Nations Funds has hired Los Angeles-based Causeway Capital Management as the subadvisor for its International Equity fund, the Bank of America subsidiary reported in an SEC filing on Monday.

The fund had $957 million in assets under management at the end of the first quarter.

The relationship with Causeway is only an interim agreement, in effect until October 2004. Officials expect to mail proxy materials to shareholders asking for approval of a two-year subadvisory contract in the second quarter of 2004, with a special shareholder meeting in July 2004.

The board of trustees of Nations Master Investment Trust approved the subadvisory decision on April 7. Causeway takes over management of half of the portfolio's assets from Invesco and Putnam, who were fired in December.

Marsico Capital Management, the portfolio's third subadvisor at that time and an affiliate of Bank of America, was kept on as a subadvisor, managing approximately one-third of the fund's assets, said Charles Salmans, Nations Funds spokesman. Marisco now manages one-half, or $500 million of the fund's assets.

Marisco will manage its portion of the fund's assets towards growth, while Causeway will focus on value, said Salmans.

Invesco and Putnam officially gave up management of the portfolio on Monday. Causeway will take over management of its portion, approximately half of the portfolio, effective Tuesday.

Among the reasons given for the termination of the pair, Nation's board cited poor performance, a need to diversify the subadvisers, and regulatory problems at the fund firms. Nations also said Putnam's "recent personnel departures" played a role.

Star manager Omid Kamshad, Putnam's chief investment officer of international equities, left the firm in October 2003 amid market timing allegations.

Salmans declined to comment more specifically about the personnel changes that affected the decision. 

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