International Paper Co., Stamford, Conn., hired active international large-cap equity managers J.P. Morgan Fleming and Walter Scott to manage $150 million each in growth, and AllianceBernstein and Grantham Mayo van Otterloo to handle $150 million each in value. The $6.5 billion pension plan also hired active international small-cap equity managers AXA Rosenberg to run $80 million in core; Morgan Stanley to run $80 million in value; and Pictet, $80 million in growth.
The plan restructured its $1.2 billion international equity portfolio, shifting 80% to large-cap equities and 20% to small caps, from a 90/10 split, said Robert Hunkeler, vice president and director of investments. Existing managers Barclays Global Investors and Wellington will continue to manage $150 million each in active international large-cap core equities. The remaining $60 million is in a State Street Global Advisors EAFE index fund for handling daily cash flows. Mr. Hunkeler declined to identify the managers that were terminated.
Separately, Nicholas-Applegate was terminated as an active domestic small-cap growth equity manager because of performance, high turnover of senior investment professionals and too many stocks in the portfolio, Mr. Hunkeler said. The $24 million portfolio was distributed among the remaining seven domestic small-cap equity managers: Arbor Capital Management, Artisan Partners and Provident Investment Counsel in small-cap growth; AXA Rosenberg and BGI in small-cap core; and Kestrel Investment Management and Shapiro Capital Management in small-cap value. "We decided the remaining seven dwarfs will be just fine," Mr. Hunkeler said.
Susan Hunter, Nicholas-Applegate spokeswoman, did not return a call by press time for comment.
