CHICAGO - The $16 billion pension fund for Ameritech Corp. hired BlackRock Financial Management for a $400 million to $500 million commercial mortgage-backed securities program, according to sources.
Ameritech officials declined to comment. Calls to BlackRock were not returned.
Boyce Thompson Institute
ITHACA, N.Y. - Making its first move to international and small-cap stocks, the Boyce Thompson Institute for Plant Research hired Lazard Freres Asset Management to run about $13 million in international equities for the institute's endowment fund and global equities for its pension fund. Also, it hired David L. Babson & Co. to run about $12 million in total in domestic small-cap equities for both funds.
John M. Dentes, treasurer and CFO, said funding came from reducing the large-cap growth equity assignment of Ashland Management to about $13 million. Despite Ashland's "stellar performance," he said the institute, in the face of lower expected returns in traditional asset classes in the 1990s, repositioned the fund to try to maintain its 10% return goal by adding the new asset classes, while minimizing volatility. Smith Barney assisted.
The institute has a $50 million endowment fund and $10 million pension fund. The two funds will move to 20% international or global equities, 15% small-cap stocks, 42% large-cap stocks and 23% fixed income. The funds had been 75% large-cap stocks, 25% fixed income.
GREENSBORO, N.C. - The $340 million 401(k) plan of Burlington Industries Inc. added two investment options, said Park R. Davidson, treasurer.
It added an active international equity fund and an domestic aggressive growth fund, both managed by Vanguard Cos. The fund didn't used a consultant.
California Public Employees
SACRAMENTO - The $80 billion California Public Employees' Retirement System approved a commitment of a minimum of $25 million to TSG Capital Fund II, a limited partnership. The maximum investment the California fund will make is 25% of total commitments to the partnership.
The partnership will invest in equity and equity-type investments in profitable middle-market companies with stable cash flows with defensible market positions.
The fund also selected four additional partners for its new real estate acquisition and development program: Newland Capital Advisors, MacFarlane/Weyerhauser Housing Partners, Lowe Enterprises Investment Management and Olympic Realty Advisors. No allocation to the program was set.
Core Industries Inc
BLOOMFIELD HILLS, Mich. - Core Industries Inc. hired Nordstrom Pension Consulting to provide performance measurement for its $12 million defined benefit plan and $20 million defined contribution plan, said Daniel Limer, manager of retirement plans.
CINCINNATI - The $180 million Eagle-Picher Industries Inc. pension fund hired State Street Global Advisors to manage a $70 million equally weighted S&P 500 index fund. The fund had been managed in-house.
ROCKFORD, Ill. - The $46 million profit-sharing plan of Elco Industries Inc. hired First of America Investment Corp. to run an $8 million separate account that will mimic its equity-income mutual fund.
Funding will come from dropping Dreman Value Management. Derek M. Hasse, vice president-administration, said First of America better meets the objectives of Elco's company-directed investments. Performance Analytics assisted.
DALLAS - E-Systems Inc. hired Northern Trust as master custodian for its $600 million pooled trust defined benefit plan, and participant record keeper for its $200 million ESOP. The tasks had been handled in-house, and will be transferred to Northern Jan. 1.
Art Hobbs, vice president, corporate relations and administration, said Northern was chosen for its "ability to provide products built on personal service."
NEW YORK - The $300 million Fiat USA Inc. pension fund hired Cowen Asset Management to run domestic small-cap equities, said Jeffery Cominsky, assistant treasurer. It will replace Alliance Capital Management, also a small-stock manager. Other details weren't immediately available.
LOUISVILLE, Ky. - Lantech Inc., with $6 million in 401(k) assets, added two investment options Oct. 1 - a money market separate account managed by existing manager Hilliard Lyons and a domestic small-cap mutual fund from Pilgrim Baxter.
Also, the fund hired Segal as record keeper, replacing Mercer. Jean Cunningham, controller, said the company got more efficient service at a better price.
Los Angeles Chiropractic
LOS ANGELES - The $2 million pension fund of the Los Angeles College of Chiropractic, Whittier, Calif., dropped its two managers, Galleon Capital Management and Amervest Co., said Teri Burley, vice president and CFO.
The college hired PaineWebber to manage the money in a discretionary brokerage account. Ms. Burley said the college dropped the managers to get better service and performance.
COATESVILLE. Pa. - Hiring its first specialty manager in the area, the $293 million pension fund of Lukens Inc. hired TCW to run small-cap growth stocks, said Barbara L. Gasper, manager-investor and banking relations.
TCW was assigned $20 million. Funding came from cash.
National Education Association
WASHINGTON - The retirement board of the National Education Association recommended adding RhumbLine Advisers to manage an S&P 500 equity fund, and Baring International Investment to run international equities.
Both are new asset classes for the $182.5 million pension plan, said Steven Brown, benefits manager. The hirings resulted from an asset allocation study conducted by Wilshire Associates.
The recommendations are subject to approval by the plan's executive committee at its next meeting Nov. 8, when it will also decide how much money to allocate to the two new managers. Other asset classes will be reduced to fund the new hires.
City of New Haven
NEW HAVEN, Conn. - The $130 million City of New Haven Policemen & Firemen's Pension Fund picked Callan Associates as its consultant, pending the completion of contract negotiations, according to Kevin Quinn of Smith Barney's consulting services division. Mr. Quinn served as the board's interim consultant and assisted with the search. Prudential Securities resigned as consultant in December.
New York City Teachers
NEW YORK - Trustees of the $21.5 billion New York City Teachers Retirement System allocated a total of $30 million to eight incumbent managers. $15.3 million will go to Bankers Trust for a Russell 3000 Index Fund; and $2.1 million each will be given to Chancellor Capital Management, Cowen Asset Management, John A. Levin, Sound Shore Management, Sturdivant, Valenzuela Capital Management and Woodford Capital Management.
Ohio Police & Firemen
COLUMBUS, Ohio - The $4.6 billion Ohio Police & Firemen's Disability & Pension Plan hired Bankers Trust's Global Investment Management Group to manage a $150 million EAFE index fund. No other details were available.
OKLAHOMA CITY - The $665 million Oklahoma Police Pension & Retirement System hired three managers.
Smith Barney Capital Management will run $43 million in international equities; Warburg Investment Management, $30 million in global bonds; and Investment Advisers Inc., $36.5 million in midcap growth equities.
M.C. Robertson & Associates is the consultant.
Pennsylvania State Employes
HARRISBURG, Pa. - Trustees for the $13.6 billion Pennsylvania State Employes' Retirement System voted to hire Arnhold and S. Bleichroeder Capital to manage a medium-capitalization value stock portfolio of up to $160 million and to allocate $50 million to Hellman & Friedman Capital Partners III to invest in private equity opportunities in U.S. companies.
Funding largely came from a reduction in the fund's commitment to U.S. fixed-income investments. There were no terminations.
Post Office Superannuation
LONDON - The 10 billion ($16.2 billion) Post Office Staff Superannuation Scheme hired Wellington Management and Foreign & Colonial Pensions Management to manage U.S. active equity portfolios. Wellington will run a 100 million large-cap portfolio, while F&C will manage a 50 million small-cap portfolio, said Gerry Degaute, financial secretary. Part of the funding came from cash and part came from a reduction in the U.S. equity portfolio managed by PosTel Investment Management. Watsons assisted.
Southwestern Public Service
AMARILLO, Texas - Southwestern Public Service Co. hired Draycott Partners to manage a $15 million international equity portfolio for its $295 million defined benefit plan. It is the fund's first international investment. SEI Capital Resources assisted.
Funding came from the termination of one unnamed U.S. equities manager that had handled a $50 million account. The rest of that portfolio was reallocated to existing managers, said Bill Helton, chief executive of the company.
Washington State Investment
OLYMPIA, Wash. - Trustees of the $20 billion Washington State Investment Board hired Principal Financial Group as the lead adviser for a commercial mortgage program, said Jeffrey Habersetzer, a fund official.
The trustees also voted to hire Aegon USA Realty Advisors as the secondary adviser to the program. Aegon will be funded only if the program is expanded, Mr. Habersetzer said.
The board of trustees hasn't approved a dollar amount for the program but discussions have centered around $200 million, he said. Townsend Group assisted.
ST. PAUL, Minn. - The approximately $250 million Amherst H. Wilder Foundation allocated $5 million to the new HSBC Private Equity Fund. The fund plans to make direct investments in unlisted companies in China and Southeast Asia. The commitment represents the foundation's first direct investment overseas.