The time is now for Barclays
From CBS Marketwatch.com
Barclays Global Investors will launch its first four iShares, or exchange traded funds, on Friday. It's the first step in their plan to launch 47 ETFs by the end of July, including 10 more on May 26. The iShare S&P 500 fund will have the lowest expense ratio of any such fund available at 0.09%. In comparison, Vanguard's 500 Index has an expense ratio of 0.18%. Vanguard is retaliating with ETFs of its own, but hasn't yet determined the fees.

SEC proposes campaign contribution limits for fund companies
From The New York Times
Campaign finances are already the story of the 2000 election year, but the SEC is trying to prevent the mutual fund industry from writing its own chapter. The SEC wants to eliminate the use of campaign contributions by mutual fund companies as a tool to obtain lucrative contracts to manage public pension funds. They've proposed rules that would exclude fund companies from obtaining government advisory contracts for two years if top officials of the fund have contributed more than $250 to a politician in a position to award such contracts. SEC officials hope to avoid another "pay-to-play" scandal like the one that hit the municipal bond market in the mid-1990s, when bond underwriting firms were found to be making contributions to local politicians in return for contracts to underwrite municipal bond offerings. Critics argue that the rules would violate constitutional rights to free speech.

What does a fund closing foreshadow?
From The Boston Globe
When a fund closes to new investors, it's supposed to be great news for existing shareholders, because the fund's managers gain investing agility. But it can also indicate that the the fund is in for a downturn. Some observers believe that funds close too late, after getting too big. Several studies back this up, showing that performance often tails off once a fund closes. "Closings could be a warning sign," says Sheldon Jacobs of the No-Load Fund Investor newsletter. "By the time a fund closes, it could mean that the cycle for that type of an investment is near the end."

Education first
From CBS Marketwatch.com
Newer investors, particularly those who buy no-load funds, have less knowledge and confidence when making investment decisions. As a result, they need more education and guidance, according to a new Mutual Fund Education Alliance study. According to the researchers, a new approach is needed in delivering information and education to the next generation of investors, whether by Web, print or other means.  

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE