The $18 billion Los Angeles County Employees' Retirement Association decided to drop Mitchell Hutchins Asset Management following the resignation of Dorik Rozanski, a portfolio manager with the firm. LACERA will take about $100 million from the small-cap value equity portfolio and put it into a commingled Russell 2000 value index fund managed by Bankers Trust. Mr. Rozanski managed LACERA's assets with Mitchell Hutchins. Officials at the firm did not return calls for comment. But in a letter to LACERA officials, Margo N. Alexander, president and CEO at Mitchell Hutchins, said she was ``shocked and disappointed'' by the resignation of Mr. Rozanski.
The American Stock Exchange is searching for investment underwriters to offer warrants on the German stock index, called the Deutsche Aktien Index, or DAX, making it the first time any U.S.-listed financial product has been licensed on the DAX, said a spokesman. The exchange announced today it signed a licensing agreement with the Deutsche Bourse AG to trade the DAX warrants.
The spokesman said trading will begin as soon as the exchange comes to terms with an underwriter to offer the warrants; he said it probably will be soon but declined to specify a date.
The U.K. government should not raid pension funds to pay for long-term care, according to the National Association of Pension Funds, London.
Recent press reports have said the Chancellor of the Exchequer is considering proposing measures that would draw on pension assets to pay for nursing-home care in his Nov. 28 budget.
It is ``financially infeasible except at the very top income brackets'' for current retirees to receive both an adequate pension benefit and also cover long-term care premiums, said Peter Murray, chairman of the NAPF's research & planning committee. The government should consider creating long-term savings vehicles so individuals could purchase insurance to cover the nursing home costs, he said.
Aloe Holding Co. reached an agreement today with the PBGC to protect plan participants' benefits while one of its subsidiaries emerges from bankruptcy protection.
Under the agreement, subsidiaries of Aloe Holding will be responsible for pension underfunding if another subsidiary, Shenango Inc. - a Pittsburgh coal mining company - falters. Currently Shenango's plan covers 2,200 workers and retirees and is underfunded by $35 million. The plan has $88.3 million in assets and $123.3 million in liabilities. According to the PBGC, Shenango emerged from Chapter 11 bankruptcy protection in April 1994. Under the agreement, Aloe and its other companies cannot drop their pension responsibilities if they decide to leave the group.