Mutual Life
NEW YORK - Principal Mutual Life Insurance Co. hired Fidelity Management and Research and Morgan Stanley Asset Management to manage some investment portfolios in its new variable universal life policy. PrinFlex Life has 13 investment options and a fixed option. Princor Management Corp., a subsidiary, also manages some of the options.
LITTLE ROCK, Ark. - Trustees of the $89 million Winthrop Rockefeller Foundation hired Gray & Co. as its investment consultant, said Sybil Hampton, executive director. It is the foundation's first retainer consultant.
The trustees also hired Utendahl Capital Management to manage a $5 million fixed-income portfolio. The money was taken from another manager, which Ms. Hampton declined to identify.
Frank Russell Trust
TACOMA, Wash. - Frank Russell Trust Co., hired three managers for a new institutional small-cap fund, the FRTC Small Cap Fund. Fiduciary Trust International is managing small-cap growth, Barclays Global Investors is managing small-cap value and Westpeak Investment Advisors is managing small-cap, market-oriented stocks.
TAUNTON, Mass. - The Taunton Contributory Retirement System picked Bank of Ireland Asset Management to manage $3.25 million in international equities, said Paul J. Slivinski, executive secretary. The fund, with $65 million in assets, hired Bank of Ireland to replace Wellington Management, which was terminated late last year. The system will invest in an institutional mutual fund packaged and sold by Allmerica because Bank of Ireland does not accept direct investments of less than $10 million.
Virginia Retirement System
RICHMOND, Va. - The Virginia Retirement System will invest $130 million in venture capital and real estate funds.
The fund, with $24.6 billion in assets, decided to invest up to $30 million in the Heritage Fund II, a venture capital fund investing in private, midsized companies. The fund also put $50 million each into the OCM Real Estate Opportunities Fund and the Lazard Freres Real Estate Fund II.
Money for the new investments will come from cash.