The Casey Family Program, Seattle, outsourced management of $1.4 billion of its $2.2 billion foundation to Frank Russell, which will be responsible for the selection, hiring, firing, monitoring and day-to-day management of outside managers for domestic equity and fixed income. The board retained control of asset allocation and oversight of international equity, real estate and private equity managers. The foundation, established by United Parcel Service founder Jim Casey, holds a large percentage of UPS stock, which CFO Katherine K. Anderson said is classified as private equity. Staff also continues to manage short-term cash.
Russell has been the foundations investment management consultant for some time. But Casey board members decided managing the money managers was taking up too much time. "The board is taking a higher level view now of the investment management process, said Ms. Anderson. Russell terminated some managers and hired others in rebalancing assets closer to the boards investment policy benchmark, the Russell 3000 index. Neither Ms. Anderson nor Russell officials would identify the managers.