PEOPLE: UAM’S NEW NO. 2 HAS A NO. 1 JOB: PUTTING A TOURNIQUET ON ASSETS; NEW JOBS

United Asset Management Corp., the mighty Boston-based money manager scrambling to plug asset outflows, is about to get a new second-in-command.

Last week, Charles “Ed” Haldeman Jr., 49, was named president and director at UAM, the nation’s 15th-largest money manager with $197 billion under management. Norton H. Reamer, the company’s founder, was elevated to chairman and is continuing as chief executive.

The move, effective March 1, is part of UAM’s efforts to stem asset outflows – which have totaled more than $34 billion since 1994. Clients yanked $16 billion in assets last year alone, including a whopping $7.5 billion in the fourth quarter. UAM recently announced it would take a fourth-quarter charge of $171 million due to net outflows at two of its 53 affiliates, JMB Institutional Realty and Newbold’s Asset Management Inc.

Mr. Haldeman’s promotion also marks UAM’s first efforts to find a successor to 62-year-old Mr. Reamer, who founded the company in 1980. While Mr. Reamer insists he has no immediate plans to retire, he is willing to concede that Mr. Haldeman might eventually take the helm.

“It would be nice to see him at the top of this company,” Mr. Reamer says.

Mr. Haldeman, who holds MBA and law degrees from Harvard University, has been with Cooke & Bieler since 1974. The Philadelphia investment firm became a UAM affiliate in 1985. He was named a principal and director in 1976 and has helped build the firm’s assets under management from $250 million to the current $5.5 billion.

Mr. Haldeman says his first priority will be to stem the flight of client assets that has been occurring after UAM acquires a firm. To do that he will focus on implementing a centralized marketing system to make better use of the company’s 600 investment professionals and create an awareness of the UAM brand.

Although he comes from an institutional background, Mr. Haldeman also intends to lower UAM’s reliance on institutional managers of defined benefit pension funds, as opposed to mutual f
und managers specializing in 401(k)s. Defined benefit plans, which account for 43% of UAM’s assets, are losing ground to fast-growing defined contribution plans, which make up only 18% of UAM’s assets.

Despite all the talk of change, Mr. Haldeman is not planning to tinker with the company’s basic business model. In all but a few instances, UAM acquires 100% of its affiliates and then allows them to run independently.

An increasing number of skeptics argue that the strategy is fundamentally flawed because it leaves the managers who sell out with little incentive to grow the firm. To counter that criticism, UAM recently altered its compensation system to reward managers for bringing in new business. (InvestmentNews, Feb. 2)

Eric Kobren, president of Insight Management Inc., an investment management advisory firm in Wellesley, Mass., views Mr. Haldeman’s appointment as a positive development. “Norton appears to be trying to inject some new blood into the firm,” he says. “He’s probably hoping the guy will add some energy and creativity.”

NEW JOBS

State Street Research & Management Company of Boston has named Richard J. Jodka as senior vice president and head of the firm’s aggressive growth equity team. He is replacing Fred Kobrick, who left the company last August to form his own investment management firm. Mr. Jodka, 54, joins State Street Research from Frontier Capital Management, also in Boston, where he managed a mid-cap growth portfolio for institutional accounts as senior vice president and portfolio manager.

Interstate/Johnson Lane Inc., an independent securities brokerage and investment banking firm of Charlotte, N.C., has elected James H. Morgan chairman to succeed Parks H. Dalton, 68, who is retiring. Mr. Morgan, 50, is also president and chief executive officer. The change became effective at the close of the annual meeting of shareholders on Jan. 20.

Diversified Investment Advisors Inc. of Purchase, N.Y., has promoted Matt Thomas from investment management marketing con
sultant to the newly created position of director of investment management marketing. Mr. Thomas, 32, will specialize in defined contribution and defined benefit plans. Paul Mazzacano has been promoted to succeed Mr. Thomas. Previously, Mr. Mazzacano, 27, was manager of the client integration team.

Dechert Price & Rhoads, an international law firm, has appointed Susan C. Ervin counsel in its Washington headquarters. She is former deputy director and chief counsel of the Division of Trading and Markets of the Commodity Futures Trading Commission. Ms. Ervin, 46, who has 15 years’ experience providing regulatory advice on derivatives and futures activities, will coordinate the firm’s global derivatives and futures practice.

Orbitex Management, Inc., of New York has hired Craig Ellis and Nicholas Moore as portfolio managers of the Orbitex Info-Tech and Communications Fund and Orbitex Growth Fund, respectively. They will also manage the firm’s offshore fund offerings in the same asset classes.

Mr. Moore, 39, came from Franklin Templeton Group of San Mateo, Calif., where he was a portfolio manager. Mr. Ellis, 40, had been a senior vice president at the New York-based Alliance Capital Management.

Fidelity Investments of Boston has appointed Stephen A. Cone, 47, president of the customer marketing and development group in the company’s personal investments and brokerage group, a newly created position. He had been an executive vice president and chief marketing officer at KeyCorp in Cleveland.

Association of Financial Guaranty Insurors of Albany, N.Y., has elected Ann C. Stern, chairman, president and chief executive officer of Financial Guaranty Insurance Co. in New York, a GE Capital Services company, as its chairperson for a two-year term. Ms. Stern, 45, succeeds James E. Malling, 57, senior executive vice president of MBIA Insurance Corporation in Armonk, N.Y., who had served since 1996.

Also elected to two-year terms were Robert P. Cochran, 48, president and chief executive officer of New York-based Fin
ancial Security Assurance, as vice chair; Eric Paire, 33, chief operating officer of AXA Re Finance SA in Paris, as secretary; and Daniel Gross, 55, chairman and chief executive officer of Enhance Reinsurance Co. in New York, as treasurer.

Penn Mutual Life Insurance Co. of Philadelphia has promoted Patricia M. White to regional director of the company’s new office in the Houston area. Ms. White, 42, had been manager in Houston while it was under the jurisdiction of the Dallas regional office. The company also has hired Sean Y. Sullivan, 51, head of the Indianapolis agency for Sun Life of Canada, to replace Bruce Scharf as agency manager of Penn Mutual’s New York City office. Mr. Scharf left late last year to become an independent agent for the company.

Institute for Investment Management Consultants of Washington elected five new officers and three directors at its recent annual meeting.

Leon G. Spheeris, 45, a vice president in Minneapolis-based Dain Rauscher, Inc., is the new president. The president-elect is Lewis J. Walker, 59, a general securities principal with IFG Network Securities Inc., a broker-dealer headquartered in Atlanta. Charles K. Re Corr, 52, the treasurer, has been a financial consultant for 24 years based with Merrill Lynch & Co. in Plainsboro, N.J. William R. Albright, 40, is the newly elected secretary, as well as the president of Albright & Hart Financial Advisors Inc., based in Dallas. Robert M. Foretich, 44, the immediate past-president of the institute, is the new chairman of the 1997-98 advisory board and a member of the institute’s executive committee. Mr. Foretich heads an investment management consulting firm known as Banner Investment Management Consultants in Seattle.

In addition to the five officers, the three directors of the institute include Jerry W. Caswell, 54, who was reelected. He is a certified investment management specialist of Eagle Asset Management, an investment management firm wholly owned by Raymond James & Associates Inc. of St. Petersburg, Fla. Also elect
ed were Russ Alan Prince, president of Prince & Associates Inc., a Stratford, Conn.-based market research and consulting firm; and Barbara B. Schaye, a vice president of the Investment Services Group of Donaldson, Lufkin & Jenrette in New York.

Neuberger & Berman Management Inc. of New York has appointed Adrienne D.Z. Kern as director of financial advisor services for its fund group. Previously, Ms. Kern, 33, had been an account executive at Charles Schwab & Co. in New York.

Securities Industry Association of New York has hired Everett M. Ehrlich, a former Undersecretary of Commerce and the president of his own Washington, D.C.-based strategic consulting firm, ESC Co., as consulting economist. Mr. Ehrlich, 47, will hold this position until the association replaces its former chief economist, Jeffrey Schaefer, 57, who has retired but remains as a consultant.