Ennis Knupp reviewing Oechsle international advisors Print E-mail
July 8, 2005

COLUMBUS – Citing “organizational issues,” the Bureau of Workers’ Compensation (BWC) has announced that Ennis Knupp is reviewing Oechsle International Advisors, an international equity manager.

As of May 31, the carry-basis of BWC’s investment in Oechsle was $186 million, and the market value was $208 million.

Yesterday, BWC announced they were terminating their relationship with Allegiant Asset Management, a wholly-owned subsidiary of National City. The fund received $250 million in March 2001 but had losses of $70 million that were written off in fiscal years 2002 and 2003. The market value of this investment as of May 31 was $53.4 million.

“Through Ennis Knupp’s analysis, we are moving BWC’s investment operations forward by eliminating poor performing managers that adversely impact the monies Ohio’s injured workers rely on,” interim Administrator Tina Kielmeyer said. “We will continue to work aggressively to identify problems and devise swift, responsible solutions so that we can protect not only the interests of the State Insurance Fund, but also those of Ohio’s employers and their workers.” The bureau’s State Insurance Fund continues to be fully-funded with an approximate value of $14.3 billion. It also possesses a surplus.

Ennis Knupp also recommended BWC create a passive index fund for any monies withdrawn or generated through liquidation of investments. The bureau is continuing to work with J.P. Morgan Chase on creating and managing a separate passive index fund for the $1.1 billion ancillary funds.

Ennis Knupp has begun the review process by sending every investment manager a survey asking for specific information as well as data regarding their performance and fee schedules. They also have asked all managers to disclose any issues with the SEC or current litigation they may be involved in. Ennis Knupp is also evaluating broker relationships.

Ennis Knupp has no affiliations with any brokerage, investment management or investment banking firms. In operation since 1981, they serve more than 140 clients with aggregate assets of $480 billion.

BWC also is continuing to work with the Management Review Team to review each and every investment made. The Management Review Team will report their initial findings back to the Governor around August 1.

The members of the Management Review Team are:

Tom Hayes: director of the Ohio Lottery Commission and team leader;
Laurie Fiori Hacking: executive director of the Ohio Public Employee Retirement System (OPERS), which manages approximately $65 billion in retirement assets;
James Nichols: treasurer of The Ohio State University (OSU) since 1981.

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MEDIA CONTACT: Jeremy Jackson, Ohio Bureau of Workers’ Compensation, (614) 752-7558 or Emily Hicks, (614) 728-6197.