BC Telecom
BURNABY, British Columbia - The $600 million (Canadian) pension fund of BC Telecom Inc. selected two managers for global and international investments and terminated a manager, said Garnet R. Andrews, cash and investments manager.
Marvin & Palmer Associates will be assigned $40 million (Canadian) for global equities, excluding Canadian, he said. Sprucegrove Investment Management Ltd. will be assigned $25 million (Canadian) for non-North American equities.
Brockhouse & Cooper assisted in the searches, Mr. Andrews said.
Funding for Sprucegrove will come from terminating Confed Investment Counselling Ltd., which ran $20 million in a pooled international fund, and from cash flow, he said.
The fund wanted a separate account, which Confed couldn't provide, he added.
Sprucegrove was founded by key professionals who quit Confed.
Funding for Marvin & Palmer will come from reducing assignments of existing managers, he added.
No other managers will be terminated.
Mr. Andrews said the selections are contingent upon the signing of contracts by the managers.
In all, the moves will raise the pension fund's non-North American equity allocation to 10% from 3% of assets and will reduce slightly its U.S. equity allocation to 9% from 11%, he added.
Calvert Memorial Hospital
PRINCE FREDERICK, Md. - Calvert Memorial Hospital hired Burridge Group to run $3 million in growth equities, and Lowe, Brockenbrough, Tierney & Tattersall to run $4 million in fixed income.
The money is part of the hospital's $10 million excess operating account, said Martha Rymer, vice president. Asset Security Trust was named custodian.
Ferris Baker Watts previously managed the $7 million and acted as custodian.
The other $3 million continues to be managed by Mercantile Safe Deposit.
Cincinnati Bell
CINCINNATI - Cincinnati Bell Inc.'s $705 million defined benefit plan hired Morgan Stanley Asset Management to run $60 million in international equities, said Len Haussler, assistant treasurer.
Some $50 million will be invested in large-cap stocks, and $10 million in small-cap stocks, he said. Funding will come from existing domestic managers.
William M. Mercer assisted in the search.
Commonwealth Funds
CANBERRA, Australia - Commonwealth Funds Management hired Chase Manhattan Bank Australia to provide core custodial services for the portfolio investments of its major clients and unit trusts.
Chase Manhattan will provide such services as securities settlement and safekeeping, dividend collection, tax reclamation and securities lending.
Commonwealth manages more than $5 billion (U.S.).
Hall Family Foundation
KANSAS CITY, Mo. - The Hall Family Foundation hired GE Investments to run an equity portfolio that combines growth and value styles. The foundation has $429 million in assets, according to Nelson's Directory of Plan Sponsors.
LISC
NEW YORK - Local Initiatives Support Corp. hired two equity managers to manage a portion of its more than $100 million in tax-exempt charitable contributions, according to Charles Foster, special assistant to the organization's chief financial officer.
Hired were Hallmark Capital Management to run $4 million, and M.R. Beal, $1 million.
Funding came from reducing government securities and corporate bonds.
Mobil Oil Corp.
FAIRFAX, Va. - Mobil Oil Corp., with $5.9 billion in defined benefit and defined contribution plans, hired Ayco Corp. to provide employees with a financial planning program, Money in Motion, said a spokeswoman for Mobil.
The modular program provides participants with a series of financial planning guidebooks, covering topics such as retirement planning, defined contribution plan investments, tax planning and college funding.
Mobil also elected to offer additional educational options, including employee educational seminars, a monthly benefits newsletter and access to six months' of Ayco's toll-free, telephone financial advice system, InfoLine.
Mobil will subsidize 80% of the Money in Motion program for each employee who opts to use the new service.
New York City Deferred
NEW YORK - The more than $800 million New York City Deferred Compensation Plan hired Neuberger & Berman to manage $50 million in a socially responsible equity fund, replacing Dreyfus.
The new equity fund invests in domestic and international companies meeting social and environmental criteria.
Georgette Gestley, director of investments, said the fund made the change to set up its own private-label mutual fund for its participants. Consultant William M. Mercer assisted the search.
Sealaska Corp.
JUNEAU, Alaska - Sealaska Corp. hired MacKay-Shields to manage a balanced international equities-international bond account of $20 million of its corporate operating assets.
Up to 65% may be invested in equities.
MacKay-Shields also will handle the currency overlay.
Smith & Nephew
MEMPHIS, Tenn. - Smith & Nephew Richards Inc. added an intermediate bond fund, provided by Fidelity Institutional Retirement Services, to its $32 million 401(k) plan, said Richard Tallo, manager-qualified retirement plans. The fund will be its sixth investment choice, all run by Fidelity.
He said the plan is considering adding a specialty fund sometime this year.
