Spraggins quits Lazard
Marianne Spraggins resigned as CEO and co-chairman of WR Lazard, saying the board of directors won't approve restructuring plans to recapitalize the struggling firm. Ms. Sraggins joined Lazard last year.
Meanwhile, Crain's New York Business, a sister publication of Pensions & Investments, reported the New York City comptroller's office is recommending the New York City Employees' Retirement System drop Lazard.
Shell uses clearinghouse
The $12.4 billion Shell Pension Trust sold about $66.2 million of real estate commingled fund units through the Institutional Real Estate Clearinghouse, said Anthony Labozetta, managing director with Cantor Fitzgerald, manager of the clearinghouse.
Shell sold units in five funds: Heitman's Group Trust III and 1211 Acquisition; Equity Enhancement Fund; ERE Yarmouth's USPPI; and Cabot Private Partners.
Mr. Labozetta declined to identify the buyers. But industry sources said Praedium Funds, sponsored by Credit Suisse First Boston, bought some of the units. The transaction was the largest executed by the clearinghouse, said Mr. Labozetta.
Hurd wins Lillywhite
G. David Hurd, chairman emeritus of Principal Financial Group, received the 1997 Lillywhite Award for outstanding contributions to Americans' economic security. Mr. Hurd also headed the APPWP; was a trustee of EBRI, which sponsors the award; was a board member of the CLIF; and was a member of the Labor Department's ERISA Advisory Council.
Goodyear opts for small cap
The $140 million pension fund of Goodyear Tire and Rubber replaced a $95 million midcap portfolio managed by Bank of America with a $140 million small-cap portfolio run by the same firm. Additional funding will come from existing equity managers, said Duane Smith, director of global benefit financing.
PacifiCorp reviewing firms
The approximately $1 billion pension fund of PacifiCorp is reviewing its U.S. equity managers, said Kent Grether, manager-pension investments. "We may make changes," he said.
The fund has a 57%allocation to domestic equities with eight managers, all active.
He said a committee is taking a "bottom-up" approach of constructing an ideal domestic equity group and comparing the list to its managers. He expects a decision on any changes by the end of the year.
Fund terminates Putnam
The $800 million Pennsylvania Municipal Retirement System terminated Putnam as a small-cap growth manager.
The board dropped Putnam because the firm ran afoul of the fund's risk tolerance policy, which states a manager cannot hold more than 5%of its entire portfolio in a single stock, said James B. Allen, chairman.
A Putnam spokesman would not comment on the termination.
Putnam's $105 million portfolio will be moved to State Street Global's small-cap index portfolio, bringing it to $450 million.
Leadership changes coming
The transition team developing the structure of Scudder Kemper Investments is expected to announce specific leadership appointments in the coming quarter.
Sources familiar with the process say the new team might be heavy with Scudder professionals.
The new Scudder Kemper will be led by Ed Villani, Scudder's CEO. Five Scudder executives, two Zurich Group executives and two Zurich Kemper executives are on the transition team; team recommendations will be approved by Mr. Villani.
County fund studies realty
The $3.6 billion Orange County (Calif.) Employees' Retirement System is having PMRealty Advisors conduct a strategic study of the fund's real estate investments. The study should be finished in 60 to 90 days.
Ray Fleming, retirement administrator, said the fund is in a "reduction mode" on real estate, seeking to reduce its allocation to 9%or 10%of assets from 14%
NYCERS may drop firms
New York's Bureau of Asset Management will recommend the $30 billion New York City Employees' Retirement System terminate underperforming equity managers. First, trustees must approve a new asset allocation, expected next month, said Donna Anderson, NYCERS' CIO.
Just 20%of NYCERS' active equity managers outperformed their benchmarks for the year ended June 30. Overall, equities were the fund's strongest performing asset class, generating a 30.5%return for the year. NYCERS indexes 60%of its equities.
LGT promotes Loach
Paul Loach, head of LGT's European money management arm, has been named CEO of LGT Asset Management Division, a new position. He also will join the Liechtenstein Global Trust's executive management group.
Anton Schwaiger previously oversaw both LGT's asset management and private banking units; he will resume his role in the private banking unit.
Illinois taps 3 for realty
The $6.3 billion Illinois State Board of Investment committed $105 million to three real estate partnerships, said Katherine Lindsay, deputy director.
The board committed $40 million to Olympus Real Estate Fund II, a single asset buyer of office, commercial, hotel and other types of real estate; $40 million to RREEF Real Estate Venture Capital fund; and $25 million to MG Development Partnership, which will invest primarily in suburban commercial real estate.
Avon hires Putnam
The $480 million pension fund of Avon Products hired Putnam Institutional Management to run $17 million in high-yield bonds.
The new asset class will be funded through reallocation among existing fixed-income managers, none of which will be terminated, said Joseph V. Kulhanek, manager of pension and trust investments.
Laborers' drops PSI
The $1.4 billion Laborers' and Retirement Board Employees' Annuity and Benefit Fund of Chicago will terminate its relationship with PSI Institutional Realty.
The assets will be moved to cash. The decision was not performance related, said James Capasso, executive director.
Sobolewski joins BGI
Kenneth M. Sobolewski left ANB Investment Management, where he was national sales manager, to join Barclays Global Investors, a rival index fund manager.
He will open a Chicago office for BGI early next year. Regional sales manager James J. Barrett replaced Mr. Sobolewski at ANB.
Prime chooses NYL
Prime Management Group selected NYL Benefits as the new bundled provider for its $800 million 401(k) plan. A plan spokeswoman said investment options have not yet been selected, but between six and eight NYL funds will be offered when the plan is converted Jan. 1.
The plan previously was administered by 401(k) Co. and had six outside funds.
The spokeswoman declined to discuss reasons for the changes.
Coke bundles 401(k)
The $55 million 401(k) of Coca-Cola Bottling Co. Consolidated hired Putnam as bundled provider, said Tripp Deal, corporate benefits manager.
Putnam replaces a semi-bundled approach in which Aon Consulting was record keeper and American Funds and Aetna provided investment options. The number of options doubled to 10.
2 open firm
J. Player Crosby and Ezra Zask formed Barrington Capital Management, an investment management firm that will specialize in emerging market debt. Mr. Crosby is Barrington's CEO and investment manager. The new firm succeeds Mr. Crosby's Lenox Capital, with $120 million under management. Mr. Zask is Barrington's president and was the founder and president of Ezra Zask Associates, a commodities trading adviser with about $200 million under management.
Investment options picked
The $130 million State of Iowa Deferred Compensation Plan selected nine mutual fund options: Euro Pacific Growth Fund from American Funds Group; Franklin Small Cap Growth Fund; Neuberger & Berman Partners Trust Fund, a midcap stock fund; Maxim Stock Index Portfolio, which tracks the S&P 500; Income Fund of America, a stock and bond fund; Bond Fund of America, an intermediate- to long-term bond fund; a Washington Mutual Investors large-cap fund; the Ariel Growth Fund; and a stable value fund from Great West.
The fund previously offered insurance company annuities only.
Segal Advisors assisted.
Sun Trust-Equitable deal
SunTrust Banks signed a definitive agreement to purchase Equitable Securities.
Equitable's money management units, Equitable Trust and Equitable Asset Management, with about $1.5 billion total under management or administration, will continue to operate independently, according to a SunTrust spokesman.
SunTrust's existing money management units, STI Capital Management and Trusco Capital, manage about $12 billion and $16 billion, respectively.
Japan market opens more
Japan's Tax Qualified Pension Plans, the generally smaller corporate pension funds, will be able to use investment advisers to manage money, effective Oct. 1.
Previously, TQPPs were only allowed to use trust banks and insurance companies in Japan as money managers.
The plans will need governmental approval to use investment advisers, said Barry Gillman, of Farris, Gillman & Associates.
The $20 billion Pennsylvania State Employes' Retirement System will mail RFPs for a private equity consultant Sept. 30.
Paul M. Stahlnecker, RFP coordinator, said responses are due Oct. 24.
The contract for incumbent consultant Cambridge Associates expires in December.