Town of Berlin
BERLIN, Conn. - The $12 million Town of Berlin Employees' Retirement Fund hired ICMA Retirement to manage $3 million, said Gary Clinton, finance director. Of the $3 million, $1 million went into ICMA's U.S. Treasury Securities Fund, and $2 million into ICMA's GIC fund.
About $500,000 of the allocation came from new contributions, the remainder from maturing GICs. The fund is prohibited from investing in equities, Mr. Clinton said.
Broken Hill Proprietary Co.
MELBOURNE, Australia - The $2 billion Australian (about $1.4 billion U.S.) superannuation fund of Broken Hill Proprietary Co. Ltd. made its first allocation to Australian index-linked bonds, said Colin Wirth, group manager-superannuation. Two unidentified Australian managers were given a total of $100 million for the investment.
The fund's strategy calls for doubling the allocation over time, either by adding managers or increasing the allocations to existing managers.
SACRAMENTO, Calif. - The $82 billion California Public Employees' Retirement System has committed $20 million to private equity investments with Penman Private Equity and Mezzanine Fund L.P. The fund is a limited partnership that will make equity and mezzanine debt investments in established middle-market private and public operating companies with substantial insider holdings.
Central Hudson Gas & Electric
POUGHKEEPSIE, N.Y. - Central Hudson Gas & Electric Corp.'s $20 million 401(k) plan will move to a bundled approach with Aetna April 1, said Steven V. Lant, treasurer and assistant secretary.
The fund dropped Frank Russell Trust, which ran about 25% of the assets in equities; John Hancock, Metropolitan Life and Connecticut Mutual, which ran the remainder of the assets in guaranteed investment contracts; and A. Foster Higgins as record keeper.
The plan will have four investment choices. Aetna will run a stable-value intermediate bond fund and a growth and income fund, while it subcontracted with Twentieth Century Investors to provide its Ultra mutual fund and with Evergreen Asset Management to run a balanced fund.
Chester County Employees
WEST CHESTER, Pa. - The $84 million Chester County Employees Retirement Fund hired Pierce Park Group as its first consultant. Pierce Park will assist in developing investment policy guidelines and perform an asset allocation study, according to a spokesman for the fund. The fund is invested in a balanced account with Merrill Lynch.
POTSDAM, N.Y. - The $65 million endowment of Clarkson University hired Lazard Freres Asset Management "to test the waters" in international investing, said David M. Alexander, director-financial operations.
The endowment assigned Lazard to run $1 million, split between small-and large-capitalization international stock mutual funds.
Evaluation Associates assisted in the search.
LA JOLLA, Calif. - Copley Press Inc. selected Mercer Asset Planning for bundled services for a $53 million defined contribution plan.
The new service will be implemented July 1 and will include daily valued mutual funds, a toll-free, voice-response system, employee communication and education, and record-keeping services. Copley will use Mercer's mutual fund alliance to double to six the number of investment options.
The fund previously offered money market, bond index and equity index funds from Boston Safe Deposit. Record keeping had been done internally.
RICHMOND, Va. - The $600 million defined benefit fund of Dominion Resources Inc. added Valu-Trac Investment Management as its third international equity manager, said John Barrie Jr., assistant corporate secretary. Colonial Consulting assisted. The fund assigned Valu-Trac $5 million, raising Dominion's total international equity allocation to $70 million, or nearly 12% of assets. Funding came from cash, according to Mr. Barrie.
ANN ARBOR, Mich. - Domino's Pizza Inc. will move to a bundled approach with IDS for its $20 million 401(k) plan as of June 1, said Terry Felt, director-employee benefits.
The plan will drop all of its other investment managers, which, according to the Money Market directory, are Capital Research & Management, Fidelity, Neuberger & Berman and Provident Investment Counsel. Mr. Felt declined to release the names.
IDS had managed a fixed-income option, and already was record keeper and trustee. J.H. Ellwood assisted in the search.
Ford Motor Co.
DEARBORN, Mich. - Ford Motor Co.'s $27 billion pension fund hired Capital Holding for $100 million in a guaranteed-return S&P 500 index fund. The fund, known as Equity TRAC, guarantees investors the total return of the S&P 500 with no fees and no tracking error.
KOKOMO, Ind. - Haynes International Inc. restructured both its $117 million defined benefit plan and $14 million 401(k) plan.
Boatmen's Trust replaced Harris Trust as trustee for both plans.
On the defined benefit side, four managers will divide $82 million run by Harris Investment Management, which was terminated. Harbor International will manage international equities; Investment Advisers Inc., small-cap stocks; NBD-Indianapolis, long-term bonds; and Madison Investment Advisors, short-term bonds. Gary L. Sutton, manager of treasury services, did not disclose the allocations.
In the 401(k) plan, some investment options were changed. Boatmen's will manage a bond and a cash fund, both previously managed by Harris. An international equity fund, managed by Brinson Partners, was added. Seaboard Investment Advisors replaces Northwest Quadrant in the value portion of a balanced fund. Oxford Financial Advisors assisted.
Hershey Foods Corp.
HERSHEY, Pa. - Hershey Foods Corp. picked IDS Financial Services as the bundled service provider for its more than $200 million 401(k) plan, said Howard R. Hamann, assistant treasurer and director-pension asset management.
Hershey had been using an unbundled approach. IDS will replace Bankers Trust and J.P. Morgan as managers; three IDS options are being added. Record keeper Hewitt Associates will be terminated.
Hotel, Motel Local 355
MIAMI - The Hotel, Motel and Restaurant Workers, Local 355 hired Pension Fund Evaluations to evaluate the performance of its $10 million pension fund, said William H. Dearth, vice president, Segal Co., West Palm Beach, Fla., actuary and consultant to the fund. Dreman Value is the sole manager.
Lend Lease Corporate Services
SYDNEY, Australia - Money manager Lend Lease Corporate Services Ltd. hired Capital International to manage its new open-end emerging markets fund for Australian pension funds. Lend Lease had been using Capital International for emerging markets investments in its general international accounts.
Los Angeles City
LOS ANGELES - The $4 billion Los Angeles City Employees' Retirement System hired Asset Strategy Consulting to conduct an asset allocation study, replacing SEI, said Jose Figueroa, vice president.
Los Angeles County
LOS ANGELES - The $14 billion Los Angeles County Retirement Association hired Global Asset Management for about $187 million in Pacific basin stocks. Frank Russell assisted.
Michigan Municipal Risk
LANSING, Mich. - Asset Strategies Portfolio Services has been hired by the Michigan Municipal Risk Management Authority as a performance consultant.
Asset Strategies replaces SEI Capital Resources, which will remain the investment management consultant for the authority's $75 million insurance pool, which provides insurance services for 270 local government units.
The change resulted from a restructuring late last year, in which four firms recommended by SEI were hired as portfolio managers. Michigan officials decided to hire another consultant to evaluate their performance.
Criterion Investment Management and Morgan Grenfell Capital Management were hired to manage fixed-income portfolios and Turner Investment Management and Cowen Asset Management were hired to manage equity portfolios.
New York State Teachers
ALBANY, N.Y. - The $41 billion New York State Teachers Retirement System hired Alliance Capital Management to run a $1 billion EAFE index fund that has a 40% limitation of exposure to Japanese equities, said Donald Blaha, a spokesman for the fund. Trustees also decided to increase to $1 billion from $600 million an EAFE index fund run by Bankers Trust. That fund also will have a 40% Japan cap.
Three active international stock managers - Brinson, Baring International and Schroder - received increased allocations of $60 million each.
All allocations will be funded from cash flow. Brinson presently manages $50 million; Baring manages $50 million; and Schroder manages $50 million.
Omaha Public Power District
OMAHA, Neb. - The $350 million Omaha Public Power District hired Putnam Investments for a $20 million international money market fund and gave EverGreen Capital Management an additional $5 million, said trustee John Green. EverGreen now manages $12 million.
DETROIT - Making its first move in the area, the $100 million defined benefit fund of R.L. Polk & Co. hired Chancellor Capital Management to run a tactical asset allocation overlay, said Gary O. Puvalowski, vice president and treasurer.
The TAA strategy will overlay 15% of the total fund, allowing Chancellor to shift between equities and fixed income without affecting the underlying portfolios run by other managers.
The company also hired three managers for its $35 million 401(k) plan. Vanguard will replace Travelers as manager of an S&P 500 stock index fund. In addition, the fund added IDS' New Dimensions fund and Fidelity's Puritan fund.
Hartland & Co. assisted.
DENVER - Portfolio Management Consultants Inc. hired Vontobel USA, bringing to 25 the number of managers in its wrap-fee investment management program.
Vontobel will specialize in using American depository receipts.
Vontobel, a unit of the Zurich, Switzerland-based Bank J. Vontobel & Co., is PMC's second international equities manager.
St. Louis Sewer District
ST. LOUIS - The Metropolitan St. Louis Sewer District hired Mercer Asset Planning and Kemper Financial as co-consultants for its $3 million 457 plan, said Karl Tyminski, secretary and treasurer. Mercer primarily will provide investment advice; Kemper will handle administrative work.
San Francisco City & County
SAN FRANCISCO - The $6.1 billion San Francisco City & County Employees' Retirement System has committed $30 million to TPG Partners and $10 million to Battery Ventures III, two venture capital limited partnerships, said Clare Murphy, chief executive officer.
TPG Partners makes opportunistic, control-oriented investments through acquisitions and restructurings, such as leveraged buy-outs or recapitalizations. Battery Ventures makes investments primarily in communication and software companies. Lewis Bailey assisted.
NORTHAMPTON, Mass. - The $460 million endowment of Smith College has hired GMG/Seneca Capital Management to manage $57 million in controlled-risk growth equities. The assets are mostly from other domestic equity portfolios, but the fund is not changing its asset allocation of 60% equity, 30% fixed income and 10% real estate and other investments, said Charles Johnson, assistant treasurer. The fund is terminating another equity manager, which Mr. Johnson declined to identify. Cambridge Associates assisted.
Springfield Police & Fire
SPRINGFIELD, Mo. - The $80 million Springfield Policemen's and Firemen's Retirement System defined benefit plan hired Kopp Investment Advisors to manage $4 million in small-cap equities, said Fred Fantauzzi, director of finance.
The funding came from internally managed funds, he said. Rothschild Consulting assisted.
DALLAS - Texas Utilities Co., with about $870 million in defined benefit assets, will make its first allocation to international equities through two of its existing managers, said John E. Thompson Jr., trust funds administration manager. TU will split about $26.5 million in international equities with Hotchkis and Wiley and Tweedy, Browne.
SEATTLE - Todd Shipyards Corp. retained Chemical Banking Corp. as trustee and custodian of its $57 million pension fund, said Dale R. Branscomb, director-retirement plans. In its search, the fund primarily was seeking lower fees. Chemical offered the best bid, reducing its price somewhat, he said, declining to give the amount of reduction.
Tri Valley Growers
SAN FRANCISCO - Tri Valley Growers, a cooperative of produce growers based in San Francisco, selected Wyatt Asset Services to provide bundled 401(k) service for Tri Valley's $85 million defined contribution plan.
Paul Schaefer, a trustee, said the plan selected six mutual fund options. He wouldn't identify managers terminated.
BINGHAMTON, N.Y. - Universal Instruments Corp. hired Vanguard to add three investment options to its $47 million employee-directed profit-sharing plan, said Timothy C. Rich, manager-financial benefits administration.
Vanguard will provide a money-market fund, a bond index fund and an S&P 500 stock index fund.
The plan will keep its two existing investment options: an equity portfolio run jointly by Estabrook Capital Management and Clover Capital Management, and a fixed-income portfolio run jointly in-house and by Chase Manhattan Bank.
UIU Pension Trust
TREVOSE, Pa. - The $500 million UIU Pension Trust (Upholsterers) hired Bankers Trust as the fund's custodian, replacing Bank of New York.
Bankers will provide domestic and global custody services, including securities lending when required, said Richard S. Hoffman, UIU's general counsel and director of operations.
The fund also dropped two money managers: Seaboard Investment Advisers, which managed $15 million in small-cap equities for the fund, and Ark Asset Management, which ran $38.5 million in bonds.
Seaboard, primarily a large-cap value manager, resigned from the account because of the departure of David Scott, vice president and portfolio manager.
Mr. Hoffman said the firm would not agree to continue using Mr. Scott's small-cap investment style to manage the UIU fund's portfolio.
Ark was terminated in a move to reduce the number of bond managers used by the fund.
Two bond managers remain, but the board may consider consolidating bond management into one portfolio.
MELBOURNE, Australia - The $3 billion (Australian) Victoria Superannuation Board has completed its hirings of international money managers that will enable the fund to reach its target of 15% in foreign stocks and 5% in foreign bonds, said John Fazio, investment manager.
The fund hired Alliance Capital, Bankers Trust Australia and Brinson Partners for global equity; Bridgewater Associates and Paribas for global fixed income; Jardine Fleming for Southeast Asia minus Japan equity; and Morgan Grenfell for small-cap foreign stocks.
The allocations were not disclosed.