Amphenol Corp., in an agreement with the PBGC, will provide security to protect underfunded plans when Kohlberg Kravis Roberts purchases more than 75% of Amphenol's common stock.
Amphenol, a Wallingford, Conn., electronics manufacturer, has eight pension plans with $158 million in assets and $203 million in liabilities.
As security, the PBGC received a second interest, behind the banks, for up to $45 million in stock of Amphenol's foreign subsidiaries. If banks financing KKR's purchase realize more collateral is needed to secure the loan, the PBGC's interest would get bumped up as well. The agreement will be in effect for at least five years and will continue until the plans are fully funded or when Amphenol debt gets an investment-grade rating.
The General Board of Pension and Health Benefits of the United Methodist Church, Evanston, Ill., approved increasing its allocation to affordable housing by $100 million to a total of $250 million, said F. Gale Whitson-Schmidt, treasurer and CFO. The money from the $8 billion fund will go to 10 intermediaries including the Enterprise Foundation and the Local Initiative Support Corp. that help invest in organizations seeking funding. Money for the additional investment will come from cash.
Fox Asset Management is increasing the minimum for its large-cap value, balanced and fixed-income products to $10 million from $5 million, said Peter J. Skirkanich, president and CIO. The firm also is adjusting its fee schedules to reflect the change, he said. The firm's small-cap value product will continue with a $1 million minimum. The changes will allow Fox to control growth and continue the firm's focus on research, portfolio management and client service, said Mr. Skirkanich. Fox will continue to compete in searches already under way.
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 tapped for the group are Miamh Fitzgerald, a director; Sanjeev Handa, associate director; Gregory Fraser and Nitin Bagal, associates; and Stella Yukhaer, an analyst.
Riggs Investment Management was awarded $352,000 in a suit filed in federal district court in Washington against Robert A. Von Pentz and his new firm Columbia Partners. Riggs sought at least $6.7 million from Columbia and former CEO Mr. Von Pentz, alleging that Mr. Von Pentz spent the last six months at Riggs working on setting up Columbia.
Riggs officials also claim Columbia lured Riggs employees to the firm, failed to give credit to other Riggs employees for Mr. Von Pentz's track record and stole a proprietary computerized investment model.