Rittenhouse Financial Services Inc. is planning on growing by itself, but the Radnor, Pa., manager also might look for allies in the defined contribution market.
Rittenhouse, a manager of $5 billion in domestic large-capitalization growth equity and fixed income, recently hired a consultant to help uncover areas in which to focus its growth efforts, said William L. Conrad, vice president and head of marketing.
One area the firm has not penetrated is the defined contribution market, said Mr. Conrad. Rittenhouse doesn't have mutual funds, but Mr. Conrad said he doesn't see the firm rolling out its own family of funds.
An alliance or subadvisory agreement seems like the best way, although Rittenhouse hasn't ruled out making acquisitions, said Mr. Conrad. If Rittenhouse were to pursue some alliance, the partner would have to be a firm with a full slate of products.
"We've looked at some options, but nothing has made us jump."
The firm had reached an agreement in January 1994 to merge with CoreStates Financial Corp., Philadelphia, but the deal was called off within weeks of closing. Perhaps it was fortunate, given the wave of bank mergers and downsizing, said Mr. Conrad. CoreStates later acquired Meridian Bancorp, Valley Forge, parent of Meridian Investment Co., a core manager.
In order to boost its assets, Rittenhouse recently reorganized its marketing around client segments and set up a dedicated institutional sales force. The firm has had some success attracting assets from hospitals, foundations and endowments, but it still needs to make more inroads in the public fund arena, said Mr. Conrad.
It has signed up among its clients the Columbus (Ga.) Consolidated Retirement System and Tuscaloosa (Ala.) Firemen's and Policemen Pension & Relief Fund.