FORMER IBBOTSON DIRECTOR DECIDES NOT TO GO IT ALONE

Rather than build a consulting firm from scratch, Scott L. Lummer joined the 401(k) Forum Inc. in San Francisco as chief investment officer.

Mr. Lummer officially left Ibbotson Associates Inc. in Chicago at yearend, but his involvement there had ended earlier. He was a managing director. When he left Ibbotson, Mr. Lummer said he intended to form his own consulting firm and was hired almost immediately by a former Ibbotson client. But when his second client asked him to work in conjunction with the 401(k) Forum, Mr. Lummer said he investigated further and liked what he saw. The interest, apparently, was mutual.

The 401(k) Forum specializes in providing individually customized asset allocation advice to defined contribution plan participants via the Internet.

Mr. Lummer’s responsibilities will include overseeing the company’s investment and asset allocation policies and developing its capabilities in fund analysis, quantitative research and portfolio management applications. Mr. Lummer’s research at Ibbotson focused on asset allocation, international and alternative investment strategies, risk management, corporate investment strategies and valuation.

The 401(k) Forum does performance and attribution analysis for the mutual fund options of its rapidly growing list of plan sponsor clients, such as Fujitsu America Inc., Oracle Systems Corp. and MFS Investment Management. Based on an individual’s risk tolerance and investment goals, the 401(k) Forum creates specific asset allocation and retirement savings plans, using the mutual fund options available.

Mr. Lummer said he will remain in the Chicago area for the time being, establishing what he called “the 401(k) Forum East.”

Crain News Service