Money Management Executive Latest News

Now that 529 College Saving Plans are here to stay, the NASD has developed an online course to help advisers and others better understand them.

Despite their warm reception, it seems that hedge funds-of-funds may not be as smart an investment as they at first seemed, according to The Wall Street Journal.

The NASD fined American Funds Distributors $5 million on Aug. 30 for violating the NASD anti-reciprocal rule that precludes investment companies from directing trades to brokerage firms in exchange for preferential sales treatment for their funds.

Starting in 2010, millions of American workers could get the chance to have their retirement savings cake and eat it, too.

The mutual fund industry has seen strong inflows thus far this year, and the market outlook appears stable for the rest of the year, pointing to a generally promising outlook for 2006, according to a report from Strategic Insight of New York.

As the new executive director of the Mutual Fund Directors Forum in Washington, Susan Ferris Wyderko hopes to help independent fund directors do their job better and increase the not-for-profit organizations responsiveness to directors needs. This is her first job out of public service in more than two decades, although she believes her new role allows her to continue to indirectly serve the best interests of the investing public.

Edward D. Jones reached a tentative settlement on nine class-action lawsuits for not telling investors it accepted revenue-sharing payments from mutual fund companies to promote their funds. The settlement still must be approved by the United States District Court for the Eastern District of Missouri. The $127 million settlement calls for $55 million in cash and $72.5 million in non-cash vouchers to current customers over three years. In addition, the company must cover legal fees.

Hedge funds are beginning to demand new and innovative technology, and their investment in IT is expected to reach $3.3 billion by 2009, according to a Datamonitor report.

With students returning to school and media interest in 529 college savings plans renewed by the new pension bill, John Hancock College Savings has launched a seven-week campaign to promote its 529 plan, which it offers through Alaska. The campaign includes educational tools and sales and direct mail ideas that financial advisers can use to explain 529 plans to parents, as well as a kit that includes a slide ruler showing the cost of college and estimated savings needed for children of various ages. Parents can view these figures as a lump-sum amount or in monthly or annual payments.

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