Alabama Pre-Paid Affordable Tuition fund, Montgomery, hired a new stock manager and a new custodian, following an asset allocation study, said Henry Thompson, accountant. RhumbLine Advisers will run a $28 million Russell 200 index portfolio. Funding came from terminating Systematic Financial Management, which managed the money in a balanced portfolio. Northern Trust was named custodian, replacing Bankers Trust/First Alabama.
The $300 million fund increased its exposure to domestic and international equities and to international fixed income, while reducing domestic fixed income. The new allocation is 63% U.S. equities, up from 56%; 8% domestic fixed income, down from 27%; 17% international equities, up from 9%; and 12% international fixed income, up from 5%.
Hannah Group assisted with the changes.
Mr. Thompson said the fund doesn't plan on hiring or terminating any managers. The increased allocation to international stocks and bonds will go to existing managers.
