Bundled service costs for a small 401(k) plan can vary by as much as $23,000 a year, an index developed by Pension Dynamics Corp. shows. The Butler Index, developed by Stephen J. Butler, the consulting firm's president, compares charges for a hypothetical plan with $1 million in assets and 50 employees for turnkey services.
The survey found Principal Financial Group, with annual fees and expenses of $9,497, was the low-cost provider among 11 vendors studied. Great-West Life & Annuity, was the most expensive, with annual charges of $32,796. The average annual total charge was $18,912.
Aetna Life & Casualty, as expected, announced today it is in preliminary negotiations to sell the Hong Kong operations of its investment management subsidiary, Aeltus Investment Management, to INVESCO in London. Aeltus Investment Management Hong Kong manages $1 billion in investments in Asian markets.
The $13.1 billion Illinois Teachers' Retirement System, Springfield, is considering increasing its venture capital allocation, said Robert Daniels, executive director. The system's board next month will discuss making the potential addition in the new year. The board hasn't determined yet by how much it will increase the allocation or in what particular areas.
The system has 1.2% of its fund in venture capital. Callan Associates is assisting.
Officials at the $750 million Houston Municipal Employees Retirement Fund are evaluating responses to an RFP for a small-cap growth equity manager. The system will place about $40 million with one or more managers following interviews with the finalists in December.
The search is being conducted internally.
A group of pensioners of the C$7.5 billion Canadian National Railway Co. pension fund filed a claim in the Ontario Court seeking C$175 million in payment to the fund in connection with allegedly improper contribution holidays taken by the railroad, according to the prospectus for the stock offering to privatize the company.
The prospectus notes the company's ``intention to vigorously defend'' itself against the claim by the National Council of CN Pensioners' Associations Inc.
The pension fund has a C$322 million unfunded liability. The company's pension cost in 1994 was C$96 million.
The $1 billion San Jose (Calif.) Police and Fire Retirement Plan hired Credit Suisse to run an international fixed-income portfolio, said Ina Lancaster, analyst. Credit Suisse is replacing Prudential Global Advisors, which ran the $58.5 million portfolio. No other information was available.
The 85 million ($133 million) Amoco Pooled Pension Fund, London, hired State Street Global Advisors to manage 20% of its assets in an international pooled equity fund, said Mark Roberts, pension plan manager. State Street replaces Pictet International. Mr. Roberts declined to comment on why Pictet was dropped. The Amoco fund will invest in 22 developed markets (excluding the U.K.) through State Street's Common Trust Fund in an actively managed approach.
The Plumbers & Steamfitters Local 102 Pension Fund, Knoxville, Tenn., hired NWQ Investment Management for an $11 million balanced portfolio. The allocation, which is just over half of the fund's assets, came from another balanced manager who was terminated. A spokesman declined to give the name of the manager. Segal Advisors assisted in the search.
Lexington Management Corp., Saddle River, N.J., chose Capital Technology as subadviser for its new Lexington SmallCap Value Fund. The no-load fund, which will be launched in January, will invest in undervalued companies with market caps of $20 million to $1 billion.