MassMutual Life Insurance is negotiating to acquire David L. Babson & Co. Babson would be combined with Concert Capital Management, MassMutual's value equity subsidiary. The new entity would carry the David L. Babson name and would operate separately from MassMutual.
David Kirk, Babson executive vice president, said the backing of a strong financial parent is essential to Babson's expansion plans, including creating a stronger presence in the defined contribution plan market.
Babson-Stewart Ivory, an international equity manager in which David L. Babson is a partner, would be unaffected.
Matthew Smith is leaving Amoco Corp., where he has been a prominent senior portfolio manager in the use of derivatives for the company's $2.7 billion defined benefit pension fund, according to sources.
Mr. Smith declined to comment and other Amoco pension fund executives also declined to comment or were unavailable. Mr. Smith reported to Marvin Damsma, director-trust investments, who has been out of the office and unavailable.
It couldn't be learned why Mr. Smith, who is still with Amoco, is leaving, where he is going or what impact his departure will have for Amoco's use of derivatives.
The nation's pension fund assets inched up about 2% to $5.1 trillion in 1994, while private pension fund assets took a 4% hit, decreasing to $2.4 trillion.
But while the overall increase was not much, public fund assets climbed 6.2% to $1.2 trillion and life insurance pension fund assets grew 7.7% to $1.1 trillion.
Still, pension fund reserves dwarfed other asset classes combined, eclipsing total life insurance assets at $1.9 trillion, mutual fund assets at $1.5 trillion and thrift institutions, which actually declined less than a percent to $1.3 trillion.
The Maine State Retirement System hired Martin Currie and Rowe Price-Fleming International as active international equity managers. Each will run $75 million, said Claude Perrier, executive director of the $3.2 billion fund. The allocation will be funded by reducing the assets in international index funds managed by State Street Global Advisors and Bankers Trust; they will not be terminated. Ennis Knupp assisted.
Regent Pacific Group joined forces with two international equity managers to create Regent Kingpin Capital Management in London.
The new venture will specialize in emerging markets. Colin Kingsnorth and Andrew Pegge, two former managers from Buchanan Capital Management, will be CEO and chairman, respectively. Initially, they will take over Regent Pacific's $43 million Moghul Fund and its $22 million Sri Lanka Fund.
The $643 million Oklahoma Police Pension and Retirement System suspended searches for a managed futures manager and a private equity manager because the governor froze the letting of service contracts by state agencies.
Robert Wallace, executive director, said the searches were nearly finished when the directive took effect.
Frank Russell introduced midcap and blue-chip style indexes to provide separate tracking for both value and growth stocks within the existing Russell Midcap Index and Russell Top 200 Index.
The new indexes - the Russell Midcap Growth Index, Russell Midcap Value Index, Russell Top 200 Growth Index and Russell Top 200 Value Index - date to Jan. 1, 1986.
The style indexes will assist institutional investors in evaluating portfolio performance.
Nationwide Building Society, Swindon, England, named Chase Manhattan Bank, London, as global custodian for its unit trust and life insurance units, which will start operations next year.
Also, Chase Manhattan Trustees has been named trustee for Nationwide Unit Trust Managers.
The West Co. hired American Express Institutional Services to provide bundled services for its $32 million 401(k) plan. Five diversified American Express funds will be offered in a daily valued record-keeping environment. The company outsourced all plan administration, including employee education, trust and enrollment services and loan administration, said Steve Human, a spokesman. The employer match will continue to be made in West Co. stock.
Coopers & Lybrand had been record keeper. Mr. Human didn't identify the previous money managers.
Furr's Supermarkets hired Cigna Retirement and Investment Services to provide bundled services for a new 401(k) plan for 1,000 non-union workers. Cigna will provide daily valued record keeping, investment management, voice response services, employee communications and education.
Investment options are five diversified asset allocation funds from Cigna.
Adam Wuest Inc. selected Stanwich Benefits Group to provide daily valued record-keeping services, trust and administrative services, and a voice-response system for its $2 million 401(k) plan for non-union employees. The company will use seven diversified Fidelity Advisor Funds. Stephen Lund, vice president of finance, said the company previously used a bundled provider for plan services that he declined to identify.
AMR Investment Services, the investment management subsidiary of AMR Corp., will not be affected by a management overhaul and job-cutting at AMR and American Airlines, according to Bill Quinn, president and CIO.
The restructuring at AMR includes a reduction in its corporate staff of about 1,000 positions that will result in annual savings of about $93 million in 1996.
The American Academy of Actuaries appointed Robert E. Heitzman Jr. as a senior pension fellow and the group's chief spokesman on pension issues. Mr. Heitzman was a partner and director of international compensation and benefits consulting at Ernst & Young; he has not been replaced.