Artisan lifts out DuPont emerging markets team

MILWAUKEE — Artisan Partners lifted out an emerging markets investment team from DuPont Capital Management, according to Andrew Ziegler, Artisan CEO and managing partner. The four senior investment professionals, led by Maria Negrete-Gruson, managing director and portfolio manager, will run the new investment strategy for Artisan. Ms. Negrete-Gruson, along with analysts Chen Gu, Meagan Nace and Julie Pfeffer, worked as a team that managed $650 million in assets at DuPont for the past six years.

Mr. Ziegler said Artisan officials sought to bring on a dedicated emerging markets team to complement its three international investment strategies and also to meet the demands of institutional clients. "Emerging markets have evolved from a fringe asset class to a critical asset class," he said. "Overall, we're all moving towards a more global approach to investing."

Artisan has $50 billion in assets under management. DuPont Capital is the investment management unit of E.I. du Pont de Nemours & Co., Wilmington, Del., which has $24.9 billion in pension assets.

Donald Pepin, managing director at DuPont, confirmed the team's departure and said a search will be conducted to replace them.

ROLLING HILLS ESTATES, Calif. — ClariVest Asset Management is launching seven investment strategies that invest in both U.S. and developed international equity markets, according to a news release. Led by CEO Stacey Nutt, ClariVest was started by the systematic equity team that left Nicholas-Applegate Capital Management in early March. The strategies are: International Core, led by David R. Vaughn; U.S. Small-Core and U.S. Small Growth, led by Mr. Nutt; U.S. Small/Mid Growth and U.S. Midcap Growth, led by Todd N. Wolter; U.S. Large-Cap Core, led by C. Frank Feng; and U.S. Large-Cap Growth, led by David J. Pavan. The portfolio managers also are founders and owners of the new company.

SACRAMENTO, Calif. — CalPERS criticized compensation arrangements for top executives at UnitedHealth Group, Minnetonka, Minn. In a letter to James A. Johnson, chairman of UnitedHealth's compensation committee, CalPERS board President Rob Feckner blasted stock options awarded to the company's top five executives, particularly $1.6 billion in stock options awarded to William W. McGuire, chairman and CEO. Mr. Feckner also criticized the company's providing Mr. McGuire with a defined benefit retirement plan and health plan while all other employees receive a 401(k) plan and a defined contribution health plan, with no retiree health care.

Mr. Feckner wants UnitedHealth executives to address CalPERS' concerns before the company's annual meeting on May 2. The $208.3 billion California Public Employees' Retirement System, Sacramento, owns 6.5 million shares of UnitedHealth Group stock. "We're looking for explanations, and we want the practice to stop," Mr. Feckner said in an interview.

UnitedHealth officials did not return a call for comment by press time.

SANTA MONICA, Calif. — Wilshire Associates disputed a call for scrutiny of its investment consulting work for the PBGC, Kim M. Shepherd, Wilshire managing director-corporate communications, said in a statement.

On April 21, Reps. Edward Markey, D-Mass., and George Miller, D-Calif., called for the inquiry of Wilshire's work for the PBGC after the Department of Labor subpoenaed Wilshire in connection with the agency's investigation of conflicts of interest in the pension consulting industry.

The congressmen's announcement "demonstrates an apparent misconception of our role as investment consultants," she said in the statement. "Our clients know that we would never compromise our integrity in the pursuit of business.

"The four drivers of the financial health of a pension fund are investment policy, benefit policy, funding policy and the establishment of actuarial assumptions," she said in the statement. "Of these four drivers, Wilshire Associates is retained solely to provide for counsel on investment policy. … The leading causes of the current ‘pension funding crisis' are aggressive actuarial assumptions and contribution holidays during the '90s coupled with benefit enhancements to plans."

"We are confident that any review will reveal the excellent job that the PBGC, with Wilshire's advice and counsel, has done in managing the assets of terminated pension plans for more than two decades," she added.

PITTSBURGH — StanCorp Financial Group agreed to acquire defined contribution provider Invesmart, said Scott Sunshine, spokesman for Invesmart. According to StanCorp's earnings report released April 25, the transaction is valued at $85 million. Invesmart will become a wholly owned subsidiary of StanCorp. It will keep its name and maintain its office in Pittsburgh. The transaction is subject to regulatory approvals and is expected to close in the next two months, Mr. Sunshine said.

Invesmart has $10 billion in assets under management; StanCorp has $4.5 billion.