CalPERS to consider 11 for international equity pool

SACRAMENTO, Calif. — CalPERS staff recommended seven active developed market equity managers and four active emerging market equity managers for two new pre-approved lists of managers from which officials at the $210 billion system can select.

Staff of the $210 billion California Public Employees' Retirement System, Sacramento, recommended the following developed market managers: AXA Rosenberg Investment Management; Batterymarch Financial Management; Fidelity Management Trust; Goldman Sachs Asset Management; PanAgora Asset Management; State Street Global Advisors; and Boston Co. Recommended active emerging markets managers were Batterymarch, Lazard Asset Management, Pictet Asset Management; and Robeco Institutional Asset Management.

AXA Rosenberg already manages a $1.1 billion active European equity portfolio for CalPERS, and Robeco manages a $513 million developed market stock portfolio for the system.

If approved at the May 15 investment committee meeting, staff will be able to fund the portfolios at its discretion. No amounts are provided, and there are no plans to change CalPERS' 20% target allocation to international stocks. Funding for the developed market portfolios would come primarily from a $13.7 billion passively managed equity portfolio run by SSgA or from existing active international managers. Funding for new emerging market portfolios would come from cash flows or from existing emerging market managers.

In addition, staff recommended renewing the contracts for all four of the fund's high-yield bond managers for one year: Nomura Asset Management: $486 million; PIMCO, $461 million; ING Ghent Asset Management, $313 million; and Highland Capital Management, $219 million in a distressed bank loan portfolio.

Wilshire Associates consulted on both the international equity and high-yield bond reviews.

NEW YORK — Eugene C. McCarthy, Vincent Papandrea and Anthony Picerni, all former specialists for LaBranche & Co., were censured and permanently barred on May 9 from the New York Stock Exchange for failing to cooperate in the exchange's investigation of illegal trading by specialists from 1999 through June 2003, according to Scott Peterson, spokesman for NYSE Regulation. The three agreed to the actions without admitting or denying the charges.

The ongoing investigation is focused on allegations that several LaBranche specialists stepped in between customer orders that should have been paired off and also traded ahead of customer orders. In March 2004, the firm settled with the NYSE by paying a $63.5 million fine, without admitting or denying the charges.

"These three individuals chose expulsion from the industry rather than face further questioning. The actions taken against them exemplify the importance we place upon protecting the integrity of the marketplace by requiring full cooperation in investigations," Susan Light, vice president of enforcement at NYSE Regulation, said in a news release. "NYSE Regulation is continuing to pursue those specialists and clerks who abused the public's trust and disadvantaged customer orders."

PITTSBURGH — Mellon Financial Corp. restructured its asset servicing business so all services provided are under one roof, according to James P. Palermo, vice chairman, who will oversee the entire Mellon Global Securities Services division. "The way we've been structured is that I had responsibilities for some capabilities and Jack Klinck had responsibilities for others," Mr. Palermo said in a telephone interview. "We want to bring those capabilities together." Mr. Klinck, also a vice chairman, will become COO of the division, a new position.

"This (restructuring) is more external and about our ability to build more and more capability in the most productive fashion for our clients," Mr. Palermo said. "This is not a cost-cutting exercise."

Mellon's asset servicing products include custody, foreign exchange services, securities lending, cash management, performance measurement and analytics and back office administration support.

LONDON — Peter Irving, co-founder of Atlantis Investment Management, died in a boating accident May 5, according to spokeswoman Gay Collins. Mr. Irving was 49.

Mr. Irving, chief executive officer of the Asian equities specialist, which has $3 billion in assets under management, also ran the $130 million Atlantis Korean Smaller Companies Fund. Prior to launching Atlantis in 1994, he worked at Schroder Investment Management, Ms. Collins said.

Gerard Morrison was appointed chief executive officer and will remain chief financial officer. James Cameron will be fund adviser, the lead portfolio manager to the Korean fund.

Mr. Irving was survived by his wife, Fliss, and five children. A memorial service will be held at 3:30 p.m. English time May 18 at Holy Trinity Church, Cuckfield, England. The family has requested that donations be made in lieu of flowers to the East Meets West Foundation, a charity devoted to improving health care for children in Vietnam.

Mr. Irving's family did not release additional information about the accident, Ms. Collins said.