Department of Labor today approved an exemption allowing TCW Group to provide specific investment advice to defined contribution plan participants for a fee. TCW would be the first money management firm allowed to provide such advice.
TCW's proposal would use outside financial and behavioral finance experts to provide investment recommendations based on participant responses to a detailed questionnaire. TCW plans to sponsor and manage a mix of mutual funds in four commingled trusts that would invest in TCW's Galileo family of 13 mutual funds.
Ohio Bureau of Workers Compensation, Columbus, is close to naming a short list of domestic equity managers that will compete for the fund's $7 billion equity portfolio.
If the oversight commission for the $17.5 billion fund approves candidates at its Nov. 12 meeting, interviews will be scheduled for the second week of December, said Bob Cowman, CIO.
The fund will consider managers in six investment style areas: large-cap value, large-cap growth, midcap value, midcap growth, small-cap value and small-cap growth. Callan Associates is assisting.
Individual investors appear to be remaining calm amid extreme market volatility, according to a survey of customers conducted on the evening of Oct. 28 by the Charles Schwab Corp.
Only one in eight investors surveyed (12%) traded at all on Oct. 27 or Oct. 28. Nine in 10 investors (92%) said they expected a market correction and seven in 10 (69%) said market volatility would have only a minor or no impact on their near-term investment strategy. The majority (63%) of Schwab's mutual fund customers said they intend to maintain their current mutual fund allocations. Only 3% of those surveyed said they plan to make major changes and 33% plan minor changes.
The majority of investors planning to make adjustments (64%) said they intend to buy more funds to take advantage of market conditions. Less than one-fifth of those reallocating assets plan to move into cash or bond mutual funds.
Investors put at least $3 billion into domestic venture capital investments during the third quarter, according to Coopers & Lybrand L.L.P.'s third quarter Money Tree Survey. The investments in 646 domestic companies belied expectations of a summer slowdown in venture capital-led investments.
Survey respondents put an additional $1.1 billion of private equity into 14 late-stage investments and buy-out deals, according to the survey. Another $757 million of venture capital money was invested overseas, according to Coopers & Lybrand.
The $3 billion venture capital investment is the second highest amount raised in a quarter, and ties a previous amount of capital invested. The second-quarter's $3.2 billion invested is the record.
Year-to-date, venture capital investments total $8.6 billion. It is expected to reach $12 billion at year end, compared with $10.1 billion at the end of 1996.
Approximately 71% of companies offer at least one non-qualified compensation program to senior executives, according to a recent survey by Buck Consultants.
The survey also found nearly half of the companies responding allow executives to defer compensation; one of the most popular programs is a senior executive retirement plan, offered by 44% of companies.
More than 75% of institutional equity portfolio managers believe corporate management doesn't understand how the investment community values their companies for investment purposes, according to a new survey by HOLT Value Associates.
In addition, 74% of money managers believe CEOs and CFOs think stock prices are set based on reported earnings per share and less than 25% believe CEOs/CFOs understand how portfolio managers make buy and sell decisions.
The survey found only 16% of portfolio managers find sell-side research helpful for making stock valuation opinions.
Only 10% find analyst buy-sell recommendations useful and generally believe the sell-side fails to add value.