Los Angeles Fire and Police Retirement System is adding an EAFE equity manager to accommodate growth in its non-U.S. stock portfolio and possibly replace an existing manager. The fund also is considering adding an emerging markets manager.
The new EAFE manager will manage $300 million to $400 million. The existing manager that might be affected wasn't disclosed. Watson Wyatt is assisting.
The $9.3 billion fund's current international equity managers are Nomura Capital, Oechsle International and Clay Finlay.
No decision has been made on whether to search for an emerging markets firm or wait for the completion of an asset allocation study, expected in the middle of 1998. The fund has an allocation of 1% of assets for the emerging markets, but that figure could change.
Mellon Bank announced today it will acquire Founders Asset Management, a growth-oriented equity mutual fund manager with $6.7 billion in total assets under management. Terms were not disclosed.
Founders will remain in Denver and become a subsidiary of Mellon Bank, which also owns Dreyfus Corp.
Primary executives and portfolio managers at Founders have signed long-term employment contracts, according to a Mellon statement. Founders Chairman and CEO Bjorn ``Erik'' Borgen will remain a director of Founders Funds and has a consulting agreement with Mellon. Founders manages about $6.7 billion in 11 no-load funds; Dreyfus manages $97.5 billion in more than 150 funds.
Citibank agreed to acquire the global trust and agency services business of J.P. Morgan. That business is composed entirely of European debt issues - totaling some 12,000 issues - of 500 customers worldwide. Terms of the deal were not disclosed. The acquisition is expected to close in the second quarter of 1998, subject to regulatory approvals.
Citibank now provides securities services to more than 2,500 customers worldwide, with more than $1.7 trillion in assets under custody.
Cowen Asset Management and Carnegie Asset management are launching an offshore global health care fund, the Carnegie Cowen Global Healthcare Fund.
Cowen will be investment adviser to the fund and Carnegie will handle fund administration, marketing and client service. The fund will invest in between 50 and 100 global health care stocks with market caps of less than $1 billion. It will be offered exclusively to high-net-worth and institutional investors in Scandinavia.
Cowen also is launching the Cowen Enterprise Global Healthcare Fund, an offshore fund for high-net-worth and institutional investors based outside the U.S. and Scandinavia.