* Manager leaves in wake of conflict of interest concerns
* Family business tied to holdings
By Jessica Toonkel
NEW YORK, June 21 (Reuters) – BlackRock Inc
portfolio manager Daniel Rice is leaving the firm in the wake of
a potential conflict of interest that involves his family
business and holdings in the firm’s energy mutual funds, which
he co-managed, a spokeswoman said on Thursday.
BlackRock announced at the weekend that Rice had stepped
down as manager of the BlackRock Energy & Resources Fund
.
The possible conflict stems from a joint venture formed with
Alpha Natural Resources and a subsidiary of the natural
gas drilling company founded by Rice.
Since that joint venture, BlackRock increased its ownership
in Alpha Natural Resources.
“BlackRock is committed to avoiding not only actual
conflicts of interest, but even the appearance of a conflict.
As we have worked through with Dan Rice how to best avoid any
perception of conflict involving his family’s energy company,
Dan has decided to retire from BlackRock,” a spokeswoman said in
an e-mailed statement.
Denis Walsh and Dan Neumann, who already serve as lead
manager and co-manager of the five funds involved, have replaced
him on the five funds. Rice will work with BlackRock with
transitioning the institutional private funds, which should be
completed by December, the spokeswoman said.
“For the period of this transition, BlackRock has put in
place a number of enhanced procedures to ensure there is not
even any perception of a conflict, while serving the best
interests of our clients,” the spokeswoman said.
