$19 billion affected in deal
Northrop Grumman's proposed acquisition of Newport News Shipbuilding will bring together about $19 billion in combined retirement assets, according to the latest available company documents.
Newport News has $652 million in defined benefit assets and $793 million in 401(k) assets. Northrop Grumman has $11.7 billion in defined benefit assets and $5.9 billion in 401(k) assets.
The five investment options in the Newport News 401(k) plan include funds from Fidelity and Putnam, as well as a company stock option. Managers for the defined benefit plan weren't available.
Northrop Grumman has several 401(k) plans. One of its largest has $1 billion in assets. Its investment options includes funds managed by American Century, Bankers Trust, State Street Bank, Fidelity, J.P. Morgan and Janus. It also had $430 million in Northrop Grumman stock.
Executives at the companies couldn't be reached for comment.
Securities fraud case settled
The $20 billion Connecticut Retirement Plans and Trust Funds reached a $457 million settlement in a securities fraud case against Waste Management. The settlement, the third largest class-action settlement in U.S. history, was announced by state Treasurer Denise L. Nappier. Connecticut, lead plaintiff in the suit, claimed Waste Management failed to properly disclose to investors serious problems related to the merger between U.S.A. Waste Services and the former Waste Management Inc. in 1998, and that certain company officials allegedly engaged in insider trading during 1999. The settlement also included a series of reforms in the company's corporate governance policies advocated by Ms. Nappier. As of Oct. 12, the Connecticut system owned 455,862 shares of the stock with a value of $12.4 million.
PBGC suit back in court
The Association of Former Pan Am Employees' lawsuit against the PBGC will have its day in court. The 2nd U.S. Circuit Court of Appeals denied an appeal by the PBGC for "lack of appellate jurisdiction."
The class-action suit, Pineiro vs. PBGC, will return to U.S. District Court in New York for further proceedings. The 10-year-old dispute began after the PBGC took over the underfunded Pan Am pension plans in 1992. The AFPAE claims it's a conflict of interests for the PBGC to be the trustee of the plan as well as the insurer. A statement from the PBGC said it is confident the courts will agree "the PBGC has fulfilled its obligations under federal law."
Realty exec resigning
Michael Medzigian will step down as president and CEO of Lazard Freres Real Estate Funds at the end of the year, although he will continue as an adviser through mid-2002. His duties will be handled by Robert Larson, chairman and a managing director; and managing directors Matthew Lustig, John Moore and Mark Ticotin. All four have been named managing principals.
Hedge fund usage small
Only about 20% of pension and endowment funds allocate assets to hedge funds, according to a new BARRA Strategic Consulting Group survey. Most of those that do are larger, more sophisticated funds. And of those that don't, more than 75% have no plans to do so.
Also, only about $1 billion in hedge fund allocations, including funds of funds, were the result of traditional searches - the rest were from word of mouth, industry contact information and references.
Still, BARRA forecasts annual growth of 20% or more in the hedge funds market over the next couple of years.
Hartford names president, CIO
David Znamierowski was named president of Hartford Investment Management and chief investment officer of The Hartford. He will oversee all of The Hartford's worldwide investment operations, including more than $70 billion in invested assets. He will continue as director and president of the Hartford mutual funds.
Mr. Znamierowski replaced Brenda Furlong as president; she left for family reasons, said Joyce Willis, spokeswoman. The CIO position had been vacant for some time.
401(k) switches options
Mutual of Omaha Insurance added an international developed countries fund from Causeway Capital Management as an option in its $241 million 401(k) plan, said Martin Petersen, program manager for retirement plans. The fund replaces the Mercury HW international fund and Putnam international growth fund, he said. The plan offers five lifestyle funds and eight stand-alone investment options, Mr. Petersen said. Universal Pensions is record keeper.
Consultant finalists named
The $23 billion Illinois Teachers' Retirement System's investment committee interviewed Callan, Wilshire, Richard Holbein and Marquette in its search for a consultant, said John Day, assistant executive director. Incumbent Strategic Investment Solutions resigned last summer. A new consultant is expected to be selected at an emergency meeting Nov. 30 in Chicago.
Northern Trust hires
Jeff Blanchard was named vice president and head of transition management services at Northern Trust Global Investors, a new position. He was a client relationship officer, institutional business, at Barclays Global Investors.
John Jenkins Jr. was named head of consultant relations at Victory Capital Management, a new position. He will be "a player-coach for our consultant relations team," said Richard J. Buoncore, CEO. Mr. Jenkins had been a regional sales director for Salomon Smith Barney Consulting.
Consultant relations exec named
Carl M. Obeck was named vice president, consultant relations, at Freeman Associates Investment Management, a new position. Mr. Obeck was director of marketing at Messner & Smith Investment Management.