Delaware Investments of Philadelphia believes that there is an appetite for institutional funds in defined contribution plans and has created a new 401(k) product that offers numerous institutional products to plan sponsors and participants.

The company's Retirement Financial Services unit has created a bundled 401(k) plan called SpectrumSolutions that offers 24 institutional funds, including non-proprietary funds. The plan will be available to customers October 1 but Delaware Investments has already begun marketing the product.

Besides Delaware's own institutional funds, the bundled product offers funds from institutional managers such as Morgan Grenfell, Warburg Pincus Asset Management, Lazard Asset Management and Goldman Sachs Asset Management, all of New York, and Jones & Babson of Kansas City, Mo.

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