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November 29, 2009

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Investment firm fired for poor returns

Tuesday, Feb. 18, 1997 | 11:59 a.m.

SIIS terminated the contract of Independence Investment Associates, with offices on the East Cost. The company is one of six that handles the agency's $1.1 billion portfolio.

SIIS said Independence Investment was supposed to outperform Standard & Poor's 500 index by 1 percent to 1 1/2 percent. But it only achieved an average of the S&P 500 level.

"They were not worth the additional fees we were paying them, so we fired them," said Douglas Dirks, general manager of SIIS. Independence Investment had a contract that paid it about $350,000 a year.

The firm and two other companies have been on probation for about three months because the return on investment has not measured up to expectations. The other two are Dodge & Cox and Fidelity Management Trust Co.

Dirks said he will meet Thursday with his investment adviser to talk about the future of the other two companies, but he said he did not expect their contracts to be terminated.

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