Pensions for boxers
Professional boxers might get their own pension plan, if the Senate passes legislation to be introduced this summer by Sen. John McCain, R-Ariz., said Ken Nahigian, counsel to the Senate Committee on Commerce, Science and Transportation.
Only fighters in the International Boxing Federation now have a pension plan; that plan has existed for almost 10 years, said Greg Sirb, president of the Association of Boxing Commissions.
New salary survey
Chief executives of U.S. money managers earn median total compensation of $264,000 annually, according to preliminary data from an international pay survey conducted by AIMR and Russell Reynolds. The survey, to be released in about two weeks on AIMR's website, also shows COOs pulled in a median of $276,000, and chief investment officers earned $229,000.
Mutual fund portfolio managers were the best paid in their category, with a median salary of $130,000 and bonus of $80,000.
Lazard loses account
Trustees of the $24 billion Teachers' Retirement System of Illinois terminated Lazard Asset Management, which ran a $225 million domestic small-cap value equity portfolio, because of poor long-term performance and personnel departures, said Kim Pollitt, acting executive director and CIO. Officials at Lazard could not be contacted by press time.
Dresdner RCM, which manages international equities for TRS, was put on watch because of personnel turnover in the last nine months and its pending acquisition by Allianz, said Ms. Pollitt.
NYS makes changes
The $120 billion New York State Common Retirement Fund increased its active domestic small-cap growth equity allocation with Brown Capital Management by $150 million, bringing the total to about $370 million. Funding comes from a similar portfolio managed by J.&W. Seligman, which was terminated in a consolidation of the fund's active domestic small-cap equity managers, said Jeffrey Gordon, spokesman.
The system also made commitments of $125 million to the Perseus-Soros Biopharmaceutical Fund; $100 million to GM Capital Partners, part of a co-investment with General Motors Asset Management; $94 million to Bridgepoint Capital's Second European Private Equity Fund; and $15 million to Ascend Ventures.
Ball bounces manager
Ball Corp. terminated Heartland Advisors, which managed $8 million in active domestic small-cap value equity for the company's $353 million defined benefit plan, said Cindy Shaw, specialist, investment plans. The assets were split between two existing alternative investment managers: $6 million went to Atlantic Investments, increasing its allocation to $14 million; and $2 million went to Reich & Tang, increasing its mandate to $14.2 million.
Ace revamps 401(k)
Ace Hardware revamped its $40 million 401(k) plan, adding eight Fidelity funds, the PIMCO Total Return bond fund and the Neuberger Berman Genesis small-cap equity fund, said Sandra Brandt, treasurer. The plan now has 12 options, up from seven.
The plan retained Northern Trust as record keeper. Disabato Associates assisted.
30% cash out 401(k)s
Thirty percent of 401(k) plan investors who retired, changed jobs or temporarily left the work force took a cash payment from their accounts, according to a study by Putnam Investments. Some 39% of investors age 18 to 34 took the cash option rather than other options, including IRA rollovers, noted the survey of 1,500 plan participants and IRA investors conducted last month.
Participants in 401(k) plans reported losing an average of 6.3% in the preceding 12 months, with their account balances dropping to an average of $41,900.
Ranks Hovis McDougall pension plan hired Frank Russell to run L60 million ($85.5 million) in continental European equities. Frank Russell also will be responsible for the transition management of the portfolio. The L1.5 billion plan already invests L330 million in Frank Russell's manager-of-managers funds, according to a statement from Frank Russell.
John Botting, plan secretary, could not be reached for comment by press time.
Baxter buys stock
The $1.7 billion Baxter International pension fund purchased 500,000 shares of Cerus Corp. common stock for $26 million, or $52 a share, said Margaret Shubny, Baxter spokeswoman. The stock was part of a new issue by Cerus, which raised $78 million through private placement; it will use the money for its biopharmaceutical activities including research and development and late-stage clinical trials.
Cross-border deals slow
The number of cross-border joint ventures between American and British fund managers and managers in other countries fell to 13 by year-end 2000, a 50% drop from a year earlier, according to a new survey by Cerulli Associates. Nearly all the joint ventures announced this year were in Asia and Africa, accounting for nearly 70% of joint-venture business.
Scottish Widows COO
Susan Ebenston was named chief operating officer at Scottish Widows Investment Partnership, replacing Iain Reid, who left the firm May 21, according to Bob Lawson, marketing director. Mr. Lawson did not say why Mr. Reid left or what his plans are. Ms. Ebenston was director of business strategy at State Street Bank & Trust Co.
Shell sells properties
Royal Dutch Shell Pension Fund hired Eastdil Realty to help sell four Class A office properties in New York City, Washington, Atlanta and Cincinnati, said Henk Bonder, Royal Dutch spokesman. Over the next two years, the 29 billion guilder ($7.4 billion) pension fund plans to sell its entire real estate portfolio. Mr. Bonder said it is too difficult to retain staff to manage the portfolio.
Private equity hires
Consignia Pension Plan hired Pathway Capital Management, Hamilton Lane Advisors and Pantheon Ventures to each manage L100 million ($142 million) in private equities. Pathway and Hamilton Lane will run global fund-of-funds portfolios, and Pantheon will manage a European-centric mandate, the L16 billion fund said in a statement.
Trustees of the pension plan for post office workers agreed to allocate 3% of the plan's total assets to private equity, said Gerry Degaute, director of finance.