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June 29, 2009

Past Issues

Mutual Funds

SEC Seeks Comments on Floating NAVs

Regulators are searching for ways to make money market funds stronger without inadvertently crippling the $3.7 trillion industry, but reaching that delicate balance will require compromises from both sides. 'We are seeking to strike a proper balance and find changes that make sense in times of stormy weather and calm waters,' said Andrew 'Buddy' Donohue, director of the Securities and Exchange Commission's division of investment management. 'A ship incased in armor might survive a collision, but it could sink under its own weight.'

401(k)s

Regulators Target Target-Date Funds

Regulatory leaders are questioning whether changes need to be made to target-date funds after several 2010 funds reported huge losses last year, but mutual fund industry leaders say these concerns are overblown. Industry leaders agree that target-date funds, also known as lifecycle funds, should become increasingly conservative as they approach their target date, but disagree on how conservative the funds should be, and whether or not a glidepath should continue past the target date. Many investors are not aware of this discrepancy and might incorrectly assume their fund has a much different asset allocation than it really does.

Retirement

2008 Will Be Tough Act to Follow for Sales of Fixed Annuities

Banking companies will be hard-pressed to repeat a banner 2008 in terms of sales of fixed annuities. Fixed annuities were popular late last year and early this year, but with interest rates falling and the markets in a fingers-crossed recovery, executives and analysts expect demand for these products to start tapering off. At SunTrust Banks, strong fixed annuity sales last year carried over into this year, said Alex Null, senior vice president of mutual funds and annuities at SunTrust Investment Services.

Sales & Marketing

Small Funds Use Personal Contact, PR to Boost Sales

Assets under management are down for nearly all firms due to market depreciation. And making matters worse, most funds have also been hit with steep outflows. According to Strategic Insight, only about 22% of equity mutual funds had inflows for at least four of the last five months of 2008. But a few firms have actually seen positive flows over the past year. We spoke with executives from four of these funds whose outstanding shares are at or near record highs. In our article, these firms, who also work with SunStar for marketing and public relations consulting services, provide you their best practices and ideas to grow market share despite current treacherous market conditions.