Promark Global Advisors, the name General Motors Asset Management took on in March 2009 to better pursue external clients, has gone into reverse.
Promark executives have made a strategic decision to “exit the pension plan management and outsourcing business it currently provides to non-affiliated clients,” confirmed spokeswoman Noreen Pratscher.
In line with that decision, the name of the New York-based money management unit will revert to GM Asset Management, effective Sept. 1. “We believe that this name, which is already established and known in the industry, best fits the identity and focus of the organization going forward,” said Ms. Pratscher.
Industry sources said the decision to exit the outsourcing business came after the parent company rejected requests from Promark's management team, led by then-CEO Nancy Everett, to allow a buyout of the money management unit, as the best means of providing greater incentives for the team to build the business.
Ms. Pratscher declined to comment. Reached by telephone, Ms. Everett declined to comment.
Ms. Everett left in June, after turning over her CEO duties on May 1 to Walter Borst, who left his job as General Motors Co.'s treasurer to take the position.
Ms. Pratscher declined to provide details on how much external client money Promark manages, or say what proportion of that money comes from total pension outsourcing clients as opposed to clients tapping the firm to manage specific strategies.
Promark's latest filing with the Securities and Exchange Commission, signed by Mr. Borst on May 26, showed the company managing $132.7 billion in client assets, with discretionary authority over $124.6 billion.
GM's retirement plan assets, meanwhile, stood at $99.2 billion as of Sept. 30, 2009, for Pensions & Investments' most recent survey of top U.S. pension funds. Assuming GM's retirement assets have gained another $5 billion in value since then, Promark would be managing more than $25 billion in assets for external clients.
Ms. Pratscher said the company's external outsourcing clients, which she wouldn't name, will be moved to new managers over the coming months.