A buyer may be close to purchasing SEI Capital Resources, the consulting division of SEI Corp. Officials of the parent company postponed a meeting with analysts scheduled for next Wednesday until Nov. 29, saying negotiations with a buyer were progressing at a very fast pace.
Bell Atlantic Corp. will convert its management employees' pension plan to a cash balance plan, effective Jan. 1. It covers 15,000 employees, and is part of a $12 billion master trust.
Barry Simko, director of benefits planning and human resource communication, said the change is being made "to meet the needs of mobile employees, who make more frequent moves from employer to employer." The Bell Atlantic cash balance plan will include a feature allowing employees to receive a part of their accrued benefit as a lump sum and the rest as an annuity. Mercer was the consultant. Decisions on the management of the assets have not yet been made.
A New York Supreme Court panel of judges reversed a lower court judge's ruling that Gov. George Pataki could not prevent the payment of supplemental benefits to beneficiaries of the $68 billion New York State and Local Retirement Systems.
A Superior Court judge in August granted New York State Comptroller H. Carl McCall a preliminary injunction that would have allowed him to pay supplemental benefits to retirees beginning in November.
The panel of judges reversed the lower court decision, saying Mr. McCall's attorneys did not prove beneficiaries"will be irreparably harmed during the pendancy of litigation if preliminary relief is not awarded."
The (pounds) 1.1 billion ($1.73 billion) NFC pension fund has been restructured, moving to a part-balanced, part-specialist manager lineup, said Barry Solomon, director of pensions.
The fund dropped Baring Asset Management as one of its three balanced managers, while retaining balanced managers Prudential Portfolio Managers and PDFM. Mr. Solomon declined to discuss the termination of Baring or how much is allocated to each balanced manager. He said the fund adopted specialist management to take advantage of its size and to enhance returns.
Some 544 million was allocated to specialist managers: Legal & General Investment Management will run a 160 million U.K. passive equities portfolio; Fleming Investment Management, an active U.K. equity brief of the same size; Morgan Grenfell Investment Management, 50 million in continental European equities; Schroder Investment Management, a 50 million Far Eastern equity portfolio; Independence Investment Associates, a 20 million North American stock mandate; and AMP Asset Management, both a 84 million global bond portfolio and a 20 million cash fund.
Also, Chase Manhattan Bank was hired to provide custody for the portfolios managed by Independence and AMP.
William M. Mercer consulted.
PPM America, a money manager owned by Prudential, planned to file a class-action suit late last week against Texas-New Mexico Power for redeeming part of a high-yielding bond issue before maturity, said F. John Stark, senior vice president, counsel and a PPM portfolio manager.
PPM will ask the court to rescind the redemption, contending it violated the indenture agreement stating when redemptions are allowed, he said. In addition, PPM plans to send the company a notice of default on its bonds. PPM redeemed its bonds in the redemption, he said.
In a rare move by a bond issuer, Texas-New Mexico initially sued PPM to head off the money manager from trying to block the redemption.
Candice Cox has become president of NYNEX Asset Management and chief investment officer of NYNEX, while William Heitmann, who has held these titles, is on special assignment for NYNEX. No details were disclosed about Mr. Heitmann's assignment.
Ms. Cox has been vice president and managing director of NYNEX Asset Management, which oversees the company's pension and savings plans, and manages $21 billion.
Catholic Healthcare West, San Francisco, with $1.1 billion in investment assets, hired six money managers to run a total of about $500 million.
Julius Baer will manage $31 million in international bonds. Others hired were Provident Investment Counsel and Roxbury for U.S. equities; and Fox Asset, Olympic Capital and ARM for fixed income; the sizes of those portfolios were not available.
Funding came from cash and terminating some managers whose names weren't disclosed.
Tredegar Industries hired Frank Russell Trust to provide new investment options for its 401(k) plan, effective April 1.
Three Russell multistyle, multimanager funds will be used - stable value, global balanced and equity. A stable value/short-term fund and a government obligation fund - both managed by the plan's trustee, Wachovia - will be eliminated. A company stock option, administered by Wachovia, will be retained.
Mercer will continue as the monthly valued plan record keeper. Russell also will provide employee communication and investment education.
The plan assets total about $15 million, excluding company stock.
The $230 million Benedum Foundation hired Oechsle International to run $8 million in international equities, said Dwight Keating, vice president.
Assets came from cash flow.
Lehman Brothers Inc.'s latest move to trim costs by dismissing 300 employees won't hit its asset management business further, a company spokesman said.
Earlier this year, Lehman decided to focus its asset management in three areas - cash management, performance-based funds, in which Lehman invests alongside investors, and the managed futures business. To concentrate on these areas, Lehman chose to exit other asset management areas. In doing so, it already has reduced its number of employees.