Robert Bosch Corp., Broadview, Ill., is considering a search for its first international equity manager. The manager probably would get 5% to 10% of the company's $120 million in defined benefit assets gradually over time, said Karen Gallivan, treasurer.
The new asset class still needs board approval, she added. A decision on a search is expected in the fourth quarter. Towers Perrin is assisting.
Generale Bank of Brussels will buy about 51% of Harbor Capital Management, enhancing the bank's money management expertise.
Harbor manages about $5 billion in assets. Definitive agreements are pending, but Generale Bank is expected to pay about 1% of assets, or $50 million, for its stake. The bank also has a seven-year option to increase its stake up to 75%. Harbor employees will retain a significant share of the equity capital, with significant back-end payments for Harbor managing directors.
Harbor will serve as a North American platform for U.S. equity and fixed-income products, said Frederick Thorne, a Harbor founder and chairman. Mr. Thorne said the sale will provide the midsized manager with the money to become more global, a capital-intensive undertaking.
United Asset Management formed a Paris-based subsidiary, Expertise Asset Management, to offer global bond and European equity products.
The start-up firm, which is 80% owned by UAM, is staffed by four former professionals from Finagest, Paris. There are plans to hire two additional portfolio managers. Hervé de Lattre, Expertise's chairman, said the firm hopes to tap growing institutional demand for international investments.
State of Connecticut Retirement & Trust Funds, Hartford, put RCM Capital Management on its watch list, said state Treasurer Christopher Burnham, sole trustee of the $15 billion fund. RCM was placed on the watch list because of personnel changes, he said. Connecticut hired RCM in spring 1996 to manage a $150 million equity portfolio. RCM officials were unavailable for comment.
Maryland State Retirement Systems, Baltimore, with $23 billion in assets, might invest $100 million in Greenway Partners, a fund that uses shareholder activism to enhance returns in undervalued companies, confirmed Arthur N. Caple Jr., chairman of the fund's investment committee. The committee meets again July 11, and may finalize the investment then.
The investment will not be treated as a separate asset class, but as part of its equity investments. The state fund heard presentations from two other firms, but chose Greenway because it offers separate accounts.
Investment Technology Group acquired a minority interest in the Long View Group, a privately held company serving the trade automation segment of the securities industry. ITG Ventures, a unit of ITG that will hold the interest in Long View, was formed to make strategic investments in technology-based businesses serving the institutional financial sector.
SEARCHES & HIRINGS
University of Tulsa's $450 million endowment fund is finishing a search for a large-cap value equity manager to run up to $20 million and could be searching for alternative investment managers later this year.
The endowment has narrowed its list in the large-cap search, which Warren Henshaw, director of endowments and investments, would not disclose. Assets would come from existing index managers; none will be terminated. A selection is expected by the end of the summer. Corporate Consulting Group is assisting.
Mr. Henshaw also said he expects the board later this year to increase its allocation to alternative investments, now at 5% of assets.
Grove Hill Medical Center, New Britain, Conn., selected Putnam as bundled service provider for its $40 million money purchase 401(k) plan.
Trustees expect to provide six to eight investment options; only the Templeton Foreign Fund will not be offered from Putnam. The fund has been employer-directed, using five external managers that a fund spokesman declined to name. PRIME Asset Consulting Group assisted.
J.S. Alberici Corp., St. Louis, hired Vanguard to provide bundled services for its $35 million profit-sharing/401(k) plan. Vanguard offers eight investment options plus daily valued record keeping, administration, trust services and employee education and communication. Alberici moved to the new plan July 1. Boatmen's Trust previously provided bundled services to the plan, said Herman Woodcock, the plan's administrator.
West End Lumber Co. Inc., Houston, hired Putnam as bundled provider for its $2.5 million 401(k) plan. Five Putnam funds will be offered as investment choices. The plan previously was employer-directed and the assets had been run by Hand & Associates. Post Oak Capital assisted in the search
