In the wake of an exodus of disgruntled clients, NationsBank Corp. has formed a new subsidiary that will specialize in managing fixed-income investments for institutional investors.
The new unit, Boatmen's Capital Management Inc., was created only weeks after several large union pension plans in Missouri-including the Missouri State Employees Retirement System-yanked assets out of the bank.
Charlotte-based NationsBank inherited these clients from Boatmen's Bancshares after acquiring the St. Louis-based bank in January.
The clients, who were served by Boatmen's Trust Co., fled after six fixed-income portfolio managers, led by Frank J. Aten, quit in February to form a money management firm. The clients had complained that NationsBank was too slow in forming Boatmen's Capital Management.
Sources at these pension plans complained that the bank made a promise in January to create a fixed-income subsidiary, but then dragged its feet.
Responding to the complaints, Martin E. "Sandy" Galt, president of Boatmen's Trust Co., said "We've replaced two of them (money managers) and are working on additional hirings."
Landers Carnal, formerly the chief fixed-income investment officer of the trust company, was named president of the Boatmen's Capital subsidiary.
Boatmen's trust has clients across the nation, and manages more than $20 billion in assets.