Territory officials expect the Kroc money won't be available before the end of June.
Without the Kroc bequest, the Eastern Territory, West Nyack, N.Y., has $1.2 billion in assets; the Central Territory, Des Plaines, Ill, $850 million; and the Southern Territory, Atlanta, and Western Territory, Long Beach, Calif., $1 billion each.
Colonial Consulting Corp., New York, is investment consultant to all but the Western fund, which uses Wilshire Associates Inc., Santa Monica, Calif..
"Investing $1.5 billion is a very large task," said Charles Georgalas, Colonial executive vice president, referring to the gift. "There will have to be a massive allocation study."
"We're in the very early stages" of conducting such studies for the Eastern, Central and Southern endowments, he said.
Colonial's three Salvation Army client funds "work in conjunction with one another to drive down fees," Mr. Georgalas said. In some cases that means hiring the same money managers, he said.
At the Western Territory fund, "we probably will begin undertaking an asset allocation study in the next 60 days," said Maj. Bruce Jones, chief financial officer.
Mike Sutton, portfolio specialist for the Southern Territory, said Colonial and the investment committee will determine if "what we have in place is appropriate to handle the money, or if we need to change the allocation or add new managers."
The Southern Territory fund's current asset allocation is 40% domestic large-cap equity, 10% domestic small-cap equity, 10% international equity, 5% emerging market equity, 30% fixed income and 5% alternatives, Mr. Sutton said.