Money Management Executive Latest News

Responding to sponsors’ increasing interest in higher returns and more transparent fees, Mercer Investment Consulting will stray away from its tradition of recommending mutual funds, Defined Contributions & Savings Plan Alert reports.

Arizona has decided to extend its 529 college savings plan contract with Waddell & Reed for three years, principally because of strong performance, competitive fees and investment choices, The Kansas City Star reports.

International stocks and mutual funds are expected to extend their impressive rally of this year into 2007, with more investors pouring money into them, Florida’s Sun-Sentinel reports.

Although there were earlier reports that Putnam had its first positive month of inflows in three years, in October, and that the value of its name still held enough clout to command a top selling price, now there are reports that ongoing redemptions and poor performance could hurt those chances.

Investors have filed a lawsuit against American Funds, alleging that the firm paid brokers kickbacks to sell its funds using assets rightfully belonging to investors, Reuters reports.

Deutsche Bank agreed to pay $208 million to the office of New York Attorney General Eliot Spitzer and $17 million to the Securities and Exchange Commission to settle charges that it permitted market timing in its mutual funds and that its broker/dealer allowed clients to late trade funds.

As a result of an internal probe, Fidelity Investments agreed to repay $42 million, plus interest, to funds whose traders and portfolio managers steered trades to a brokerage firm that lavished them with gifts. A final settlement, however, with the Securities and Exchange Commission is still pending.

U.S. Treasury Secretary Henry Paulson discussed with German Leaders the possibility of including hedge fund transparency among the issues broached by the powerful, multi-national Group of Eight, according to the Associated Press.

U.S. Treasury Secretary Henry Paulson discussed with German Leaders the possibility of including hedge fund transparency among the issues broached by the powerful, multi-national Group of Eight, according to the Associated Press.

Top-tier ratings agency Standard & Poor’s plans to begin tracking the operational risk of hedge funds, according to Reuters.