Products August 12, 2010

Vanguard Makes Advisory Changes to Three Funds

Vanguard has announced the restructuring of the investment advisory arrangements for Vanguard Explorer Fund, Vanguard U.S. Value Fund, and Vanguard Market Neutral Fund. 

Reported by

AXA Rosenberg Investment Management LLC will no longer serve as an adviser under the new arrangements.  

According to the announcement, for the $8.9 billion Explorer Fund, the assets previously managed by AXA Rosenberg – approximately 12% of the fund – have been apportioned to several of the fund’s six remaining advisers. The fund’s current advisory team includes Granahan Investment Management, Inc.; Century Capital Management, LLC; Kalmar Investment Advisers; Wellington Management Company, LLP; Chartwell Investment Partners, L.P.; and Vanguard Quantitative Equity Group. 

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For the $492 million U.S. Value Fund, the portion previously managed by AXA Rosenberg (approximately 65% of the fund) has been directed to Vanguard Quantitative Equity Group, which now serves as the sole adviser. For the $84 million Market Neutral Fund, Vanguard Quantitative Equity Group will now serve as the sole adviser, assuming responsibility for approximately 45% of the fund previously managed by AXA Rosenberg. 

Following this change, 15 Vanguard equity funds continue to follow a multimanager approach, the announcement said. 

 

Compliance August 12, 2010

PBGC Takes Chicago Sun-Times Pension Plans

The Pension Benefit Guaranty Corporation (PBGC) has assumed responsibility for seven plans covering almost 2,360 workers and retirees of the Chicago Sun-Times. 

Reported by

The PBGC said it took action because the company sold substantially all of its assets in bankruptcy proceedings and the buyer did not assume the plans.  

A news release said the plans include: 

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  • Chicago Sun-Times Office Employees’ Pension Plan 
  • Chicago Sun-Times Guild Employees’ Pension Plan 
  • 1986 Chicago Sun-Times Pension Plan 
  • Pioneer Newspapers Inc. Retirement Income Plan 
  • Retirement Plan for Bargaining Employees of Daily Southtown Inc. 
  • Retirement Plan for Employees of Star Publications Inc. 
  • Pension Plan for Salaried Employees of Holladay-Tyler Printing Corporation 

 

The plans ended on October 8, 2009, and the agency assumed responsibility for the plans on August 4, 2010. The PBGC estimates the seven plans are 53% funded, with $55.8 million in assets to cover $106.5 million in benefit liabilities. The agency expects to be responsible for $49.1 million of the $50.7 million shortfall.  

According to the news release, the Sun-Times and its units filed for Chapter 11 protection in the U.S. Bankruptcy Court in Wilmington, Delaware, on March 31, 2009. On October 8, 2009, the court approved the sale of substantially all the company’s assets to STMG Holdings LLC.  

Last July, it was reported that the media group missed more than $800,000 in required quarterly contributions to five pension plans (see Bankrupt Newspaper Co. Misses Pension Payments). 

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