Rearranging deck chairs on the S.S. Clipper Ship, the Board of Directors today appointed one of their own as Chief Risk Officer. Since we're in the lull leading up to Pennsylvania - where State Street's PolPals will be a factor in the race - we thought a straw poll feature would help scratch an itch for the politically-inclined. Scroll down the page, on the right.
On Monday, April 28, 2008, a State Street Summit will be held. If you are interested in attending, and if you are a State Street:"Dear Aeolus,To provide a more comprehensive view of why the Clipper Ship's sails are slack, sttWhistleblowers has added these two new branches to the blog cluster.
The State Street Corporation, which manages $2 trillion for pension funds and other institutions, ousted a senior executive on Thursday and said it would set aside $618 million to cover legal claims stemming from investments tied to mortgage securities.
State Street made the announcement after five clients sued it, claiming they had lost tens of millions of dollars in State Street funds that they were told would be largely invested in risk-free debt like Treasuries. One fund lost 28 percent of its value during the credit troubles in the summer after placing big bets on mortgage-related securities, according to the lawsuits. ...
The Massachusetts Pension Reserve Investment Management Board, better known as PRIM, looks after pensions for public sector workers, including teachers.
The $52bn (€34bn) pension scheme, based in Boston, home to the US asset management industry, has terminated contracts with five asset managers since October ...
PRIM executive director Michael Travaglini said: “We adhere to a long-term policy, and if an asset class is outperforming and grows too much bigger than its target allocation, we’ll scale it back.” ...
PRIM is estimated to be the 22nd-largest US public pension scheme, and the 29th overall when including corporate schemes.
As executive director, Travaglini does not sit on PRIM’s nine-member board. He leads a staff of 24 that makes recommendations to the board on issues such as asset allocation and the hiring and firing of fund managers. ...
The scheme engages in a due diligence process that requires interviewing fund managers as well as underlying analysis. ...
Recent manager terminations were triggered by substandard performance and changes in personnel. Travaglini said each asset class was distinct and that the scheme has fired managers from one asset class while continuing to use them for another.
The scheme is looking to award an international equities contract worth $1.5bn, following PRIM’s termination of contracts with State Street Global Advisors and Boston Company Asset Management.
