News: 2009 4th Quarter

IFS Completes Sale of Williams Companies Stock for Williams 401(k) Plan

Some companies are responding to the fiduciary and other issues associated with offering company stock as an investment option in their 401(k) plans by amending their plans to eliminate the investment option as of a fixed date. Winding down a company stock fund requires careful planning and timely, thoughtful communications to plan participants. The actual process of liquidating the shares held in the company stock fund as the deadline for its elimination approaches implicates securities law and ERISA fiduciary concerns that companies often address by engaging an independent fiduciary to manage the liquidation. The Administrative Committee of The Williams Investment Plus Plan engaged IFS to manage the sale of the Williams shares in the Plan’s Company Stock Fund in December to complete the elimination of the Fund by the December 31, 2010 deadline established by a 2005 amendment to the Plan. After considering the stock’s trading and valuation patterns IFS directed the sales on a schedule that we established to minimize the market impact of the sales, avoid unnecessary trading costs, limit the “blackout” periods associated with the IFS-directed sales and expedite participants’ ability to reinvest the proceeds of the sales in the Plan’s other investment options. Fidelity Capital Markets Services executed the sales, which were completed on December 7, 2010.

Harding Presents at Association of Public Pension Fund Auditors Conference

On November 1, 2009, Steven M. Harding, IFS Senior Vice President and Managing Director of the Operational Review Practice, gave a pre-conference presentation on several subjects at the Association of Public Pension Fund Auditors (APPFA) Professional Development Conference held in Sacramento, California. The session qualified for 2 hours of continuing professional education (CPE). Mr. Harding was the founding President of APPFA in 1991.
IFS Favorably Ranked in the November 30, 2009 Issue of Pensions & Investments

IFS received favorable rankings in a series of data points recently compiled by Pensions & Investments. A snapshot of IFS rankings are:

Top consultants by worldwide institutional advisory assets                           #19

Top 25 consultants by total worldwide advisory assets                                 #21

Top 25 consultants by U.S. institutional, tax-exempt advisory assets            #18

Top consultants by total value of searches                                                 #15

Edward D. Patchett (Managing Director) Speaks at IFEBP Annual Conference

Edward Patchett, CFA, Senior Vice President and Managing Director of IFS, presented two educational sessions at the recent International Foundation of Employee Benefit Plans (IFEBP) Annual Conference in Orlando, FL. Mr. Patchett’s first session entitled “Understanding Investment Manager Fees” included an analysis of investment manager fee universes by investment style and asset class. Mr. Patchett also aggregated fees at the total portfolio level, discussed asset-based and incentive fee arrangements and made recommendations for managing costs. His presentation also covered key issues in defined contribution plan and investment consulting fees. Mr. Patchett also co-hosted a roundtable discussion on asset allocation, which focused on the overall economic environment and investment opportunities poised to generate attractive returns in 2010 and beyond.

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