Money Management Executive Latest News

American Express Retirement Services is offering a free educational service for defined contribution and pension plan sponsors. Called Plan Sponsor Ed, it is designed to keep those managing 401(k)s and other types of retirement plans abreast of news and key issues in managing such plans. Plan Sponsor Ed is based on training courses that American Express developed for its own employees.

A value-oriented portfolio that Morningstar began tracking a year ago and dubbed "The Tortoise," returned 20%, whereas a growth-oriented "Hare" portfolio lost nearly 19% of its value, Morningstar announced today. Morningstar launched the two portfolios, which have averaged 15 holdings apiece, last June and is basing these performance figures on the 12-month period ending June 17.

Although banks have dominated the overseas sale of mutual funds and have served as a barrier to U.S. fund companies looking to enter foreign markets, the international bank channel is losing its dominance, according to a recent report from Boston research firm Cerulli Associates.

As President Bush laid out a tough new stance last week on the increasing number of accounting scandals that plague Wall Street, fund executives turned their attention to accounting practices. Many executives said that portfolio managers have been too lazy about assessing the risk involved with the stocks they choose.

Of all investment constituencies, mutual fund managers may have the most powerful tool to keep CEOs in line - nearly $4 trillion invested in U.S. equity securities.

Financial planner Ric Edelman got a shock this summer when he opened his bill for the computer services he receives from fund researcher Morningstar.

In a recent letter to the Securities and Exchange Commission, the Investment Company Institute supported the SEC's proposal to amend Form 8-K under the Securities Exchange Act of 1934, but suggested that several changes be made. Form 8-K is used to report the occurrence of any material events or corporate changes that are of importance to investors.

A survey conducted by a non-profit group devoted to educating people about retirement investing released a survey showing that roughly half of the nation’s retirement investors rely on themselves instead of advice from a financial planner or employer.

Even if WorldCom totally collapsed, it would not have harmed the nation’s 401(k) savings and pension plans, according to the Employee Benefit Research Institute (EBRI). Of the $3.7 trillion held in stocks in 401(k)s and pension plans, if these plans had owned all of the outstanding $41.5 billion in WorldCom stock last fall, it would have represented only 1.1% of their assets, according to EBRI.

Mike McNabb is the director of State Street Global Advisors of Boston's institutional sub-advisory group, which offers a variety of unique sub-advisory services, such as interim management.