Nicholas-Applegate Capital Management reached an agreement to acquire Credit Lyonnais International Capital Management-Asia. Terms of the deal were not announced. Nicholas-Applegate will gain the Asia-Pacific investment operations of the French bank with money management teams in Hong Kong, Singapore and London. The deal is subject to regulatory approval. CLIAM-Asia manages about $700 million in several country equity funds focused on China, Singapore, Malayasia, Indonesia, India and other Asian countries. Tom Waring, managing director of CLIAM-Asia, will stay on. Bank of New York and its affiliate BNY Western Trust Co. agreed to buy the institutional custody business of Wells Fargo & Co., which has $75 billion in custody assets.
Bank of New York, before the purchase, had more than $3 trillion in custody assets. Terms of the deal weren't disclosed. The transaction is expected to be completed in the last half of the year. Clients will be served through BNY Western Trust's West Coast offices.
Officials at the banks couldn't be reached for comment.
Trustees of the Florida State Board of Administration, with $62 billion in assets, today voted 2-1 to unload all tobacco stocks, confirmed Pat Smith, a senior cabinet aide to state Comptroller Robert Milligan, who cast the dissenting vote. Gov. Lawton Chiles and Treasurer Bill Nelson voted for divestment. The pension fund has approximately $824 million in tobacco stocks.
The fund has been given broad discretion to sell the stocks over an extended period of time.
A federal judge in New York has thrown out John Hancock Mutual Life Insurance's arguments that it should not face trial over charges brought by Harris Trust & Savings Bank, which is seeking $50 million in damages for alleged mismanagement of assets in the Unisys Corp. pension plan.
Hancock argued that previous court rulings left open the question of whether federal pension law applied to surplus assets. But Judge Denny Chin noted both the Supreme Court and the 2nd U.S. Circuit Court of Appeals had found Hancock was an ERISA fiduciary in connection with its administration of the surplus assets, ``and thus its status as such is not an issue to be determined at trial.''
The case is scheduled to go to trial July 22.