Voorzorgskas voor Geneesheren, Tandartsen en Apothekers VZW, Brussels, hired MFS Institutional Advisors to manage 33 million euros ($30.5 million) in active U.S. midcap equities. The 550 million euro pension plan dropped Denver Investment Advisors as manager of the portfolio because its performance was below benchmark, said Karel Stroobants, deputy general manager at the plan. Plan trustees also had been "unconvinced by the firms explanation for its poor performance, he added.
Charlotte Petersen, Denver vice president and portfolio manager, admitted the fund had underperformed its benchmark during 1997 and part of 1998 but said performance had been ahead of benchmark in 1999 and 2000. "We were disappointed that they didnt understand the explanation. Perhaps the language was a bigger barrier than we realized, she said.