Shiloh's 401(k) plan now has 20 investment options, up from 11, Mr. Dugan said. Sagemark assisted.
Los Angeles County Employees Retirement Association, Pasadena, Calif., increased the amount allocated to the $26 billion plan's alternatives allocation to up to $330 million in commitments, said Christopher J. Wagner, investment officer.
Average total compensation for senior fixed-income portfolio managers fell 6% in 2001, while the average for their equity counterparts slipped 2% - even though bonds outperformed stocks during the year, according to a survey by Capital Resource Advisors. "We're not sure why that is," said Jim Kranz, CRA senior vice president.
Total pay for CEOs at money management firms last year was cut in half, on average, due to a major decline in bonuses, the survey also found. While average salaries for money management CEOs rose 7% over the previous year, "that gain was overwhelmed by bonuses that plunged a formidable 67%," CRA reports in preliminary results of the survey. Complete findings are expected to be released later this month.
"CEO pay is tied more so to the profitability of the firm" than that of portfolio managers, Mr. Kranz said, "and profitability was down significantly last year."
The average money management company's profit margin (earnings before interest and taxes divided by revenues) was 25.6% in 2001, compared with 31.4% in 2000, he said.
American Express Financial Advisors introduced a shortened IRA rollover process that lets participants in American Express-serviced 401(k) plans automatically move money to the same mutual funds in IRAs.
Discovery Capital Management and Mexican private equity manager Protego S.A. de C.V. created a private equity fund, investing in Mexico, which will be open to institutional investors in September, said Harry Krensky, Discovery principal.
Nomura Asset Management introduced an exchange-traded fund based on the FTSE Japan index, said Tim Tindall, a spokesman for FTSE Americas. The new fund is trading on the Osaka Securities Exchange. Effective July 15, a futures contract based on the FTSE Japan index will be traded on the Osaka exchange.
New Mexico Mortgage Finance Authority, Albuquerque, is issuing RFPs for a manager to run between $10 million and $40 million in cash, treasury and agency securities for its $1.3 billion portfolio, said Yvonne Segovia, controller. Funding will come from assets from maturing bond funds, she said. A selection is expected to be made in October, said Ms. Segovia.
Worcester (Mass.) Retirement System is searching for a private equity manager to invest $5 million in a mezzanine debt limited partnership, a new mandate, said to Chris Welch, private equity analyst at Meketa Investment Group, consultant for the $599 million system. Proposals are due July 25 and should be sent to Mr. Welch by mail to 35 Braintree Hill Park, Suite 202, Braintree, MA 02184, or by e-mail to [email protected]
Nordson Corp., Westlake, Ohio, will conduct an invitation-only search for a consultant, said Ray Cushing, treasurer. The first job for the new consultant will be to conduct a search for bundled provider of Nordson's $180 million 401(k)/ESOP plan. Mr. Cushing said Victory Capital Management, a subsidiary of KeyCorp, the current bundled provider of 12 investment funds, no longer provides record keeping. The plan will begin the consultant search as soon as possible; no deadline has been set.
The Lincoln Electric Co., Cleveland, is conducting an invitation-only search for a consultant to assist it in an upcoming search for a record keeper for its $110 million 401(k) plan, said Paul Klingensmith, treasurer. Incumbent Victory Capital Management is leaving the record-keeping business. The company is not accepting inquiries, Mr. Klingensmith said. No timeline has been set.
Brown Brothers Harriman added ActionWorld, a new web-based service to inform clients of corporate actions that may affect their portfolios. ActionWorld is available free to BBH clients, said Evan Zall, spokesman.
