Flowserve Corp., Irving, Texas, removed the Flowserve Common Stock Fund investment option from its 401(k) plan, effective Jan. 1, according to a memo on the retirement plan's website.
The Flowserve Corp. Retirement Savings Plan had about $625 million in assets as of Dec. 31, 2011, including about $77 million, or 12.3%, in the company stock fund, according its most recent Form 5500 filing.
Assets will not be mapped out of the fund, but it no longer will be an option for future contributions or reallocations, according to the memo.
The company cited best practices in removing the option to avoid investing in single-company stock in favor of diversification through target-date and mutual funds.
“The (pensions and investment) committee believes individuals have the right to make their own investment choices and manage their retirement in a manner which best suits them; however, the committee has a fiduciary responsibility to develop policies or procedures which help to provide protection for employees in an employer sponsored plan,” the memo stated.
Judith Warren, vice president, global compensation and benefits, did not return a telephone call or e-mail by press time.