MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Monday, March 4, 2002 Stilwell Adds Assets Homeless 401ks Present Marketing Opp Pax World Funds and the 401kHelpCenter.com are joining forces to alert the media to the issue of homeless 401ks. The homeless 401k is an unintended outgrowth of the recently enacted EGTRRA reforms. The law included a provision that lets employers evict former employees from plans if their account is valued at less than $5,000. The old minimum was $1,000. Unless those ex-employees make arrangements for a rollover IRA, they are being sent a check, warns Pax World. Those employees face both 20 percent withholding and 10 percent penalties. Why is Pax World highlighting the issue? Well, it points out that it offers a line of low-cost IRAs and its press release offers a toll-free number for those looking to open one. * * * Global Crossing Gets Bidder The bidding for the assets of Global Crossing is heating up, though any savior is likely to arrive too late for 401k plan participants. Los Angeles-based Gores Technology Group is reportedly offered $800 million for the bankrupt company. Hutchison Whampoa of Hong Kong bid $750 million as a part of a pre-packaged Chapter 11 filing. Gores is reportedly ready to give part of the firm's equity to employees. At one point participants nearly 60 percent of plan assets in Global Crossing stock thanks in part to a plan design that only matched deferrals to the employer stock fund. Reports are also that the shareholder plan to raise $5.5 billion of new capital for the company is going no where. * * * Stilwell Adds Assets Stilwell Financial, parent of Janus Capital and Berger Financial, finished the month of February with $186 billion in assets under management. That figure includes $6 billion Berger gathered through its purchase of Enhanced Investment Technologies. Printed from: MFWire.com/story.asp?s=27309 Copyright 2002, InvestmentWires, Inc. All Rights Reserved |