Money Management Executive Latest News

President Bush wants to perform the largest overhaul on Social Security in the pension fund's 75-year history with his proposal for diverting a portion of a workers' wages to private accounts, but one outside entity that stands to profit from the idea is surprisingly mum.

American Funds, a unit of Los Angeles-based Capital Group Cos., pulled in the most amount of money among mutual fund companies in January with net inflows of $8.4 billion, according to research released by Financial Research Corp. on Tuesday. It was followed by the Vanguard Group with $6.2 billion and exchange-traded fund manager Barclays Global Investors with $2.9 billion.

Securities regulators in Illinois are pressuring Bear Stearns to turn over documents that contain proof of market-timing improprieties, Dow Jones reports, citing unnamed sources.

Marsh & McLennan Cos. emphatically stressed Tuesday that it is not putting up Putnam Investments, the company's mutual fund unit, and Mercer Inc., its consulting unit, for sale. Marsh, which reported a fourth-quarter loss of $676 million, is cutting its quarterly dividend in half and slashing up to 2,500 jobs to pay for settlements over allegations that its insurance brokerage unit rigged bids.

A new study by Bain & Co. suggests that more and more affluent Baby Boomers, or those with an average income of $100,000 or more, are rolling over 401(k) money at retirement without the help of a financial adviser.

Fidelity Investments announced Tuesday it is making the fee reductions on five of its index funds to 10 basis points, introduced last August, permanent. The reduction was the most dramatic on the Spartan International Index Fund, which had cost 47 basis points. But even as Fidelity touted the fee reductions as "A Perfect 10!" in advertisements, they included fine print saying, "This arrangement may be discontinued at any time."

Bundling seems to be what 401(k) plan sponsors are ordering for the retirement plan market. Typically, sponsors use different providers to administer their 401(k) and defined benefit plans. But recent reports suggest that may soon change as sponsors look to cut costs and bundle up both plans together to offer a one-stop plan shop, now known as total retirement outsourcing, or TRO.

The NASD has notified Diversified Investors Securities Corp. (DISC), a subsidiary of Diversified Investment Advisors, Inc. (DIA), of a preliminary determination to recommend disciplinary action against it over market timing.

Bank of New York revealed Tuesday that the Securities and Exchange Commission is investigating marketing and distribution costs at its BNY Hamilton mutual fund family. Last fall, BONY revealed in filings that the government and self-regulatory agencies were investigating the bank over its potential failure as a stock transfer agent to find lost shareholders, along with its fund family's relationship to an unnamed fund administrator.

Due to a net loss of $676 million in the fourth quarter, Marsh & McLennan Cos. announced Tuesday it will slash 2,500 more jobs to save $375 million a year, following an earlier downsizing of 3,000 jobs to recognize $400 million in annual savings.