Workplace Health, Safety and Compensation Commission of New Brunswick, Saint John, will invest in a C$50 million (U.S. $36 million) managed futures-linked structured note, said Warren H. Gerow, manager-treasury and investments for the fund. The $585 million (U.S. $421 million) fund will purchase the entire note, which will be issued by TD Securities.
The managed futures' component of the note will be provided by Trilogy Capital Management, which already runs a futures portfolio for the fund, Mr. Gerow said. Trilogy's existing C$20 million portfolio will be wrapped into the structured note, which probably will not pay a coupon. He declined to say what the fees were, but said they are ``very aggressive.''
Robert Garner, vice president of structured products for TD, said a single manager strategy was chosen to keep fees down, and to keep from diluting the potential value-added of managed futures.
Vanguard Group started providing full defined contribution plan account transaction capabilities via the Internet this week. Participants may exchange shares, request loans and make asset allocation changes.
Fidelity has been providing on-line account transaction capabilities for the past year to 1,000 plan sponsors with nearly 2 million plan participants. Fidelity expects another 1,000 organizations to add Internet account management service by the end of 1997.
Aqua-Chem, Milwaukee, will be adding a bond fund to its defined contribution plan effective Jan. 1. Officials for the $35.9 million plan already have done the research and probably will choose a Vanguard fund, said Ronald Thimm, treasurer. The plan already has the Vanguard S&P 500 Index Fund as one of its five options. The final selection should be made in December. Hewitt is assisting.
Franklin Templeton Distributors introduced the Mutual Financial Services Fund, which invests primarily in the stocks of financial services organizations. The fund is the sixth in a series of funds managed by Michael Price and his associates at Franklin Mutual Advisers.