Portfolio

ProFunds Group has hired Joanne M. Hill as head of investment strategy. In this new role at the exchange-traded fund shop, Hill is responsible for research, development and execution of investment strategies.

Putnam Investments announced Wednesday it will lay off 260 people, or about 10% of its staff, on Thursday, Dow Jones reports. Most of the people being let go work in distribution or operations, but a few are in sales.

Due to the tremendous amount of money that high-net-worth and 401(k) investors have that needs to be put to work, the asset management industry will survive and thrive, despite the current gravitation to conservative investments amid the market turmoil.

More states are offering conservative options in their 529 plans, some, such as Utah, even now including FDIC-insured savings accounts. Unlike other states’ bank-deposit products, Utah doesn’t require a minimum contribution.

Tiger 21, a networking group for high-net-worth and ultra-high-net-worth investors, reports that these investors reduced hedge fund weightings in their portfolios from 11% in 2007 to 2.8% in 2008.

Sens. Tom Harkin (D-Iowa) and Herb Kohl (D-Wis.) have reintroduced legislation, the Harkin/Kohl Defined Contribution Fee Disclosure Act of 2009, that would require 401(k) plan providers to clearly disclose all of the fees they charge. The senators cite AARP research that shows if a 35-year-old invested $20,000 in a 401(k) plan over 30 years that yielded 6.5% a year and cost 0.5% in fees, their remaining balance would be $132,287, but if the fees were 1.5%, they would have only $99,679, or 25% less.

Van Kampen has hired Elizabeth Hughes Eginton as managing director, head of product and marketing. In this new position at the firm, Eginton will report to President and CEO Jerry Miller.

Debra Ryan, the longtime girlfriend of Samuel Israel III, who was found guilty of swindling Bayou Management hedge fund investors out of more than $400 million, pled guilty Tuesday to aiding and abetting the Israel when he was a fugitive.

The economic turmoil has prompted smaller employers who previously hadn’t considered setting up a 401(k) plan to do so in light of the beaten down values, The Wall Street Journal reports.

Fidelity Investments is shaking up its stable of portfolio managers who delivered disappointing returns in 2008, The Wall Street Journal reports. In recent weeks, one manager has left the company, two were demoted to analyst and Fidelity is currently trying to reassign two others.