The May 16 issue containing the directory of investment advisers listed Scudder (in a table on page 32) as the largest U.S. manager of international assets for U.S. tax-exempt clients. Unfortunately, the number provided for these statistics was incorrect due to a double counting of our international bond assets.
As a result, the figure under the heading of bonds ($4.523 billion) overstates assets supervised by Scudder by approximately $2 billion. The correct number should be approximately $2.5 billion and the correct total should be approximately $9.4 billion.
This would place us third or fourth on the list - a commendable position, but not at the top.
This error was detected in the course of our normal audit process which reviews most numbers appearing in external publications. We sincerely regret that the original number was incorrect and that we did not detect the error earlier. As an internal matter, we have already notified members of the organization about this problem and will make sure this statistic is not misused in presentations to clients and prospects.
Edmond D. Villani
President
Scudder, Stevens & Clark Inc.
New York
The Prudential was omitted inadvertently from your May 16 chart on page 30 listing the 25 largest managers of 401(k)/457 assets. Had the Prudential been included, we would have ranked fifth with $15.290 billion of U.S. institutional tax-exempt assets as of Jan. 1.
Our clients and prospects refer to Pensions & Investments as a key source for industry-related information. For that reason, when asked where we would have ranked in the P&I survey, we will say, "We believe we would have ranked fifth."
President
Prudential Defined
Contribution Services
Moosic, Pa.
Strategic Fixed Income L.P. was not included in either Pensions & Investments' May 16 directory of money managers or its June 27 directory of international and global investment advisers. We were included in last year's reports.
SFI is an SEC-registered investment adviser specializing in global fixed income with a number of different mandates (i.e., global, global hedged, non-U.S. and non-U.S. hedged). SFI manages approximately $2.8 billion. As of March 31, SFI managed approximately $2.3 billion in global fixed income, of which $1.8 billion were tax-exempt assets. SFI would have been No. 287 in your May 16 issue and No. 38 in your June 27 issue.
For 13 years, Kenneth Windheim, the chief investment officer and president of SFI, has been managing international and global bond portfolios to both currency-hedged and unhedged benchmarks. His performance record has consistently surpassed standard benchmarks and peer competition.
Until May 1991, he ran all of the institutional global fixed-income portfolios for Prudential Insurance Co., establishing an eight-year track record which consistently exceeded industry accepted benchmark returns.
In June 1991, Mr. Windheim entered into a partnership with Strategic Investment Management of Arlington, Va., to form Strategic Fixed Income.
Strategic Investment Management is a partnership established in 1987 by the former pension plan staff of the World Bank.
Both SFI and its limited partner, SIM, are multiple subscribers to P&I and we use the articles and special reports to keep us abreast of certain issues, manager placements, custodial information, request for proposals, etc.
Patricia M. Arcoleo
Vice president
Strategic Fixed Income L.P.
Arlington, Va.
