Affiliated Managers Group Inc. of Boston has filed with the Securities and Exchange Commission to complete an initial public offering during the fourth quarter.
The underwriting group is led by Goldman, Sachs & Co. AMG acquires interest in smaller asset management companies and will have $40 billion in assets under management when two recently announced investments are completed.
MultInational companies are finding pension costs to be a big expense, according to a survey by William M. Mercer Inc. In the study, 40% of respondents cite concerns over excessive/uncontrolled costs as a top challenge. Thirty-one percent cite headquarters' desire for more information, while 29% identified the need to provide appropriate benefits levels for retirees.
The decline of social security programs in many of the countries in which respondents operate was cited by 23%, while 21% mentioned the need to optimize pension fund returns.
A number of respondents also cited such challenges as adding greater portability to pension benefits and meeting the particular retirement needs of expatriates. The survey found multinationals increasingly are seeking greater centralized management of their retirement plans.
The Los Angeles County Employees' Retirement Association will allocate an additional $431 million to its $1.4 billion Lehman Aggregate Bond Index fund with Bankers Trust Co.
The move is part of a rebalancing of the $23 billion pension fund's assets. The money is coming from small-cap growth manager Weiss, Peck & Greer, which is being dropped. The allocation change was a staff decision with assistance from pension consultant The Frank Russell Co.
World markets slid in August. The Morgan Stanley Capital International World Index fell 6.8% in U.S. dollars, while the MSCI EAFE Index declined 7.6% and the MSCI Emerging Markets Free Index dropped 12.8%.
MSCI said interest rate concerns and currency weakness pressured markets worldwide last month.
Among developed markets, only Norway's registered a gain, although it was only a 0.3% increase. Among emerging markets, gains were recorded in the markets of the Czech Republic, which was up 11.2%; Poland, 10.5%; China free and Egypt, both up 5.9%; Colombia, 5.2%; and Morocco, 3.5%. However, renewed currency speculation in countries of Southeast Asia helped force up local interest rates and pummel local stock markets.
Medical Malpractice Insurance Association, New York, restructured the equity portion of its $600 million portfolio, cutting the equity position in half, to 10%, and terminating a manager.
Last week, board members voted to transfer $85 million out of the $188 million equity portfolio into short-term Treasuries, because stocks have gotten too expensive, said treasurer Joseph Alvear.
The terminated manager, Spare Kaplan & Bischel, managed around $6 million. The remaining 10 equity managers will be retained, although the amount each manages will be trimmed, said Mr. Alvear. And a search is under way for a small-cap growth manager, a new area. After the rebalancing, the equity portfolio will be 60% large-cap and 40% small- and midcap.