Mutual Fund Assets Slip, Vanguard Rises

August 30, 2000 (PLANSPONSOR.com) - Vanguard reclaimed its standing as the No.1 selling US mutual fund group in July, a position it hasn't held since last September, according to Financial Research Corp.

During the month the combined assets of the nation’s mutual funds decreased by 0.6% in July, to $7.077 trillion, according to the Investment Company Institute (ICI).

Investors poured $1.97 billion into Vanguard Group funds during the month. Year-to-date Janus Capital still tops the list with $36.5 billion of net inflows.

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Industrywide, Financial Research estimates equity funds took in a total of $8.93 billion in July, down from $13.55 billion a year ago

Despite a net outflow from long-term fixed-income funds of $1.13 billion, the top selling fund was PIMCO Total Return Fund, which netted $811 million of new cash during the month.

Growth Fund of America was No. 2, with net inflows of $715 million. MFS Investment Growth ranked third with $500 million of net inflows.

Overall, ICI noted that equity fund assets decreased by $84.30 billion in July, despite net new cash flow of $17.58 billion during the month. Hybrid funds increased by $1.59 billion during the month, overcoming cash outflows of $1.17 billion.

Bond funds, taxable and municipal, increased by $4.00 billion in July, compared with a cash outflow of $725.7 million during the month.

NET DIFFERENCE – Web Wages Up, Options Off Slightly in New Survey

August 28, 2000 (PLANSPONSOR.com) - According to a new survey, "net-savvy" workers got an 8.5% salary increase in 2000, and had a total compensation package averaging $82,000.

Buck Consultants’ fifth annual Website Compensation Survey also found a dramatic increase in alternate pay strategies used by employers to attract and retain these workers.

The survey found a dramatic increase in the following alternative pay strategies used by employers in 2000 versus 1999:

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  • 69% now provide hiring bonuses, compared with 58% last year.
  • 35% award retention bonuses, versus 20% in 1999.
  • 31% of companies now offer their employees “project completion” bonuses.

Twenty-four percent of employers surveyed are considering implementing the bonus for “project completions.”

The popularity of broad-based stock options fell slightly to 41% from 44%.

“It’s a job-seeker’s market, and employers with Website operations find it increasingly necessary to dig a bit deeper into their pockets to attract and retain top-notch employees,” said Paul Gavejian, a principal and compensation consultant at Buck Consultants. “Given the demand for employees with these talents, companies are commonly offering non-traditional compensation elements such as retention bonuses and project completion bonuses that, as recently as five years ago, were considered uncommon, even rare.”

Compensation packages ranged from $32,000 for customer service representatives to $323,000 for presidents of online enterprises. Online presidents saw their total compensation rise 9.3% from $295,800 in 1999.

Financial services, publishing, communications, and Internet companies ranked among the best-paying industries.

The 2000 survey examined compensation practices of 233 employers from eight industries — business services, communications, financial services, Internet (“pure play”‘), manufacturing, publishing, wholesale/retail and utility/transportation.

The study reports on salaries of 42 Web site-related positions in 2000, up from 32 in 1999, and seven in 1996.

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