Boston International Advisors lost about 30% of its assets under management when State of Connecticut Trust Funds restructured. But Lyle H. Davis, president, said the loss was neither unexpected nor fatal.
Boston International managed Connecticut's largest international equity portfolio, about $829 million, until the pension fund terminated 26 money managers last month.
Without Connecticut, Boston International has the same amount in assets it did a year ago - about $2 billion, said Mr. Davis. In effect, the loss of Connecticut canceled out the firm's 1995 growth.
"We're not happy about it, but it's not going to put us out of business," said Mr. Davis.
And because the Connecticut portfolio was indexed, fees were among the lowest, if not the lowest, charged by Boston International, Mr. Davis said.
So the firm didn't lose 30% of its revenue when it lost 30% of its assets.
Boston International had been managing equities for Connecticut since 1987, when it was awarded $300 million to $400 million, Mr. Davis recalled.
Appreciation, coupled with additional allocations from Connecticut, more than doubled the allocation over the next eight years.
But the termination was not a complete surprise, said Mr. Davis. Most of Connecticut's incumbent managers knew they might be replaced, he said.
He noted that shortly after state Treasurer Christopher Burnham took office in early 1995, all of Connecticut's managers were told they would be terminated and that only some of them would be rehired.