CCH Inc., Deerfield, Ill., and Wolters Kluwer U.S. Corp., Chicago, the U.S. unit of the Dutch company that owns both concerns, merged their profit-sharing plans, changing some investment managers, said Edward Carroll, plan adminis trator. The new plan combines the $175 million CCH plan and the $25 million Kluwer plan.
The combined plan will use Fidelity as the main provider. The plan will offer nine investment options: six Fidelity funds and the Putnam Voyag er equity fund, Templeton Foreign fund and a PBHG small-cap fund.
Fidelity had been the bundled provider for CCH, offering six options. Kluwer's plan had four options, two of which were dropped, while the Putnam Voyager was retaine d and a stable-value fund was transferred to Fidelity. Ernst & Young, record keeper for the Kluwer plan, was dropped.
Trustees for St. Louis County, Mo., pension plans are sticking with Bankers Trust as custodian for $250 million i n assets.
Bankers Trust purchased the custody assets of Boatmen's Bank from NationsBank, and the transfer is going well, said Ralph Bowser, director-retirement and deputy director-personnel. Trustees were considering a change, but it appears Bankers is devoting a lot of resources to Boatmen's former custody clients, he said. The board, based in Clayton, oversees two county funds, one for civilian and one for law enforcement employees.
Defined contribution plan participants with large account balances are not satisfied with the number of investment options available to them, according to preliminary results of an on-line survey by DALBAR Inc.
More than half of the 1,143 respondents w ant restrictions on their plans removed, especially those that limit the timing and frequency of changes to their portfolios. More than 45% wanted more investment options; 27.1% expressed a need for more investment education; and 2 2.9% said they needed personal investment advice. The average value of the respondent account was $191,000, nearly five times the national average.
Sterling Heights (Mich.) Retirement System is conducting a search for a small-cap s tock manager to run $15 million.
Officials will accept proposals through Aug. 29, said Larry Amez, board president. The $152 million fund is looking for firms that have been in business for at least three years and manage $250 mil lion and $750 million.
Existing managers Munder Capital, Newbold's, Brinson Partners and Morgan Grenfell and managers in consultant Merrill Lynch's database also are under consideration. A decision is expected at the Oct. 28 board meeting.
Piper Jaffray Cos. received final federal court approval for a class-action settlement with investors regarding the use of mortgage-backed securities in Piper Jaffray's seven closed-end mutual funds. The settlement includ es the $15.5 million to be paid to shareholders over four years, as well as an offer to repurchase a limited amount of closed-end shares at net asset value.
Board members also will propose that three of the funds be converted to op en-end status two years from the effective date of the settlement, if fund discounts do not fall below 5%. The effective date is expected to be Sept. 20.
One other related suit is outstanding.
Foreigners have been selling more U.S. stocks than they have been buying since Aug. 14, according to the Lynch, Jones & Ryan RADAR model of portfolio risk. This pattern marks ``the first time since early March that we have seen this type of shift that follows four mon ths of unarrested foreign buying,'' said Steven A. Simon, director of the LJR-RADAR.
``What makes it unusual is that it is happening in step with other negative factors for the U.S. market,'' he said. As a result, the RADAR model s uggests the U.S. stock market should trend lower into the fourth quarter.