In a move to modernize and more completely outsource the administration of its approximately $2 billion Thrift 401(k) Plan, The Coca-Cola Co., Atlanta, will end the 36-year relationship with SunTrust Bank-Atlanta, formerly Trust Company Bank.
Coca-Cola selected Barclay MasterWorks, San Francisco, a subsidiary of Barclays Global Investors, to provide quasi-bundled services for the 10,000 participant plan. Kathryn Norton, a spokeswoman for Coca-Cola, confirmed the hire but refused to provide more information and referred calls for further details to Barclays.
Chris Reynolds, a Barclay's principal based in Atlanta and the leader of the team working with Coca-Cola, said full conversion to a daily valued, quasi-bundled plan will be made by the second quarter.
Six or seven investment options, some managed by Barclays and its subsidiaries and some managed by its alliance partners, will probably be offered. Many plan functions, now handled mostly internally, will be assumed by MasterWorks.
Coca-Cola has used SunTrust-Atlanta as the plan's record keeper for years, lately with a monthly valued system. According to the 1996 Money Market Directory, the plan offers four investment options - company stock; an indexed equity fund managed by the Vanguard Group of Investment Cos., Malvern, Pa.; a fixed income option from Merganser Capital Management Corp., Cambridge, Mass.; and equities managed by INVESCO, Atlanta.
As of Sept. 30, the asset mix was 91% company stock, 2% other domestic equities, 1% domestic fixed income, 5% stable value and GIC assets and 1% in outstanding plan loans, according to data submitted by Coke for Pensions & Investments' 1996 directory of pension funds.
Towers Perrin, New York, is the plan's consultant.
Defined contribution plan industry sources said Coca-Cola conducted one of the most thorough search processes they had seen.
