Citicorp and Travelers Group Inc.'s proposed merger will create a combined money management operation with 10 advisory firms with about $361.9 billion in total assets under management, including about $61 billion for tax-exempt clients. Also, it will own one of the largest pension fund consulting businesses, Smith Barney Consulting Group.
Citicorp and Travelers agreed to merge in a stock swap valued at $70 billion. The merger gives Citicorp and Travelers shareholders an equal stake in the new Citigroup Inc.
Travelers and its Salomon Smith Barney units will account for most of the money management assets of Citigroup. They are: Smith Barney Capital with $126.3 billion in total assets under management; Smith Barney Investment Advisors with $18.6 billion; Greenwich Street Advisors, $62 billion; Peachtree Asset Management, $10.4 billion; First Madison Advisors, $110 million; Salomon Brothers Asset Management, $23.2 billion; Travelers Insurance, $31.1 billion; Travelers Investment Management, $1.2 billion; and Mastholm Asset Management - partly owned by Salomon Smith Barney - with $217 million.
Citicorp Global Asset Management had total assets under management of $88.794 billion, according to the Money Market Directory.
Citicorp and Travelers officials couldn't be reached for comment.
The Dow Jones industrial average closed above 9,000 for the first time, ending at 9,033.23, based on preliminary numbers. Although the Dow rose 49.82 points for the day, the S&P 500 index fell 1.31 to 1,121.39, also preliminary numbers.
``There's really nothing out there clamping down on the market,'' said Donald A. Yacktman, president and CIO of Yacktman Asset Management, adding valuations are extremely high. Like an extra-inning baseball game, the bull market will end, but nobody knows when, he said.
FTSE International, the Amsterdam Exchanges and the LIFFE jointly will launch futures and options contracts based on the FTSE Eurotop 100 index May 12.
The London International Financial Futures and Options Exchange will introduce a futures contract while the Amsterdam Exchanges will list an options contract. Both contracts will be denominated in European currency units, which will be replaced by the euro Jan. 1.
In May, FTSE International also will introduce the FTSE Eblock 100 index - a new index of large-cap stocks drawn solely from the `` countries expected to be in the euro.
LIFFE will explore launching futures and options based on the new index later this year.
Amesbury (Mass.) Retirement System is making its first allocation to real estate, said Sheryl Tresieze, retirement administrator. The fund also might eliminate venture capital as an asset class and allocate that 5% of total assets elsewhere, she said. Segal Advisors is assisting.
The $20 million fund is searching for a commingled real estate manager and probably will allocate $1 million to the firm hired.
The MSCI EAFE index posted a 13.7% gain in dollar terms in the first quarter, while the World index rose 14%. The best-performing regional index of developed markets, was the MSCI Europe index, which climbed 19.8% The MSCI Emerging Markets Free Index advanced only 5.7%; however, the EMF Far East index was up fully 20%, during the quarter.
The best and worst performers were both emerging markets. Korea's market shot up 58.3%, while Colombia's fell 22.9%.
In March, the EAFE index was up 3%, the World index advanced 4.1%, and the Emerging Markets Free index posted a 4% rise.