The Markets March 24, 2009

Funds Suffer $18B Loss in February

Stock and bond funds experienced net outflows of $18.1 billion in February, reversing a $22.2-billion January inflow, according to the Financial Research Corporation.
Reported by

FRC said while corporate bond funds led the net inflow category with $10.6 billion, domestic equity funds experienced the largest net outflows with $22.8 billion, according to a news release. International/global equity saw a $12.5-billion outflow, and international/global fixed income saw a $1.4-billion outflow.

By Morningstar category, Precious Metals led the way with a $7.4-billion inflow, followed by Intermediate-Term Bond at $6.6 billion, Natural Resources at $3.1 billion, Municipal National Short at $1.8 billion, and Inflation-Protected Bond at $1.7 billion.

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The best-selling funds in February, according to FRC data, were the SSgA SPDR Gold Shares ETF with a $5.6-billion influx, followed by PIMCO Total Return at $3.7 billion and the Vanguard Group’s Total Stock Index fund at $1.5 billion.

According to FRC, Corporate Bond Funds also led the way in January, with $16.1 billion in inflows (see “Mutual Funds See Inflows in January’).

Products March 24, 2009

AARP Financial Chooses DST for Recordkeeping Services

DST Retirement Solutions was selected as the recordkeeping service provider for AARP Financial, Inc.'s newly launched small business 401(k) program.
Reported by

According to a news release, DST Retirement Solutions of Kansas City, Missouri, developed an automated online plan setup tool for AARP Financial Inc. that enables employers to receive quotes for new plan services, as well as design and purchase plans, according to a news release.

The AARP Financial 401(k) offerings include a traditional 401(k) program, an automatic 401(k) program that offers automatic enrollment and automatic increase, and a solo(k) for self-employed professionals.

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DST Retirement Solutions will provide recordkeeping and participant servicing for the plans.

“One of the most important benefits a company can offer its employees is a comprehensive retirement plan,” said Richard “Mac” Hisey, president of AARP Financial Inc., in the release. “These plans give small business owners access to similar plans traditionally available only to larger firms.”


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