Mutual Fund Fees Rise, Boost Parent Revenues

April 28, 2000 (PLANSPONSOR.com) - Mutual fund management fees soared in the first quarter, pumped by a booming stock market and strong asset growth, according to Dow Jones.

While this trend makes mutual fund companies a more attractive investment, it may also forebode higher investment fees for 401(k) plan participants.

At United Asset Management , record first-quarter results came from a surge at the firm’s Pilgrim Baxter & Associates affiliate. Financial Research Corp. reported that PBHG funds, many of which earned triple-digit returns in 1999, took in a net new $2.5 billion last year, thanks to their momentum-style investing in fast-growing companies, according to the Dow Jones report. That was a total reversal from 1998, when a net $2.4 billion flowed from the Wayne, Pa.-based fund family.

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Mutual fund complexes with broader-based businesses are not as exposed to such swings. State Street ‘s assets under management soared 33% over the last year, and recently beat earnings expectations by a nickel/share, according to Maitland Lammert, financial services analyst with Edward Jones, cited in the report. The stock is up 33% year-to-date.

Federated Investments’ stock is also up about 33% this year, as the Pittsburgh-based company increased its equity assets by 45% over the past year. Assets at Putnam Investments are up 38% compared with a year ago, and parent Marsh & McLennan reported a 16% gain in earnings per share from a year ago. 

Meanwhile, Chicago’s John Nuveen has turned it’s attention to equity products, which accounted for 80% of their first quarter sales, up from just 60% in 1999. Assets under management are up 5%, earnings per share were up 15% in the first quarter. T. Rowe Price increased its assets under management 25%, and saw its earnings rise 41%.

 

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Celebrating Support Staff Workers

April 3, 2002 (PLANSPONSOR.com) - Support staff members don't get much respect.

With their own dedicated week coming up later this month, an office staffing company specializing in administrative workers wants to change that.

Office Team found that nearly half of the 567 workers polled said their companies let Administrative Professionals Week go by without even so much as a “hip-hip hooray!”  The week begins April 22.

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Among the 45% whose employers celebrated the occasion, six out of 10 said they took the secretaries and other support staff to lunch.

Also:

  • a third sent flowers
  • 12% supplied an extra day off
  • 6% gave candy
  • 4% supplied gifts or gift certificates 

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