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Administration July 8, 2002
Clients Firing Advanced Reportedly Now Number Five
August 7, 2002 (PLANSPONSOR.com) - The number of
clients canceling contracts with beleaguered Advanced
Investment Management amid allegations of improper trading
has now grown to five, according to a published
report.
Reported by Fred Schneyer
The Minneapolis Star Tribune reported that the $861-million Minneapolis Teachers Retirement Fund and the Tennant Company, a Minneapolis cleaning products firm, have severed their business ties with the Pittsburgh-based investment manager.
This follows word that Tom Allen, president and chief investment officer, recently stepped down from his post amid allegations that Advanced had not followed the investment guidelines for certain clients.
The following organizations previously terminated their relationship with Advanced:
- San Bernardino County (California) Retirement Board, a $3.2 billion plan which said it lost $55 million.
- Minneapolis Employees Retirement Fund (MERF), a $1.3 billion plan, which said it lost $27 million.
- Pennsylvania State Employee’s Retirement System (SERS), a $24.7 billion fund which did not disclose whether it lost money.
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