More fallout in Connecticut
A temporary restraining order removing $200 million in pension fund assets from Tri-Conn II Advisors, a unit of private equity firm Triumph Capital Group, was issued by a U.S. District Court at the request of Connecticut state Treasurer Denise L. Nappier. Triumph was indicted by a federal grand jury for a $1 million kickback to former state Treasurer Paul Silvester in exchange for his steering pension fund business to Tri-Conn. The court appointed Woodside Capital Management as receiver to manage the assets as part of the restraining order.
Meanwhile, Mr. Silvester agreed to pay $10,500 to settle SEC charges that he took $2.5 million in kickbacks for steering $350 million of pension investments to two private equity firms while in office.
According to SEC documents, Mr. Silvester received a kickback of $1.5 million for investing $150 million with Landmark Partners and a kickback of $1 million for investing $200 million with Triumph.
Two of Mr. Silvester's alleged accomplices, Christopher Stack and Keats LLC, a consulting firm controlled by Mr. Stack, have agreed to pay $300,667 for their alleged role in the scheme.
Conseco loses equity chief
Thomas Pence, chief equity officer of Conseco Capital Management, abruptly resigned Sept. 12.
"It was a total surprise. We had about 60 seconds' notice," said Craig Andrews, director of communications. Mr. Pence's plans could not be determined by press time.
State Street Research picks CEO
Richard S. Davis was named president and chief executive officer of State Street Research, effective Nov. 1. Mr. Davis was senior vice president, fixed-income investments, at parent company MetLife. He replaces Jeffrey J. Hodgman, who had been interim CEO.
British plans pick Chase
BT Pension Scheme and Post Office Pension Plan hired Chase as global custodian to 30 billion of U.K. and international assets managed for the two plans by Hermes Investment Management. Chase replaced incumbent Bank of New York, said Adrian White, joint deputy chief executive officer and chief operating officer of Hermes. "Chase were giving us a better offer and they met our criteria," added Mr. White.
Chase already was custodian for 12 billion in assets managed by Hermes.
Mitchell Hutchins drops core
Mitchell Hutchins Asset Management is shedding core management strategies in order to focus on three investment strategies for the institutional and high-net worth markets: quantitative investments; short-term investments; and municipal bonds. The firm will stop managing core active equity and fixed-income strategies, said Brian M. Storms, president and CEO..
Mr. Storms said about 75% of Mitchell Hutchins' institutional clients agreed to keep their assets at Mitchell Hutchins, moving them from active core stock and bond strategies into quantitatively driven and enhanced index portfolios.
Mutual funds that Mitchell Hutchins manages for parent PaineWebber are being closed and the assets mapped over to the PaineWebber PACE family of retail mutual funds sold within PaineWebber's private client group. Of the 25 mutual funds formerly managed by Mitchell Hutchins, 19 will move into PACE funds managed by external managers.
Allegheny Co. taps Federated
The $760 million Retirement Board of Allegheny County hired Federated Investors to manage $50 million in active domestic large-cap value equities, said Cheryl Bateman, executive director. Funding will come from cash. Yanni-Bilkey assisted.
County hires Cap Guardian
The $332 million St. Louis County Pension Plans hired Capital Guardian to manage up to $40 million in active international equity, replacing Brinson.
The system also will select a manager for a $40 million active domestic small-cap core equity portfolio later this year. The search was prompted by a large exodus of employees at incumbent Mississippi Valley, which has been invited to re-bid. Also invited was Missouri Valley, the firm to which many of Mississippi Valley's employees went, he added.
Summit Strategies and J.H. Ellwood are assisting.
New managers for Meriden?
The $132 million Meriden (Conn.) Municipal Employee Pension Board may search for two new equity managers next year, said John Miniter, trustee. Further details are not available.
Trustees terminated active domestic all-cap growth equity manager Renaissance Investment Management and U.S. all-cap equity manager Investment Counsel, which handled $2.5 million and $3.5 million, respectively. Renaissance had five quarters of negative performance, Mr. Miniter said. Mike Schroer, Renaissance president, said the portfolio's performance had lagged this year, but has been good over the long term. The departure of portfolio manager Anita Lohman was the impetus for the Investment Counsel termination, Mr. Miniter said. David Brock, managing director of Investment Counsel, said the portfolio she managed has been taken over by Fred Shockley, chief investment officer, who added technology stocks.
Assets from the two portfolios will be placed into cash reserves until a manager is hired.
Deck to take over KPERS
Glenn Deck, city manager for Oklahoma City, was named executive secretary of the $10 billion Kansas Public Employees' Retirement System, effective Nov. 13. He replaces Meredith Williams, who resigned to become executive director of the Public Employees' Retirement System of Colorado, Denver, on July 1.
Council co-founder die
Kenneth E. Codlin, former chief investment officer of the State Universities Retirement System of Illinois and a co-founder of the Council of Institutional Investors, died of complications from prostate cancer. He was 59. Mr. Codlin had stepped down as CIO last November for health reasons.
Mr. Codlin died Oct. 10 in Columbus, Ohio; a private memorial service was held Oct. 13.
Contributions in his memory may be made to the American Cancer Society, Franklin County Unit, 900 Michigan Ave., Columbus, Ohio 43215, attention: Chris Andrews; or by phoning (800) 227 2345.
Jacksonville fund chief dies
Lex Hester, chairman of the $1.6 billion City of Jacksonville (Fla.) Pension Funds, died of a heart attack Oct. 7. Mayoral administrative aide Sam Mousa will take over until a permanent successor is named.