Investment Managers Vie For FRS Employee Savings
FIVE PROMINENT investment managers, are competing to handle .Savings that Federal Reserve System. employees put into the stock market..</br></br>The savings are in ÛªÛª a Thrift Plan that the powerful national bank started 18 months ago. The five investment managers have two- units risls and fa* with the market, just as mutual fund shares do. At the beginning, bn Jan. 1, 1970, an employee would have had to pay $10 a unit to join the stock program. Five months later, after tfie market crashed, his investment would have been</br></br>be high or low. 'she Federal Reserve knows it is in a sensitive, exposed position and has tried to make certain -that its stock plan would be beyond suspicion. Each month's contributions go directly to Equitable Life, which administers both the stock and income</br></br>year contracts and are bn notice that the Federal Re- , serve will appraise their performances at the end of the trial period.</br></br>Officials estimate that the stock fund now totals $10 million. It is divided into five roughly equal shares that are managed by Prudential Insurance Co., Wall StreetÛªs prestigious Morgan Guaranty Trust Co., and three well-known mutual funds: De Vegh, Johnston and Windsor. A SPECIAL Federal Reserve committee investigated a large number of equity managers before settling on the five that were chosen. Officials say two have done a better job than the other three because they refrained from buying stocks while the market was sinking during the winter and spring of 1970.