Money Management Executive Latest News

Reserve Funds’ Primary Fund on Friday will make its sixth payment to investors. The $3.4 billion payment brings total payments to $50.5 billion, or approximately 99% of the fund’s assets as of Sept. 15, 2008, excluding the value of the Lehman Brothers securities it held, now valued at zero. Before the fund’s net asset value fell below $1.00 on Sept. 16, 2008, the fund held more than $60 billion.

After the recent massive meltdown it’s no surprise that 81% of registered investment advisory firms and 79% of brokers/advisors believe that traditional asset allocation relying on stocks, bonds and cash provides insufficient portfolio diversification.

The Securities and Exchange Commission voted 4:1 Wednesday to substantially raise the standards for the types of securities that money market funds may hold; to require them to disclose their holdings and net asset value every month; and to have 10% of their assets liquidly available for daily redemptions and 30% weekly.

Fidelity Investments confirmed Wednesday that Charles Goldman, its head of institutional platforms, is leaving the Boston fund company.

The American Institute of CPAs is offering a CPA-oriented guide on Roth IRA conversions now that the old $100,000 income limit for converting a traditional IRA to a Roth IRA no longer applies.

NEW YORK—Putnam Investments unveiled a new website for its 401(k) plans Monday that keys investors into a monthly retirement income figure, rather than their existing balance or a retirement savings target.

New York Life Insurance has secured the rights as the presenting sponsor of the 2010 Big East Men’s and Women’s Basketball Championships. The men’s championship is taking place March 9-13 at Madison Square Garden, and the women’s games will be held March 5-9 at the XL Center in Hartford, Conn.

In 2009, mutual funds netted a total of $377 billion, with $357 billion, or 95% of that going to bond funds. Outflows from U.S. stock funds were $25.7 billion.

401(k) investors aided by professional investment advice—be it in the form of a target-date default investment, managed accounts or bona fide online advice—earn nearly 2% more (186 basis points) than those who do not receive such help, according to a joint study by Hewitt Associates and Financial Engines.

GuaranteesMatter.com, a microsite from New York Life Insurance, is designed to offer consumers educational and planning materials to help them navigate the changing financial landscape, by showcasing guaranteed products.