Scarborough-Ibbotson deal to provide 401(k) `managed accounts'
INDIANAPOLIS, Md. - The Scarborough Group signed an agreement with Ibbotson Associates to provide investment advice and asset allocation modeling to 401(k) plan participants. Scarborough already provides investment management to participants, but participants must pay for the service. The agreement with Ibbotson will allow employers to offer "managed accounts" to participants and pay for the service with plan assets, said J. Michael Scarborough, president.
The agreement is modeled after guidance issued last year by the Labor Department to SunAmerica Retirement Markets, which permits plan sponsors to automatically direct participant money into the managed accounts unless they opt out and use plan assets to pay for the one-stop investment management service.
Carlson Cos. adds 3 AmEx Horizon funds
PLYMOUTH, Minn. - Carlson Companies Inc. added three American Express Horizon funds as options to its $170 million 401(k) plan, said Michelle Murray, manager of benefit administration and strategic planning. The plan now has 13 options. American Express Retirement Services is the plan's semibundled provider.
Snell & Wilmer offers Fidelity mutual fund window
PHOENIX - Snell & Wilmer Law Offices will add a Fidelity mutual fund window to its $73 million 401(k) plan, said Dean Armstrong, financial analyst for Snell & Wilmer. Plan officials want to reduce the number of investment options it provides by offering four of the plan's 15 funds through the window; which four funds has not been determined. Fidelity is semi-bundled provider. The plan is administered internally.
Watson Wyatt advised.
New CDC IXIS unit offers one-stop source for sponsors
BOSTON - CDC IXIS Asset Management formed 401(k) Partners Program, a new unit offering plan sponsors one-point access to investment management, record keeping, administration and other services. The platform includes mutual funds from CDC Nvest, AIM, Oppenheimer, American Funds and others. CDC is working with several third-party administrators, including CPI Qualified Plan Consultants and Universal Pensions, to offer defined contribution services.
GoldK adds Satuit fund to DC platform lineup
WALTHAM, Mass. - GoldK added the Satuit Capital Micro-Cap Fund to the lineup of mutual funds on its defined contribution platform. The fund is managed by Robert Sullivan, Satuit founder and chief investment officer. Troy Shaver, GoldK vice chairman, called it an "undiscovered fund" managed by a veteran portfolio manager.
GoldK also acquired Retirement Horizons, a benefits consultant that provides record keeping, compliance and actuarial services for defined benefit and defined contribution plans. Terms were not disclosed. Retirement Horizons is GoldK's fourth third-party administrator acquisition in 10 months. The acquisition gives GoldK an additional 150 plans, 45,000 participants and $900 million in assets under administration.
GoldK also received an additional $10.5 million in venture capital funding. TH Lee Putnam Ventures is providing $9.5 million, and Nuland & Arshad is providing $1 million. In December, Lazard Technology Partners invested $26 million in the firm.