United Asset Management formed a strategic alliance with Tokio Marine and Fire Insurance to offer investment trusts in Japan. The trusts will be subadvised by up to 10 of UAM's investment management firms and marketed by Tokio Marine. The funds primarily will contain nonJapanese assets and include global equity and global TAA.
UAM also today reported a 12% rise in first-quarter revenue to $241.8 million, from $215.5 million in 1997's first quarter. But net income for the quarter was $22.1 million vs. $24.1 million a year earlier.
UAM also reported a $4.7 billion loss in client assets during the first quarter and predicted client losses will continue throughout the year. UAM's 45 affiliates had a record $213.9 billion in assets under management, up from $197.5 billion at the end of 1997.
Maine State Retirement System, Augusta, selected three bond managers, each expected to receive $200 million for core U.S. bond portfolios. Chosen were: Loomis, Sayles; Standish, Ayer & Wood; and TCW. Each firm will have some discretion to invest abroad or in such other areas as high-yield bonds, said Kay Evans, executive director of the $5.6 billion fund. Their investment selection will be limited by specific guidelines, she said.
Funding will come from a reduction in the system's U.S. bond index funds and some cash. No manager terminations are involved.