Plus, Oppenheimer fund gets a facelift, and more.
The SEC has proposed new target-date fund advertisement disclosure guidelines aimed at reducing potential investor confusion or deception.
The proposed rule, if adopted, would require target-date funds that include retirement dates in their names to disclose in marketing materials what the funds' asset allocations will be on those target dates. This would make it easier for investors to compare, for example, how much competing target-date funds will have in fixed-income securities and cash at the funds' target dates.
The SEC is also considering a proposal that would require marketing materials to include a table, chart, or graph depicting the target-date fund's asset allocation over time, along with a statement highlighting the fund's final asset allocation.
Regulators also may require target-date marketing materials to state target-date retirement funds shouldn't be selected based solely on age or retirement date and are not a guaranteed investment, and the stated asset allocations may be subject to change.
Target-date funds have experienced massive growth since their introduction in the mid-1990s. These funds currently have $270 billion in assets and have become prevalent as default options in 401(k) plans.
The SEC proposals are a response to dramatic losses suffered by some 2010 target-date funds in 2008. Many investors expected such funds, which were two years away from their target date, to better preserve capital in 2008's market downturn. The average 2010 target-date fund lost 24% in 2008, and all but one lost more than 10%. The range of losses varied greatly, too, from 9% to 41%.
The public has at least 60 days to comment on the proposals. The text is available here.
Oppenheimer Fund Gets a Total Face-Lift
Oppenheimer Quest Balanced
Former Chicago Bear Departs American Century Fund Board
Former Chicago Bears NFL Hall of Fame running back Gale Sayers has resigned from the board of directors that oversees the American Century domestic and international equity funds. Sayers, who owns a Chicago-area information-technology firm and who joined the board in 2000, cited the time commitments of his business and philanthropic activities as the reason for his stepping down at this time, according to American Century. The independent directors of the board will meet to discuss filling the seat.
Diamond Hill Manager Gets New Title
Chris Welch, portfolio manager of Diamond Hill Small-Mid Cap
Putnam Tweaks Lineup and Launches New Fund
Putnam announced earlier this week that, pending shareholder approval, Putnam New Opportunities
Also, Putnam Mid Cap Value
Lastly, the firm registered a new fund with the SEC. It will be called Putnam Multi-Cap Core and will be run by Jerry Sullivan, who also manages Putnam Investors
These changes reflect Putnam's efforts to create a new multi-cap suite of funds.
Northern Cross Adds First New Analyst in Years
A few months ago, Northern Cross, the subadvisor for Harbor International
Effective June 10, 2010, the name of Pin Oak Aggressive Stock
Pending shareholder approval, Cambiar Investors and Artio Global Management will replace Hoover Investment Management as subadvisors to Frost Small Cap Equity
Pending shareholder approval, Aquila Rocky Mountain Equity
Chris Baggini joined the portfolio-management team of Turner Spectrum
Gunther Stein replaced David Wang and Rick Brandt as portfolio manager of Nuveen Multi-Manager Large-Cap Value
Jeffrey Scott is off the portfolio-management team of Invesco Van Kampen Senior Loan
Several mergers at Eaton Vance are pending shareholder approval. If approved, Eaton Vance California Limited Maturity Municipal Income
LKCM Aquinas Fixed Income
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