Three former Bankers Trust investment professionals are teaming with former Chief Investment Officer H. Kent Atkins to start a new investment management firm.
Joining with Mr. Atkins are Burke Vandermast, former managing director for short-term investments at Bankers; Karen Cronk, former portfolio manager for short-term investments; and Richard Daniels, former vice president for cash management marketing.
The new firm - NorthStar Asset Management - specializes in cash management and short- and intermediate-term fixed-income portfolios, said Mr. Atkins. It will be wholly owned by Furman Selz Capital Management.
Mr. Atkins will be senior managing director and chief executive of the new firm. Mr. Vandermast will be NorthStar's chief investment officer; Ms. Cronk will be senior portfolio manager; and Mr. Daniels will head the new firm's efforts in sales, marketing and client relationships.
Institutional investor assets shot up to $9.5 trillion as of Sept. 30, according to a new study by economist Carolyn Kay Brancato. That's a 14.5% increase from the $8.3 trillion institutions held as of Dec. 31, 1992, the date of Ms. Brancato's last study, and an increase of 3.3% from the $9.2 trillion they controlled at the end of 1993. Ms. Brancato's latest study also includes data for 1993.
Pension funds controlled $4.57 trillion of the total institutional assets as of Sept. 30, up less than 1% from the $4.53 trillion they held at the end of 1993, but a significant 11.5% increase from the $4.1 trillion in holdings at the end of 1992.
Federal Express named Loren Jensen to replace William Gurner as manager-trust investments for its $1.9 billion defined benefit fund and $980 million defined contribution fund.
Also, Philip Schaefgen, senior trust investment analyst, left the company.
Mr. Jensen, who will report to Burnetta Williams, managing director-corporate finance, was manager-retirement administration.
Management hasn't made a decision on replacing Messrs. Jensen and Schaefgen.
Mr. Gurner quit to form Sector Capital Management. Information on where Mr. Schaefgen went wasn't available.
Some 58% of more than 100 surveyed multinational corporations are conducting an internal audit of their derivatives usage or engaging outside firms to do so in light of the publicized See At Deadline on page huge losses in derivatives last year.
The survey noted 5% of multinationals plan to conduct such audits.
Of those that have completed their audits, nearly 61% received a clean bill of health. Some 18% reported certain of their derivative practices are being upgraded or have been curtailed. The rest are still awaiting their audit results.
The survey was written and published by the Economist Intelligence Unit and paid for by Bankers Trust and Coopers & Lybrand.
The $800 million Fresno County (Calif.) Employees' Retirement Association hired Independence Investment Associates for a $100 million large-cap value portfolio and Boston Co. for a $25 million to $35 million domestic small-cap equity account.
Pension Consulting Alliance assisted.
The board of trustees of the $16.3 billion Virginia Retirement Board approved purchasing the Morris County (N.J.) Financial Center for $43.6 million, said Bill Sullivan, a spokesman.
The pension fund has been looking to acquire properties to meet its target real estate allocation of 9% of assets; it currently has about 7% of its assets in real estate. The seller was Copley Investors L.P.
Sterling Chemical Inc. hired Frank Russell Trust to manage its two defined benefit plans, totaling $35 million. Sterling's assets will be invested in four of Russell's pooled, manager-of-managers funds - Equity I, Equity II, International and fixed income.
The assets had been managed by a bank, which also served as master trustee. Joe Baj, Sterling's manager of investor relations and treasury analysis, declined to identify the firm.
Plumbers & Gasfitters Local 107 hired Polaris Capital Management to run a domestic tactical asset allocation portfolio for its $31 million pension plan. The assets came from a TAA allocation managed by Bankers Trust; no other information was available.
United Asset Management, as expected, completed its purchase of Provident Investment Counsel. Provident manages $14.3 billion, mostly for institutional clients. Terms were not disclosed.
State Street Bank named Robert R. Tarter senior vice president and director of sales and marketing in the U.S. financial asset services area, a new position. He will develop custody business among institutional investors. He was previously a managing director of Bankers Trust.