Piper Capital Management agreed in principle to purchase Washington Square Advisers, a fixed-income manager with $2.7 billion under management. Terms were not disclosed. Both firms are in Minneapolis.
PIPER manages about $9 billion in equity and fixed income.
Washington Square is owned by ReliaStar Financial Corp. Only two employees - portfolio managers Douglas Hedberg and Gregory Hanson - will join Piper Capital under the agreement, spokeswoman Maria Verven said.
Remaining Washington Square employees will continue to work on general account investment management for ReliaStar.
LaSalle Partners went public today, with trading in the stock opening at $28 per share. The offering of 4 million shares had been priced the day before at $23 per share. The offering was oversold.
The shares amount to about 25% of the company's total common stock, said Magnes Welsh, a spokeswoman. LaSalle will use the proceeds - approximately $83.5 million - to repay outstanding debt and pursue its growth strategy of international expansion and co-investment with investor clients.
LaSalle Partners is the parent of LaSalle Advisors, which manages more than $7.5 billion in tax-exempt assets.
State Street Corp. reported earnings per share increased 27% during the second quarter, to 56 cents on a fully diluted basis compared with 44 cents in the second quarter 1996. Revenue grew 22%, to $568 million from $466 million. The company said its after-tax margin was 16.2%, up from 15.4% a year ago. Net income was $92 million, compared with $71 million in second quarter 1996.
Marshall N. Carter, State Street CEO, said new business was up substantially from a year ago, from both existing and new customers. Revenue from investment management services, through State Street Global Advisors, increased 32%.
The Financial Accounting Standards Board agreed to produce a final statement on accounting for derivatives and hedging. The document will require that all derivatives be recognized in financial statements and be measured at fair value.
How derivative gains and losses will be accounted for will depend on the use of the derivative, and whether it is designated as a hedge and qualifies for hedge accounting. The statement is expected to be published in the fourth quarter, and would be effective Jan. 1, 1999.
The move was criticized by the International Swaps and Derivatives Association for not giving affected parties time to determine the impact of the changes.
SEARCHES & HIRINGS
Mississippi Public Employees' Retirement System, Jackson, expects to issue RFPs for emerging markets equity and enhanced domestic equity index mandates in the next few weeks. Both sectors are new for the fund. A spokeswoman for the $10 billion fund said the size of each portfolio has not been determined. She said fund officials hope to hire the managers in September. Becker, Burke Associates is assisting.
Hartford (Conn.) Employees' Retirement System trustees expect to issue an RFP for an international fixed-income manager next month. In addition, the $800 million fund added one domestic fixed-income manager and terminated two other firms. No further details are available on the search.
The fund committed $12 million to Greystone Capital Management to be managed in a core fixed-income style, said an official with the fund. The portfolio will be funded with cash from a rebalancing. It also terminated a $45 million equity account with NCM Capital Management. The official said ``a range of issues'' contributed to the decision, but it was not a ``no-confidence vote'' in NCM. Several employees in marketing and investment have left NCM in the last few months.
Earlier, the retirement system terminated GAMCO Investors, which managed an $18 million convertibles portfolio. The decision also is attributable to the rebalancing.
The trustees also are preparing to interview finalists in its search for two international equity managers, who will run a total of $80 million.
Access Industries, Kansas City, Mo., selected American Century Investments as bundled provider for its $7.5 million profit-sharing/401(k) plan, said Duane Norris, vice president-finance. American Century will provide seven investment options, daily valued record keeping, administration and education. Access also will offer self-directed brokerage accounts through Charles Schwab.
Mr. Norris would not identify the previous record keeper; three previous investment options were offered by Janus and Strong.
Nancy G. Goerdel joins the Iowa Public Employees Retirement System, Des Moines, as CIO Aug. 18. She replaces Elizabeth Sanders, who left the $11.6 billion fund in January to join Brinson Partners. Ms. Goerdel was deputy director for investments for the Employees' Retirement System of Texas, Austin; her successor has not yet been named