African-American investing increases
From CBS Marketwatch.com
The number of high-income African-Americans owning stocks and stock mutual funds rose sharply over the last two years, according to a survey by Ariel Capital Management and Charles Schwab. The third annual study that 64 percent of African-Americans own stock today, vs. 57 percent just two years ago. The percent of white stock investors remained stable at 81 in 1998 and 82 percent today. The study further suggests that African-American investors favor investing for their children's education over their retirement accounts, particularly blacks under 35. Thirty-one percent of Gen-X African-American investors cited children's education as their most important reason for saving, vs. 15% of white investors.
Janus in a jam?
Customers who send checks for closed Janus funds have their cash deposited in a money-market fund. That practice has drawn an SEC inquiry. The agency first contacted Janus several weeks ago, but there's been no further word. Although the norm is to return checks received for closed funds, Fidelity has a similar process. Observers debate whether Janus is providing a convenience to its customers, or improperly holding funds.
The Net nabs another
From The Boston Globe
C. Troy Shaver Jr. is leaving the top ranks of State Street Research & Management Co. to become vice chairman at a new online 401(k) services company, goldK.com in Lexington, Mass. Shaver is the latest in a line to leave an established company for a dot-com start-up. At State Street, he ran marketing, sales, and distribution for the firm's mutual fund group. When goldK.com launches this summer, it will be a kind of supermarket for 401(k) investors, selling employee retirement plans and administration services to employers. It will probably work alongside fund managers.
From Investment News
The salaries for managers of tech mutual funds have gone off the charts. Headhunters say star tech managers pull in around $5 million a year, compared to value managers who command only $700,000 to $900,000. But those salaries aren't inspiring loyalty. The number of technology managers defecting to rivals or striking out on their own is unprecedented. The movement and the salaries have left firms scrambling to keep pace with the rising demands of tech stock pickers.
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