Montgomery Ward formed a cash balance plan, and hired John Hancock to annuitize its terminated defined benefit plan.
Defined benefit plan assets are $1.1 billion, with a $288 million surplus. Of that surplus, $72 million will be used in launching the new cash balance plan. The remainder will come back to the company as revenue, said a spokesman.
Monica meets manager
Monica Lewinsky, the White House intern who nearly toppled the Clinton presidency, was recently spotted at the tony Manhattan offices of money manager Neuberger Berman, where sources said she has signed on as a private client.
Dick Cantor, executive principal at Neuberger, would neither confirm nor deny the reports: "Private means private and Neuberger does not release the names of its private clients."
CSAM loses 2
William Sterling and Stephen Waite have left Credit Suisse Asset Management for parts unknown, said Jeremy Conde, spokesman for the firm. Both worked on an EAFE growth portfolio. Mr. Sterling was a managing director, and Mr. Waite, a director. Existing employees will assume their responsibilities.
St. Louis ends search
The $475 million St. Louis Employees' Retirement System decided to end a search for its first S&P 500 index fund manager because of bad timing, said William Duffe, director.
Mr. Duffe said several board members concluded that while there is a need for an index fund manager, now is not the time. When the search will resume is undetermined, he added. In the interim, the fund will retain Mississippi Valley Advisors, which runs a $62 million core large-cap U.S. equity portfolio.
Global equity firm tapped
The L180 million ($280 million) GMB 1961 Pension Fund hired Hermes Liberty Investment Management to manage a L126 million indexed global equity portfolio.
It still has to choose a fixed-income manager to run the balance of the fund; a decision is expected by year end.
The fund previously was managed by Phillips & Drew.
In addition, the fund may decide to put between L20 million and L30 million of the indexed portfolio into the U.K. Focus Fund, a corporate governance fund, said Bill Day, national pensions manager for the union fund.
Prince George's County picks
Prince George's County hired Chicago Equity Partners to manage two core large-cap U.S. equity portfolios -- one for its $517 million police plan and one for its $237 million plan for firefighters -- following an asset allocation study, said Joseph Kirkland, consultant.
Mr. Kirkland said Chicago Equity will run a total of $35 million, with funding partly coming from rebalancing.
The new mix is 47.95% domestic equities; 10.48% international equities; 14.67% global fixed income; 16.90% domestic fixed income; and 10% other.
Fiduciary Investment Solutions assisted.
Global governance
International Corporate Governance Network adopted a statement on global corporate governance principles.
Based heavily on those issued by the OECD in May, the principles will be available for use by institutional investors and companies worldwide. Adopted at the group's annual conference in Frankfurt, ICGN officials say the statement represents the first practical set of common principles.
Putnam in private equity
Putnam Investments has formed a partnership with private equity firm Thomas H. Lee, offering alternative investment funds to institutional investors, financial advisers and limited partners. TH Lee, Putnam Capital is 75% owned by Lee and 25% by Putnam. Terms of the deal were not disclosed. The company will offer its first fund by year's end. Other funds may include venture capital, fund of funds, European private equity, real estate, alternative debt funds and hedge funds. Putnam also has taken an ownership stake in Lee's core private equity business, which now will be called Thomas H. Lee Partners. Terms were not disclosed.
2 move to Fleming
Peter Askew and Chris Rothery, both of Rowe Price-Fleming, will lead the global fixed-income team at Fleming Investment Management, Mr. Askew said. The spots were opened when David Boardman, formerly CEO at Fleming, left the firm for WestAM, taking two directors with him.
MRCA under investigation
MRCA Information System is being investigated by the DOL in Boston for allegedly mishandling the assets in its 401(k) plan. MRCA executives have been cooperating with the DOL.
Detroit official retires
Thomas Zdrodowski has retired as executive secretary of the $2.6 billion City of Detroit General Retirement System and the $3.6 billion Detroit Policemen & Firemen Retirement System. He held the position for 11 years. Mr. Zdrodowski was replaced by Nicholas Degel, former administrative secretary for Policemen and Firemen.
Rational Investors sold
Rational Investors, an Internet-based 401(k) software developer, is being acquired by McGraw-Hill to provide participant investment advice through its Standard & Poor's division.
7 options added
The $235 million savings and investment plan at Lowe's Cos. added seven employee investment options, bringing the total to 12, said Edgar M. Spears, vice president of benefits and payroll.
CIO named
John W. Davidson joined Orbitex Management as CIO, replacing Courtney Smith, who became chief economic strategist. Mr. Smith also will manage alternative investments within the company's family of mutual funds.
Mr. Davidson most recently was president and CEO of Mutual of America Capital Management.
NewSouth chairman dies
James A. Thomas III, 58, the semiretired chairman of NewSouth Capital Management, died from a fall June 30 while vacationing in France.
Pru gets value guy
Philip J. Schettewi was named head of the value equity management team at Prudential Global Asset Management, a newly created position. Ric Dillon was named as Mr. Schettewi's replacement as CIO of the Washington equities group of Loomis, Sayles. He will oversee $2 billion in institutional equity accounts.
