NEW YORK - Scudder, Stevens & Clark, New York, has found that women are just as aggressive as men in investing for retirement, despite the perception that women are more averse to risk.
According to the firm, women individual retirement account shareholders invest 27.8% in income funds, 64.2% in growth funds and 5.5% in money market funds; men invest 26.9%, 65.8% and 4.8%, respectively. Nor is there a significant difference between men's and women's allocations to growth funds. For both sexes in 1991, 46.5% of new IRAs went into growth funds; in 1993, the figure was 58% and in 1995, it was 68%.
If anything, women might need to invest more aggressively than men since they typically find themselves with 50% fewer years of employment, 67% lower earnings and 200% less in retirement benefits upon retirement than men.
NEW YORK - Money market mutual funds accelerated their use of fee waivers to attract so-called hot money, but only three of 1,128 funds tracked by IBC/Donoghue Inc., New York, absorbed all of their expenses during the third quarter.
A record 60.6% of all funds waived some expenses to pump up their yields from July through September, confirming that competition is intense as ever. Funds with the highest net total returns to shareholders for the quarter were those that waived substantial portions of their expenses.
For instance, Strong Heritage Money Fund, introduced June 29, waived its entire fee and surged to a 6% return to lead all general purpose taxable funds for the three months ended Sept. 30.
Expense waivers continue to be vital to a money fund's asset growth. The No. 3 fund, OLDE Premium Plus saw a 950% rise in assets between January 1, 1993 and Oct. 3, 1995; Strong Heritage's assets grew by a whopping 757% from July to early October.
For all funds, customers paid 0.58% on average in expenses for the quarter, consistent with the level of several prior quarters.
PITTSBURGH - Federated Prime Obligations Fund, sponsored by Federated Investors, Pittsburgh, has become the first prime money market mutual fund to begin taking purchases and redemptions until 5 p.m. eastern standard time.
That deadline will allow clients to trade later in the day, as well as open the door to business in various time zones across the world.
Customers who typically receive cash disbursements too late in the day to meet the standard 3 p.m. EST investment deadline on other institutional money market funds will benefit most from the extended deadline. The fund has $3.567 billion in assets. Federated also extended the deadline by the same amount for its $5.242 billion Treasury Obligations Fund.
NEW YORK - Five new equity mutual funds are now open for institutional and retail investors. Managed by Dreyfus Retirement Services, New York, funds are the Dreyfus Emerging Leaders Fund, the International Value Fund, Midcap Value Fund, Aggressive Value Fund and the Aggressive Growth Fund.
Christine Williamson also contributed to this column.