Money Management Executive Latest News

Conservative offerings and more focused customer attention will be the tenants of the fund industry going forward, according to speakers at the recent “Future of Fund Management” conference in London.

Bank of America is merging its premier banking into Merrill Lynch Global Wealth Management, and as a result, several hundred people will lose their jobs.

Bond funds took in $5.64 billion but stock funds lost $232 million in the week ended March 18, according to the Investment Company Institute.

Morningstar is now offering information on fund flows and market share to its institutional clients through its Morningstar Direct platform.

Federated’s assets rose 31% in the final five months of 2008, from $271.1 billion on June 30 to $355.7 billion at year’s end. During the whole year, the firm’s money market funds took in $110 billion.

Testifying before the Senate Banking Committee on Thursday, Securities and Exchange Commission Chairman Mary Schapiro vowed to impose stricter regulations on a broad array of securities and practices, including money market funds, whose holdings would adhere to stricter credit quality, maturity and liquidity standards.

Stable-value funds, available in such tax-deferred accounts as 401(k)s, have been attracting a lot of attention lately, having returned 4.7% in 2008, compared to the Dow’s 33.8% decline, The Wall Street Journal reports.

Hit with $3.2 billion in redemptions in the first quarter, an 11% reduction in assets under management, Man Group said it plans to reduce its headcount by 15%, or approximately 270 positions, to save $60 million a year.

Healthcare costs for a 65-year-old couple retiring in 2009 would total $240,000 over the remainder of their lifetimes, up 6.7% from the $225,000 needed in 2008 and a whopping 50% from $160,000 in 2002, according to estimates by Fidelity Investments.

Putnam Investments has launched a new defined contribution platform for financial advisers and plan sponsors, using recordkeeping from FASCore, another subsidiary of parent company Great-West Lifeco.