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Phoenix has introduced two fixed annuities, the Phoenix Index Select and Phoenix Index Select Bonus annuities. Both are single-premium annuities designed to be simpler than other products on the market, carrying a 10-year surrender charge, guaranteed principal protection and three optional guaranteed minimum withdrawal benefit riders investors can use to meet their individual income requirements. The bonus annuity offers an upfront 5% premium.

In an unusual move for a large corporation regarding lawsuits claiming excessive 401(k) fees, construction equipment manufacturer Caterpillar decided to repay $16.5 million to 80,000 former and current plan participants. The company also agreed to replace retail mutual funds in the plan with lower-cost institutional funds and hire an independent consultant to review the plan for the next two years.

IndexIQ has introduced the first merger arbitrage exchange-traded fund, the IQ ARB Merger Arbitrage ETF. The fund will invest in global companies that an acquirer has announced it will acquire through a “merger arbitrage.” Thus, the fund will try to take advantage of any price differentials between the current price of a stock and the expected value when the deal is completed.

The PowerShares Build America Bond exchange-traded fund, the only ETF tied to the Build America Bonds program, began trading Tuesday on NYSE Arca. Also Tuesday, Eaton Vance announced the launch of the Eaton Vance Build America Bond Fund, the first actively managed mutual fund to invest in municipal obligations issued under the American Recovery & Reinvestment Act of 2009.

Sensing that the recession is nearing an end but that the recovery will be a long road ahead, Americans are planning drastic changes to the way they approach money, saving and investing, with 18% planning to save more, Country Financial found in a survey of 3,000 people.

ING’s U.S. retirement services division has formed a new business development team dedicated to serving college and university 403(b) funds.

The Securities and Exchange Commission has charged four individuals and two companies with operating a $30 million Ponzi scheme that asked elderly investors to cash out of their 401(k)s and IRAs or use home equity lines of credit to invest in so-called “green” securities.

PIMCO has launched an actively managed exchange-traded fund, the Enhanced Short Maturity Strategy Fund, to help cash investors earn better yields than the near zero percent money market funds now offer. Jerome Schneider, deputy head of PIMCO’s money market desk, will manage the fund.

Institutional investors and financial advisers are still enthusiastic about alternative investments, despite their weak performance in 2008, not to mention their correlation to stocks and liquidity issues, Morningstar found in a survey.

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