Money Management Executive Latest News

With Financial Research Corp. predicting that flows in load products will outstrip those of no-load funds by the end of next year, get ready for more fund companies to join the ranks of Zurich Scudder and Credit Suisse, which in the past year switched nearly all of their offerings to load funds.

While companies and 401(k) plan providers are targeting participants with educational materials, more options and new features aimed at increasing participation rates, contribution levels and plan diversification, participants do not appear to be catching on to that message.

The perceived tax advantages for those who inherit mutual funds has frequently been cited as a major reason for investing in mutual funds rather than variable annuities. However, recent tax law changes indicate that those advantages may be eliminated in the future.

Switching a fund complex's offerings from no-load to load products may seem like it would generate a tremendous amount of cash--and, provided a company garners positive flows, it does. But Credit Suisse Asset Management, which said this month that it will add loads to all of its 28 funds by year-end, says much of that revenue is sapped by costs associated with competing in the adviser channels.

Sectoral Asset Management, headquartered in Montreal, has set its sights on entering the U.S. mutual fund market--through a sub-advisory side door.

Sectoral Asset Management won't ally with just any fund company.

David Znamierowski has been named president of Hartford Investment Management, a subsidiary of The Hartford Financial Services Group. He will also serve as the subsidiary's CIO.

Kathleen O'Halloran, the National Investment Company Service Association's [NICSA] newly appointed director of education, joined Colonial as its director of training in 1986, just about the time new government regulations clamped down on investors' ability to totally duck taxes on their IRAs.

In an effort to provide better education to mutual fund executives and expand its presence globally, the National Investment Company Service Association [NICSA] launched a new Web site based on a book by author and fund operations specialist, Lee Gremillion.

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