Money Management Executive Latest News

Fulton Financial Corp. in Lancaster, Pa., is preparing to offer a fee-based advisory service for its retail investment customers, the head of its wealth management and trust businesses said.

The days of 401(k) plans being managed by human resources executives inexperienced in orchestrating investment decisions may soon be over. Ninety-four percent of senior executives at 125 companies surveyed by Cowden Associates said they are involved in selecting and monitoring fund companies, administrators and options in their company’s 401(k) plan, and scrutinizing fees. That’s up significantly from only 30% in 2007.

The Blackstone Group reported a $165.6 million profit for the second quarter, thanks to huge gains in its hedge fund businesses, according to the International Herald Tribune. The private equity firm’s hedge funds reported $225.2 million in revenue, offsetting other gains and large losses, including a pretax loss of $185.5 million.

Asset manager Threadneedle International Limited has launched two new mutual funds in the U.S., reaffirming its commitment to the U.S. marketplace.

In spite of their strong records, two Vanguard funds that have been suffering steep redemptions will now be reopened to investors—and industry observers say this is an indication of investors’ skittishness in this weak economy.

Whereas the S&P 500 declined 0.99%, the Dow Jones Industrial Average rose 0.25% and the Nasdaq Composite Index gained 1.42% in July, the Hennesee Hedge Fund Index fell 1.95%.

Annual contribution limits on health savings accounts are preventing investors from accumulating enough money in them to help them gain traction, according to a report from the Employee Benefit Research Institute. For an individual, the annual contribution is currently $2,900, and for families, it’s $5,800.

Vanguard is now permitting its largest international fund, the Vanguard Total International Stock Index Fund, to purchase foreign stock directly, rather than through other Vanguard index funds.

Given the turbulence in financial markets, now may seem an inopportune time for financial advisers to make drastic changes to the way they interact with investors.

MassMutual’s retirement services division is offering a customized 401(k) tool for plan sponsors and retirement plan advisers, based on asset allocation tools from Morningstar.