Morton International Inc., Chicago, outsourced the investment management of its $600 million defined benefit plan to Northern Trust Global Advisors.
As part of the switch, Morton will do an asset-liability study, said Michael Meegan, director of benefit finance. It also will review the fund's asset allocation, investment policies and objectives and risk tolerances, he said. The review is expected to take six months to a year. Morton executives will continue to make asset allocation and actuarial-related decisions under the arrangement with Northern.
Other firms considered were: Frank Russell; Morgan Stanley; Brinson Partners; and SEI Asset Management.
Morton's U.S. stock managers are: Neuberger & Berman; Fisher Investments; Northern's index fund group; Lynch & Mayer; Trend Capital; State Street Research; William Blair; and John A. Levin. International equity managers are Northern and Frank Russell. Bond managers are Bankers Trust, Northern and CIGNA. Neither poor performance nor dissatisfaction with existing managers was part of the decision to outsource, he said.