LONDON - Gartmore Investment Management P.L.C. selected Bank of New York as preferred provider for global custodial services for its institutional clients.
London-based NatWest Group merged its money manager unit NatWest Investment Management Ltd. into Gartmore after acquiring the latter in April 1996. The combined unit, which retained the Gartmore name, had 25 billion ($42.8 billion) in assets as of year-end 1996.
Gartmore had provided custody internally while NatWest had employed Lloyds Securities Services, London. There was an even split of assets.
With the help of consultant Thomas Murray Ltd., London, Gartmore officials decided to select a single global custodian to oversee the combined client assets.
Bank of New York already had served a subcustodian in overseas markets, except for the United States, but now will provide custodial services on a global basis.
Gartmore clients now must review their custody arrangements. Gartmore officials hope the transfer process will be completed by early in 1998.
Separately, Gartmore has named Andrew Fleming as head of equities, following a decision to combine the firm's U.K. equity and international equity departments.
Mr. Fleming had been head of international equities for the past two years, and now will take on responsibility for the U.K. equity unit from Mike Bishop, who will focus on several of Gartmore's key client relationships and pension fund portfolios.
In addition, Mark Crutchley, who had been leading one of Gartmore's U.K. equity teams for balanced funds, has been promoted to oversee all four of the manager's U.K. equity teams.
Prudential absorbs SAIM assets
LONDON - Prudential Portfolio Managers, London, is set to absorb (British pounds) 15 billion ($25.3 billion) of life and personal pension assets formerly managed by Scottish Amicable Investment Management, Glasgow, bringing total assets under management to (British pounds) 106 billion ($178.8 billion).
The changes follow Prudential's acquisition of Scottish Amicable in March.
Also, Scottish Amicable's (British pounds) 800 million institutional pension fund business has been sold to Britannia Investment Managers, also in Glasgow.
A review by the insurer concluded it no longer was economically viable to continue managing the assets in Glasgow, a Prudential official said.
SAIM has 125 staff, of whom 25 are fund managers. About 20 people will move to Britannia, 10 of them fund managers. Prudential also is looking at transferring the remaining 15 fund managers to its offices in London.
Buck acquires Australian firm
NEW YORK - Buck Consultants Inc. acquired Hannan Superannuation Australia, the pension administration and consulting business of the Hannan Group, Australia's largest privately owned insurance brokerage company.
The acquisition is part of a strategic alliance between the two firms designed to provide a higher level of pension and consulting services to Hannan's clients. Buck has about 250 pension specialists in Australia and provides services to more than 400 pension funds.
SBC Warburg, Brunswick form venture
LONDON - SBC Warburg and Brunswick Investment Ltd. are forming a 50-50 joint venture for corporate finance and brokerage activities in Russia. Newly formed Brunswick Warburg will comprise Brunswick Brokerage, the securities brokerage subsidiary of BIL, and SBC Warburg's Russian corporate finance business. Brunswick's money management unit, Brunswick Capital, is unaffected by the change.
The new unit will combine Brunswick Brokerage's leading position in the Russian equity market with SBC's resources and global distribution capabilities.
France considers corporate reforms
PARIS - The French government soon will introduce legislation reforming corporate governance, French Minister of Economy and Finance Dominique Strauss-Kahn said July 8. Mr. Strauss-Kahn said the balance of power within corporations needs to be addressed as well as disclosure requirements and ethics rules for corporate directors. He also said the status of professional investors must be defined.