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%.
Four existing managers were rehired for different mandates: Smith Barney will manage a $100 million active core international portfolio; and Alliance, ValueQuest and Brown Capital will manage $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.
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.
SEARCHES & HIRINGS
Mercy Health System, Cincinnati, hired Putnam Investments to manage about $52 million in growth equities; Miller Anderson & Sherrerd, about $88 million in value equities; and Lincoln Capital, about $105 million in fixed income, all for its $350 million capital improvement fund, said Thomas Steele, director, cash and investments.
All of the assets had been managed in-house; about $70 million will remain in-house for liquidity and bond covenant purposes, he said.
Also, Mercy is nearing the end of its search for an international equity commingled fund manager to run 10% of the fund, he said.
The Chicago office of Watson Wyatt Worldwide is assisting with the search and assisted with the completed search and newly established asset allocation.
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.
The $370 million pension fund of Marshfield Clinic, Marshfield, Wis., is studying whether to hire another active manager after dropping Newbold's Asset Management for equities, said Thomas Bauer, plans manager.
The fund hired Northern Trust to manage - in an S&P 500 stock index fund the $30 million Newbold's ran.
``Our trustee group hasn't made a decision on whether this (Northern's index assignment) will be a long-term allocation, or if they will hire someone else,'' he said.
He expects a decision by the end of February.
Jeffrey Slocum assisted in the search and is helping with the study.
Strong Funds, Menomonee Falls, Wis., selected Sloate, Weisman to subadvise one of five new mutual funds designed for 401(k) and other retirement plan investors. The fund, Strong Value, will invest in medium and large companies using a value strategy.
The other funds, to be run in-house, are: Strong Growth and Income; Strong Equity Income; Strong Small Cap; and Strong High Yield Bond