Florida Prepaid College Program, Tallahassee, selected State Street Research to handle $1 billion in fixed income. Funding will come from cutting in half the portfolio of incumbent fixed-income manager US Trust. Although the $3 billion fund was pleased with US Trusts performance, fund spokeswoman Colleen Englert said, it was fiscally prudent to hire more than one manager in the asset class.
Also, the program hired Alliance Capital Management to handle an $80 million S&P 500 index portfolio. Funding will come from new revenue from the sale of contracts. Alliance is the funds sole large-cap growth manager, handling 4% of total assets.