Greyhound Transportation Corp., Calgary, Alberta, is considering changing the index fund manager for its C$130 million (U.S.$95.1 million) pension fund because of a probable raise in fees, said Geoff McCulloch, treasury manager.
Greyhound would have to pay a higher fee now that it no longer is aggregating its fund with the pension assets of Dial Corp., its former parent, which spun off Greyhound. Greyhound could make a decision on whether to change in the fall.
BZW runs three index funds for Greyhound: a C$43.2 million fund linked to the Toronto Stock Exchange index, a C$11.9 million S&P 500 fund, and a C$11.6 million MSCI EAFE fund. Watson Wyatt is assisting the evaluation.
Nick Bhandari, Dial assistant treasurer, said BZW raised Phoenix-based Dial's fee slightly for managing its U.S.$250 million pension fund in S&P 500, EAFE, and Lehman bond index portfolios when the Greyhound assets were split off. He said Dial has no plans to change the manager.
