Money Management Executive Latest News

Although the 401(k) market appears saturated and assets shrank in 2000, new legislation recently passed in Congress should bring in new assets, requiring fund companies to double their efforts at marketing to plan sponsors, according to analysts in the retirement industry.

At 24, Carmen Caldwell has already invested some $700 in mutual funds. And unlike many investors her age, she took the initiative to set up the account herself.

Alliance Capital Management of New York is asking shareholders of the closed-end Korean Investment Fund to approve a proposal to convert to an open-end mutual fund. But the conversion, which Alliance said will alleviate the fund's persistent discount, will bring with it two stringent redemption fees aimed at preventing a severe outflow of assets. It will also mean the introduction of a 0.30 percent 12b-1 distribution fee.

Americans may understand their 401(k), stock and mutual fund investments fairly well, but when it comes to variable life insurance and annuities, there is a considerable lack of knowledge, according to a recent study of high income professionals conducted by Nationwide Financial Services of Columbus, Ohio.

Credit Suisse Asset Management of New York, adviser to the Credit Suisse Warburg Pincus Funds, will run the first of four new print ads in the Monday, June 4 issue of The Wall Street Journal, according to the company.

Stock mutual funds saw $19.3 billion in net new cash flows during April, a turnaround from March's record decline in net flows, according to data released last week by the Investment Company Institute.

LOS ANGELES - Regulation Fair Disclosure, which the SEC put into effect last October, generated the most attention at the annual conference of the Association for Investment Management and Research here late last month.

FleetBoston Financial and Liberty Financial, both of Boston, are said to be negotiating the sale of Liberty’s asset management unit to Fleet, according to the Boston Herald.

Legg Mason of Baltimore announced yesterday that it will acquire Private Capital Management, a high net worth manager in Naples, Fla. in a cash and incentive deal that could reach $1.38 billion.

Financial advisors want fund companies to disclose their portfolio holdings more frequently and to include more detailed data in those reports, according to a study released today.