Sign up today and take advantage of member-only content — the kind of timely, cutting edge industry insight that only Money Management Executive can deliver.
  • Exclusive Online Only Content
  • Free Daily Email News Alerts
  • Asset Management Blogs

Fund Forward

Dept. of Labor to Assist China in Setting up 401(k)s

Recently, the National Bureau of Economic Research issued a report debunking the theory that as the 77 million Baby Boomers begin to turn 65 in 2011 and cash out of their stock and bond holdings, the markets will spiral into a bear market. The bureau's argument is that 401(k) assets currently represent only a small fraction of people's retirement portfolios, and as 401(k)s continue to grow markedly in coming years, the influx of new investments will buoy the markets.

Evidently, the Department of Labor isn't buying that theory. In fact, it's taking the extraordinary step of committing to help China to set up defined contribution plans modeled after those in the U.S., as a first step in laying the groundwork to attract Chinese investors to U.S. markets to counter the massive sell-off of Boomers' assets in coming years.

Jeremy Siegel, famed economist and Wharton professor, has warned that the $6.5 trillion that Boomers hold in stocks and bonds could fall 40% in value if buyers don't step up to the plate, which is why he and many other economists are urging the government and investment firms to pursue investors from nations outside of the U.S.

If China's government eases its capital markets to allow citizens to invest abroad, the Chinese could be one of the biggest purchasing blocks of U.S. stocks and bonds. The world's fastest-growing large economy, China is now trying to build a 401(k)-like pension system.

"The savings and buying power of the developing countries is absolutely critical to our own welfare in the future," Siegel recently told The Sacramento Bee. "When all the Baby Boomers try to sell their assets, there are not going to be enough workers in the developed world alone to absorb them. The demand that would be coming from Asia and other developing countries will be critical to support the prices of these financial assets."

China's Boomer population will be retiring after the Boomers in the U.S. By 2040, about 30% of China's population will be 60 or older, whereas in the U.S., the first wave of 61-year-old Boomers is beginning to take early retirement.

Many in China are optimistic that the nation will successfully build out its capital market, now in its infancy, offer defined contribution plans to its citizens and permit investors to place their money overseas. Fund companies that aren't already planning to look to China should take the Department of Labor's lead.

(c) 2007 Money Management Executive and SourceMedia, Inc. All Rights Reserved.

http://www.mmexecutive.com http://www.sourcemedia.com

Recent Posts

Mutual Funds Must Go High-Tech-v. 3.0

Over the last number of years, mutual fund transfer agencies and shareholder communications companies have tried to convince shareholders to accept paperless summary prospectuses, proxies, trade confirmations and electronically stamped signatures. Fund supermarkets and web home pages have broadened their horizons to include market commentary, videostreaming and personal financial news. At the same time, exchange-traded funds, funds-of-funds, hedge FoFs, unified managed accounts, target dates, 401(k) auto enrollment and heightened awareness among people throughout the country of the difficulties of being retired-have taken off.

Test of the Massey Mine

Fund giant boards of directors at AllianceBernstein, American Funds, Fidelity, Vanguard and others are reportedly starting to bring about meaningful change in the corporations in which they are invested. Proof should come any day now, when the shareholder proxy votes from the annual meetings are released. Fund chief executive officers spoke about the power and influence their proxies wield in an interesting Reuters article last week, "Mutual Funds Seek to Shed 'Rubber Stamp' Tag."

Milestones

In 2011, 401(k) plans will turn 30, but the milestones the mutual fund industry has reached in this time are but a nanosecond in the history of U.S. retirement policy. Executives we interviewed for this special edition of Money Management Executive for the Investment Company Institute's meeting in Washington, speak to important milestones of the recent past and into the future. Look inside for observations and forecasts by Ted Benna, Robert L. Reynolds, Dan Fuss, David C. John, Steven Miyao and others.

At Age 30, It's Time for a Revamping for the 401(k)

This year marks the 30th anniversary of the 401(k), the revolutionary retirement savings vehicle that has been annihilating pension plans, empowering individuals to take part in the stock market-and, sadly, that left retirees with the misfortune of leaving the workforce in 2000 or 2008 very badly off. The cracks in the system are prompting many asset managers, regulators and retirement experts to take a hard look at 401(k)s and how they can be fixed.

Index of Posts

70 Comments

Decorative painting and landscape painting, art paintings for sale have a high artistic level and ornamental value.abstract art paintings We can Glimpse from the style of beauty and local culture, experience the exoticcustoms.art deco paintings Composition layout of the whole painting light and dark has caused exude amood, ie,art paintings dense and thick, colorful, gleaming, makes the whole picture and intricate,beautiful, give a sense of the people relaxed and happy. http://www.artforsalecheap.com/

Posted by: jiade j | May 14, 2012 3:10 AM


The NBA announced the first annual awards. NBA Shop The SAN Antonio spurs coach gregg popovich won NBA2011-12 season of "the best coach". Tracy Mcgrady Shoes Gregg popovich led the spurs veterans staged the lockout-shortened season "miracles", Zoom Kobe 7 Shoes in the western conference amongst the elite is obtained in the top of the charts the regular season record. kobe zoom 6 At the same time, the spurs also created the continuous 15 season NBA playoff record of march.

Posted by: jiade j | May 14, 2012 3:09 AM


Nowadays, Cheap Jordan Shoes also happen to be very versatile. So even if you purchased a gleaming new ultra Air Jordans for rowing, your can also use it for campus wear or hanging out. Have Jordan Retro 13 in the family whom you want to bring along to the fairways? They might take to the naturally geared up in quality Jordans 13 with a precise fit, enhanced grip, stability and comfort. Air Jordan 1 will get a kick donning the coolest new versions of Air Jordan 11 with a lightweight feel and extreme stability level when Air Jordan 23 with friends or schoolmates. http://www.discountairjordans13.com/

Posted by: feg g | May 13, 2012 8:29 PM


In particular, products from coach factory outlet with leather design are fashionable, handmade,leading the wave of American pop.It with simple,durable and unique style to win consumers.The coach factory online make no guarantees to their inventory so you may lose a really great deal or style simply because you did not act.To find a Coach Bag of any size, color or style to fit your needs at the coach factory outlet online is a very necessary thing for every beautiful woman.

Posted by: yan l | May 4, 2012 9:27 PM


mulberry uk create super shock many of the style with may completely different role.It has however getting confirmed how they insure the fact that merchandise you purchase will genuinely be reliable mentor product to mulberry uk outlet.

Posted by: online4426 o | April 23, 2012 1:32 AM


Blank Jersey Chris Chelios Jersey Chris Osgood Jersey Customized Jersey Gordie Howe Jersey Henrik Zetterberg Jersey Johan Franzen Jersey Justin Abdelkader Jersey Marian Hossa Jersey Mattias Ritola Jersey Mike Modano Jersey Nicklas Lidstrom Jersey Pavel Datsyuk Jersey Ruslan Salei Jersey Steve Yzerman Jersey Ted Lindsay Jersey Terry Sawchuk Jersey Tomas Holmstrom Jersey Valtteri Filppula Jersey Vladimir Konstantinov Jersey

Posted by: aswdlblnd 1 | March 23, 2012 1:28 AM


Andre Ethier Jersey Casey Blake Jersey Clayton Kershaw Jersey Customized Jersey Dodgers Blank Jersey Fernando Valenzuela Jersey Jackie Robinson Jersey James Loney Jersey Jonathan Broxton Jersey Kenley Jansen Jersey Kirk Gibson Jersey Manny Ramirez Jersey Matt Kemp Jersey Rafael Furcal Jersey Rod Barajas Jersey Russell Martin Jersey Sandy Koufax Jersey Vicente Padilla Jersey

Posted by: aswdlblnd 1 | March 23, 2012 1:27 AM


My sister is working in the Burberry Outlet Stores, she said that they don't have the Burberry Outlet Online website at all ,all of the webiste that are selling Cheap Burberry Handbags are not real ,they may be selling the copys of burberry with high quality.

Posted by: damon g | March 19, 2012 10:30 PM


cheap air max After being seen air max for sale talking to openly gay air max shop Kurt (Chris Colfer) on Valentines Day cheap air Max 2009, however, Karofskys new schoolmates began to call him homophobic slurs and cyberbullied him, eventually pushing him to attempt suicide.

Posted by: airmax s | March 7, 2012 3:28 AM


Hi,Lee.What a nice comment!Relly,I'm so happy to read your articles.gallbladder pain

Posted by: sajib k | February 18, 2012 11:20 AM


The brand names who specialise in just Moncler Mens Coats are growing in popularity and noteriety, and New Moncler Down Jackets are widely offered on the web and in selected large Moncler Women Jackets. 1 well recognized French brand name is 'Weekend a la Mer', and they offer you a smaller but stylish and sophisticated Moncler Mens Jackets. Being a French brand Discount Moncler Mens they certainly offer both warmer selections for the Winter via to Spring months, as well as http://www.monclermenstore.com/.

Posted by: feg g | January 4, 2012 7:59 PM


has an interesting story out.Genessy air max 90 the 2010-11 season, the fact that jazz is close to $ 17 million loss is expected to publish the next CBA appropriately small market teams does not help, Larry H. Miller, the team's ownership to that group of companies quoted on the source, the sale could nike air max put jazz.

Posted by: fds d | January 4, 2012 12:37 AM


Mulberry Bags are hot sale with free shipping in Mulberry Outlet Store. Welcome you come here,come our uggs outlet stores. ugg outlet stores is the best stores of ugg boots outlet,offer all kinds of cheap ugg sale. Ugg outlet store sales various of discount uggs products,including boots, sandals, slipper, welcome to ugg outlet store to buy high quality products. Buy Mulberry Bags enjoy top fashion and save up to 70% off now. Discount Mulberry bags sale,Mulberry Outlet.Buy Mulberry bags from our Mulberry factory shop outlet! 70%Off Mulberry Bags, Mulberry Sale, Mulberry Purses, Mulberry Alexa, Mulberry Bayswater,Top Quality Free Shipping

Posted by: zzz f | December 22, 2011 7:05 PM


Mulberry Bags are hot sale with free shipping in Mulberry Outlet Store. Welcome you come here,come our uggs outlet stores. ugg outlet stores is the best stores of ugg boots outlet,offer all kinds of cheap ugg sale. Ugg outlet store sales various of discount uggs products,including boots, sandals, slipper, welcome to ugg outlet store to buy high quality products. Buy Mulberry Bags enjoy top fashion and save up to 70% off now. Discount Mulberry bags sale,Mulberry Outlet.Buy Mulberry bags from our Mulberry factory shop outlet! 70%Off Mulberry Bags, Mulberry Sale, Mulberry Purses, Mulberry Alexa, Mulberry Bayswater,Top Quality Free Shipping

Posted by: zzz f | December 22, 2011 7:02 PM


One classic type of Moncler Women is the windbreakers. These type of men's coats are wearable for all types of seasons. Moncler Winter Jacketst is made of fabric that could stand through time and it belongs to the category of light men's Moncler Boots. During winter season, these type of Moncler Coats Women could protect you from the chilling wind outside and at the same time warmth your body. And Moncler Jackets Men could also be wear during winter since it is made of lightweight materials which is warm for you to bear Moncler Coats Women.

Posted by: patrick2009 l | December 18, 2011 8:56 PM


The best men's Cheap Moncler coats are fashionable, affordable and keep you warm. Make sure you shop around when looking for your Moncler Vest Sale and you will find one that fits the Moncler Jackets UK. I have owned several throughout the years and have been pleased with every Moncler Mens Jackets purchase decision I have made. With an ever increasing number of designers Moncler Womens Jackets entering the market it is easier and easier to find a great pea coat for Moncler Coats Online.

Posted by: patrick2009 l | December 18, 2011 8:54 PM


Green Bay Packers Jerseys A.J. Hawk Jerseys Aaron Kampman Jerseys Aaron Rodgers Jerseys Al Harris Jerseys B.J. Raji Jerseys Bart Starr Jerseys Brandon Jackson Jerseys Brett Favre Jerseys Charles Woodson Jerseys Clay Matthews Jerseys Donald Driver Jerseys Greg Jennings Jerseys James Starks Jerseys Jermichael Finley Jerseys John Kuhn Jerseys Jordy Nelson Jerseys Nick Barnett Jerseys Nick Collins Jerseys Paul Hornung Jerseys Randall Cobb Jerseys Ray Nitschke Jerseys Reggie White Jerseys Ryan Grant Jerseys Tramon Williams Jerseys William Henderson Jerseys

Posted by: supra s | November 26, 2011 12:22 AM


With a chic and unique design, New Moncler Down Jackets are also a viable option for you gentlemen. You can pair them with Moncler Mens Coats, a coloured scarf and a pair of moccasins that are terrific for a movie night. Moncler Women Jackets have that fluffy feel which transforms them in a highly comfortable Moncler Mens Jackets item. One Moncler Online Store cannot ignore their miraculous property of preserving the heat and bestowing upon the body the type of Discount Moncler Mens that is so indispensable in the http://www.monclermenstore.com/.

Posted by: feg g | November 25, 2011 11:20 PM


With a chic and unique design, New Moncler Down Jackets are also a viable option for you gentlemen. You can pair them with Moncler Mens Coats, a coloured scarf and a pair of moccasins that are terrific for a movie night. Moncler Women Jackets have that fluffy feel which transforms them in a highly comfortable Moncler Mens Jackets item. One Moncler Online Store cannot ignore their miraculous property of preserving the heat and bestowing upon the body the type of Discount Moncler Mens that is so indispensable in the http://www.monclermenstore.com/.

Posted by: feg g | November 25, 2011 11:19 PM


Why do I take an examination of tour guide, later to be a tour guide? mulberry outlet Want to be engaged in tourism industry after? Actually I also don't know, take an examination of this card is my personal interests, be is a employment chips to it, had from the moment the, I plan to learn, to the back, this year I have put this card scored, mulberry outlet uk the results on the road this out so many things, but those things are all is I want to do, and I can catch all take, committee on duty, lane association do agency exam psychological consultant. cheap mulberry A wide range of learning the more the better, eyebrows pushed beard, although busy although tired didn't entertainment time, didn't appreciate the autumn scenery of the time,mulberry handbags even the supermarket also haven't been to a few times, although not whether can do it better, but I very substantial, cheap mulberry handbags I get my youth these good time. To duck call her sister said just call me the dinner, the in the mind secretly pleased, mulberry sale hurriedly say good good results she says she is in the car didn't want to come back. So all the plans fell through all, inconsolable, really want to give Lao zhou a few box on the ear. spy4te

Posted by: zhan123 z | November 16, 2011 9:41 PM


Why do I take an examination of tour guide, later to be a tour guide? mulberry outlet Want to be engaged in tourism industry after? Actually I also don't know, take an examination of this card is my personal interests, be is a employment chips to it, had from the moment the, I plan to learn, to the back, this year I have put this card scored, mulberry outlet uk the results on the road this out so many things, but those things are all is I want to do, and I can catch all take, committee on duty, lane association do agency exam psychological consultant. cheap mulberry A wide range of learning the more the better, eyebrows pushed beard, although busy although tired didn't entertainment time, didn't appreciate the autumn scenery of the time,mulberry handbags even the supermarket also haven't been to a few times, although not whether can do it better, but I very substantial, cheap mulberry handbags I get my youth these good time. To duck call her sister said just call me the dinner, the in the mind secretly pleased, mulberry sale hurriedly say good good results she says she is in the car didn't want to come back. So all the plans fell through all, inconsolable, really want to give Lao zhou a few box on the ear. spy4te

Posted by: zhan123 z | November 16, 2011 9:40 PM


His blue-collar upbringing offered him a natural rapport with herve leger dresses middle-class America. He governed as a fiscal hard-liner in a left-leaning state, winning his karen millen dresses second term in a year when Republicans elsewhere got drubbed. He made inroads with herve leger bandage dress the right crowds and assembled an all-star cast of advisers with loads of karen millen outlet presidential campaign experience.Pawlenty ran a traditional operation. In the lead-up to his campaign, he spread checks around to local politicians in key states through a political action committee while putting a heavy focus on small-scale events in places such as Iowa and chanel dress New Hampshire.

Posted by: sdsd s | August 19, 2011 2:56 AM


It's not yet clear the size of the womens clothes electorate Pawlenty frees up. GOP activists commonly praised his ladies dresses skill and background, but many were holding out until they met other candidates. This was designer dresses an especially common reaction among a class of designer clothes pro-business Republicans in Iowa.On paper, Pawlenty, 50, seemed to have all the women designer clothes right ingredients as a candidate.

Posted by: sdsd s | August 19, 2011 2:54 AM


Hours later, he reversed course in the face of rings a daunting challenge: convincing donors who were slow to give in the months charms leading up to the straw poll that he was still a viable candidate. Had he stayed in the bracelets race, he would have been competing for earrings money in an expanded field as Perry, a prolific fundraiser with deep ties to the party's necklaces biggest donors, entered the race.Said Pawlenty: "We weren't going to have the bangles fuel to keep the car going down the road."

Posted by: sdsd s | August 19, 2011 2:29 AM


Hours later, he reversed course in the face of rings a daunting challenge: convincing donors who were slow to give in the months charms leading up to the straw poll that he was still a viable candidate. Had he stayed in the bracelets race, he would have been competing for earrings money in an expanded field as Perry, a prolific fundraiser with deep ties to the party's necklaces biggest donors, entered the race.Said Pawlenty: "We weren't going to have the bangles fuel to keep the car going down the road."

Posted by: sdsd s | August 19, 2011 2:10 AM


"What I brought forward, I thought, was a rational, chanel flap bag established, credible, strong record of results, based on chanel handbags experience governing -- a two-term governor of a blue state. But I think the audience, so to speak, was looking for chanel 2.55 handbag something different," he said.In recent weeks, he withered under the rise of tea party favorite Michele Bachmann, whose rallying cry is chanel classic bag a sure-fire applause line about making Obama a one-term president, and libertarian-leaning Ron Paul, as well as the promise of chanel wallet Texas Gov. Rick Perry, the sharp-tongued Texan who entered the race Saturday.

Posted by: sdsd s | August 19, 2011 1:59 AM


Well considering it's now 2011 I think the theory has come true to some degree. -Sabrina @OMDS

Posted by: Sabrina D | August 4, 2011 11:30 AM

Lee Barney

Lee Barney served as editor of Money Management Executive from 2002 to 2010. Previously, at United Media’s Wall Street & Technology magazine and Risk/Waters Information Services, she covered financial IT. For TheStreet.com, she wrote the daily “Meet the Street” column covering a broad spectrum of market-moving events. Lee began her career as a reporter in Tokyo with The Japan Times and was executive editor of Spotlight magazine.