Money Management Executive Latest News

As it turns out, size does matter. The asset level of a mutual fund is something that is closely looked at by financial planners and advisors. While companies often tout their total assets under management, having an abundance of assets in a single fund tends to turn advisors away. The worry is not lower returns necessarily, but rather a divergence from investment objectives. Consequently, it's important for marketers and wholesalers to communicate the size of the fund they are selling and what the firm will do if it gets too big, according to advisors.

Clear communication with advisors on how a fund company will address a fund's size is critical, says Jeff Daniher, a financial advisor in Cincinnati.

Increasing competition and rising distribution costs in the fund industry have prompted a growing number of companies to adopt Web-based strategies designed to cut distribution costs as well as differentiate their products and services to advisors and investors.

While legislators have spent the summer debating a controversial bill that would ease regulations regarding who gets to provide 401(k) investors with financial advice, Ted Benna, the inventor of that investing vehicle, is issuing a stern warning to the industry: fix the way the plans are offered, or face obsolescence.

Didn't log on to Mfmarketnews.com last week? Here are some Web exclusives you missed:

From all the announcements regarding new partnerships and product offerings coming out of Morningstar last month, you'd think folks at the Chicago fund researcher had installed cots in their cubicles.

First Union Corp. and Wachovia Corp. last week announced the formation of the merged banks' capital management group and named heads for that group's asset and wealth management units.

SEI Investments Co. EVP Richard Lieb will move to a new role at the asset management firm. After 11 years heading up the company's investment systems and services areas, Lieb will be responsible for strategic development of SEI's global technology and Internet transformation initiatives.

Jeffrey Davis will leave State Street Global Advisors to become Rockefeller & Co.'s CIO, it was announced last week.

Hansruedi Huber has resigned as CIO of the European Warrant Fund, an $87 million closed-end fund, the company announced this week. It was unclear why he resigned.