Hilton Hotels Corp., Beverly Hills, Calif., hired RhumbLine Advisors to manage $20 million in a passive large-cap equity portfolio benchmarked to the S&P 500 and $10 million in a passive midcap equity portfolio benchmarked to the S&P 400 for Hiltons $315 million defined benefit plan.
Funding comes from terminating Bank of New York, which managed a $30 million portfolio benchmarked to the S&P 500. The manager performed well, but plan officials wanted to hire a minority-owned firm, said Craig Armstrong, vice president of financial administration.
Separately, Hilton merged its 401(k) plan with that of Promus Hotels, which it purchased in 1999. CitiStreet is bundled provider for the $410 million merged plan, which offers 15 investment options, including a self-directed brokerage window, said Mr. Armstrong. CitiStreet was bundled provider for Hilton Hotels $169 million 401(k) plan, which offered four investment options. General Electric Asset Management and CitiStreet were service providers for Promus Hotels $241 million 401(k) plan, which had 12 investment options.