A white paper released by the PBGC shows some of the very plans from which companies took out surplus assets in the 1980s now have a shortfall to pay for promised benefits.
Enron removed $232 million in surplus assets in 1986; now the plan is underfunded by $83 million, the PBGC said. ASI Holding, which extracted $120 million in 1988, now has a shortfall of $86 million, the agency said.
The PBGC released the data in response to passage by the House Ways and Means Committee of a proposal to allow some companies to tap surplus pension assets.
Ameritech hired State Street Bank to provide master trust, custody and global custody for its pension equity plan and 401(k) plan. The pension equity plan was valued at $11.3 billion as of Sept. 30, 1994; the 401(k) plan, $3.2 billion as of the same date. The previous master trustee and global custodian was Harris Bank.
The 185 billion guilder ($116 billion) Algemeen Burgerlijk Pensioenfonds hired Baring Asset Management to run a Japanese equity portfolio of undisclosed size.
The giant Dutch civil servants' fund previously hired Wells Fargo Nikko, State Street Global and Barr Rosenberg European Management to run Japanese portfolios totaling 3.6 billion guilders, but held off appointing Baring until its new ownership structure was established and the firm was cleared in derivatives-trading losses earlier this year.
The 437 million ($686 million) Lincolnshire County Council Superannuation Fund picked Scudder, Stevens & Clark to manage a 38 million U.S. equities portfolio, subject to contract negotiations, said Melvyn Harrison, assistant county treasurer.
Trustees of the $5.7 billion Ohio Police and Firemen's Disability & Pension Board committed $4 million to the Morgenthaler Venture Partners IV venture capital fund, said Theodore Hall, assistant director-investments. Assets will come from cash.
The PBGC will take over Copperweld Steel's three pension plans, underfunded by $52.5 million. The steel company's fourth pension plan, for clerical workers, will continue, sponsored by Hamlin Holdings, which purchased Copperweld's assets and its parent corporation, CSC Industries.
Gary N. Biscoll joined United Technologies Corp. as manager of its $7.5 billion pension fund. He will be responsible for market-valued assets. He succeeds Harsh Bansal in the position. Mr. Bansal became director-pension investments when Cynthia Steer left to join Philip Morris Cos.
Mr. Biscoll was manager of investment programs for trust investment at Unisys. Unisys is seeking a replacement.
Denis M. McCarthy has been named chairman, president and CEO of Fidelity Management Trust. He replaces Alexander "Toby" Webb III, who joined the Boston Co. as vice chairman and CIO.
Mr. McCarthy was senior vice president and CFO of FMR Corp., Fidelity's holding company; Gerald M. Lieberman, who had been senior vice president-administration, will assume the CFO duties as well.
Also, Edward E. Madden has been appointed vice chairman at Fidelity Management Trust, responsible for sales, client services and investment product development.
Charles Schwab, through its SchwabFunds family of mutual funds, introduced the Schwab Asset Director Funds - three asset allocation funds with varied mixes of stocks, bonds and cash.
PBGC wants head count
The PBGC is examining whether plan sponsors are counting the number of participants accurately when calculating premium payments.
The agency has hired Carter & Associates to conduct on-site reviews of about 50 medium to large pension plans during fiscal year 1996. About 20% of pension plan premium filings understate participant counts or funding levels due to calculation errors, the PBGC estimates.
Kevin J. Kelly will join Fidelity Investments Canada as president. He was president and chief executive of BIMCOR, which runs more than C$10 billion (about $7.4 billion U.S.) for the pension funds of Canada's BCE Inc. and its affiliated companies.
At Fidelity, Mr. Kelly replaces John Simpson, who left the firm six months ago. Mr. Kelly has not yet been replaced at BIMCOR.
ING (U.S.) Capital Holdings, the U.S. holding company owned by Internationale Nederlanden Groep, is creating a new subsidiary, ING Emerging Markets Investors, to manage two groups of privately placed emerging markets funds.
ING will invest up to $50 million in these funds.
Scott Gordon, previously ING Capital's Global Head Trader for emerging markets, will be president and chief executive.
Morten Kleven will leave as portfolio manager of the 1.3 billion Swiss franc ($1.2 billion)Alusuisse-Lonza Holding AG this month to take on an investment and sales role with BT&T Asset Management AG. A successor has not been named.
Bank of America introduced mutual fund versions of its Target lifecycle collective funds. The Time Horizon funds consist of three age- and time-weighted portfolios, designed to meet the savings objectives of retail and defined contribution plan investors using varying risk-reward parameters. The investment styles of the mutual funds and collective funds are similar, a bank spokesman said.
The Time Horizon Funds are sponsored and distributed by Concord Financial Group.
NBD Bank and consultant The Legend Group formed an alliance to serve the 403(b) marketplace.
Legend will offer NBD's Woodward family of mutual funds to universities, public schools, hospitals and other non-profit agencies and will provide plan administration, record keeping, plan design and installation.
Reams Asset Management hired Frontier Partners, a third-party marketing and client servicing firm, said David Milroy, senior vice president for Reams.