Thiokol Corp. did not violate pension law when it changed its pension plan and reduced early retirement benefits, the U.S. District Court for the District of Utah has ruled.
Thiokol had changed its retirement age to 67 from 65 and stopped offering a company subsidy of early retirement benefits. Some early retiree participants said their benefits had been significantly reduced as a result of the change.
The court dismissed the case, saying Thiokol did not violate federal pension law in changing the retirement age; the court added Thiokol gave timely notice of the change, and that the company provided participants enough information to understand the change.
Medallion Investment Management has been acquired by Loomis Sayles in a cash transaction. The amount was not available.
Medallion, which manages $180 million in domestic growth equity and fixed income, will remain based in Albuquerque, N.M., and Medallion President Laree Perez will become a Loomis Sayles vice president. Medallion will become a satellite of Loomis' Pasadena, Calif., office.
U.S. tax-exempt institutions' international investments grew 24% during 1995, according to preliminary estimates by InterSec Research Corp.
The consultant estimated non-U.S. investments increased $70 billion last year. New cash flows provided $34 billion of the growth, down from $40 billion in 1994. Market growth contributed $36 billion, greatly improved from 1994's negative returns.
InterSec officials estimate total U.S. tax-exempt investment overseas at $366 billion as of Dec. 31, up 141% from $151 billion at the end of 1992.
The S&P 500 outperformed the median commingled equity fund for the quarter and year ended Dec. 31, the PIPER Commingled Funds Report shows. But median funds in two categories of commingled fixed-income funds outperformed their benchmark.
Of the 273 commingled equity funds in the universe, the median fund returned 4.7% for the quarter and 33.5% for the year. The S&P 500 returned 6% for the quarter and 37.6% for the year.
Large-cap value funds showed the best performance for the quarter, with a median return of 5.3%.
On the bond side, the median broad market fixed-income fund return was 4.5% for the quarter; the median long duration fixed-income fund return 6%; the Salomon Broad index returned 4.3%. For the year, the median commingled broad market fund returned 18.8%; the median long duration fund returned 27.4%; and the Salomon Broad, 18.6%.
Ending the last of its internal asset management, the University of Illinois selected Hotchkis and Wiley to manage a short-term investment portfolio, said Douglas E. Beckmann, director-cash management and investments. The hiring is contingent on approval of the board of trustees.
The board would assign Hotchkis and Wiley $50 million to $70 million from the university's approximately $375 million in operating cash. Assets would come from the internal portfolio, which the university has been phasing out.
Ennis Knupp assisted.
Rockwood Holdings hired Putnam Investments to provide bundled services for the 401(k) plans of two subsidiaries, Sperry Rail and Longview Inspection, which together total $2.7 million in plan assets.
Putnam will provide each plan with five diversified mutual fund options, as well as daily valued record keeping, trust and administration, an automated voice-response system and employee communications and education. The two plans are scheduled to begin using the new system by March 1, said Hal Findlay, Rockwood's chief financial officer.
Both plans were previously unbundled and each offered three investment options. Mr. Findlay declined to identify the vendors.
The Callan Broad Market Index, representing the 2,000 largest U.S. companies, rose 5.01% including dividends in the fourth quarter of 1995. For the full year, the index rose 36.02%, a return unmatched since the third quarter of 1987.
Among other influences, Callan cites retreating interest rates and low inflation but finds investors more cautious in the fourth quarter because of unpleasant economic news and the battle over the balanced budget.
Callan's Large Cap Index of the top 150 companies rose 6.91% for the fourth quarter and 39.48% for the year. The Medium Cap Index and Small Cap Index rose 3.35% and 2.17%, respectively, for the quarter.
