AIG Global Investment Corp. has brought American General's investment-grade fixed income operations from Houston to New York, while moving the bulk of its own high-yield operations from its SunAmerica affiliate in Los Angeles to Houston, according to senior AIG officials. As a result of AIG's acquisition of American General, the combined firm now manages some $180 billion in (mostly fixed-income) assets domestically. A senior AIG official says management of high-yield was given to Gordon Massie, who had served in that role at American General, because American General's high-yield group had outperformed that of SunAmerica. An AIG official declined to provide performance numbers, and attempts to procure them elsewhere were unsuccessful as of press time. American General's high-yield group did not oversee mutual funds, whose performance is published daily, but were in charge of "managed funds," which traditionally do not release their performance. Massie declined comment. Scott Richland, formerly head of high-yield bonds and leveraged bank loans, is now only head of bank loans, according to Sonia Fiorenza, a SunAmerica spokeswoman to whom he referred calls. Richland reports to Scott, according to a senior company official.
Richard Mercante is the head of investment-grade, retaining the position he had prior to the acquisition. Albert Gutierrez, who worked for AIG as head of investment-grade prior to the acquisition, has been let go, and is looking for a new position, according to several firm officials. Mercante and Gutierrez did not return calls. Three senior officials with high-yield responsibilities were let go as a result of the merger: a trader and a portfolio manager in Los Angeles, and an analyst in Houston. Fiorenza declined to name them.Julia Tucker, former head of investment research at American General, has also left the firm, and is believed to have retired, according to a senior firm official. She could not be reached.
Massie, Richland, and Mercante report to Richard Scott, head of global fixed-income, who was cio at American General and has moved to New York. Scott declined comment. Scott's position was previously held by Jim Ramsay, now demoted to head of mortgage-backed securities and fixed-income derivatives, according to a senior company official. Ramsay was formerly responsible for corporate bonds, which a senior AIG official describes as all investments excluding commercial mortgages and high-yield. Ramsay declined comment.
Other investment group heads reporting to Scott are Sam Tillinghast in Houston, head of debt private placements, andAlan Nussenblatt, head of commercial mortgage lending. Nussenblatt retains his pre-acquisition position at AIG in Los Angeles. Tillinghast was formerly at AIG in New York.