Products November 6, 2006

Northern Trust Launches Large Cap SRI Index

November 6, 2006 (PLANSPONSOR.com) - Northern Trust has announced that Northern Trust Global Investments (NTGI) will now offer a Socially Responsible Large Cap Equity Index strategy designed to follow the performance of the Domini 400 Social Index.
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According to a press release, the Domini 400 Social Index is modeled off the S&P 500 and chooses companies based on environmental, social and corporate governance (ESG) factors.

Companies involved in gambling, nuclear power, military weapons, alcohol, tobacco, firearms are not eligible for the index. The index looks for companies with a good record in human rights, employee relations, corporate governance, environmental management and product quality and safety.

“This new strategy reflects the advances made in socially responsible investing, providing exposure to both negative and positive ESG factors without sacrificing diversification across industry sectors,” said Priya Khetarpal, product manager at NTGI, in the release. “We believe ESG research can be integrated throughout the investment process to create investment strategies that maximize investment and social returns,” she added.

Administration November 5, 2006

UnitedHealth Under Fire for Stock Options

May 11, 2006 (PLANSPONSOR.com) - Under fire for the timing of its stock options and the creation of a $1.6 billion option for its CEO, UnitedHealth Group Inc. said it may restate results that could reduce past earnings by as much as $286 million.
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Reuters reports that UnitedHealth also said the Securities and Exchange Commission (SEC) is conducting an informal inquiry into its stock options granting practices. The company said it has identified through its own investigation a “significant deficiency” in its controls relating to stock option plan administration, and accounting for and disclosure of stock option grants, according to Reuters.

In its quarterly filing with the SEC, the company said it may be required to record additional charges for stock-based compensation expense and the charges could be material and require restatement.   It estimated the restatement could decrease net earnings by $150 million in 2005, $84 million in 2004, and $52 million in 2003.

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UnitedHealth said it also may be required to pay additional taxes for compensation tied to certain stock options which were previously exercised, and that it may not be able to take additional deductions associated with certain options in the future. In addition, it could be subject to regulatory fines, penalties or other contingent liabilities, at the conclusion of the SEC inquiry.

Reviews by a committee of independent directors, aided by independent counsel and accounting advisers, as well as the company itself, with the assistance of outside counsel and accounting advisers, are continuing.

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