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 admin istrator. 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 Voy ager 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 retai ned 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 in 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.
Piper Jaffray Cos. r eceived 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 includes 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 open-end status two years from t he 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.
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 want restrictions on their plans removed, espe cially 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 22.9% said they needed personal investment adv ice. The average value of the respondent account was $191,000.
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 months of unarrested foreign buying,'' said Steven A. Simon, director of the LJR-RADAR.
``What makes it unusual is that it is happenin g in step with other negative factors for the U.S. market,'' he said. As a result, the RADAR model suggests the U.S. stock market should trend lower into the fourth quarter.