New York City Sergeants Benevolent Association Annuity Fund reached a $4.75 million settlement with investment manager Trainer Wortham. The lawsuit was filed after the core equity portfolio Trainer Wortham ran for the $100 million pension fund decreased to about $19 million in September 2002, from $58 million when the firm was hired in June 1993, said Stephen Younger, an attorneyat Patterson, Belknap, Webb & Tyler, who is representing the fund. The portfolio was supposed to be low risk, according to the investment guidelines, and Trainer Wortham invested more than half of the money in tech stocks at the time the tech bubble burst in 2000, Mr. Younger said. In the settlement, Trainer denied any wrongdoing. Calls to John Knox, Trainer Wortham president, were not returned by press time.
The fund, which is run by the Sergeants Benevolent Association-Police Department, New York, is also suing former investment consultant Monitoring and Evaluation Services for breach of fiduciary duty, claiming the firm's founder and operator, John T. Renck, was not qualified to give investment advice, and for recommending that such a large percentage of the fund be given to Trainer Wortham. The trial against Mr. Renck will begin Thursday in New York Civil Court.