Bechtel Power Corp., San Francisco, hired Capital Guardian Trust to manage non-U.S. equities; and Grantham, Mayo, Van Otterloo for global bonds, said Kent Copa, vice president at Fremont Investment Advisors, which runs the $2.1 billion defined benefit plan. He declined to reveal the size of the portfolios.
The international equity money was run by Kleinwort Benson, which was acquired by Dresdner RCM Global. A Dresdner spokesman said the firm had no comment. J.P. Morgan had managed the global bond money, but plan officials decided to diversify because the firm also manages some non-U.S. stocks for Bechtel, Mr. Copa said.
Bechtel hired the managers following an asset allocation study in December.
The new portfolio ultimately will reach $325 million and will be funded gradually during the year, said Mike Finnegan, senior investment officer for the $12.1 billion fund.
The initial funding came from cash and subsequent allocations will come from portfolio rebalancing.
Shook, Hardy & Bacon LLP, Kansas City, Mo., hired Prudential Investments to provide quasi-bundled services for its 401(k) and money purchase plans.
Prudential will provide full-service administration and record keeping, employee communications and education and five of the 11 new investment options. Five options will be managed by other firms. An additional option permits the firm's 1,100 employees to use their own third-party brokers to manage their accounts.
Dale Chaffin, COO, would not disclose the size of the company's retirement plans. According to Nelson's Directory of Plan Sponsors, the total assets are $95.7 million.
The company previously used bundled plan services from NationsBank. The search was conducted internally.