CIEBA may move
CIEBA, which represents more than 140 of the nation's largest corporate pension funds, might be contemplating breaking away from the Financial Executives Institute.
The group is said to be eying a move to The Business Roundtable. The organization also might be considering the U.S. Chamber of Commerce, the Association for Financial Professionals and the Financial Services Roundtable.
W. Allen Reed, CIEBA chairman and president of GMIMCo, denied the organization is planning to move.
DaimlerChrysler's controlling stake in Mitsubishi Motors will not affect Mitsubishi's handling of its 140 billion ($1.3 billion) unfunded liability, a spokesman for Mitsubishi said.
But Tetsuro Taira, an analyst in the Nikko Research Center's pension research and consulting division, predicted Mitsubishi will be forced to overhaul its pension and severance allowance system in order to improve its corporate balance sheet.
U.S. consultants suspect the liability was a factor in the price DaimlerChrysler paid, but did not have a feel for how important it would be in the future.
Officials at DaimlerChrysler did not return calls.
UNC awaits Tiger money
The soon-to-close Tiger Management will return $25 million to the University of North Carolina.
About three-quarters of the money will be in cash and come by May 1, said Mark Yusko, CIO of the $1 billion endowment. The rest will come after the manager settles some large positions. "We had a great relationship with Tiger," he said.
Nationwide Mutual acquired Gartmore Investment Management for 1.03 billion ($1.64 billion) in cash from The Royal Bank of Scotland.
It also will acquire 100% of Gartmore's U.S. affiliate, Gartmore Global Partners. Gartmore and Bank of America jointly own Gartmore Global now.
Paul Hondros, president of Villanova Capital, Nationwide's money management sub, will oversee Gartmore.
Fund changing target return
The $101 billion Florida State Board of Administration will consider changing its target return to from 8% to 4.3% plus the floating rate of inflation, in order to better reflect the real rate of return, said Tom Herndon, executive director.
The $101 billion system received a good performance review from consultant Ennis Knupp, which found that the fund returned 16.7% net of fees for 1999, 133 basis points over its benchmark.
Joint venture to survive
Rowe Price-Fleming International likely will survive the proposed takeover of Robert Fleming Holdings by Chase Manhattan.
The money manager, a joint venture between T. Rowe Price and Flemings, does get "some research from Flemings," but "we can't anticipate a deal would affect the joint venture," said Rowe Price-Fleming spokesman Steve Norwitz.
Kansas City switches
The $675 million City of Kansas City (Mo.) Employees' Retirement System hired Northern Trust Quantitative and MetLife to oversee $50 million and $100 million, respectively, in passive fixed income. They replace Smith Graham and Phoenix Investment Council because the board wanted to reduce exposure to active management, said Rick Boersma, retirement systems executive officer. DeMarche assisted.
Farmworkers cut value firm
The $104 million United Farmworkers of America Juan De La Cruz Farmworkers Pension Plan terminated First Austin Capital for performance reasons, said Douglas Blaylock, administrator. The firm managed $3.5 million in small-cap value for the fund.
The portfolio was given to Stafford Asset, which now handles $10 million in small-cap domestic equity for the multiemployer plan.
Eric Barden, portfolio manager at First Austin, noted firms that have stuck with value have lost business in the past few years.
PGGM hires 3
Pensioenfonds PGGM, with E52 billion ($50 billion) in assets, appointed three managers: SNS Asset Management, to manage a E50 million socially responsible equity portfolio; a U.S.-based manager for a E50 million enhanced indexed socially responsible equity portfolio linked to the S&P 500 index; and a Swiss manager for another E50 million socially responsible equity portfolio. Details about the U.S. and Swiss managers will be confirmed within the next two months.
ERIC seeks lower premium
The ERISA Industry Committee is repeating its calls for lawmakers to lower the insurance premium the PBGC charges pension plan sponsors.
Interest in cutting premiums follows news that the PBGC's surplus has grown 40% in the past year to a record $7.4 billion.
New CIO named
John R. Krimmel was named CIO of the $11.8 billion State Universities Retirement System of Illinois, effective April 4. He replaces Kenneth E. Codlin, who retired on disability last November. Mr. Krimmel had been acting CIO.
Farmers Group adds 6
Farmers Group will add six options to its $750 million deferred profit-sharing plan in May, giving employees 16 options. The plan will add: PIMCO Total Return; AIM value; Janus Mercury; Janus Enterprise; Templeton Developed Markets Trust; and PBHG Technology and Communications. Bundled provider Scudder Kemper offers 10 options, said Larry Heimsoth, director of employee benefits.
New CEO at Smith Breeden
Eugene Flood Jr. took over as president and CEO of Smith Breeden. He replaces Douglas T. Breeden, who remains chairman of the company and will become the Dalton McMichael Professor of Finance at the University of North Carolina's Kenan-Flagler Business School. Mr. Flood was a principal at MSDW.
Illinois taps SSBCiti
The state of Illinois hired SSBCiti Asset to manage the state's new tax-deferred IRS Section 529 college savings plan's investments, said Judy Baar Topinka, state treasurer. Participants can choose a blended equity, fixed-income or risk-adjusted asset allocation portfolios. All are SSBCiti funds.
GE taps Motill
GE Asset Management hired David Motill as director of consultant relations, a new position, in a move to grow the company's external defined benefit business. Mr. Motill was a product manager at Putnam Investments