Products September 28, 2012

American Funds Introduces Multi-fund RK Tool

AmericanFunds rolled out a multi-fund version of its Recordkeeper Direct tool, with the goal of providing advisers more investment and pricing flexibility.
Reported by

Recordkeeper Direct offers more than 80 investment choices from 20-plus investment managers in addition to the American Funds lineup.

The original Recordkeeper Direct was designed to handle the micro market, where a typical plan has less than than 20 participants and under $1 million in assets, according to Bill Anderson, director of retirement plan services at American Funds.

Want the latest retirement plan adviser news and insights? Sign up for PLANADVISER newsletters.

“With many plans, [the] sponsors and participants wind up paying more in recordkeeping fees each year as the assets in the plan increase,” Anderson said.

The multi-fund version is a tool for the $1 million to $20 million market, with recordkeeping fees based on a fee of $2,500 per plan and $50 per participant.

 

The Markets September 28, 2012

Pension Funds to Get $2.43B in BofA Settlement

Ohio Attorney General Mike DeWine announced an historic $2.43 billion settlement in a class-action lawsuit with Bank of America (BofA).
Reported by

The complaint alleges statements made in 2008 regarding the BofA merger with Merrill Lynch kept under wraps billions of dollars in known losses and billions more in accelerated agreed-upon bonuses to be paid to Merrill Lynch executives and employees (see “Lead Plaintiff Group in BofA Suit over Merrill Deal Files Amended Suit”). The lead plaintiff group includes the State Teachers Retirement System of Ohio; the Ohio Public Employees Retirement System; the Teacher Retirement System of Texas; Stichting Pensioenfonds Zorg en Welzijn, represented by PGGM Vermogensbeheer B.V.; and Fjärde AP-Fonden.    

It is estimated that the State Teachers Retirement System of Ohio and the Ohio Public Employees Retirement System will receive a total of $20 million. This could be higher or lower depending on the number of claims filed. In addition to the Ohio public pension systems, approximately 70,000 individual Ohioans are potential class members in the case.  

Never miss a story — sign up for PLANADVISER newsletters to keep up on the latest retirement plan adviser news.

According to the DeWine’s announcement, the settlement is the single largest securities class action settlement ever resolving a Section 14(a) claim—the federal securities provision designed to protect against misstatements in connection with a proxy solicitation. The settlement is one of the four largest settlement amounts ever funded by a single corporate defendant for violations of the federal securities laws, and the settlement is the largest securities class-action settlement where executives of the defendant were not criminally charged.

 

«