Neuberger & Berman was terminated by The Common Fund for a $1 billion-plus assignment, and lost another of its senior fixed-income portfolio managers, William Cunningham. It's not clear if the two events are connected. Officials at The Common Fund, one of Neuberger's biggest fixed-income clients, declined comment. Neuberger managed a portion of The Common Fund's short-term fund.
Martin McKerrow, co-director of Neuberger & Berman's fixed-income department, said: ``We were told it was a consolidation'' of the managers in the short-term fund. ``I can assure you our performance has been highly competitive.''
Sterling Heights (Mich.) Retirement System trustees will decide Aug. 11 whether to launch a small-cap equity manager search later this year. The $152 million fund is in the process of talking to consultant Merrill Lynch about how much the search will cost, said Larry Amez, president of the board. The new manager would handle 10% of total assets; existing managers will be considered.
Vanguard won't accept any new bundled 401(k) plan business for the remainder of 1997. The reason: an unusually heavy volume of 401(k) plans hiring the firm during the first half of the year. Vanguard still is accepting new investment-only business from 401(k) plans.
MetLife's defined contribution group formed an alliance with Scarborough Group and 401(k) Forum to offer portfolio management and on-line investment advice to MetLife's bundled clients. Scarborough, an investment advisory firm that manages $1.2 billion in individual participant portfolios, will provide investment management to plan participants for a fee of $299 to $325 per year. 401(k) Forum will provide personalized investment advice via the Internet for $10 to $30 per participant. Plan sponsors will have the option of whether to offer the services to their participants.
SEARCHES & HIRINGS
City of Regina, Saskatchewan, is searching for at least four domestic managers - core equity, bond, small-cap stock and balanced - for its C$540 million ($748 million) defined benefit fund. Allocations to each haven't been decided. The fund might hire more than one manager in core equity and fixed income. RFPs are due back Aug. 27.
The fund now has balanced portfolios with Conner, Clark & Lunn Investment Management and Altamira Management. Both firms will be included in the in-house search, said Randy Garvey, director of support services.
The fund also hired SEI Capital Resources to complete an asset liability/allocation study by the end of September. The study will reveal if any other changes will be needed, such as adding an emerging markets mandate, which the fund is considering.
New England Electric System, Westborough, Mass., hired Crabbe-Huson and Boston Partners to each manage $21 million in small-cap equity for its $850 million defined benefit plan. Funding will come from State Street Bank's midcap equity index fund, which will continue to invest 10% of the fund's total assets, said Don Goodwin, vice president of benefits finance. Hewitt Associates assisted.
Memorial Sloan Kettering Cancer Center, New York, committed $10 million to a hedge fund managed by Maverick Capital.
The hire, funded from cash, is part of the fund's new $190 million allocation to alternatives. The fund has committed $140 million so far. Cambridge is assisting.
DeKalb Genetics Corp., DeKalb Ill, hired T. Rowe Price as bundled provider for its $140 million 401(k) plan. The firm will provide eight options and replaces investment managers Harris Investment Management and Cooke & Bieler. Record-keeping had been done in-house. Towers Perrin assisted.
The State of North Carolina renewed its contract with BB&T Corp. as third-party administrator for the state's $1.3 billion 401(k) plan. The other finalist was State Street Bank. In addition the plan added three investment options: the Putnam New Opportunities fund, a U.S. stock fund; the BB&T Small Company Growth Fund; and the T. Rowe Price International Stock Fund.
Fox replaces American Fidelity Assurance, an American Fidelity Group subsidiary. Officials thought it was better to hire an outside manager, rather than to continue using the subsidiary, said Marvin Ewy, CFO. Bank of Oklahoma replaces Boatmen's Bank, which exited the custodial business.
Asset Services Corp. assisted.
Martin ``Marty'' Walker has been named CIO of the $59 billion Teachers' Retirement System of Texas, Austin. He replaces John Young. Mr. Walker was group executive vice president-asset management at KeyCorp until he retired in 1996