The PBGC took over two pension plans of Rickel Home Centers Inc. and the fund of Monon Corp.
Rickel, South Plainfield, N.J., is in bankruptcy liquidation. The company's Employees' Retirement Plan, with assets of around $12 million, is underfunded by $4 million. Its Teamsters Plan, with assets of $1.4 million, has a $2 million shortfall. The PBGC intends to make the termination of the Teamsters Plan effective Oct. 31. It terminated the Employees' Retirement System effective yesterday.
The plan of Monon Corp., Monon, Ind., has assets of $2.9 million, and a $3.4 million shortfall. The PBGC, which has been trying to take over the plan since last year, recently received the go-ahead for the takeover from a federal district court in the Northern District of Indiana.
AMVESCAP formed a new global retirement services operating division that will develop and manage the global distribution of defined contribution plan services outside the U.S. A unit within the division will focus on developing markets overseas for INVESCO, AIM and Chancellor LGT products.
U.S. defined contribution services will remain a separate unit.
All 23 markets of the MSCI EAFE posted gains in February, with the benchmark rising 6.3% in dollar terms. In addition, the MSCI World index climbed 6.6%, and the MSCI Emerging Markets Free index advanced 10.4% last month.
In February, Malaysia's market led EAFE with a whopping 50% gain in dollar terms. Japan placed last with 0.5%. Among emerging markets - after first-place Malaysia, which is included in both the emerging markets and EAFE indexes - the China Free index scored on top with a 35.5% gain. Colombia's market performed the worst, with -14.2%.
Fitchburg (Mass.) Retirement System is adding international equities to its asset mix for the first time.
The $52 million system is searching for an active, commingled manager to run a $2.5 million portfolio, said Kevin Leonard, a Segal Advisors consultant who is assisting. The system now has all of its assets in a balanced portfolio with Safety Fund National Bank.
City of Dearborn (Mich.) Retirement System may search for a consultant and probably will start an asset allocation study in the next three months, said Marcel Pultorak, finance director for the city.
Mr. Pultorak plans to look at local firms to assist with the study, before deciding to do a full-scale consultant search. The plan has $340 million in assets; its asset mix is: 65% U.S. stocks, 30% bonds and 5% real estate.