The board for the Swedish Health Services of Seattle has likely placed two managers on a watch list for personnel changes and performance-related issues, according to sources familiar with the plan.
The suspected firms are JPMorgan Fleming Asset Management and AllianceBernstein Institutional Investment, which manage $50 million in enhanced Standard and Poor's equities and $40 million in large-cap value equities, respectively.
Swedish Health Treasury Manager Michael Malewicz declined to comment on whether JPMorgan and AllianceBernstein were or watch, or if the board would replace them, but he confirmed that the board had recent conversations about the money managers' performance and personnel issues.
If the board decides to search, it would likely rely on its consultant, Bill Wurts of Wurts & Associates to assist in the recruitment process. Malewicz said that hypothetically speaking, the board could opt for a request-for-proposal applicant process or ask Wurts to construct a short list of candidates.
Gabriel Gagliardo, spokeswoman for JPMorgan, and John Meyers, spokesman for AllianceBernstein, did not return calls at press time.
According to published reports, JPMorgan Fleming recently terminated John Fenn, high-yield bond manager; Jay Gladieux, core bond manager; Donna Lloyd, head of the firm's liquidity sector; and Blake Witherington, head of credit research.
In September, Paul Bateman, former head of JPMorgan Fleming Asset Management for Europe, Asia and Japan, replaced CEO Ron Dewhurst, when he announced plans to retire (See IMW, 9/9/02).
Meanwhile, AllianceBernstein has most recently been put under the spotlight from the $1.5 billion San Jose Police & Fire Retirement System and the $18.8 billion Missouri Public School Retirement System for performance and personnel reasons (See IMW, 12/02/02 and 12/30/02).
The firm recently alerted its client about Alfred Harrison plans to retire in 18-24 months. Harrison currently heads the firm's large-cap growth portfolio.
John Meyers, AllianceBernstein spokesman, confirmed that Harrison would retire and added that James Reilly, a large-cap portfolio manager, would succeed Harrison.
