MSIM Signs Up for Treasury Guarantee Program

The Morgan Stanley Funds’ Board of Directors/Trustees approved the participation of its money market funds in the U.S. Treasury Temporary Guarantee Program.

According to a press release, all Morgan Stanley SEC registered 2a-7 money market funds will apply to be insured under the program.

“We understand the fundamental role that money market funds play in both the retirement and investment strategies of Americans,” said Kevin Klingert, head and acting CIO of Global Fixed Income at MSIM. “While the Morgan Stanley money market funds have maintained their $1 NAV throughout the recent unprecedented turmoil and continued to meet their stated objectives of capital preservation and liquidity, we are pleased to participate in the U.S. Treasury Temporary Guarantee program to provide an added level of protection for our shareholders.’

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Pennsylvania Retirement Plan Sues to Halt Merrill Lynch Sale

The board managing York County, Pennsylvania’s employee retirement plan is trying to stop the $50 billion sale of Merrill Lynch to Bank of America.

The York Dispatch reports that the retirement board last week gave the go-ahead for a class-action lawsuit filed Friday, alleging that Merrill Lynch shareholders would be hurt if the sale goes through. The proposed $29-per share sale to Bank of America would cost the county’s retirement plan several hundred thousand dollars, said Mark Gensheimer, an executive vice president with Pittsburgh-based investment firm C.S. McKee, which manages a portion of the county’s plan, in the news report.

The county says in the lawsuit that the proposed share sale price undervalues Merrill Lynch and asks for a halt of the sale, among other requests.

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As of August 31, the retirement plan had about $929,400 invested in Merrill Lynch stock, according to information provided to the newspaper by the county controller’s office. The stock’s market value at that point was about $590,000, which was based on $28.35 per share.

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