Cone Mills Corp., Greensboro, N.C., hired Wellington Management and BPI Global Asset Management to run $4 million each in active domestic small-cap equities and international equities, respectively. Both are new asset classes for the $100 million defined benefit plan. Funding came from terminating INVESCO, which managed the pension funds $43 million equity exposure in active domestic large-cap value equities; INVESCO was terminated for performance.
INVESCO spokesman Bill Hensel said, "We look forward to the opportunity to work with them again.
Fund officials parked the remaining $35 million in a Russell 1000 index fund with State Street Global Advisors. Because it has been frozen, "I dont feel the need to go out and hit home runs on the pension plan, Mr. Wenhold said, commenting on the decision to passively manage the bulk of the pension funds equity exposure. "I dont want an overfunded plan, I just want it to remain fully funded. The pension plan has a $4 million shortfall, he said.
Plan officials also terminated investment consultant Capital Resource Advisors because of budgetary constraints, deciding to go it alone in the future.