ITG to buy Plexus
Investment Technology Group agreed to acquire transaction cost-analysis firm Plexus Group from JPMorgan Chase Bank for $11 million in cash, according to sources familiar with the deal.
The deal, which sources said is expected to close in about four months, would be the second major acquisition by ITG in three months. The company, which provides institutional investors with electronic trading services, acquired order management system vendor Macgregor Group in July. ITG also provides transaction cost-analysis services.
Officials at ITG, JPMorgan and Plexus declined to comment.
Illinois hires 2 for realty
The $11 billion Illinois State Board of Investment hired CB Richard Ellis and ING Clarion to manage $300 million each in core real estate. Funding will come from liquidated real estate investments and assets earmarked for real estate parked in fixed-income index funds managed by State Street Global Advisors. William Atwood, executive director, said it could take at least two years for the managers to draw down the commitments. Real estate consultant Townsend assisted.
Chapman doesn't pay
Former money manager Nathan A. Chapman faces a federal trial on three bank fraud charges after he failed to pay $215,000 in a settlement reached in June with Allen F. Loucks, U.S. attorney in Maryland.
Mr. Chapman, who managed assets for the $30.1 billion Maryland State Retirement & Pension System, failed to pay the settlement money by the original deadline of Aug. 16 or an extended deadline of Sept. 9, a spokeswoman for Mr. Loucks said. He was sentenced in November to seven years in prison and ordered to pay more than $5 million restitution after he was found guilty in August 2004 of defrauding the state retirement system and looting his own investment company. Mr. Chapman is free while he appeals the conviction.
Texas Teachers taps Townsend
The $91 billion Teacher Retirement System of Texas hired Townsend Group as its first real estate consultant, according to Juliana F. Helton, spokeswoman. She said Townsend will help the system, which has about $267 million in real estate, find, underwrite and perform due diligence on core and opportunistic real estate partnerships. The system also committed $300 million to Apollo Investment Fund VI and plans to commit another $150 million to the CSFB Emerging Opportunities Fund, bringing its total commitment with CSFB to $250 million.
The board also extended the system's contract with State Street Corp., its global custodian and securities lending agent, until August 2007, when an extension will be considered or an RFP issued.
American makes contribution
American Airlines contributed $74 million in cash to its defined benefit plans, bringing the company's total contributions so far this year to $287 million. Company officials estimate the airline will contribute a total of $310 million by Dec. 31. American's defined benefit plans are 80% funded. The company had total pension assets of about $7.3 billion as of Dec. 31, according to its annual report.
Equity tale of 2 countries
U.S. and U.K. pension plans went in opposite directions with their equity allocations in the past two years, according to an Aon Consulting survey. U.S. plan equity allocations rose to 62% in 2004, from 59% in 2002; U.K. plans cut their equity exposure to 58% from 60% during that time period. The study surveyed 200 U.K. pension plans and 80 U.S. pension plans.
Public plan funding: 87.8%
The overall funding level for 127 public pension plans surveyed by the National Association of State Retirement Administrators was 87.8% in 2004, down from 91.2% the year before. Overall actuarial liabilities of those plans increased 6.7% to $2.39 trillion, from $2.25 trillion in 2003, while actuarial assets grew just 2.7% to $2.11 trillion from $2.05 trillion.
Huffy wants settlement OK
Huffy is asking a U.S. Bankruptcy Court to expedite approval of a claim settlement with the PBGC, according to court documents. The PBGC has filed claims in Huffy's Chapter 11 bankruptcy protection case totaling $86.9 million, but the company has disputed the amount. Under the proposed settlement, Huffy would grant the PBGC a $32 million general unsecured claim as part of the company's reorganization plan, and the agency would withdraw its claim, according to a motion filed last week with U.S. Bankruptcy Court.
Huffy in August received bankruptcy court approval to terminate its pension plan, which had about $72.2 million in assets and $135.4 million in liabilities as of Jan. 1, court papers said. Jeffrey Speicher, a PBGC spokesman, said the agency has not yet estimated how much in Huffy plan liabilities the PBGC would assume.
New job for Cardoza
Keith Cardoza joined Ocean Tomo as managing director to create and manage an investible intellectual property index of publicly traded stocks for the merchant banking firm. The position is new.
Mr. Cardoza was director-investments and chair of Boeing's investment strategy and asset allocation committee, coordinating a team that oversaw its $41 billion pension fund and $24 billion 401(k) fund. He left Boeing on June 30
Andrew Ward, Boeing's director-alternative investments, replaced Mr. Cardoza. Boeing hired DHR International to search for a replacement for Mr. Ward.
Oak Hill closes 2nd fund
Oak Hill Capital Management closed its second private equity fund at $2.5 billion, surpassing its $1.75 billion target, said Suzanne Bryan, vice president of investor relations. Oak Hill's first fund was a $1.6 billion 1999 vintage fund. Investors in the second fund include the $196.7 billion California Public Employees' Retirement System, $70 billion New Jersey State Investment Council and the $64.5 billion Ohio Public Employees Retirement System.
Survey shows realty will flatten
Some 71% of real estate industry executives expect the commercial real estate investment market to flatten out within the next 12 months, according to a DLA Piper Rudnick Gray Cary survey. Also, 25% of respondents think there will be a continued boom in the real estate market while only 3% expect a bust, according to the law firm's survey of 2,500 senior real estate executives conducted last month. Multifamily housing is expected to be the most attractive sector, selected by 35% of the respondents, followed by hotels and retail, both at 15%.
NTGA picks practice leader
Larry Jones was named practice leader for Northern Trust Global Advisors' emerging/minority manager-of-managers business, according to Christine Harmon, spokeswoman. He replaces Clayton Jue, who left in July to launch Leading Edge Investment Advisors. Mr. Jones was managing director-equity securities at NCM Capital Management, where his duties will be assumed by others.