Royal Sun Alliance, London, consolidated custody of its £25 billion ($41.5 billion) of assets with Midland Securities Services and Chase Manhattan Bank. The losers in the revamping - which follows the May merger of U.K. insurers Royal Insurance Holdings and Sun Alliance Group - are Bank of New York, whose £6 billion in U.K. equities has been transferred to Chase, and Morgan Stanley Trust Co., which lost custody of a £2.75 billion gilt portfolio to Midland. Custody of £3 billion in gilts was switched to Midland from Chase.
John Maunder, director of operations at Royal Sun Alliance, said the company wanted to consolidate custody with two banks following the recent merger. However, he said custody arrangements will be reviewed next year.
He also said the insurer plans to pick either Chase or Lloyds Securities Services as custodian for its unit trusts. Chase now is custodian for Royal's unit trusts, while Lloyds does the same for Sun Alliance unit trusts.
Theodore J. Tyson, American Century's former international equity chief, and four others have formed Mastholm Asset Management. Salomon Brothers Asset Management made a ``significant, direct equity investment'' in Mastholm that gives it an ownership interest, Mr. Tyson said. He declined to elaborate. He did say, however, that Mastholm will subadvise an international equity fund Salomon will launch this fall.
Mastholm will specialize in bottom-up, all-cap growth international equity investing.
Other principals are Joseph P. Jordan, director and portfolio manager, who worked for Mr. Tyson at American Century; Arthur M. Tyson II, Ted Tyson's brother, director-research; Thomas M. Garr, managing director-administration, a former vice president of Salomon Brothers; and Robert L. Gernstetter, director-marketing and client services, formerly manager of the portfolio liaison team at American Century.
Callan Associates is searching for a ``specialty consultant'' to focus solely on defined contribution record-keeping searches. Callan hopes to find an individual who understands both investments and provider systems and is able to educate clients in what to look for in a record-keeper. Callan expects to complete the hiring process within two months.
Refco Group purchased Bersec International, an international fixed-income dealer. Terms were not disclosed. Refco recently formed a money management firm with the purchase of equity manager Forstmann-Leff and with bond portfolio managers hired from UBS Asset Management (New York).
SEARCHES & HIRINGS
Taunton (Mass.) Contributory Retirement System is searching for an actuarial consultant to review its actuarial assumptions. Trustees then will decide whether to adjust the assumptions, said Paul J. Slivinski, executive secretary of the $68 million fund. Although its interest rate assumption is 8.5%, the fund earned 12.22% in 1996.
St. Louis (Mo.) Employees' Retirement System hired Reich & Tang Capital Management and Columbia Partners as its first small-cap equity money managers. Reich & Tang will run $20 million in small-cap value and Columbia $20 million in small-cap growth equity for the $430 million fund. Funding will come from existing managers; none will be terminated, said Mary Lou Mullen, employee benefits manager. Watson Wyatt assisted.
Providence (R.I.) Employees' Retirement System hired Boston Partners to manage $43 million in small- to midcap value equity. The firm replaces Pioneering Management, said Boyce Spinelli, director of finance. The board of the $270 million fund was concerned with style deviation, changes in personnel and poor performance at Pioneering, he said.
David Tripple, Pioneering's CIO, contends the performance had improved since the end of last year and style had been consistent. `
`We do understand the concern over the departure of a senior team member,'' he said. H.C. Wainwright & Co. assisted.
Oklahoma State & Education Employees Group Insurance Board hired Chicago Trust to manage a $60 million intermediate-term bond portfolio. Other finalists were TCW, Wellington Trust, Ryan Labs and Morgan Grenfell. A spokesman for the $228 million fund said assets were shifted from a terminated manager he declined to name. Marquette Associates assisted.
Seamon ``Sandy'' Lincoln has resigned from Lincoln Capital Management after serving less than a year as COO.
``We are all disappointed,'' said J. Parker Hall, Lincoln president and managing director. ``He initiated changes that are of use to the firm and he's a first-class individual. But Sandy was a more ambitious builder than we thought appropriate at this time for Lincoln Capital.''
The firm has started a search for a new COO. Mr. Lincoln could not be contacted about his future plans