Value Asset Management bought a 75% stake in investment manager Harris Bretall Sullivan & Smith. The sale price was not disclosed.
Harris Bretall partners all will receive stock in VAM's holding company and retain a 25% stake in Harris Bretall, which will continue to operate independently. Also, Harris Bretall President W. Graeme Bretall, who will continue to head the firm, has been appointed to the VAM board of directors. Other senior management at Harris Bretall also will remain intact.
Harris Bretall has about $2.1 billion under management and focuses on large-cap growth equity. VAM is a holding company that invests in privately held investment firms.
St. Louis Public School Retirement System officials are reviewing the fund's investment policies for a possible expansion of its asset allocation and a reduction in investment managers, said Gail Lakin, executive director for the $700 million fund. Trustees are participating in educational sessions as a part of a fund review process that probably won't be completed for six to nine months.
The fund's overall target allocation - 57% equities, 36% fixed income and 7% alternative and other investments - could stay about the same, but allocations within those broad groups could be expanded, a diversification move, she said.
She said it's too early to say how the allocation will change. But, the fund's manager lineup is likely to shrink, she added. New England Pension Consultants is assisting.
Five former trustees and two current trustees of the Boston Carpenters Apprenticeship Fund, Brighton, Mass., agreed to pay $62,500 to the fund, and revise procedures for what expenses the fund pays, under a legal judgment obtained by the Labor Department. The trustees also will pay a $12,500 civil penalty.
The judgment in U.S. District Court in Boston settles a lawsuit filed by the Labor Department in 1995 over the alleged improper purchase by the trustees of the pension plan's land in Brighton for $900,000, far higher than the fair market value as assessed by an appraiser hired by the trustees. Also settled was a dispute over the reimbursement of trustees' expenses for travel, meals and drinks, car rental and hotels.
Associated Materials Inc., Dallas, is considering freezing its defined benefit plan and switching to a defined contribution plan structure, said Robert Winspear, vice president/treasurer/secretary. A decision is expected within six weeks. Aeltus currently is the $25 million fund's sole manager.
The firm is being considered to manage the new plan. It's likely the new plan will be bundled, Mr. Winspear added.
The American Stock Exchange unveiled today its redesigned Web site, www.amex.com, which offers a page with a real time view of the trading floor of the exchange. Using the real time feature will require the downloading of special video software if the user doesn't already have it.
HIRINGS
California Public Employees' Retirement System, Sacramento, consolidated its apartment investments with two firms. The $120 billion retirement system retained incumbent SSR Realty Advisors and hired General Investment & Development to manage its $539 million apartment portfolio, said a spokesman for the system.
SSR will manage the west region of CalPERS' portfolio, valued at $280 million; GID will manage the $259 million apartments in the eastern United States. SSR previously managed apartment investments for CalPERS valued at $240 million.
Each will make co-investments in the existing portfolio and new acquisitions. SSR will invest $20 million; GID will invest $25 million.
SSR and GID will take over apartment investments that were managed for CalPERS by Prudential Real Estate Investors, Building Investment Trust, ERE Yarmouth, LaSalle Advisors and The RREEF Funds.
Northampton County Employees' Retirement System, Easton, Pa., hired Peirce Park Group as its first consultant to help review the fund's investment policy and risk tolerance.
The $153 million fund's current investment policy, written when the plan formed in 1979 by sole money manager C.S. McKee & Co., includes a provision prohibiting fund officials from comparing the firm to other investment managers or indexes, said Barbara Bigelow, director of fiscal affairs for the county.
The current asset mix is 60% equities, including a small amount in international stocks, and 40% fixed income.
WHO'S NEWS
Karl H. Smith Jr. has been named director of real estate with consultant Frank Russell. Mr. Smith formerly was a consultant with Institutional Property Consultants.
IPC Chairwoman Barbara Cambon was traveling and unavailable to comment about Mr. Smith's replacement. He replaces John Koza, who left Frank Russell late last year to join The McMahan Group
