Money Management Executive Latest News

The best way to get investors the lowest 401(k) fees possible is to automatically enroll as many of them as possible into big plans with high contribution rates, according to a study released last week on the economics of 401(k) and defined contribution retirement plans by Deloitte and the Investment Company Institute.

Whether driven by the demands of potential or existing investors, regulators or a new strategic direction, hedge fund and private equity firms are moving beyond their historically entrepreneurial outlooks to enhance their operational risk management, financial controls (SOX and SAS 70) and internal audit.

While mutual funds aren't technically required to start using the short-form, summary prospectus until 2011, companies that switch early could see significant savings in printing and mailing costs.

Legg Mason has just laid off 40 workers, most of whom worked in administrative support in Connecticut and New York. Five of the workers worked in Baltimore. None worked in investment management.

The number of Americans who believe they will live a comfortable retirement has fallen markedly to 41%, down from 59% who believed this in 2002, Gallup found in its annual economy and personal finance survey.

Hedge funds will reorganize following sharp declines last year and into 2009 to emerge stronger and top $2.6 trillion in assets by 2013, predicts The Bank of New York Mellon and Casey Quirk.

Futuretrust Banking Center is offering customers a checking account focused on 529 college savings. The account earns 1%, which is deposited into parents’ 529 college savings plan each month.

Putnam Investments plans to double its 401(k) wholesalers from five to 10 by year-end, Defined Contribution & Savings Plan Alert reports. In fact, Putnam might even hire more, and it will definitely continue to hire 401(k) wholesalers in 2010, said Edmund Murphy, head of Putnam’s 401(k) business.

Both retail and institutional money market fund investors withdrew money in the week ended April 15, with the category losing $28.49 billion, the Investment Company Institute said. Total assets now stand at $3.818 trillion.

MassMutual has just laid off 65 workers, with most of the layoffs occurring in its Boston office, and the cuts spanning all departments—including finance, marketing and sales.