Money Management Executive Latest News

Investors who recently retired or changed jobs say they were stressed and confused when it came time to roll their 401(k)s into other investment vehicles and would have welcomed help from their plan providers, according to a study conducted by consulting firm Spectrem Group.

Sherry Copper, chief economist at BMO Nesbitt Burns Economics, said in a recent report that economic growth in the U.S. should rebound with "potent stimulus coming from low interest rates and rising deficits," after revisiting recent lows in the fall.

Transfer agent, accounting and administrative firm PFPC has created an online cost basis accounting service specifically for broker-controlled mutual fund accounts. Called PFPC-CBA, the tool automatically calculates gains and losses at the time of redemption for broker-controlled accounts. It also enables broker/dealers to trace the cost of transfers, fund mergers, share class rollovers and stock splits.

Another US firm is backing out of foreign market expansion: Des Moines, Iowa-based Principal Financial Group has reached a definitive agreement to sell the bulk of BT Financial Group to Westpac Banking Corp. an Australian bank. Principal will retain the BT Office Trust, an office -pace real estate trust, as well as the international fixed income and currency asset management businesses.

Scudder Investments, the US retail brand for Deutsche Asset Management, has announced two executive appointments. David Edlin has joined the firm as national sales manager and Elizabeth Clapp as head of relationship management for the broker/dealer and banking channels.

Delaware Investments has formed the Wealth Management Group and hired Stephen Starnes and Theodore Smith to lead the new unit. It will initially work to expand the firm's managed accounts business and, over time, develop a more complete wealth management business, according to Delaware.

Eaton Vance Distributors has added two members to its managed account sales and marketing group. Robert Ellerbeck and Lindsay Kidder have joined the firm as regional directors, expanding the staff to 14 since its inception at year-end 2000.

Safeco Mutual Funds has signed an agreement with FT Interactive Data to use the financial information provider's Fair Valuation Service. The service, which FT Interactive calls the first of its kind, combines its fair-value methodology, historical data and a support infrastructure to provide fund families with tools to perform fair valuations in global markets to meet the guidelines of the Securities and Exchange Commission.

Reserve Funds has tripled the level of FDIC insurance on Reserve Insured Deposits, an insured money market account. It is not a mutual fund but does offer some features of a money market mutual fund.

Speaking before a national meeting of plan sponsors of American Express Retirement Services recently, David Wray, president of the Profit Sharing/401(k) Council of America, said the nation's defined contribution systems have held up.