I would like to commend P&I for its May 31 special report on cash balance plans. As a pension actuary, I was pleased to see the topic addressed in a balanced, even-handed manner, without histrionics or exaggeration. This is a pleasant counterpoint to recent coverage of cash balance plans in other areas. It is important that plan sponsors and plan participants come to understand that cash balance plans are a tool, or a means to an end, rather than an end in themselves. If in some cases this type of plan has been misused (or miscommunicated) in the past, it should be understood that the fault lies with those implementing the plan, rather than the plan design itself. Further, it should be widely publicized that cash balance plans have been honestly and successfully installed by many organizations, providing valuable benefits to participants and serving the business needs of the plan sponsor. Your articles conveyed this message articulately and well. Thank you.
Bruce C. Gaffney
Ropes & Gray Benefits Consulting Group
The Swarthmore Group regretted that it did not receive a questionnaire to be included in the May 17 issue of investment management firms. The Swarthmore Group is a minority-owned investment management advisory firm with $311 million under management as of March 31.
All of the assets are internally managed U.S. institutional tax-exempt assets. It is an active domestic midcap to large-cap growth equity manager. The investment policy committee consists of James E. Nevels, Paula R. Mandle and Kurt W. Brunner. Gilbert F. Casellas is president and chief operating officer. Mr. Nevels is client contact at (610) 918-7200.
James E. Nevels
Chairman and CEO
The Swarthmore Group
West Chester, Pa.
I am writing this letter to inform you that the information provided for Amalgamated Bank of New York for Pensions & Investments' May 17th adviser profile issue was incorrect. Amalgamated Bank of New York managed $4.719 billion in U.S. institutional tax-exempt assets as of Dec. 31. All assets are managed internally.
The asset mix was 69% equity, 29% fixed income and 2% cash. Of its equity assets, $3.201 billion is managed in passive domestic equity index and $66.9 million is managed in large-cap growth and value equity. I apologize for the inconvenience this might cause and thank you for your help.
Trust marketing officer
Amalgamated Bank of New York
Penn Capital correction
Penn Capital Management Co. was omitted from the May 17 listing of the largest money managers.
As of Dec. 31, Penn Capital Management's institutional tax-exempt assets totaled $126 million. This would have placed Penn at No. 652 on the list.
As of Dec. 31, Penn's institutional tax-exempt high-yield assets totaled $120 million.
Thank you for your consideration.
Christian M. Noyes
Vice president and partner
Penn Capital Management
Cherry Hill, N.J.