Schneider Capital has agreed to pay $400,000 to Wellington Management to settle the money managers' two-year legal battle over non-competition rights.
In the settlement signed Friday, Schneider also will pay $100,000 in legal fees to the $11 billion Utah State Retirement System, one of three clients that left Wellington to follow Arnold Schneider. Mr. Schneider can continue to manage assets for Utah.
Sources say the signing of the settlement was delayed until a paragraph was added stating the agreement closed the matter for good.
Reps. Rob Portman, R-Ohio, and Ben Cardin, D-Md., will re-introduce their broad pension legislation Tuesday. The legislation, which made no headway last year because lawmakers did not take up a pension bill, would allow workers to tuck more money into their 401(k) plans, improve portability and hack at paperwork requirements to make it easier for employers to set up pension plans.
Rodamco announces split
Rodamco NV, a global real estate fund, will be split into four regional real estate companies to improve shareholder value, subject to shareholder approval, the company announced Friday.
Rodamco abandoned the global fund structure to reduce the issue of currency exposure. Each company will have separate management and be listed on the Amsterdam Stock Exchange.
Rodamco North America will continue to focus on high-quality retail investments. RREEF, the firm's U.S. arm, is expected to take over management of the portfolio.
Asset manager inside
The Hospitals of Ontario Pension Plan and its money manager, Hospitals of Ontario Pension Plan Investment Management Ltd., have merged, said John Crocker, CIO for the C$14.5 billion (U.S.$9.5 billion) plan.
HOOPP Investment Management did not run any outside money, he said. With the pension fund now running money in-house, it will expand its money management and finance departments.
Russell mulls advice arena
Frank Russell is considering entering the investment advice market, but first will conduct a study on the subject, said David Jepsen, manager of financial planning and education.
"Investment advice is expensive and there is risk," Mr. Jepsen explained. While Frank Russell is willing to "make the investment and willing to take the risk," Mr. Jepsen said, a market study was the first step. Study results are expected at the end of this year.
Meanwhile, Russell has selected Wiesenberger's Architec(k) defined contribution retirement plan education software for its Internet initiative for defined contribution plan participants, he said.
Also, Frank Russell and Bank of Tokyo-Mitsubishi have agreed to sell Russell's multiple manager funds to individual investors in Japan. Bank of Tokyo-Mitsubishi will sell the "investment trusts," similar to U.S. mutual funds, and Russell will manage the funds.
Fund reviews performance
The $1.2 billion San Joaquin County (Calif.) Employees' Retirement Association is reviewing its managers' 1998 performance to see what changes may be necessary, said Robert Palmer, retirement administrator.
Strategic Investment Solutions is conducting the review, which it expects to complete by June.
Tucson taps Mellon
The $450 million Tucson Supplemental Retirement System hired Mellon Trust as master custodian.
Northern Trust had been the fund's custodian since 1984 and was a finalist in the search.
Union hires consultant
The $20 million Asbestos Workers Local 47 Pension Fund hired Merrill Lynch Consulting and Advisory Services/The Brice Group as its first consultant.
A performance review is expected to follow.
Seattle keeps custodian
The $1.4 billion Seattle City Employees' Retirement System rehired Bank of New York as its global custodian, said Mel Robertson, assistant executive director.
Fidelity to sell on-line
Fidelity Investments in July will launch a 401(k) plan targeted to small businesses that will be offered, sold and serviced over the Internet.
"I think the small market is where the market is least tapped," said Guy Patton, executive vice president of Fidelity's small business 401(k) unit. With Fidelity "e401k," plan sponsors will design their plans over the Internet using an interactive process, Mr. Patton said.
The e401k also will offer plan administration by the employer, record-keeping reports, personalized communication, education, retirement planning tools, plan enrollment and ongoing account monitoring and management over the Internet, he added.
6% bond contracts to trade
Cantor Exchange, an electronic bond futures exchange, received Commodity Futures Trading Commission approval to trade U.S. Treasury security contracts based on a 6% coupon, with trade expected to begin March 19.
The 6% coupon is designed to be easier to use than the traditional 8% coupon contracts, which will continue to trade on Cantor.
The Chicago Board of Trade, the market leader in trading U.S. Treasury futures, is considering a similar move.
Meanwhile, the Chicago Mercantile Exchange filed for regulatory approval to trade contracts on the Standard & Poor's Euro and Euro Plus equity indexes.
The S&P Euro index is cap-weighted with the stocks of companies based in countries participating in the European Economic and Monetary Union, while the Euro Plus is capitalization-weighted with stock from both EMU and non-EMU European countries.
New manager at PIMCO
Sandra Durn joined PIMCO Advisors as a vice president and portfolio manager of convertible bonds, a new position. Ms. Durn was a portfolio manager at Nicholas-Applegate, where high-yield manager Doug Forsyth has assumed her duties.