Money Management Executive Latest News

In response to the Securities and Exchange Commission’s charge that one of its representatives improperly sold mutual fund B shares and that it failed to monitor its sale of various classes of mutual funds, Prudential Securities has agreed to pay $382,000. However, Prudential neither confirmed nor denied the allegations. The settlement broke down to $300,000 in civil penalties, and $82,000 of which will serve as reparations to investors reportedly hurt by the companies’ conduct.

AARP, a 35 million-member non-profit advocacy organization of people 50 years of age and older, threw its support behind many of the provisions of the Mutual Funds Integrity and Fee Transparency Act of 2003 on Thursday, ahead of Friday’s markup of the proposal.

Janus bond fund manager Sandy Refenacht is quitting the firm, becoming one of the latest in a string of people to leave the firm, Reuters reports. He reportedly is going to start his own investment company focusing on high-yield bonds. He had managed the Janus High-Yield Fund and the Janus Short-Term Bond Fund. Combined, the funds have $1.5 billion in assets.

It appears 401(k) participants want plan sponsors to be better matchmakers, as research shows doubling a 401(k) match increases employee contributions.

The good news is Americans are living longer. The bad news is they will likely outlive their retirement savings without better planning. Results from the MetLife Reitrement IQ test show workers are significantly underestimating their longevity and how much they will need to save to last them throughout their golden years.

Because they offer personalization and advice, separate accounts will lure a good portion of the trillions of dollars sitting on the sidelines back into the equities market, a report from TowerGroup predicts.

State Street, the giant mutual fund custodian, will take a $196 million restructuring charge in the second quarter to cover the voluntary buyout of 3,100 of its employees, Reuters reports.

The Consumer Federation of America (CFA) is issuing a consumer alert to federal and state lawmakers that the National Conference of Insurance Legislators (NCOIL) has a strong industry bent.

Fund sponsors seek the highest returns for the investor, yet also desire to turn the highest possible profit for themselves, a Reuters columnist attests. The expense ratio of the average mutual fund recently stood at 1.36%, nearly 50% higher than in the late 1970s, Reuters quotes John Bogle, Vanguard founder, as saying.

Morningstar Associates, the registered investment advisor subsidiary of Morningstar, Tuesday announced that EPIC Advisors, a provider of custom 401(k) plans, will provide Morningstar’s ClearFuture online retirement guidance and advice to plan sponsors.