The $12.6 billion Connecticut Trust Funds, Hartford, cut its money manager stable to 22, state Treasurer Christopher Burnham announced today.
Sixteen new managers were hired and 26 were let go. All but two money managers will work on performance fees, and indexed stock and bond assets will increase to 56% of the portfolio, from 27%.
Only fixed-income managers Loomis Sayles and Pacific Investment Management will retain their mandate. Four existing managers were rehired for different mandates: Smith Barney will get a $100 million active core international portfolio; Alliance, ValueQuest and Brown Capital will run $150 million each in small/midcap active portfolios.
New index and enhanced stock index managers are State Street Global; J.P. Morgan; BZW Global (formerly Wells Fargo Nikko); and Rosenberg.
New active equity managers are Cowen; Columbus Circle; First Pacific Advisors; and RCM.
New active international managers are Morgan Stanley; Grantham Mayo Van Otterloo; J.P. Morgan; DSI; Pictet; and State Street Global.
New active bond managers are J.P. Morgan; BlackRock; W.R. Huff and Oaktree. State Street Global will run a passive bond portfolio.
Terminated domestic equity managers are: Capital Guardian; Aeltus; Davis Hamilton Jackson; Oak; Phoenix Home Life; Atalanta/Sosnoff; Sturdivant; Armstrong Shaw; Bankers Trust; Independence; JMC; Shawmut; and Target.
Terminated fixed-income managers are: Smith Barney; Julius Baer; Brinson; STW; Jennison; Wedgewood; and Standish Ayer & Wood.
Terminated international managers are Capital Guardian; Philippe; Normura; Schroder; Parametric; Dimensional; and Boston International.
The $150 million University of St. Thomas endowment, St. Paul, Minn., made a strategic rebalancing of two managers, said Mike Sullivan, vice president-business affairs.
The endowment placed $8 million with Putnam Investments, bringing its total fixed-income portfolio to $15 million. Funding came from reducing Investment Advisers' fixed-income portfolio by $8 million; it now totals $15 million.
``The decision had nothing to do with performance,'' he said. ``Both have performed very well. It was a strategic rebalancing.''
Analytic Investment Management has reached an agreement to merge with TSA Capital Management. Terms were not disclosed.
The merged firm will be called Analytic/TSA Global Asset Management. The location has not been decided.
Alan Adelman, president and CEO of Analytic, will retain those titles in the merged company. Roger Clarke, president and CIO of TSA, will share the CIO title in the new firm with Analytic's CIO Alan Lewis.
Analytic, an options-enhanced equity and fixed-income manager, has $1.2 billion in assets; TSA is a quantitative manager with $1.3 billion under management, offering equity, fixed-income and currency management and global TAA.
The $33 million Concord (Mass.) Contributory Retirement System has applied for state regulatory approvals to shift part of its assets into Frank Russell Trust's international and Equity II funds, said Grace Jones, retirement administrator.
The system currently has $3.8 million in a Russell TAA fund and $2.5 million in cash, which would be used to fund the changes. ``We want more diversification, and international seems to be the place where a lot of people are going,'' Ms. Jones said. She said the TAA fund is not ``doing as well as it should.''
The $460 million pension fund of Arizona Public Service Co., Phoenix, hired two managers, said Jerry White, trust investment administrator. ANB Investment Management will run a $30 million S&P 500 stock index fund. Alliance Capital Management will run a $20 million large-capitalization growth stock portfolio.
Assets came from terminating a manager that ran value-style equities. He declined to disclose the name of the manager.
The index manager search was conducted internally; the fund used Callan for the growth manager search.