ROSEMONT, Ill. -- The Central States Southeast & Southwest Areas Pension Fund will issue RFPs to 20 firms in its search for a second named fiduciary.
The firm will oversee 15%, or about $2.85 billion, of the fund. It will join Morgan Stanley Dean Witter & Co., now the sole named fiduciary. Like Morgan Stanley, the second firm will have sole authority to set investment policy, allocate assets and hire and fire money managers and a custodian for that part of the fund under its purview.
The 20 firms are:
AIG Global Investment Corp., New York; BankAmerica Corp., San Francisco; Bankers Trust Co., New York; Barclays Global Investors, San Francisco; Capital Research & Management Co., Los Angeles; Chase Manhattan Bank, New York; Citibank, New York; Fidelity, Boston; Goldman Sachs & Co., New York; Merrill Lynch & Co., New York; Metropolitan Life Insurance Co., New York; J.P. Morgan & Co., New York; NationsBank, Charlotte, N.C.; New York Life Insurance Co., Parsippany, N.J.; Prudential Insurance Co. of America, Newark, N.J. State Street Bank & Trust Co., Boston; Teachers Insurance and Annuity Association-College Retirement Equities Fund, or TIAA-CREF, New York; Travelers Insurance Co., Hartford, Conn.; Vanguard Group Inc., Valley Forge, Pa.; and Wellington Management Co., Boston.
Judge James B. Moran of the U.S. District Court, Chicago, cleared the way for the search with a ruling June 16 in favor of the trustees' motion to seek the second named fiduciary. The Labor Department filed a motion not opposing the Central States' request.
The fund operates under a court-supervised consent decree with the Department of Labor that was adopted in 1982 as part of an effort to clear up corruption at the fund.
Morgan Stanley was first hired as named fiduciary in 1984 when the fund had only $4.8 billion in assets.
Morgan Stanley will not be permitted to bid for the second named fiduciary assignment.
The criteria to select candidates for the second named fiduciary position included any bank considered ranked in the top 25 in the United States in terms of equity capital, any insurance company ranked in the top 25 in terms of assets, and any investment adviser ranked in the top 25 in terms of client assets under management.
The fund hopes to hire the second named fiduciary by Oct. 1 and turn over the assets Jan. 1.