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March 15, 2010

 Past Issues

Mutual Funds

Week In Review

9% of Finance Execs Planning to Hire Soon, Only 1% Bailed Out of Stock Funds at Height of Stock Market Volatility, JPMorgan Fund for Near-Retirees Takes on Unusually High Risk, Folio and Alliance Benefit Offer Turn-Key 401(k), Money Funds Welcome Fed's Reverse Repos, Caterpillar and Hartford Life 401(k) Fee Cases Embolden Workers, Seasoned National Accounts Pros Vital to Profitability, FRC Says Advisers Relying More on Internal Wholesalers, and RIAs Look to Social Media and Alternatives for Growth.

Once Investors Flee Bonds, Equities Will Be Ready For Their Close-Up

NEW YORK -- Experts predict equities and equity mutual funds could have a double-digit rally later this year -- if investors respond as they should and flee a future correction in the bond market. Retail and institutional investors still leery of the stock market have been pumping billions of dollars a week into municipal bond funds (see related story, page one), causing bond prices to soar and stock prices to struggle, but some portfolio managers say they're worried that the natural balance between stocks and bonds has swung off-kilter and may be headed for a short-term price correction.

Record Money Again Flowing to Muni Funds

Investors continue to stuff municipal bond mutual funds with cash, supporting bond prices even as by some measures they are nearly as expensive as they have ever been. Early last month, it appeared fund flows had finally slowed down. Cash was landing in municipal funds at a rate of less than $1 billion a week for the first time in six months. Now it appears that may have just been a blip.

Retirement

Retirement Confidence Belies Vast Unpreparedness

American workers are feeling more confident about being able to retire than they were last year, but their expectation to stay in the workforce longer to make up for a savings shortfall and the fact that 54% of the population has less than $25,000 saved has retirement experts extremely worried. "The idea that you can continue on working longer is really a pretty risky proposition," said Daniel Houston, president of retirement, insurance and financial services at The Principal. "Half the time, people retire before age 65, whether it's due to their health, their spouse's health or that they find their skills are no longer needed."

GLBs Buoy VA Sales, But for How Long?

While sales of variable annuities declined 18% to $127 billion last year, guaranteed living benefits remained popular, with 84% of policyholders electing to buy those riders in the fourth quarter, according to LIMRA. Jafor Iqbal, an associate managing director at LIMRA Retirement Research, said GLBs' continued popularity is in spite of the fact that insurers spent much of the year raising costs and paring back benefits on the variable annuities, the assets of many are underwater compared to their guarantees.

Executive Moves

Executive Moves

Fidelity Institutional Names Dell'Orfano Head of Sales and Relationship Management, and McPhillips Now Head of Institutional Consultant Relations For Northern Trust.