Ascension Health, St. Louis, hired Western Asset Management and Wellington to run $80 million each in enhanced S&P 500 index funds for its $1.5 billion pension plan, said Mark Amiri, treasurer. Western Asset will have a more derivatives-based approach, and Wellington will focus more on equities, he said. Western Asset already runs $300 million for the plan in an enhanced core Lehman Aggregate Bond index fund.
Funding will come from reducing the plans domestic equity portfolios; no managers will be terminated, he said. The current asset allocation is 60% equity and 40% fixed income. Watson Wyatt advised.