Independence International Associates is out and SSgA is in as subadvisor to the $18 million Quant International Equity Fund. Performance and a change in Quant's fund lineup were both reasons for the change, said Quant's Heather Dondis.

The fund has lost 9.8 percent so far this year and has a Morningstar rating of just two stars. Its objective rating from Morningstar is one, the lowest possible. However, Dondis said that the change in subadvisors was "well in the works" prior to the start of the year.

Independence International Associates position as subadvisor to the fund was weakened when Quant launched a value international fund in 1998. "There was little reason to have two EAFE funds with a value bent," Dondis explained. She added that the international fund took on a core equity focus at that point.

Independence International will continue to act as subadvisor to Quant's emerging markets fund said Dondis.

State Street Global Advisors, which will take over subadvisory duties on October 1, was chosen in part because it has already successfully sub-advised the Quant Growth and Income Fund for over fifteen years. It was one of eight to ten asset managers that Quant took a close look at and was chosen from three finalists. Quant declined to name the identities of the other firms under consideration.

"We are looking forward to expanding our relationship with Quant Funds. They have a niche product, and they are doing some things on the tech side that should be beneficial to the distribution of their funds," said SSgA's Ed Allinson, CFA and the new lead portfolio manager of the Quant International Equity Fund.  

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