LONDON - U.K. pension funds' total net investment fell 64% to 800 million ($1.24 billion) in the second quarter from 2.2 billion ($3.41 billion) in the first quarter, according to the government's Central Statistical Office.
Pension fund net investment in gilts plunged to 1.6 billion, from 3.3 billion in the first quarter.
U.K. funds continued to sell off overseas securities, disinvesting 1.2 billion, up from 300 million in the first quarter.
Pension funds also disinvested in property, selling off some 300 million in assets, compared with a 100 million increase in the first quarter.
But sell-offs of British stocks nearly stopped, with disinvestment reaching only 100 million in the second quarter, compared with disinvestment of 2.8 billion in the previous quarter.
Overall, total U.K. institutional investment in the second quarter slipped to 8.1 billion from 9 billion in the first quarter. For the first half of 1995, total net investment was nearly 30% lower than the 1994 average.
Institutions made a net investment in British stocks of 2.8 billion, in part reflecting the investment of funds generated by Glaxo's acquisition of Wellcome Group at the end of the first quarter, the CSO said.
Lower net investment reflected lower purchases by pension funds, insurance funds and net disinvestment by investment trusts of 200 million - the first such net sell-off since the third quarter of 1990.
LONDON - The 35 million ($54.5 million) Daily Telegraph Group Pension Fund and the 25 million ($39 million) Daily Telegraph Staff Pension Fund, both in London, selected Midland Securities Services as their first independent custodian, said Fred Morgan, pensions manager.
Previously, custody was provided by the fund's money managers. The group plan is managed by Gartmore Pension Fund Managers, while the staff plan is managed by Schroder Investment Management.
Mr. Morgan said trustees of the respective plans decided hiring separate custodians would better safeguard plan assets.
HEERLEN, The Netherlands - Two top investment officials at the giant Dutch civil servants pension fund have swapped jobs. Theo Jeurissen, formerly managing director of equity investments, now has become managing director of strategic investment policy for the Algemeen Burgerlijk Pensioenfonds, Heerlen. He traded jobs with Jelle Mensonides.
In addition, Gerald Vankan, managing director of mortgages, has been named project director for strategic product development. The mortgage unit has been placed under the direction of Paul Spijkers, managing director of fixed-income investments.
SYDNEY - John Bowers, managing director of Frank Russell Co.'s Australian operation based in Sydney, resigned just as the firm is looking to expand its role in Australia.
Mr. Bowers will join County NatWest Investments, Melbourne, working in its Sydney office as director of portfolio design, taking responsibility for engineering new investment products for the wholesale and retail markets.
The parting is amicable; Mr. Bowers had told Frank Russell officials some time ago he wanted to be involved in the design of investment products and that he thought a five-year term as managing director was enough.
During Mr. Bowers' tenure at Russell, the number of employees in Australia swelled to 43 from 20.
Frank Russell will appoint Paul Cheever as its new managing director, said Craig Ueland, Russell's managing director, international operations. Mr. Cheever was previously with IPAC Securities, Sydney, which specializes in investment management research.
NEW YORK - Alliance Capital Management L.P. is expanding its relationship with Sanlam, a major South African financial institution. Alliance will provide Sanlam with Alliance's investment research, business and marketing support and training of investment professionals.