Skip to main content
MENU
Subscribe
  • Subscribe
  • Account
  • LOGIN
  • Topics
    • Alternatives
    • Consultants
    • Coronavirus
    • Courts
    • Defined Contribution
    • ESG
    • ETFs
    • Hedge Funds
    • Industry Voices
    • Investing
    • Money Management
    • Opinion
    • Partner Content
    • Pension Funds
    • Private Equity
    • Real Estate
    • Russia-Ukraine War
    • SECURE Act 2.0
    • Special Reports
    • White Papers
  • Rankings & Awards
    • 1,000 Largest Retirement Plans
    • Top-Performing Managers
    • Largest Money Managers
    • DC Money Managers
    • DC Record Keepers
    • Largest Hedge Fund Managers
    • World's Largest Retirement Funds
    • Best Places to Work in Money Management
    • Excellence & Innovation Awards
    • WPS Innovation Awards
    • Eddy Awards
  • ETFs
    • Latest ETF News
    • Fund Screener
    • Education Center
    • Equities
    • Fixed Income
    • Commodities
    • Actively Managed
    • Alternatives
    • ESG Rated
  • ESG
    • Latest ESG News
    • The Institutional Investor’s Guide to ESG Investing
    • ESG Sustainability - Gaining Momentum
    • Climate Change: The Inescapable Opportunity
    • Impact Investing
    • 2022 ESG Investing Conference
    • ESG Rated ETFs
  • Defined Contribution
    • Latest DC News
    • DC Money Manager Rankings
    • DC Record Keeper Rankings
    • Innovations in DC
    • Trends in DC: Focus on Retirement Income
    • 2022 Defined Contribution East Conference
    • 2022 DC Investment Lineup Conference
  • Searches & Hires
    • Latest Searches & Hires News
    • Searches & Hires Database
    • RFPs
  • Performance Data
    • P&I Research Center
    • Earnings Tracker
    • Endowment Returns Tracker
    • Corporate Pension Contribution Tracker
    • Pension Fund Returns Tracker
    • Pension Risk Transfer Database
    • Future of Investments Research Series
    • Charts & Infographics
    • Polls
  • Careers
  • Events
    • View All Conferences
    • View All Webinars
    • 2022 Retirement Income Conference
    • 2022 Managing Pension Risk & Liabilities
    • 2022 WorldPensionSummit
Breadcrumb
  1. Home
  2. Print
September 01, 1997 01:00 AM

SUNOCO OUTSOURCES ACTIVE EQUITY TO SEI

Barry B. Burr
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print

    HARTSVILLE, S.C. - The $500 million Sunoco Products Co. pension fund hired SEI Investments Co.'s Asset Management Group to manage all of the fund's active equities in a manager-of-managers program.

    Sunoco will assign SEI more than $200 million, an amount that could increase depending on the outcome of a pending asset-liability study.

    Among the changes to its pension fund, Sunoco:

    Dropped its individual active equity managers - First Union National Bank of North Carolina Capital Management Group, Charlotte; Grantham Mayo Van Otterloo & Co., Boston; and Frank Russell Investment Management Co., Tacoma, Wash.

    Switched passive equity and passive fixed-income managers, moving to State Street Global Advisors, Boston, and dropping Bankers Trust Co., New York.

    Dropped Wachovia Corp., Winston-Salem, N.C., its master trustee, and Wachovia Asset Management, which handled cash and short-term investments. SEI will handle custodial services.

    The fund will retain for now its three separate real estate managers and its enhanced index fund investment contracts, issued by two insurance companies.

    Sunoco hasn't set its asset allocation yet. SEI, based in Oaks, Pa., is assisting Sunoco in preparing a major asset-liability study, according to Vicki Arthur, assistant treasurer. A decision on any changes could be made in October.

    The fund likely will enter a new area - high-yield bonds - and expand its international equity allocation as a result of the study, Ms. Arthur said. SEI would control these new allocations, too.

    Ms. Arthur declined to specify the fund's current allocation.

    SEI has put the assets from Sunoco's previous active managers into various funds managed by managers in the SEI program.

    "They are outsourcing responsibility for all active equity management to SEI," said Edward Loughlin, president of SEI Asset Management Group. "We will put them in global investments."

    Edward J. Daly, Atlanta-based managing director of SEI Asset Management Group, said SEI "will have discretion in active management."

    He said SEI will have complete discretion to hire and terminate investment managers for the Sunoco allocation.

    The overall asset allocation, however, "will be set by a team approach" with Sunoco. "We will come to them with a recommendation (on allocation). Then we will work from there."

    The ultimate asset mix of the SEI assignment could include some fixed income, such as high-yield bonds, depending on the allocation recommendation of the study.

    Ms. Arthur said SEI will keep Sunoco's current equity style allocation for now, until the completion of the study. The styles are small-capitalization, growth, value and international. Some money also was placed temporarily by SEI into Standard & Poor's 500 futures contracts.

    Sunoco's allocation to SEI came from First Union, a value manager; Grantham Mayo Van Otterloo, an international manager; and Frank Russell, a small-cap manager.

    The asset-liability study also will determine how much of the fund will be divided between active equities and active fixed income under the SEI program and passive equities and passive fixed income managed by State Street.

    State Street now manages four index funds for Sunoco: S&P 500; small-cap; Morgan Stanley Capital International Europe Australasia Far East; and a bond index fund.

    The study also will determine how much the fund will continue to allocate to real estate. The fund has 5% in real estate equity, mostly with Equitable Real Estate Investment Management Inc. and smaller portions with Alliance Capital Management L.P. and NationsBank.

    Sunoco likely will keep intact the enhanced index contracts until their expiration, at least one of which has two years until maturity. The contracts were issued by Pacific Mutual Life Insurance Co., Newport Beach, Calif., and Diversified Financial Products Inc., Louisville, Ky., a unit of the former Providian Corp., which recently was acquired by Aegon USA Inc., Baltimore. Some are tied to the S&P 500 index or to a Lehman Brothers bond index. The contracts provide a return that tracks an index plus a kicker over the benchmark. Further details were unavailable.

    Recommended for You
    Read the print edition of P&I
    Read the print edition of P&I
    How low is low? Projections say it's not low enough
    How low is low? Projections say it's not low enough
    FINRA honors Wharton's Olivia Mitchell with Ketchum Prize
    FINRA honors Wharton's Olivia Mitchell with Ketchum Prize
    New SEC Rule on Fair Pricing Determination Needs Careful Consideration
    Sponsored Content: New SEC Rule on Fair Pricing Determination Needs Careful Consideration

    Reader Poll

    June 6, 2022
    SEE MORE POLLS >
    Sponsored
    White Papers
    Nearing the finish line: Ideas on end-state investing for corporate DB plans
    The Meaning of "Portfolio Intelligence"
    Credit Indices: Closing the Fixed Income Evolutionary Gap
    Forever in Style: Benchmarking with the Morningstar® Broad Style Indexes℠
    Crossroads: Politics, Inflation, & Bonds
    Is there a mid-cap gap in your DC plan?
    View More
    Sponsored Content
    Partner Content
    The Industrialization of ESG Investment
    For institutional investors, ETFs can make meeting liquidity needs easier
    Gold: the most effective commodity investment
    2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios
    Ten ways retirement plan professionals add value to plan sponsors
    Gold: an efficient hedge
    View More
    E-MAIL NEWSLETTERS

    Sign up and get the best of News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today
    June 20, 2022 page one

    Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors.

    Subscribe
    Connect With Us
    • RSS
    • Twitter
    • Facebook
    • LinkedIn

    Our Mission

    To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market.

    About Us

    Main Office
    685 Third Avenue
    Tenth Floor
    New York, NY 10017-4036

    Chicago Office
    130 E. Randolph St.
    Suite 3200
    Chicago, IL 60601

    Contact Us

    Careers at Crain

    About Pensions & Investments

     

    Advertising
    • Media Kit
    • P&I Content Solutions
    • P&I Careers | Post a Job
    • Reprints & Permissions
    Resources
    • Subscribe
    • Newsletters
    • FAQ
    • P&I Research Center
    • Site map
    • Staff Directory
    Legal
    • Privacy Policy
    • Terms and Conditions
    • Privacy Request
    Pensions & Investments
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • Topics
      • Alternatives
      • Consultants
      • Coronavirus
      • Courts
      • Defined Contribution
      • ESG
      • ETFs
      • Hedge Funds
      • Industry Voices
      • Investing
      • Money Management
      • Opinion
      • Partner Content
      • Pension Funds
      • Private Equity
      • Real Estate
      • Russia-Ukraine War
      • SECURE Act 2.0
      • Special Reports
      • White Papers
    • Rankings & Awards
      • 1,000 Largest Retirement Plans
      • Top-Performing Managers
      • Largest Money Managers
      • DC Money Managers
      • DC Record Keepers
      • Largest Hedge Fund Managers
      • World's Largest Retirement Funds
      • Best Places to Work in Money Management
      • Excellence & Innovation Awards
      • WPS Innovation Awards
      • Eddy Awards
    • ETFs
      • Latest ETF News
      • Fund Screener
      • Education Center
      • Equities
      • Fixed Income
      • Commodities
      • Actively Managed
      • Alternatives
      • ESG Rated
    • ESG
      • Latest ESG News
      • The Institutional Investor’s Guide to ESG Investing
      • ESG Sustainability - Gaining Momentum
      • Climate Change: The Inescapable Opportunity
      • Impact Investing
      • 2022 ESG Investing Conference
      • ESG Rated ETFs
    • Defined Contribution
      • Latest DC News
      • DC Money Manager Rankings
      • DC Record Keeper Rankings
      • Innovations in DC
      • Trends in DC: Focus on Retirement Income
      • 2022 Defined Contribution East Conference
      • 2022 DC Investment Lineup Conference
    • Searches & Hires
      • Latest Searches & Hires News
      • Searches & Hires Database
      • RFPs
    • Performance Data
      • P&I Research Center
      • Earnings Tracker
      • Endowment Returns Tracker
      • Corporate Pension Contribution Tracker
      • Pension Fund Returns Tracker
      • Pension Risk Transfer Database
      • Future of Investments Research Series
      • Charts & Infographics
      • Polls
    • Careers
    • Events
      • View All Conferences
      • View All Webinars
      • 2022 Retirement Income Conference
      • 2022 Managing Pension Risk & Liabilities
      • 2022 WorldPensionSummit