SEI Canada sells unit
SEI Investments Canada, looking to concentrate on core asset management, entered negotiations to sell its Funds Evaluation Service unit to Royal Trust. Patrick Walsh, SEI senior vice president, said SEI did not need to own a performance measurement company to offer those services to its clients. He added that performance measurement accounts for less than 1%of SEI's global revenue.
KPERS, manager settle
Trustees of the $10 billion Kansas Public Employees Retirement System authorized the dismissal of eight lawsuits against one of its former money managers over almost $265 million in direct placement investments that went sour nearly 15 years ago.
KPERS will drop its suits against Kenneth Koger, former president of Reimer & Koger Associates, and Christopher Diebel, former principal with the firm, in exchange for a pledge by Mr. Koger not to sue the fund.
KPERS officials said the suits were being dropped since neither the firm, which went out of business in 1993, nor its principals have sufficient assets to cover the alleged damages.
Minneapolis cops taps SSgA
The $400 million Minneapolis Police Relief Association hired State Street Global to manage a $45 million passive domestic value equity portfolio, said Judy Strobel, executive director. Funding comes from Brinson, which recently was terminated as an active manager, she said.
Realty venture set
The $17 billion Stichting Bedrijfspensioenfonds voor de Metaal en Technische Bedrijfstakkens and AMLI Residential, a real estate investment firm, announced their second joint venture.
The Dutch pension fund and AMLI will acquire $260 million in institutional quality multifamily apartment communities in the Southeast, Southwest and Midwest U.S. that will be capitalized with $40 million in equity from each partner, plus an additional $8 million from an existing AMLI partner.
The properties will be financed with $170 million in a fixed-rate long-term mortgage.
Wendy's picks Fidelity
Wendy's International hired Fidelity Institutional Retirement Services to provide administration, record keeping and investment management services for its defined benefit and 401(k) plans, said Lynn Bauman, director of employee benefits. The plans have combined assets of $130 million.
New benchmarks at CalSTRS
The $114 billion CalSTRS has adopted tobacco-free equity benchmarks, concluding a lengthy debate.
As of March 31, the fund had $339 million in tobacco stocks, mostly in passive portfolios. Active managers still will be able to invest outside of their benchmarks, a spokeswoman said.
The domestic benchmark is the Russell 3000 index (ex-tobacco); the international benchmark is the MSCI All-Country index (ex-tobacco).
4 partnerships get money
Memorial Sloan-Kettering Cancer Center committed a total of $45 million to four private equity partnerships, said Michael Gutnick, CIO at the $2 billion endowment.
The partnerships are: Blackstone Communications Partners I, a buyout fund, and Redpoint Ventures II, Venrock III and Trinity Ventures VIII, all early seed venture cap funds.
Micron adding 2 options
Micron Technology plans to add its first two small-cap to midcap funds to its $234 million 401(k) plan, said Colleen Brenton, benefits analyst. A decision is expected in July.
Fidelity is trustee and record keeper; administration is handled in-house.
Watson Wyatt is assisting.
ESOP case settled
Wachovia National Bank and William A. Fickling Jr., former president and CEO of Charter Medical, agreed to pay $42 million to Charter's ESOP as part of a legal settlement with the Labor Department's pension office.
Wachovia entered the agreement as a successor to South Carolina National Bank, against which the Labor Department filed a suit alleging that the bank caused the ESOP to overpay for 11.8 million shares of Charter Medical that it bought from Mr. Fickling and various relatives.
The Labor Department alleged the bank breached its fiduciary duty by relying on an unreliable valuation of the shares prepared by Interstate/Johnson Lane.
Under the settlement, Wachovia will pay the ESOP $30 million and Mr. Fickling, $12 million.
Charter Medical, now known as Magellan Health Care Services, emerged from bankruptcy proceedings and a reorganization in July 1992.
Farm Bureau adds options
Southern Farm Bureau Casualty Insurance this fall will add Franklin small-cap growth and Davis New York A venture capital funds as investment options in its $200 million 401(k) plan.
Scottish Widows buys portfolio
Scottish Widows Investment Management will acquire the entire Guardian Portfolio real estate investment portfolio from AEGON UK, owners of Scottish Equitable, for more than $1 billion.
The portfolio includes London's Covent Garden Piazza among its 79 properties, according to Jones Lang LaSalle, which served as an adviser to AEGON UK.
Brokerage option eyed
Vulcan Materials plans to add a brokerage window by January for participants in the $350 million salaried employees' 401(k) plan. The plan has 12 options.
Third-party record keeper and trustee Northern Trust is reviewing possible providers. Administration is handled in-house.
Final financing round
InvestorForce.com completed its last round of venture capital financing -- raising a total of $22 million -- leaving it to consider when to launch an IPO.
Although a fall date has been rumored, Robert Hull, CFO, said the company feels no pressure to go public.
Merced hires Earnest
The $400 million Merced County Employees' Retirement System allocated $40 million to Earnest Partners as an active domestic large-cap domestic value manager, said Bill Smith, plan administrator.