Putnam Investments has agreed in principle to acquire the 50%
stake in PanAgora Asset Management that has been held by Lehman
Brothers. Terms of the deal were not disclosed.
The remaining 50%
share in PanAgora is held by Japan's Nippon Life Group.
Steven Spiegel, senior managing director at Putnam, said the PanAgora deal ``extends'' Putnam's liaison with Nippon Life and broadens Putnam's
ties with PanAgora.
The latter is now subadviser to the S&P 500 Index Fund that Putnam offers its defined contribution clients. In June, Putnam entered a strategic alliance with Nippon Life jointly to develop investment products and manage assets. It also formed an alliance with Nippon Life's Nissay Asset Management to manage and market international products for Japanese pension funds.
PanAgora will operate as an independent entity. Putnam will have
representation on PanAgora's board, but will not participate in
PanAgora's day-to-day investing or business operations.
The PBGC is considering scrapping its list of 50 worst-funded corporate
pension plans, an agency spokeswoman confirmed. The agency is
evaluating the usefulness of the list in light of reforms made by the
Retirement Protection Act of 1994, and will announce its decision
next month, she said. That legislation requires corporations to tell
employees if their pension plans have a shortfall, among other
The PBGC first published the list in 1990, using 1988 plan data.
Lakeland (Fla.) Employees' Pension Fund is considering more diversification for its fixed-income portfolio.
The board of the $270 million pension fund is looking at the $108 million core domestic bond account managed by Merrill Lynch Asset Management. Trustees will know if changes will be made in about a
month, said Gary Clark, executive director.
Carpenters Pension Fund of Illinois, Geneva, plans to hire a fixed-income index manager as a result of a review of its $200 million fixed-income portfolio. Marco Consulting has selected four candidates and will present them to the board in mid-October. The board also will discuss
restructuring of the portfolio at that meeting.
Trustees of the $760 million fund also are considering foreign bonds and high-yield bonds as a way of expanding the investment vehicles used by existing bond managers Lazard Freres and Investment Advisors, said David Bodley, administrator.