J. P. Morgan Investment Management is shedding up to 5% of its 2,000-person institutional staff worldwide as part of cost cutting by its parent.
Officials at J.P. Morgan declined to detail the scope of the departures or name the individuals involved.
According to sources, key departures in New York include marketer Lou Ann Dolan and Eduardo Cortes, an emerging markets bond manager.
In addition, a number of longtime Morgan employees are expected to take early retirement. They include four managing directors: William B. Petersen, a U.S. equity portfolio manager; Henry Cavanna, an equity and balanced portfolio manager; Roger Sayler, head of the global derivatives team; and Dick Davis, corporate strategist who was in charge of global institutional marketing until the middle of last year. Also, Vice President Gerald Osterberg, a domestic balanced manager, will retire, sources said.
In London, Morgan disbanded its 13-member capital markets research group, laying off nine and reassigning the others. The group was headed by Grant Caldis, who was laid off. A small derivatives team in London also was disbanded.
Dresser Industries Inc., Dallas, is consolidating the record keeping and administration for its three defined contribution plans, with assets of $750 million, with Vanguard next month. The three plans will remain separate.
Dresser has a plan for Dresser employees; another for a joint venture, called Dresser-Rand Co.; and a third for employees of MW Kellogg. Vanguard replaces Merrill Lynch for the Dresser parent's plan; and Putnam for the Dresser-Rand plan. Vanguard already had the business for the Kellogg plan.
The Dresser and Kellogg plans will have 14 investment options, including company stock; the Dresser-Rand plan won't offer the Dresser stock option.
Meanwhile, Halliburton Co., Dallas, which is acquiring Dresser, is on the verge of consolidating its three defined contribution plans, with assets totaling $3.7 billion. As part of the makeover, the company is looking at streamlining features of the three plans.
Observers don't expect the Halliburton and Dresser plans to be merged following the companies' union.
Shell Pensioenfonds Beheer B.V., Rijswijk, The Netherlands, agreed in principle to manage half of French Shell's 1.4 billion French franc ($223 million) pension fund, said Kees van Rees, managing director of the Dutch fund. The arrangement is awaiting regulatory approval. The Dutch fund has assets of 24.2 billion guilders ($11.8 billion). It was ``a harsh February'' for futures managers, who reported an average return of -1.4% in the month, according to preliminary data at Managed Account Reports.
The biggest losses were in currencies, while diversified strategies were up 1.6%. Futures funds-of-funds were down on average 0.1%.