The Hilton Hotels Corp. Retirement Plan has selected Rhumbline Advisors to manage $30 million in plan assets.
Rhumbline, a Boston-based advisory firm, manages five billion dollars in assets for both government and private entities nationwide.
“We actively sought out an independent, minority owned and managed advisory company to manage part of Hilton`s retirement assets,” said Bill Holland, vice president—workforce planning and analysis for Hilton. The company currently has approximately $315 million in total assets in its retirement fund.
Holland said the money would be invested in Rhumbline`s S&P 500 Index and S&P 400 Index Funds. “Indexing is a cost-effective investment management technique intended to earn investment returns commensurate with a segment of U.S. stock market performance,” he said. The Rhumbline deal is intended to complement Hilton`s current retirement plan investment strategy.
Commenting on the deal, J.D. Nelson, Rhumbline`s founder, chief executive officer and managing general partner, added, “This is a welcome vote of confidence in our capabilities as an investment manager. Hilton Hotels Corporation is an extremely attractive and beneficial name to have in our portfolio of clients.”
Nationwide, Rhumbline has 75 clients, including B.P. Amoco, Detroit Edison, George Washington University, Goodyear Tire and Rubber, and the city of Orlando, Fla. Including Hilton, Rhumbline now represents six clients in California, including the Los Angeles City Employees Retirement System, the San Jose Police & Fire Retirement System, and the San Diego Hotel & Restaurant Local No. 30.