Investing December 29, 2003

ICI: ETFs Add $3.66 Billion in November

December 29, 2003 (PLANSPONSOR.com) - Exchange-traded funds (ETF) added even more assets in November, swelling by more than $3 billion for the month.
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Increases were noted in the broad-based ETFs, which went up to $100.06 billion in November from $98.29 billion in October (SeeETF Ranks Continue to Swell in October).  Further, sector/industry ETFs gained assets to reach a record level of $16.46 billion and helped propel the total domestic equity index to a total asset amount of $116.52 billion from $114.21 billion the month before, according to data supplied by the Investment Company Institute (ICI).

Results among the other indices were mixed.  The Global/International Equity Index saw a net inflow of assets, ending November at $11.95 billion from $10.53 billion in October.  Conversely, the Bond ETF index recorded a net asset outflow, closing November at $4.25 billion from $4.32 billion in the previous month.

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Additionally, the value of ETF shares issued in November exceeded that of shares redeemed by $2.14 billion.  The total number of ETFs was up by one to 118.

Shares of exchange traded fund trade intraday on stock exchanges at market determined prices. Investors may buy or sell ETF shares through a broker just as they would the shares of any publicly traded company (See  Black Box: Exchange-Traded Funds ).

Benefits December 24, 2003

AT&T Places Management Salaries on Hold

December 24, 2003 (PLANSPONSOR.com) - Looking to reduce its cost structure, AT&T Corp. will freeze management salaries until April 2005.
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The move by the telecommunication company will impact AT&T’s 43,000 non-union employees, who were scheduled to receive merit increase this coming April. The salary freeze though will not impact management bonuses, which will still be paid out to management employees in March, according to a Dow Jones report.

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AT&T Chairman and Chief Executive Officer (CEO) Dave Dorman told employees about the decision via an e-mail last week. The latest move represent the second such merit increase postponement this year – a similar measure was undertaken last April, pushing raises back to September – and keeps management increases on an 18-month cycle.

“By April 2005, business conditions permitting, we expect to resume merit increases on an annual basis, once again tying them to the yearly performance review cycle,” Dorman said in the e-mail.

An AT&T spokeswoman was unable to provide Dow Jones with an estimated savings the company will reap from the move.

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