Products February 11, 2011

S&P Indexes Blend Equities and Treasuries

Standard & Poor's launched a series of indexes intended for investors with varying risk-reward profiles.
Reported by

The S&P Balanced Equity and Bond Indices combine investable S&P measures of the core asset classes of equity and fixed income, with U.S. Treasury pricing provided exclusively by BGCantor Market Data, L.P., resulting in regularly rebalanced multi-asset indices. 

The S&P Balanced Equity and Bond Indices are constructed with varying risk-reward profiles allowing investors a choice in the amount of risk embedded in the combined portfolio. Each index in the Series is allocated a pre-defined weight of equity exposure, as represented by the S&P 500 Total Return Index, and bond exposure, as represented by the S&P/BGCantor 7-10 Year U.S. Treasury Bond Index.    

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The announcement said the indices currently included in the series are: 

  • S&P Balanced Equity and Bond – Conservative Index.  Long position in the S&P 500 Total Return Index (25% weight), and long position in the S&P/BGCantor 7-10 Year U.S. Treasury Bond Index (75% weight). 
  • S&P Balanced Equity and Bond – Moderate Index.  Long position in the S&P 500 Total Return Index (50% weight), and long position in the S&P/BGCantor 7-10 Year U.S. Treasury Bond Index (50% weight). 
  • S&P Balanced Equity and Bond – Growth Index.  Long position in the S&P 500 Total Return Index (75% weight), and long position in the S&P/BGCantor 7-10 Year U.S. Treasury Bond Index (25% weight). 

 

All of the indices included in the S&P Balanced Equity and Bond Index Series are rebalanced quarterly on the last trading day of February, May, August, and November.   

Compliance February 11, 2011

RadioShack Settlement Deemed Fair

A federal judge in Texas gave final approval to a $2.4-million settlement of a class-action suit against RadioShack for breaching its fiduciary duty.
Reported by

The suit accused RadioShack of using Putnam mutual funds in its 401(k) plan, even though they were overpriced and underperforming. U.S. District Judge Terry R. Means of the U.S. District Court for the Northern District of Texas ruled that the settlement pact was fair and ordered it carried out.

In his approval order, Means awarded class Representatives Jeffrey Cormier and Robert Outlaw $10,000 each, and named plaintiffs, Alan Goldstein, Keith Reiders, and Robert Maxwell, $2,500 each. Means also awarded attorneys representing the class $800,000 in fees and $94,131 in costs and expenses.

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The case had originally included allegations of a separate fiduciary breach over the inclusion of company stock shares after they were no longer prudent to include in a 401(k) plan, but Means dismissed those counts (see “RadioShack Fiduciary Breach Case Plaintiffs Seek Class Action Nod“). 

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