Add class action litigation to the regulatory controversies, bad press and other woes plaguing insurers that sell equity index annuities.
Industry leaders are concerned that insurance companies are taking on too much risk from annuities that offer guaranteed-withdrawal benefits for the life of the client. Financial services leaders worry that if baby boomers live longer than projected or a downturn hits the market, the financial strength of insurance companies could be threatened.
BOSTON — Although it is too early to tell whether their winning streaks will continue, Fidelity Magellan Fund and Janus Worldwide Fund — two large mutual funds that have struggled to beat their benchmarks of late — are off to decent starts in 2007.
When banks and brokers first started offering health savings accounts, clients could choose any investment they wanted for their account funds — as long as it was a certificate of deposit.
WASHINGTON — The SEC’s efforts to protect hedge fund investors have stirred up free market enthusiasts, who are making it clear they don’t want the government limiting their investment options.
NEW YORK — A securities law firm is seeking class action status for clients who may have been financially damaged by an insurer’s threats and commission incentives designed to skew adviser judgment in favor of proprietary products.
NEW YORK — John Hancock Life Insurance Co. of Boston this month introduced a policy that guarantees cash values to a greater extent than other types of whole life insurance.
PHILADELPHIA — Real estate investment trusts have outperformed the broad market for seven years, so it isn’t surprising that exchange traded fund providers want in on the action.
A trade group for the variable annuity industry today announced a technology initiative intended to save time and money for VA distributors through streamlining and standardization.
The practice of borrowing company stock to manipulate the outcome of company votes has piqued the interest of the Securities and Exchange Commission and has rekindled a debate over stock lending.
Baby boomers who are retiring and rolling over their 401(k) money favor mutual fund wrap programs even though many are wealthy enough to qualify for separately managed accounts, industry observers say.
PHILADELPHIA — When it comes to new indexes, those that eschew weightings based on market capitalization are all the rage.
BOSTON — Just because the Enron Corp. and market-timing scandals have led to greater disclosure requirements doesn’t mean that some mutual fund companies aren’t still burying some doozies in their regulatory filings, according to Russel Kinnel, director of mutual fund research for Morningstar Inc.
A congressman who raised eyebrows last month when he seemed to imply that annuities are the answer to the need for lifetime retirement income claims he was misunderstood.
IXIS Asset Management Distributors LP, which saw its main sales channel dry up in 2000, has stemmed the tide of outflows and now ranks among the nation’s 10 best-selling mutual fund firms.
As the Department of Labor puts pressure on advisers to make 401(k) fees more transparent, some financial advisers are refunding fees to participants that they are being paid from mutual fund companies.
NEW YORK — Recent reports of an uptick in home invasions in many parts of the United States may increase the popularity of a policy that covers medical and other costs of the invasions.
PHILADELPHIA — The successful launch of the closed-end Alpine Total Dynamic Dividend Fund — its initial public offering raised $4.04 billion last month, making it the largest closed-end-fund IPO ever — may signal a resurgence in closed-end funds, industry experts say.
BOSTON — Franklin Resources Inc., the nation’s fourth-largest mutual fund company, boosted its head count by 229 workers last quarter, with more than 90% of that growth coming from India, where it opened a new facility last month.
