Refco Group Ltd. is negotiating to buy Forstmann Leff Associates as part of an attempt to break into institutional money management, sources say. An announcement of a deal, estimated to be valued around $70 million by one consultant, could come today.
Sources said futures broker Refco seeks to create a multiasset class firm, combining departed fixed-income executives from UBS Asset Management (New York) with the equity-focused offerings of Forstmann Leff. Executives for Refco and Forstmann Leff either declined comment or didn't return phone calls.
Du Pont added six investment options to its $13 billion 401(k) plan, including three asset allocation funds that will be rebalanced automatically each quarter. The asset allocation funds - conservative, moderate and aggressive - will hold predetermined mixes of equities and fixed income. The plan also will add an index fund tracking the Russell 2000 index and a non-U.S. index fund tracking the EAFE. A mutual fund window option also will be added. The options will be provided through Merrill Lynch, the fund's bundled provider.
TIAA established an emerging markets debt team to handle investments in sovereign and corporate emerging markets debt and provide support for its project and structured finance teams. The move is expected to increase TIAA's holdings of emerging markets debt from less than $150 million a year to about $250 million a year initially. Eventually, the number will grow to at least $750 million of intermediate long-term purchases.
The group will be headed by Beth English, a 27-year veteran of TIAA Securities. Others in the group are Miamh Fitzgerald, a director, Sanjeev Handa, associate director, Gregory Fraser and Nitin Bagal, associates, and Stella Yukhaer, an analyst.