Several defectors from State Street Bank & Trust Co.'s global advisory unit have formed their own money management company to compete for large institutional clients.

The principal portfolio managers, Jay Leu and James Tovey, who until this week oversaw State Street's international fixed-income funds, formed Pacific Capital Income Advisors, Boston, on Wednesday.

The company currently manages $56 million of assets, and will focus on business from institutional investors, pension funds, nonprofit organizations, and insurance companies.

Joseph Foster, a former currency trader and portfolio manager for State Street Global Advisors, and Arnold Boecklin, who handled marketing for the group, have joined the new firm as well.

Pacific Capital Income Advisors will also provide fixed-income expertise to Pacific Capital Asset Management, a subsidiary of Honolulu-based Bank of Hawaii.

The bank holds an equity stake in the new company, and will provide financial resources and support to get it off the ground, according to a company release.

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