WestAM's fixed-income operations will be shut down by the end of the month, confirmed Connie Kain, spokeswoman for WestLB, parent company of WestAM. The roughly $6 billion in broad-market fixed-income strategies managed by the firm will be returned to clients, said Ms. Kain. The firm's short-duration assets were moved to WestLB subsidiary Brightwater Capital Management.
WestLB reached a deal last year with Mellon Financial Corp. to create a joint venture investment management company. The Houston-based fixed-income operation did not fit in with the joint venture's strategy, Ms. Kain said. WestLB bought the Houston office from Nicholas-Applegate Capital Management in 1999.
At least two pension plans hired new managers to replace WestAM.
The Public Employees Retirement System of Nevada, Carson City, hired UBS Global Asset Management to manage $590 million in a Lehman Aggregate index portfolio, said Laura Wallace, investment officer for the $18.2 billion retirement system.
The $887 million Jacksonville (Fla.) Police & Fire Pension Fund moved a $100 million active core fixed-income portfolio to BlackRock.