At Deadline: March 21, 2011

Florida State Board of Administration terminated four core-plus fixed-income managers that ran a combined $9.4 billion, and moved the assets to internal passive management.

Western Asset Management managed $2.68 billion; Goldman Sachs Asset Management, $2.48 billion; Hartford Investment Management, $2.17 billion; and Principal Global Advisors, $2.07 billion.

The money was moved to an internally managed Barclays Capital Aggregate index fund, raising its total to $16.27 billion.

The change is part of a plan adopted last yearto move more assets into internal passive management to lower costs and risk, a spokesman said.

The board, which oversees $154.7 billion, no longer has any core-plus fixed-income investments.

The $108 billion Texas Teacher Retirement System would be allowed to invest up to 10% of its assets in hedge funds, up from the current 5%, under a bill in the state House, confirmed state Rep. John Otto, sponsor of the bill.

The bill is being debated in the House Pensions, Investments & Financial Services Committee.

Howard Goldman, spokesman for the system, did not return a call by press time.

AllianceBernstein axed

The $45 billion Minnesota State Board of Investment terminated AllianceBernstein, which ran $300 million in active domestic large-cap domestic growth equities, for organizational reasons, confirmed Howard J. Bicker Jr., executive director.

AllianceBernstein had managed the portfolio for about 30 years.

The assets will be kept in cash to meet benefit payments and other expenses, Mr. Bicker said.

A Wisconsin circuit court judge on March 18 temporarily blocked a state law that would require pension contributions from most state and local employees as well as limit their collective bargaining rights.

The suit, filed March 16 by Ismael R. Ozanne, Dane County district attorney, alleged the legislation was adopted in violation of Wisconsin's open meetings law.

The order by Dane County Circuit Judge Maryann Sumi stops Douglas La Follette, Wisconsin secretary of state, from publishing the bill, which legally blocks its implementation.

A hearing on the injunction is scheduled for March 29. The law was to become effective March 26.

Morgan Stanley is being sued by participants in its $4.78 billion 401(k) and employee stock ownership plans. Participants claim the financial plans “heavily invested” in company stock even when the stock value was dropping sharply, according to the class-action suit filed in U.S. District Court in New York.

According to the suit, the value of company stock in the two plans was about $673 million by the end of 2008, down from about $2.2 billion at the end of 2007. The ESOP was merged into the 401(k) plan in August 2008.

“The long-term retirement savings of the participants of the plans were substantially dependent on the performance of company stock and the need for prudent fiduciary decisions by defendants concerning this investment,” said the suit, which was filed March 18.

The defendants include Morgan Stanley, the investment committee of the 401(k) plan and top officers of the company.

A spokesman at Morgan Stanley didn't return calls for comment by press time.

The PBGC will take over the defined benefit pension plan of Bowe Bell & Howell Co., the agency said in a statement.

The company's parent, Bowe Systec AG, sold the business' assets under Chapter 11 bankruptcy protection and will abandon its pension plan. The Bowe Bell & Howell Pension Plan has $24.6 million in assets and $45.5 million in liabilities, the PBGC said. The agency expects to cover all but $100,000 of the shortfall.

Eileen Sarro, Bowe Bell & Howell spokeswoman, could not be immediately reached for comment.

A $2.5 billion levy would be imposed on hedge fund managers with more than $10 billion in assets and financial firms with more than $50 billion to cover the costs of four housing programs targeted for cuts, according a House bill proposed by Rep. Barney Frank, D-Mass.

The money would be collected through risk-based assessments, according to a Bloomberg report.

Mr. Frank proposed a similar levy last year to cover the cost of the Dodd-Frank financial regulation law. That fee, which would have raised $19 billion, was cut from the bill to gain the support of Sen. Scott Brown, R-Mass., who joined Democrats in passing the broader regulatory overhaul.

Goldman Sachs Asset Management will acquire Benchmark Asset Management, an ETF manager in India, confirmed Niklas Ekholm, GSAM spokesman.

Terms weren't disclosed.

Benchmark managed $700 million primarily in exchange-traded funds as of Dec. 31. GSAM expects to build on that business and offer actively run strategies to investors in India, Mr. Ekholm said.

Prashant Khemka, GSAM's chief investment officer for India, will lead the active business in the country; Sanjiv Shah, Benchmark executive director and co-founder, will lead the passive business.

The deal is expected to close later this year pending regulatory approval.

Rupert Murdoch and his News Corp. were sued over claims he is causing the company to pay about $675 million for “nepotism” in its purchase of his daughter's U.K.-based television production company, Shine Group, according to Bloomberg.

The complaint, filed by the $814 million Central Laborers Pension Fund and Amalgamated Bank of New York, claims there is no reason for the purchase other than to reward Elisabeth Murdoch and perpetuate the family's involvement in senior management of the media empire.

The suit was filed in Delaware Chancery Court in Wilmington.

Richard S. Price was named chairman and CEO of Mesirow Financial Holdings, the company announced March 18.

He succeeds James C. Tyree, who died March 16.

Mr. Price was president and chief operating officer. He had been managing the firm during the illness of Mr. Tyree, who was diagnosed with cancer in October.

Information on who would replace Mr. Price as president and COO was not available.

Angie Knighton Long was named CIO at alternative investment manager Palmer Square Capital Management, confirmed Christopher D. Long, managing director and president.

Mr. Long, who is married to Ms. Long, also had been CIO.

The growth of the firm necessitated the addition of a separate CIO, Mr. Long said.

Ms. Long was previously managing director at J.P. Morgan Chase; her roles included deputy head of credit trading for North America, head of high-yield trading and head of credit derivatives trading.