Boise State University Foundation, Boise, Idaho, hired Mellon Capital Management to run $30 million in indexed mutual funds: a Russell 3000 fund, EAFE fund and Lehman Aggregate bond fund. No breakout was given on how much would go into each.
The $40 million endowment also hired Key Trust to run $10 million in an S&P 500 index fund, said a foundation spokeswoman.
Funding comes from two active managers she did not name; the Money Market Directory lists the foundationís active managers as Burroughs & Hutchinson and Mountain Pacific Investment Advisors.
The change to passive management was made because investing in index funds is cheaper and the record indicates index funds are going to do better than active managers, said Robert Fritsch, executive director of the endowment.