Deals & People March 11, 2008

American Century Announces New Head of Institutional Business

American Century Investments announced Joseph P. Craven has joined the firm as senior vice president of its institutional business.
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Craven joins American Century Investments from Aquiline Investments, a private equity firm where he was a principal, according to the company.

From 2002 to 2004, Craven served as director of Institutional Retirement Services at Putnam Investments, where he managed the institutional full service defined contribution business. From 1996 to the end of 2001, he served as Putnam’s director of Consultant Relations and Institutional Product Management.

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Prior to his time at Putnam, Craven joined the Office of the Massachusetts State Treasurer as general counsel. Later he served as deputy treasurer of the Pension Investment Division, responsible for oversight of pension plans with assets in excess of $8 billion. He also practiced public finance and commercial finance law in Massachusetts, New Jersey and New York, where he worked as an investment banker.

“American Century Investments has been working diligently to bring institutional rigor to an already strong investment management capability,” said Brian Jeter, American Century Investments’ chief sales and distribution officer, in an announcement. “Those efforts, combined with the addition of Joe Craven to a very solid and experienced team, underscore our commitment to expanding our footprint in the institutional marketplace.’

Products March 11, 2008

Schwab to Launch Monthly Income Fund Series

Charles Schwab has introduced a suite of funds designed to generate a targeted annual payout.
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The Schwab Monthly Income Funds are comprised of three funds, Schwab said in a press release, each with a different annual payout target, to help investors plan for their income needs:

  • The Moderate Payout Fund offers an annual target income payout of 3% – 4% and has the greatest exposure to equities for the most capital growth potential.
  • The Enhanced Payout Fund has a target annual income payout of 4% – 5% and moderate equity exposure for some level of capital growth potential.
  • The Maximum Payout Fund offers the highest level of income potential with a target annual income payout of 5% – 6% and the most conservative exposure to equities for capital growth potential.

To deliver the target payout, portfolio management will monitor the markets and adjust the mix of investments to keep the funds in line with their objectives of both income and capital growth, Schwab said. In addition, portfolio managers manage the flow of dividends generated by the underlying investments to minimize fluctuations in monthly income over the course of the year.

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The funds are competitively priced with no additional management fees beyond those of the underlying funds, and they are available with no-load and no transaction fees.

The Schwab Monthly Income Funds will be in subscription from March 11 to March 27, 2008, and begin operations on March 28, 2008. For more information, go to www.schwab.com/monthlyincome or call 877-369-4626.

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