Products January 14, 2009

Platforms Pick up Cash Balance Fund

The Payden/Kravitz Cash Balance Plan Fund, described as the "first and only mutual fund designed exclusively for Cash Balance Pension Plans,″said it has been added to 10 provider platforms
Reported by

The fund (ticker: PKCBX) announced today it has been added to 10 platforms, including Matrix and Wilmington Trust (including AST Capital Trust)

Additionally, the fund is available on the Nationwide platform for brokers/advisers (available for purchase on the Resource and Innovator platforms Thursday). The fund has also reached an agreement with MassMutual that allows clients to select the fund as an investment option for retirement plan investment line-ups.

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According to the firm, these new platforms further the fund’s goal to offer cash balance plan sponsors and their advisers access to a strategic investment solution. The firm said the Payden/Kravitz Cash Balance Plan Fund offers an “institutionally diversified and risk-managed portfolio option.” For retirement plan intermediaries and cash balance plan sponsors, the firm noted that the fund offers an opportunity to minimize their administrative burden and simplify performance monitoring.

Cash balance design consultant/administrator Kravitz along with Payden & Rygel announced the launch of the fund last September (see “Kravitz Releases Fund for Cash Balance Plans“). The Payden/Kravitz Cash Balance Plan Fund is distributed through intermediaries including retirement plan providers, financial advisers and third-party administrators by Payden & Rygel Distributors.

For more information about the platforms on which the fund is available and to obtain a prospectus, contact Payden & Rygel’s David Hilton at 213.830.4278.

The Markets January 14, 2009

Atlanta Chemical Firm Joins List of Firms Halting 401(k) Match

An Atlanta-based industrial-cleaning chemicals company became the latest employer to call a temporary halt to its 401(k) match in a cost-cutting drive.
Reported by

The Atlanta Journal-Constitution reported that in addition to the 401(k) match suspension, Zep Inc.’s chairman will take a 20% salary cut, while 60 senior executives will see a pay and benefit reduction of up to 13%.

John K. Morgan, chairman and chief executive, told the Journal-Constitution that the company’s slump was like a “flu” and that the cost-cutting moves were designed to deal with that reality.

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Morgan said he told employees that reinstating the matching contributions to 401(k) accounts is the first priority upon returning to profitability.

On Monday, the company reported a loss of $1.9 million, or $.07 cents per share in the three months ended November 30. Zep, which in December announced a 5% reduction in its non-sales work force — or 45 jobs — in response to the down economy, blamed the loss on that restructuring as well as falling sales and high commodities costs.

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