American Airlines is switching its $3.3 billion 401(k) retirement plan to daily valuation and increasing its investment choices to 26 from 11, including several funds from Janus, T. Rowe Price, Berger and Dreyfus, said William F. Quinn, president of AMR Investment Services, which manages the plan. The changes will occur Aug. 1.
The new funds consist of domestic large-cap value and growth funds, domestic midcap value and growth funds, domestic small-cap value and growth funds, an international stock fund, two emerging market funds, a technology fund in which employees will be able to invest a maximum of 10% of their total retirement assets, an intermediate fixed-income index fund from Fidelity, an MSCI EAFE index fund and a domestic small-cap index fund that probably will be benchmarked to the Russell 2000 index.
The airline also is adding new American AAdvantage Funds, made up of portfolios from its pension fund money managers. They consist of an active domestic large-cap growth fund and an emerging markets stock fund. It also may add one or more sector-neutral active domestic investment portfolios to its $6 billion defined benefit plan, Mr. Quinn said. The portfolios would seek to replicate the industry or sector weightings of the indexes to which they are linked. The fund has not yet decided whether to do so, how much would be invested or the appropriate indexes but hopes to do so by mid-year, Mr. Quinn said.