CHICAGO — Elks National Foundation hired Chicago Equity Partners to manage $80 million in core fixed income, replacing Columbia Management, said James O'Kelley, director. Columbia had managed 65% of the $400 million foundation's assets, and board trustees wanted more manager diversification within the fund, Mr. O'Kelley said. It also terminated Columbia from management of another $80 million core fixed-income portfolio when its Chicago-based team — Steven P. Luetger, Mark E. Newlin, Peter W. Hegel and James J. Kilbane — moved to Mesirow Financial Investment Management Group in April. Trustees moved the assets to Mesirow in light of the board's long-term relationship with the team, Mr. O'Kelley said.
The foundation also hired Bernzott Capital Advisors to manage a new $20 million active domestic small-cap to midcap value equity allocation and Boston Co. to run $20 million in a new active international equity portfolio. Funding for both hirings came from reducing an active domestic growth equity portfolio run by Loomis Sayles to $53 million and a similar portfolio run by Stein Roe to $46 million, Mr. O'Kelley said. Trustees also changed the investment guidelines for both Loomis Sayles and Stein Roe, moving each to a core equity mandate.