SunTrust Banks Starts Del. Trust Company
SunTrust Banks Inc. of Atlanta said Wednesday that a new unit, SunTrust Delaware Trust Co., opened for business Dec. 1.Jeffrey Kaczmarcyzk, senior relationship manager at the unit, said it will enable high-net-worth clients to benefit from Delaware's favorable trust laws.
Those laws provide more flexibility in trust management, better tax benefits for the investor, and the ability to create "dynasty trusts," which run perpetually, Mr. Kaczmarcyzk said.
Mr. Kaczmarcyzk, 34, joined SunTrust this month from Wilmington Trust, where he held a similar position.
- Niamh Ring
Northern Trust Wins Teamster, Transit Clients
Northern Trust Global Investments has signed up two more clients.The investment management unit of Chicago-based Northern Trust Corp. will manage the $256 million defined-benefit plan for the Teamsters Local 560 and was named investment adviser for $155 million on behalf of the Washington Metro Transit Authority.
For the Teamsters, $234 million will be invested in the banking company's Quantitative Advisors Standard & Poor's 500 index fund, while the remainder will be invested in its Quantitative Advisors aggregate U.S. bond index fund.
The $155 million from the Washington Metro Transit Authority will be invested in Northern Trust's S&P 500 index fund. Northern Trust already manages $330 million for the Washington Metro Transit Authority.
The banking company, through active and passive investment strategies, manages $262 billion.
Barclays Is Planning 36 Exchange-Traded Funds
Barclays Global Investors of San Francisco plans to launch a group of 36 exchange-traded index funds, according to a Securities and Exchange Commission filing.The funds, to be called iShares, will track indexes from Standard & Poor's, Dow Jones, and Russell. Exchange-traded funds trade like individual stocks, but represent a bundle of shares.
Barclays expects to launch some of the 36 funds during the first half, a spokesman said.
Barclays has not disclosed management fees on the funds. But it will charge a 12b-1 fee, which covers advertising and marketing costs, on the 14 Dow Jones sector funds to be included in the group.
- Amy L. Anderson
Scudder Kemper Slapped With $250,000 SEC Fine
The Securities and Exchange Commission said Wednesday that it has censured and fined Scudder Kemper Investment Inc. $250,000 and sanctioned two former employees in connection with unauthorized derivatives trading.Gary Paul Johnson, formerly the head of derivatives trading at Scudder's Boston office, agreed to a one year suspension and a $10,000 fine, and Michael T. Sullivan 3d, formerly a trader under Mr. Johnson's supervision, agreed to be barred from the industry for five years, the SEC said.
The improper activity, which resulted in client losses of more than $16 million, took place between July 1997 and October 1998, the SEC said.
None of the parties admitted or denied liability. Scudder, in a prepared statement, said the firm cooperated with the SEC and clients have been reimbursed. Mr. Johnson and Mr. Sullivan could not be reached.
Federated of Pa. Hires Technology Executive
Federated Investors of Pittsburgh has hired a new chief information officer.Rex A. Althoff, 53, will join the fund company on Jan. 18 from the Bayer Corp.
Mr. Althoff succeeds Allan Doe, who left in August, a spokesman said.
- Cheryl Winokur
