Teamsters Central States, Southeast & Southwest Areas Pension Fund, Rosemont, Ill., hired Mellon to manage a $5.4 billion S&P 500 index fund as part of the plans allocation of the $6.1 billion payment made by Atlanta-based United Parcel Service Inc. to withdraw from the pension fund. The UPS payment raised the Central States fund to $26.8 billion in assets.
The hiring is part of a restructuring of the pension fund following the addition of the UPS payment; $4.2 billion is going to the new Mellon fund and $900 million to increase an existing Lehman Aggregate index fund, also managed by Mellon, bringing it to $5.4 billion, while $1 billion went to Northern Trust Global Advisors, a named fiduciary of the fund. Goldman Sachs Asset Management, the Central States other named fiduciary with an $11.7 billion portfolio, transferred $1.2 billion to the new Mellon fund and $2.48 billion to Northern Trust. Goldman Sachs and Northern Trust now run $8.03 billion each in U.S. and international equity, as well as real estate.