First Chicago NBD Investment Management will develop at least five index mutual funds for the 401(k) market under its ANB Investment Management unit and replace ANB's president Stephen P. Manus.
``We parted way on the views of the business strategy,'' said J. Stephen Baine, president of First Chicago NBD Investment Management, about Mr. Manus. Mr. Baine, who also is a non-executive chairman of ANB, declined to elaborate. ANB runs about $22 billion in index funds for tax-exempt clients. Less than $2 billion of that is for 401(k) plans.
Mr. Baine said First Chicago NBD hasn't decided on a replacement for Mr. Manus. The firm expects no other personnel changes at ANB, he said.
ANB has no mutual funds of its own, but manages index mutual funds for Federated Investors. Federated executives could not be reached for comment. ANB's own mutual funds are still in development, but Mr. Baine expects ANB could begin to offer them by the second half of the year. He said ANB will keep its commingled index funds.
Mr. Manus declined to comment.
The Metropolitan Opera Association, New York, is considering investing part of its $142 million endowment fund in small-cap equities, said Thomas Martin, finance director. The association's investment committee will decide whether to invest $5 million in the asset class at its March meeting. Assets probably will come from fixed-income manager OFFITBANK, which manages $55 million, he said.
The endowment also hired Capital International for a $5 million in emerging markets equity. Capital replaces Emerging Markets Management, which ran $3.7 million and was terminated because of poor performance. Emerging Markets officials declined to comment. The rest was taken from OFFITBANK.
Cambridge Associates assisted.
Fidelity Investments is consolidating the operations of its Boston-based fixed-income department with its Dallas-based money market division at its regional campus in Merrimack, N.H. The move is expected to take place in the third quarter and is already responsible for the departure of one fixed-income portfolio manager, Robert Ives, who cited the department's move as his reason for leaving Fidelity.