The $600 million deferred profit-sharing plan of Morgan Guaranty Trust Co., New York, will add an emerging markets option to its plan Jan. 1, one of the first defined contribution plans to have such an option.
Gary D. Naylor, vice president of worldwide benefits, said J.P. Morgan Investment Management, an affiliate, will manage this option, as it does the plan's eight existing options.
The New York Insurance Department issued a broad ban on synthetic GICs by insurance companies, barring their issue in the state and banning New York-domiciled insurers from issuing synthetic GICs in any jurisdiction. The letter allows New York-licensed insurers to issue synthetics outside New York state only after the state rules that it will not be "prejudicial to the best interest" of New Yorkers and it allows reinsurers accredited in New York to issue them outside New York if they provide the state with evidence of solvency.
The department contends that, because the insurers don't own the assets underlying the GICs, the contracts constitute an insurance business, but are not authorized to be written by life insurance companies.
The U.S. Air Force Non-Appropriated Fund Trust, San Antonio, Texas, hired Foster Higgins to provide record keeping and administration for its new 401(k) plan, according to Roy Rainey, administrator. Mr. Rainey said the fund will begin accepting contributions in November. The plan will have three funds initially: Fidelity Government Securities Fund, Vanguard Money Market Reserves Fund and the Scudder Growth & Income Fund.
Wells Fargo Nikko Investment Advisors and Wells Fargo Bank formed a new company to focus exclusively on defined contribution clients. The Wells Fargo Defined Contribution Trust Co. combines Wells Fargo Bank's bundled 401(k) program, Masterworks, with mutual funds and defined contribution plan investment options managed by Wells Fargo Nikko.
Alan Kizor, executive vice president of Masterworks, and Don Luskin, managing director of the defined contribution group at Wells Fargo Nikko, will jointly manage the new company.
America West Airlines' reorganization plan won't affect its employee benefit plan.
The reorganization plan, which was approved Aug. 12 by a federal bankruptcy court in Phoenix, includes a reverse split in which existing shareholders receive one share of new America West stock for each 10 shares of pre-bankruptcy stock.
But the company's 401(k) won't be affected by the reverse split because it is 100% invested in mutual funds, said Jill O'Sullivan, manager retirement plan administration. There is no defined benefit plan.
Ronald E. Madey, former director of global fixed-income investments for the $14 billion pension fund of E.I. du Pont de Nemours & Co., Wilmington, Del., joined Bridgewater Associates as a director of research.
Thomas Croft, director of venture capital investments at Du Pont, assumed Mr. Madey's duties.
Lawrence E. Baumgartner, formerly a small- and mid-cap portfolio manager for the State Teachers Retirement System of Ohio, Columbus, joined National City Bank as president of its newly created money management unit, Broad Street Asset Management Group.
He will have primary responsibility for the management of the newly launched NCC Funds' Mid-Cap Regional Equity portfolio. NCC Funds is the fund family sponsored by National City Corp. and managed by affiliates of the firm.
At the Ohio Teachers fund, Mr. Baumgartner has not yet been replaced.
U.K. pension funds have increased their overseas equities investments to 23.5% of assets as of spring 1994 from 21.9% the year before and 18.3% in 1991, according to a Greenwich Associates survey. Investments in domestic equities, however, have shrunk to 54.9% this year from 56.6% the year before.
The Council of Institutional Investors is preparing a list of 20 worst-performing companies as a guide for members to use in developing their own efforts for the 1995 annual shareholder meeting season, said Anne Hansen, deputy director. The list will be unveiled in early October.
