BofA taps Kwasha
Bank of America, with $2.081 billion in defined benefit assets and $1.553 billion in defined contribution assets for its own employees, outsourced all administration to Kwasha Lipton. All record keeping and administrative functions will be handled through a central service center. The company has had separate, internal systems for administration.
Conrad leaving L.A. County
Charles Conrad, administrator for the Los Angeles County Employees' Retirement Association, resigned effective March 1. Mr. Conrad said he had served six years in the post and wanted to move on. He did not announce where he will go. Deputy administrator Marsha Richter will replace him in the interim, but a search committee is expected to be formed.
Time Warner criticized
Time Warner's adoption last month of a shareholder rights plan, or "poison pill," following Seagram's increase in its stake to 11.7% from 10.4% is drawing criticism from large pension fund shareholders such as the State of Wisconsin Investment Board and the Colorado Public Employees' Retirement Association.
But Richard Koppes, general counsel of the California Public Employees' Retirement System, said fund officials are not criticizing the move given the company's improved performance and the increase in independent directors on the board, which fund officials helped engineer.
Walgreen hires State Street
The $850 million defined contribution plan of Walgreen Co. hired State Street Bank to manage $40 million in indexed portfolios, said Joel Levin, divisional vice president.
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Walgreen previously had used index funds from Travelers, which stopped offering passively managed investment portfolios.
CII maps strategy
As the Council of Institutional Investors seems poised to tackle Armstrong World Industries, Bowater and Browning-Ferris, it also is seeking to reduce its membership fees to entice powerful new members and increase its clout.
Armstrong, Bowater and Browning-Ferris are among the possible council targets for failing to adopt bylaw changes even after they receive a majority vote from shareholders.
Meanwhile, the executive committee voted to lop 25% off the top rate of annual fees. The full membership must approve the change.
GM adopts CERES
After refusing for three years to do so, General Motors has agreed to adopt the CERES Principles, an environmental code, in response to pressure from religious institutional investors.
EAFE up 8.3%
The MSCI Europe Australasia Far East Index rose 8.3% in January, while the MSCI World Index gained 6.4%, in dollar terms.
Japan's 16.1% return buoyed world markets. Other strong performers were Finland, 23.3%, and Sweden, 17.2%. Meanwhile, other Far Eastern markets fell, notably Malaysia, at -15.6%.
Dudley named CEO
Orie Dudley has been named president and chief executive officer of Barclays McConnell, the Canadian fund management operation of Barclays de Zoete Wedd Asset Management. He was senior managing director of the Putnam Cos. until 1991. Most recently, he was dean of the business school at Boise State University. He replaces Ted McConnell, founder of the company, who will stay on as vice chairman.
