Portfolio

If Ted Benna, the originator of the concept of 401(k)'s, has his way, 401(k)'s could become completely flexible, portable, and participant-directed within the next ten years.

Exchange-traded funds are not the only exotic new product shaking up the mutual fund industry. A new breed of customized, web-based baskets of stocks has recently come to market.

If new employees were automatically enrolled in 401(k)'s, mutual fund companies might collect assets from the 15 percent of the population that fail to sign up for 401(k)s, fund executives and consultants said.

California Federal of San Francisco has just joined the growing number of banks offering checking accounts with a "sweep" function that invests excess money in money market mutual funds.

In response to the increasing popularity of exchange-traded-funds, two firms are about to introduce two variations of the product.

Standard & Poor's Retirement Services, the investment advisory subsidiary of Standard & Poor's Investment Services of New York, has received an exemption to the Employee Retirement Income Security Act. The exemption will safeguard it and plan sponsors who use its services against fiduciary liability.

Separately-managed account assets grew four percent during the second quarter, according to Cerulli Associates of Boston.

Following its acquisition of U.S. Trust of New York this past June, Charles Schwab & Co. of San Francisco will offer an $800 million private equity fund for wealthy investors this fall, a Schwab spokesperson said.

Mutual fund companies should take note of 401(k) plan sponsors' growing interest in co-mingled funds, a defined contribution alternative to mutual funds that offers lower fees, according to industry executives and consultants.

SEI Investments of Oaks, Pa. will introduce after-tax performance reporting for all SEI investor accounts in the fourth quarter of this year.