Money Management Executive Latest News

Sun Life Financial Selects Friesen as CFO in U.S.

NEW YORK-Rising interest rates, a sagging housing market, and inscrutable energy prices all blur into a bleak outlook for 2007. But fund managers at Lipper's "Lipper Leaders" symposium last week said there's money to be made for investors. It just won't be easy.

Performance-based fees are scarce in the mutual fund industry and most likely will remain so, due to the complexity of managing them, the lack of industry standards and the fact that they tend to reward portfolio managers more than they do investors.

(Excerpted from sister publication IDD)

An overwhelming majority of 401(k) investors, 69%, believe they lack investment knowledge, and 67% said their fear of market volatility prevents them from managing their 401(k) properly, according to a study commissioned by John Hancock Retirement Plan Services.

The Securities and Exchange Commission is trying to speed up its approval process for exchange-traded funds.

It remains to be seen whether Marsh & McLennan can find an acceptable bid for its Putnam Investments unit, according to an analyst, in view of the steady outflow of assets under management at Putnam the past nine years.

St. Paul Travelers introduced a new insurance product for investment advisors Thursday. Aimed at protecting the business risks of mutual funds, hedge funds and other investment advisors, it covers various types of exposure, such as failure to adhere to investment guidelines or failure to disclose risks.

The House of Representatives overwhelmingly voted in favor of the Military Personnel Financial Services Protection Act on Thursday, by a vote of 418:3.

Many investors believe hedge funds deliver returns of 20% or more each year. That may be the case in some instances, but the data available on hedge fund performance is tainted and doesn't take into account the hefty fees hedge fund managers charge and the enormous risks they assume, The Wall Street Journal reports.