Prudential Investment Corp. is dissolving PCM International, consolidating PCM's operations into other existing investment management units. Nearly $470 million in PCM assets will be transferred during the second quarter.
The assets and nearly all of the staff of PCM will be absorbed by Prudential Investment, Prudential Investment Advisory, Prudential Asia Fund Management and PRICOA Investment Management units.
Among the top executives of PCM, Managing Director Barry Gilman will retain the additional responsibilities he had assumed last year overseeing the marketing, client service, operations and business management functions of Prudential's institutional equity group; Managing Director Cassandra Hardman has a contract to stay through 1996 to assist in the transition of the assets, said a spokesman.
Trust Fund Advisors hired Smith Breeden Associates as fixed-income subadviser, replacing Cashman Farrell, which is closing at the end of the month.
Smith Breeden initially will receive between $200 million and $400 million in assets, but it is expected to eventually manage about $1 billion, said Michael Steed, TFA president. Smith Breeden will manage TFA's intermediate duration portfolio formerly managed by Cashman Farrell. TFA also plans to add a total return portfolio managed by Smith Breeden shortly.
TFA chose not to transfer the accounts to PMG Advisors, the firm founded by Cashman Farrell's fixed-income team. Mr. Steed said PMG is too new, and is owned by a bigger financial services firm. TFA prefers a firm focused solely on money management.
The $7 billion Los Angeles Fire and Police Pension System intends to search for a manager to invest about $70 million in emerging markets, either through a pooled fund or separate account. The search could begin in about three months, but depends on the speed of a search for an alternative investment consultant.
Trustees of the $3.4 billion Oklahoma Teachers' Retirement System selected Marquette Alliance as their new investment consultant. The decision is contingent on fee negotiations and final ratification by the board. Marquette replaces Mercer, whose three-year contract had expired.
The $440 million endowment of the Smithsonian Institution, Washington, hired PIMCO Advisors to manage $30 million in bonds, said Sudeep Anand, treasurer. The money came from paring the allocations to balanced managers Miller Anderson & Sherrerd and Fiduciary Trust.
The $250 million defined contribution plan of Phelps Dodge Corp. added four options to its plan and reshuffled some of its existing managers, said Stefania Moyers, in-house administrator.
BZW Barclays Global Investors was hired to manage the new TAA option and an S&P 500 index fund option. BZW Barclays also replaced Fidelity Investments for an existing money market option, Ms. Moyers said. The EuroPacific Growth Fund, managed by Capital Research and Management, was selected for a new international option. The Lazard Small Cap fund and the IAI MidCap Growth fund were selected for a new small-cap equity option.
In an existing stable value option, Sanford Bernstein replaced Fidelity for management of synthetic GICs, but Fidelity was retained for management of its traditional GICs. RogersCasey assisted.
The $267 million Ann Arbor (Mich.) Employees' Retirement System is moving $35 million into a domestic stock index fund with State Street Bank. The money came from cutting back the allocation to Lexington Management, which is left with $52 million in fixed income, said Dorothy Erby, administrative consultant.
The change is one of a series the system is making to implement an October 1994 asset allocation study by Callan Associates, which recommended the system hold 35% of its total assets in large-cap domestic stocks.
As expected, Alliance Capital Management has completed its previously announced acquisition of Cursitor-Eaton Asset Management and Cursitor Holdings Ltd. for $141.5 million in cash and Alliance partnership units paid over four years and an additional payment, which will be determined later.
A new Alliance subsidiary, Cursitor Alliance, will combine Cursitor-Eaton's $10 billion global asset allocation assets with Alliance's international and global equity management. Cursitor-Eaton's senior management will remain and will have a minority interest in Cursitor Alliance.