Money Management Executive Latest News

As the 77 million Baby Boomers begin to retire, the market for helping them manage their retirement income will begin to boom as well. Millions of retirees will be looking for financial advice and will likely turn to their local banks first, retirement experts say.

Mutual fund managers have been increasingly gravitating toward alternative investments as a way to boost returns and compete with hedge funds. By some estimates, alternative investment funds could soon account for as much as 10% of assets in mutual funds.

Sustainable Asset Management has submitted filings with the Securities and Exchange Commission to offer two funds, the SAM Sustainable Water Fund and the SAM Sustainable Climate Fund, and plans to introduce other sustainable funds in the near future.

For all of the talk about tremendous salaries for hedge fund managers and executives, they earn an average of $250,000 a year, and only 3% earn more than $1 million a year or more. Managers earn an average of $364,566 a year, and analysts earn $205,381.

There’s been talk of actively managed exchange-traded funds for nearly 10 years now, and six companies have either submitted filings or requests for regulatory relief with the Securities and Exchange Commission to offer such funds, Pensions & Investments reports.

California is looking to require hedge funds and private equity firms to register as investment advisors, HedgeWorld.com reports. The California Department of Corporations would achieve this by canceling a rule that has exempted those types of organizations from having to register.

Speaking at the Investment Company Institute’s meeting in Washington on technology and operations, Andrew Donahue, director of the division of investment management at the Securities and Exchange Commission, warned fund companies to be careful about outsourcing back-office functions, particularly if they are trading complex securities, such as derivatives.

Helane L. Morrison, regional director of the Securities and Exchange Commission’s San Francisco office since 1999, will be leaving at the end of the month to become chief compliance officer, general counsel and a principal at Hall Capital Partners.

Nuveen Investments introduced a line of target-date funds specifically for defined contribution plans on Wednesday. Wilshire Associates will handle the funds’ asset allocations on a dynamic basis, paying specific attention to market risk, longevity risk and inflation risk.

Many young adults between the ages of 25 and 34 have unrealistic expectations about retirement, according to a report from Edward Jones, purposely released on Wednesday to coincide with National Save for Retirement Week.