J.C. Penney Co. Inc., Plano, Texas, with a total of more than $7 billion in 401(k) plan assets and defined benefit plan assets, outsourced its employee benefit plan services to Hewitt Associates.
Defined benefit, health and group benefits will be up and running in January, said Sharon Leight, benefits director. Interactive voice response and benefit center support for the 401(k) plan is already operational. J.C. Penney has about 150,000 eligible employees.
Many of the 73.8% of money managers who in a survey claim to be in compliance with AIMR performance presentation standards probably aren't, according to the Spaulding Group.
Spaulding cited several reasons for failure to comply with the standards set by the Association for Investment Management and Research, among them:
Only 69% of respondents affirmed their composite returns were ``asset-weighted,'' a requirement in the AIMR standards; and
A full 24% of respondents reported using ``catch-all'' composites for portfolios that don't easily fit in with other accounts. The AIMR standards don't allow catch-all composites.
The survey found 42.5% of money managers have their AIMR compliance verified. In asking why money managers did not undergo verification, the survey found, in overlapping responses, 84.2% of the respondents reported ``no one is asking for verification'' and 78.9% reported cost was an issue.
First Union Corp. converted $7 billion in bank common trust assets to a family of 16 mutual funds, called Evergreen Select. The funds are available only to institutional investors. First Union Capital Management Group, a new subsidiary, has assumed management of the funds.
The new funds bring the Evergreen mutual fund division's total assets up to $40 billion. First Union manages $16 billion in institutional assets in a variety of investment vehicles.
Institutional Shareholder Services, a unit of Thomson Financial Services, agreed to acquire Proxy Voter Services, proxy company serving the Taft-Hartley pension fund and investment managers. Terms of the deal were not disclosed.