TCW will use its own $48 million 401(k) plan and that of at least one client to beta test a fee-based investment advice product it is developing, said Brian Tarbox, senior vice president. A plan sponsor advisory committee will be formed to provide input on the project. TCW officials anticipate offering a bundled package featuring the new product by next summer, now that is has gotten Labor Department clearance to proceed.
New York State Common Retirement Fund, Albany, gave an additional $50 million to Firstar Investment Research, a U.S. mid-cap growth equity manager; an additional $150 million to Brinson Partners for an MSCI EAFE portfolio; and $50 million more to Morgan Stanley for an emerging markets equity portfolio, said H. Carl McCall, sole trustee of the $90 billion fund. The funding came from cash.
Firstar managed $175 million before the increase; Brinson managed about $500 million; and Morgan Stanley, $175 million.
Mr. McCall also terminated Provident Investment Counsel, a domestic large-cap growth manager, citing performance reasons.
A Provident spokeswoman said the firm would have no comment. The $732 million managed by Provident was placed in New York Common's internally managed domestic passive equity portfolio.
Willamette University, Salem, Oregon, with endowment assets of $162 million, plans to double its allocation to international equities, said Brian Hardin, vice president-financial affairs.
It plans to boost the assignments of Templeton and Putnam, which now manage about $4 million each, to about $8 million each.
Funding will occur over the next year and come from cash flow and reallocations.
Phoenix Home Life will acquire 35% of Emprendimiento Compartido, an Argentine financial services holding company that provides, through subsidiaries, pension, annuity and insurance products. Phoenix will have an option to boost its stake to 50% over five years.
Financial terms were not disclosed. EMCO is 35% owned by Argentina's Banco del Suquia.
The Labor Department should require disclosure of investment-related fees and operating expenses by all non-mutual fund 401(k) providers, Matthew P. Fink, president of the Investment Company Institute said today in a conference call to reporters.
The Labor Department now requires employers seeking protection from fiduciary responsibility for employees' investor choices to provide mutual fund prospectuses - which contain fee information - to employees. But there is no similar requirement for insurance companies and other providers.
Mr. Fink, who is testifying at tomorrow's Labor Department hearings on 401(k) plan expenses and fees, also called on the department to require disclosure of plan administration fees that may be borne by workers.