Money Management Executive Latest News

NEW YORK - Despite the appearance of some hiccups, a senior annuity sales suitability model regulation will be approved in time for the fall meeting of the National Association of Insurance Commissioners (NAIC) of Kansas City, Mo.

More than three-quarters of 401(k) plan participants, or 77%, expect the U.S. stock market to improve or to at least fare at the same levels of 2002, according to a survey of 615 401(k) investors by Amvescap Retirement. Only 36% expect an uptick in the markets this year.

The Phoenix Companies said its losses widened in the second quarter, slipping to a loss of $49.5 million, or 53 cents a share. The firm lost $37.2 million, or 37 cents a share in the second quarter of last year. Included in this year’s loss is a non-cash charge of $60.4 million, relating to the firm’s investment in UK asset manager Aberdeen Asset Management.

Taking advantage of the expiration of its five-year contract with TIAA-CREF on July 30, New York State’s College Savings Program has selected Columbia Management Group, a division of Fleet Bank, and Vanguard to manage its $1.8 billion 529 plan.

Morgan Stanley will merge three of its stock funds into other funds, Reuters reports.

Weathering downturns on stock markets, reductions in participation and declines in deferral rates, employers continued establishing new 401(k) retirement plans in 2002, when the industry posted a 4% increased in total plans, according to the National Defined Contribution Council (NDCC) and the Spectrem Group.

BISYS reported net income of $33.8 million, or 28 cents a diluted share, for its fiscal fourth quarter ended June 30, and a total of $111.8 million, or 92 cents a diluted share, for its 2003 fiscal year. These earnings represented 9% and 3.5% declines, respectively, from the year-ago periods.

Allmerica Financial has outperformed consensus analyst estimates of performance for the second quarter of 2003, which were 3 cents a share, according to an earnings calendar issued by UBS. The company reported earnings of 45 cents a share, a marked increase over last year, when it had losses of $1.05 per share.

Smith Barney’s separately managed account division, the Consulting Group, has added five portfolios to two of its SMA platforms. For Smith Barney’s Fiduciary Services platform, Goldman Sachs is now the investment manager of the Strategic Growth Portfolio, while Citigroup is the manager of the Value Balanced and the Value Balanced Tax Favored portfolio.

Many financial advisers, money managers and investment experts are now forewarning that stocks, bonds, money market funds and real estate are all headed in the same direction for the foreseeable future: single-digit returns, The Wall Street Journal reports.