Two New Jersey legislators said they will introduce a bill Thursday to ban the $57 billion New Jersey Division of Investment from investing in companies doing business in or using financial institutions that have outstanding loans with Switzerland.
The system would have to sell holdings that violate the act. But the bill's authors - Sen. Robert Singer and Assemblyman Neil M. Cohen - will ask committee chairmen to withhold immediate action.
The bill seeks to keep pressure on the Swiss to make restitution for assets lost by Holocaust victims. The sponsors will ask legislators in the other 49 states to sponsor similar legislation.
The bill also would bar state authorities from purchasing the goods and services of any company doing business in or with Switzerland and would make the companies ineligible to receive state-backed loans or buy state bonds.
Affiliated Managers Group acquired a majority interest in Gofen & Glossberg, a money manager with $3.2 billion in assets. Terms were not disclosed. Management will be retained and receive an equity stake after the closing, expected in the second quarter. The deal is the eighth money management acquisition for AMG.
A Massachusetts judge set a March 18 court date for lawsuits between four Wellington Management partners and former partner Arnold C. Schneider over the establishment of his firm, Schneider Capital Management. A suit by the Wellington partners and Mr. Schneider's countersuit were consolidated in Middlesex County Superior Court in Cambridge.
Wellington partners Duncan McFarland, Robert W. Doran, John R. Ryan and Paul D. Kaplan seek damages of $1 million against Mr. Schneider for breaching a non-compete clause and his fiduciary duty. Mr. Schneider countersued, seeking more than $1 million and the lifting of an injunction that barred his former clients from hiring his new firm.
The Coral Gables (Fla.) Retirement System raised its U.S. equity allocation to 65% from 50% and reduced bonds to 35% from 50%, said Donald Nelson, finance director for the $155 million fund. The change won't affect its manager lineup, with the system reallocating assets among existing managers. Its equity managers are INVESCO, Sanford C. Bernstein and Loomis Sayles.
Fiduciary and Benefit Investors announced a guarantee program designed to protect self-directed defined contribution plans against misappropriation of assets. The coverage is in the form of a surety bond underwritten by American Guarantee and Liability Insurance and Zurich Insurance (U.S. branch), both part of the Zurich-American Insurance. Fiduciary and Benefit is a consortium of three organizations, including Zurich-American.
SEARCHES & HIRINGS
Miami University, Oxford, Ohio, selected a commingled fund managed by BEA Associates for a roughly $5 million allocation to high-yield bonds, said Harold Gibbons, director of financial affairs. The school has more than $125 million in endowment and foundation assets. The allocation will come from new assets, and is the school's first allocation to high yield.
Miami Beach (Fla.) General Employees Retirement System hired PanAgora for $50 million in an enhanced bond index fund, replacing Nicholas-Applegate, an active bond manager. The change was made because of a preference for indexing, said Margaret Arculeo, pension administrator for the $200 million fund. Dorn Helliesen & Cottle assisted.
BEI Electronics Inc., San Francisco, added two investment options to its $67 million 401(k) plan. William T. Aber, director-human resources, said BEI added the Templeton Foreign Fund and the Beacon Hill Mutual Fund to its four existing passively managed funds.
CORRECTION: Perkin-Elmer Corp. terminated Ark Asset Management in order
to move to passive management. Yesterday's P&I Daily incorrectly reported
the manager was released for performance reasons
Graham Farren was named managing partner of Bacon & Woodrow, succeeding David Hager, who stepped down. Mr. Farren continues to serve as head of the firm's employee benefits practice. Mr. Hager now heads up for financial and commercial matters.
Also, the firm's management group was restructured. Partner Michael Gannon was named to the new position of chairman.
Christopher H. Wiles, former senior vice president and the portfolio manager of the Federated Investors Equity Income Fund, started his own money management firm, Rockhaven Asset Management. Mr. Wiles is president and CIO of the company.
Linda Dussell, vice president and manager of the Federated Utility Fund, will manage the Equity Income Fund. A second equity income management team member is being sought