Stratford (Conn.) Town Employees Pension Fund hired Northern Trust to manage $20 million to $30 million in a Lehman Aggregate index fund for its $88 million employee benefits trust and State Street Global Advisors to run $10 million to $15 million in an S&P 500 index fund for its $29 million pension plan, said Allen Moore, director of finance and pension treasurer. The employee benefits trust also hired Evergreen Investments to run $40 million in active domestic laddered fixed income, Mr. Moore said.
Funding for the moves will come from terminating a $25 million Evergreen index fund and reducing a $27 million active domestic small-cap growth equity portfolio, also managed by Evergreen, and a $43 million active domestic fixed-income portfolio managed by Ryan Labs, he said. The amounts of the reductions have not been determined, he said.
The employee benefits trusts asset allocation is 70% fixed income and 30% equity; plan officials wanted to increase its exposure to fixed income, Mr. Moore said. The pension plans allocation is 100% equity. The plan switched to the S&P 500 fund because of lower fees, he said.
Dahab Associates advised.