Peoples Energy Corp., Chicago, finished implementing the...

Peoples Energy Corp., Chicago, finished implementing the recommendations from an asset allocation/liability study and rebalanced its $687 million defined benefit plan. Three Dimensional Fund Advisors portfolios were dropped: a $52 million short-term domestic fixed-income fund; a $24 million passive small-cap equity fund; and a $46 million passive international value equity fund. The bond fund and part of the small-cap fund were allocated to NTQA’s intermediate-term domestic bond portfolio, which now totals $115 million. The remainder of the small-cap portfolio was reallocated to other existing managers. Brandes Partners was hired to manage $37 million in global equities, which includes the emerging-markets exposure and the active strategy fund officials wanted, said Jim Gabel, director of financial operations at Peoples Energy. Funding came from the terminated DFA international portfolio, with the remaining $9 million of the DFA portfolio going to existing domestic high-yield bond manager W.R. Huff and to cash flow. DFA will continue to manage a $56 million intermediate government fixed-income fund and a $33 million large-cap value fund.