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. 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.
The U.K. government today announced a wide-ranging review of British pension policy. Among the issues to be covered: responsibilities for funding pensions; demographics; regulation; financial awareness; and narrowing benefit gaps between men and women.The basic state pension will remain, but support for second-tier pensions will be strengthened. The government will develop its previously announced concept of a low-cost ``stakeholder pension'' for persons not covered by employer schemes and for whom personal pensions are not suitable.
The government plans to publish an initial concept paper in early 1998.
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 firm's total common stock, said Magnes Welsh, a spokeswoman. LaSalle will use the proceeds - about $83.5 million - to repay debt and pursue its strategy of international expansion and co-investment with clients.
LaSalle Partners is the parent of LaSalle Advisors, which manages more than $7.5 billion in tax-exempt assets.
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.
Hartford (Conn.) Employees' Retirement System committed $12 million to Greystone Capital Management to be run in a core fixed-income style, said an official with the $800 million fund. The portfolio will be funded with cash from a rebalancing.
The retirement system 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 system terminated GAMCO Investors, which ran an $18 million convertibles portfolio. The decision also is attributable to the rebalancing.
Hartford is preparing to interview finalists in its search for two international equity managers, who will receive a total of $80 million. Trustees expect to issue an RPF for an international fixed-income manager in August.
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.
Susan Manske was promoted to be Ameritech's director of risk management, a new position at the $16 billion pension fund, industry sources said. Ms. Manske previously was director of capital markets for the fund. Additional information was not available.
David E. Walker, formerly a principal of Equinox Capital Management, opened his own investment management firm, Normandie Capital Management. Mr. Walker said he has $30 million under management. He is taking a quantitative investment approach, blending growth and value management styles. Mr. Walker has not been replaced yet at Equinox