The median account for all categories of PIPER managed domestic equity beat the S&P 500 Stock Index's 7.5% in the third quarter. Small-cap growth led for the period with the median account returning 17.4%; while the large-cap value median account, still ahead of the S&P with 9.6%, had the lowest return for the period, according to the PIPER Managed Account Flash Report.
For the year ended Sept. 30, small-cap value outpaced other median equity accounts and the indexes, returning 46.2%, well ahead of the S&P's 40.5% and the Russell 2000 small-cap index's 33.2%. The bottom median account return for the period was midcap growth equity with 25.7%.
For median managed bond accounts, long-duration bonds led with 5.1% for the quarter, and 13.6% for the year, compared to the Salomon Broad Bond Index with 3.4% and 9.7% for the same periods, respectively. The median limited-duration bond account underperformed all other bond categories with 2% for the quarter and 7.2% for the year.
The median international equity account easily outperformed the MSCI EAFE index in the third quarter and the year ended Sept. 30, according to the PIPER report. The median international equity account returned 1.6% for the quarter and 19.6% for the year compared to -0.6% and 12.5% for the index. European equity returns grew strongly for the two periods with 7% and 33.4%, for the median account; while the median Pacific Basin equity account tanked at -11.6% and -5% for the same periods.
Investment Technology Group Inc. of New York formed an alliance with Transaction Network Services. The companies plan to build a computer network that will provide vendors and broker dealers in the financial services industry with electronic links to 100 of the nation's largest money managers handling institutional assets. ITG provides technology-based equity trading services and transaction research to institutional investors and brokers.
Mercury Asset Management's pre-tax profits rose to £88.4 million ($148.6 million) for the six months ended Sept. 30, up 15.4% from the same period in 1996.
Operating profits from continuing activities in the period rose 26.3% to £72.8 million from the similar period in 1996. Assets under management reached £104.4 billion, up 16.4% from £89.7 billion on March 31. Net new business totaled £3.8 billion. Mercury is the U.K.'s largest pension fund manager.
