The $18.8 billion Los Angeles County Employees Retirement Association might be searching for a high-yield bond money manager later this year.
The pension fund is considering whether to send out an RFP or RFI, or whether to use an existing money manager. At stake is an estimated $790 million allocation, said CIO Kenneth Shaffer. Some of the assets would come from existing managers.
No timetable has been set, but a decision probably will come during the next few months.
Northrop Grumman Corp. has agreed to purchase the defense and electronic systems business of Westinghouse Electric Corp. for $3 billion in cash.
Northrop will assume responsibility for nearly $600 million in unfunded pension and other post-retirement benefit liabilities associated with the Westinghouse defense operations. The sale is expected to close by March 31.
Scudder Defined Contribution Services added mutual funds from outside money managers to its bundled plan program. Through Scudder Fund Access, sponsors may offer funds from more than 25 outside firms.
Scudder will provide daily valued record keeping for funds in the alliance, including same-day trades between the different fund families. A coordinated quarterly statement for participants also will be offered.
The total value of Standard & Poor's depository receipts traded on the American Stock Exchange closed above the $1 billion mark Dec. 29, the first time ever.
SPDRs are used to replicate the returns of the S&P 500 through an exchange-traded stock. SPDRs represent an interest in a fixed portfolio of securities designed to track the S&P.
Meanwhile, trading volume of depository receipts reached record levels in 1995 - to 10 billion shares and a value of $278 billion, the Bank of New York reported. That's a 37% increase of 1994's trading volume and a 12% rise in dollar volume.
Non-U.S. companies continued to favor the U.S. markets for capital and investors: 203 new public and private depository receipt programs were established from 44 countries last year.
Virtus Capital Management is launching a yet-unnamed no-load mutual fund early this year that will aim to outperform the market by investing in large growth or value stocks, depending on the prevailing style, said Garry M. Allen, president and CIO.
The fund will be capitalized at more than $80 million from institutional and retail investors, he said. Virtus is the money management arm of Signet Banking.
SEARCHES & HIRINGS
The $35 million ASC Inc. 401(k) and profit-sharing plan, Southgate, Mich., hired existing managers Scudder Stevens & Clark and Fidelity to manage two additional funds each, said Michael K. Richotte, benefits analyst.
The plan added a Scudder guaranteed investment fund and growth-and-income equity fund and Fidelity's Equity Income Fund II and Contrafund.
The additions bring to 12 the total number of options. Scudder runs nine portfolios and Fidelity three.
Aetna Life and Nicholas-Applegate have named Rogge Global Partners to subadvise an international fixed-income fund for a forthcoming variable annuity product they will introduce later this year.
The New Retirement product will be offered through Nicholas-Applegate's and Aetna's broker-dealer networks. In addition to Rogge's fund, the product will include five Nicholas-Applegate funds and five guaranteed fixed interest rate accounts.
