Three partners and analysts of Brinson Partners' $900 million post-venture capital fund that invests in microcap stocks left the firm. Glen A. Kleczka, Capucine E. "Cappy" Price and David S. Mitchell will join William Blair & Co.
F. Conrad Fischer, Blair chief investment partner, said the three will develop a microcap fund for Blair.
"It probably will be a mutual fund," he added.
At Brinson, they reported to Alvin Marley, partner who oversees venture capital. He couldn't be reached for comment. Gary P. Brinson, managing partner, said the firm will look internally and probably outside for candidates to fill the positions. He could not say how soon the firm will make a decision.
The Brinson partners fund has been closed to investors since 1992
Bear Stearns is selling its subsidiary, Bear Stearns Fiduciary Services, to management of the Washington-based firm. The subsidiary, now called Independent Fiduciary Services, will continue to specialize in operational reviews of public and private pension funds' investment programs. Bear Stearns also will continue to work with Independent Fiduciary Services on a joint venture basis. Francis X. Lilly, formerly president of the subsidiary, is now president and chariman of Independent Fiduciary Services.
Ohio School Employees' Retirement System, Columbus, hired Aeltus Realty Investors and CIGNA Retirement and Investment Services to manage $140 million in real estate commingled funds, said Paul Kubinsky, director of investments. Aeltus will run $50 million; CIGNA, $90 million. Assets for the new allocations came from cash.
Frank Russell is consultant.
Nearly 400 employees of the retirement services division of Aetna Inc. will be cut by March 1998 as part of a restructuring that will eliminate 4,400 positions overall at Aetna. The cuts will not affect Aeltus Investment Management, the firm's money management subsidiary. Most cuts will come in the customer service and sales areas at Aetna Retirement Services, which includes the 401(k), and group annuity contract divisions.
The U.S. Supreme Court last week denied an appeal to review a lawsuit brought by a group of Lutheran pastors and lay employees against the Evangelical Lutheran Church in America and its Board of Pensions. The decision in effect upholds lower court decisions saying civil courts have no jurisdiction over issues regarding church policy and doctrine.
Members of the Pension Defense Fund sought to withdraw their pension assets from the $3.5 billion hybrid pension fund. The plaintiffs were unhappy with the Board of Pensions' South Africa investment restrictions, imposed between 1988 and 1993, claiming that the South Africa divestiture resulted in $227 million in lost investment opportunity. When Board of Pensions refused to release their assets, pastors sued.
The Rev. Thomas Basich, leader of the plaintiff group, said the group now will fight its case on the state level.
DOL seeks help
The Labor Department is going to ask the public within the next two weeks for help in drafting a proposal clarifying that assets of employee benefit plans invested in insurance companies' central investment pools are not subject to federal pension law.
Federal agencies typically send out such a "request for information" when they need more material before they can proceed with crafting rules. The Labor Department is required to draft a proposal under a provision in the Small Business Job Protection Act enacted in August.
The Academy of the New Church endowment fund, Bryn Athyn, Pa., hired Reich & Tang for a $20 million small-cap value mandate. Reich & Tang replaces Pitcairn Co., said Faith Ebert, assistant for investments at the $232 million fund.