Massachusetts Pension Reserves Investment Management Board, Boston, is keeping an eye on State Street Global Advisors, which manages more than $10 billion in equity index funds for the system, following the recent departures of some key executives, including group CIO Alan Brown. Mr. Brown, who was also interim CEO, following the sudden death last August of Timothy Harbert, left SSgA March 18 after the firm tapped William W. Hunt as Mr. Harbert's successor. While officials at the $36.1 billion fund said there's no sign of problems at the firm, Executive Director Michael Travaglini said MassPRIM is keeping "a close eye" to make sure that there's "not a talent flight."
Separately, MassPRIM executives say Fidelity Investments is being very cooperative with the system. Plan officials had expressed dissatisfaction earlier this year with how forthcoming the firm was in addressing MassPRIM's concerns about Fidelity traders accepting "excessive" gifts from brokers. At the plan's April 1 board meeting, Mr. Travaglini said Fidelity had provided a great deal of information to show that the $700 million in equity and high-yield bond mandates Fidelity manages for the fund hadn't been adversely affected. But Mr. Travaglini noted that investigations into the matter are ongoing and PRIM "will continue to monitor" the situation.
