The Dow Jones industrial average passed the 7,000 level for the first time ever and closed at 7022.82, up 61.19 points from yesterday. The S&P 500 closed at 811.71, also a new high, up 8.94 points. The Nasdaq closed at 1370.68, short of its 1388.06 record, up 11.72 points. All figures are based on preliminary closing prices.
First Chicago NBD Investment Management will develop at least five index mutual funds for the 401(k) market under its ANB Investment Management unit and replace ANB's president Stephen P. Manus.
``We parted way on the views of the business strategy,'' said J. Stephen Baine, president of First Chicago NBD Investment Management, about Mr. Manus. Mr. Baine, who also is a non-executive chairman of ANB, declined to elaborate. ANB runs about $22 billion in index funds for tax-exempt clients. Less than $2 billion of that is for 401(k) plans.
Mr. Baine said First Chicago NBD hasn't decided on a replacement for Mr. Manus. The firm expects no other personnel changes at ANB, he said.
ANB has no mutual funds of its own, but manages index mutual funds for Federated Investors. Federated executives could not be reached for comment. ANB's own mutual funds are still in development, but Mr. Baine expects ANB could begin to offer them by the second half of the year. He said ANB will keep its commingled index funds.
Mr. Manus declined to comment.
Sen. Carol Moseley-Braun, D-Ill., and Rep. Barbara B. Kennelly, D-Conn., today reintroduced a grab-bag of provisions aimed at ensuring divorced women receive their share of pensions and preventing employers from scaling back benefits for older employees to reflect the Social Security benefits they are receiving. The bill, an expanded version of similar legislation introduced last year, also includes a provision that would limit companies from investing more than 10% of employees' 401(k) dollars in company stock, unless the employees choose to do so.
The Amalgamated Bank of New York LongView Collective Investment Fund withdrew its appeal to the SEC to overturn its position letting Monsanto exclude a shareholder proposal on equal employment opportunity. LongView withdrew after the company agreed to include the proposal in its ballot.
Fidelity Investments is consolidating the operations of its Boston-based fixed-income department with its Dallas-based money market division at its regional campus in Merrimack, N.H. The move is expected to take place in the third quarter. It already is responsible for the departure of one fixed-income portfolio manager. Robert Ives cited the move as his reason for leaving.