Yamaichi International Capital Management is remaining in business, despite news that former parent Yamaichi Securities is closing its doors. Meanwhile, the management of the money manager has submitted a proposal to Japan's Ministry of Finance to buy the firm, said George Dole, marketing director of Yamaichi Capital Management, the U.S. unit of Yamaichi International Capital.
Today, the MOF formally terminated the relationship between Yamaichi Securities and Yamaichi International - one of three Yamaichi Securities units that survived the parent company's closure. MOF now holds in trust the shares of Yamaichi International Capital that had been held by other Yamaichi entities.
``Right now, MOF is supervising the liquidation of Yamaichi Securities and all its related entities except for the three survivors,'' Mr. Dole said.
Yamaichi International has $24 billion under management. Yamaichi Capital Management manages slightly more than $1 billion.
Atmos Energy Corp., Dallas, might add international equity as an asset class for its $268 million defined benefit plan, said Steve Harmon, manager of employee benefits. Plans are still in the conceptual stage and the size of the new portfolio is not yet known, he said. More should be known after the first of the year. LCG Associates is assisting.
The fund also hired two managers. Cadence Capital will run $40 million in small-cap growth stocks. Funding will come from the rebalancing of assets that follows the Atmos Energy plan's merger with the $88 million United Cities Gas plan effective Nov. 1. Also, Montag & Caldwell, a former manager for the United Cities plan, will run $60 million in large-cap growth stocks, replacing Columbus Circle.
Columbus Circle was terminated because the firm was ``lagging behind its peers,'' Mr. Harmon said. Columbus Circle officials could not be reached for comment.
Pell Rudman & Co. agreed to buy Sovereign Financial Services, an alternative investments manager. Terms were not disclosed. The two firms already have created and funded with $50 million a limited partnership, the Sovereign New Millennium Fund, to invest in private equity partnerships, venture capital, buyouts and special situations.
SEARCHES & HIRINGS
Ohio Bureau of Workers Compensation, Columbus, issues RFPs next week for emerging managers, said Robert Cowman, CIO. The fund will place $500 million with firms that currently have $500 million or less under management. Officials of the $18 billion fund will not limit the search to a specific asset class or style. Callan Associates will assist.
Southern California UFCW Union & Food Employers pension fund, Cypress, Calif., selected Mellon Trust as its new custodian and may add a separate global custodian, said Joel Meltz, chief financial officer of the $3.8 billion fund. Mellon replaces Wells Fargo.
A global custodian may be hired to accommodate the fund's new $150 million allocation to international equities, Mr. Meltz said. He said an international manager also has been selected, but he declined to name the firm until contracts have been signed. R.V. Kuhns & Associates assisted with both selections.
Vermont State Employees' Retirement System, Montpelier, with around $800 million in assets, has hired HLM Management as a small-cap growth manager and Rothschild Asset Management as a small-cap value manager to run about $60 million, said James H. Douglas, state treasurer. Funding will come from cutting back allocations to other equity managers, but Mr. Douglas declined to identify the firms until they have been notified.
Businessmen's Assurance Co. of America, Kansas City, Mo., hired Sanford C. Bernstein to run a large-cap value portfolio for its $75 million pension fund, said Robert Sawyer, senior vice president and CIO. The size of the assignment wasn't available. Funding will come from a reallocation. DeMarche assisted.
Sierra Technologies Inc., Buffalo, N.Y., hired M&T Capital to manage its $30 million defined benefit plan using a balanced style, said Jeffrey Miller, vice president. Previously, the fund was advised by the Wellesley Group, but transactions were handled in-house.
CORRECTION: Indiana Public Employees' Retirement Fund uses Prime Capital for its bond index portfolios. The wrong firm was named in the Nov. 20 P&I Daily.
