State Street Global Advisors, Boston, consolidated its international fixed-income operation in London and Paris following the departure of the Boston-based team that oversaw $1.3 billion.
Jay Leu and Jim Tovey left in October to open Pacific Capital Fixed Income Advisors, a subsidiary of Pacific Capital Asset Management. PCAM is a subsidiary of the Bank of Hawaii.
Mr. Leu was the head of SSGA's international fixed-income unit, and Mr. Tovey was the portfolio manager. The two were also joined by SSGA staffers Joe Foster, head of currency trading; Arnie Boecklin, a marketer; and three other operations people.
Contacted in Boston, Mr. Leu declined to comment.
SSGA's U.S.-based international fixed-income clients decided to stay with the firm and not join Messrs. Leu and Tovey, sources said.
J. Victor Thompson, principal of SSGA and head of fixed income, said the two left because they had an opportunity to run their own business.
International fixed income probably would have been consolidated in Europe eventually, said Mr. Thompson. "There are a lot of compelling reasons to do so. Jay's and Jim's exit made that decision obvious and easier to execute."