Deals & People September 28, 2007

Oppenheimer RK Program Added to Merrill Retirement Platform

Record(k)eeper Pro, OppenheimerFunds' retirement program for small- to mid-sized companies in the 401(k) marketplace, has been added to the MLConnect retirement platform at Merrill Lynch.

Reported by

Rebecca Moore

Record(k)eeper Pro is a fully automated recordkeeping program that includes a comprehensive participant education program, according to an announcement from the retirement plans services division of OppenheimerFunds Distributor, Inc. (OFDI). The program provides recordkeeping services through FASCore, LLC.

The product offers a multi-manager investment program with options from OppenheimerFunds and other prominent fund families and a plan review program that includes a comprehensive report reviewing a plan’s statistics for a specified time period and comparing it to the industry average for similar plans.

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In addition, with Record(k)eeper Pro employers have access to the Plan Service Center, an online real time Web site providing paperless transaction processing and robust reporting capabilities.

“As part of the MLConnect platform, we are able to provide financial advisers greater flexibility and choice, offering unique features that can help meet the retirement plan needs of their clients,” said John Stoma, Senior Vice President and Director of Retirement Plans at OFDI, in the announcement.

Products September 28, 2007

Vanguard Introduces New Funds to Provide Income in Retirement

The Vanguard Group registered with the U.S. Securities and Exchange Commission (SEC) for a new series of mutual funds designed to provide monthly payments to investors in retirement.

Reported by

Rebecca Moore

Each Managed Payout Fund is designed to provide level monthly payments, adjusted each year based on the fund’s performance over the previous three years, the company said. The offering includes three portfolio options:

Managed Payout Real Growth Fund – designed for investors who seek a modest initial current payout, and wish to see their capital and payouts grow in real terms (inflation-adjusted) over time. This fund is expected to sustain a managed distribution policy with a 3% annual distribution rate.
Managed Payout Moderate Growth Fund – structured for investors who want to balance their initial payout stream with maintaining the purchasing power of their future payouts and capital. This fund is expected to sustain a managed distribution policy with a 5% annual distribution rate.
Managed Payout Capital Preservation Fund – geared toward investors who seek a higher payout level to satisfy current spending needs while preserving their capital over the long term. This fund is expected to sustain a managed distribution policy with a 7% annual distribution rate.

The funds will be structured as funds-of-funds, investing predominantly in Vanguard domestic and international stock index funds, bond and REIT index funds, and inflation-protected securities and money market instruments, the announcement said. A portion of the funds may also be allocated to commodity-linked investments, as well as pursue market-neutral and other absolute-return strategies.

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“We believe that the new funds will appeal to individuals who are seeking a regular income stream in retirement, but who also want to retain access to their accounts to meet unexpected expenses or, potentially, for estate planning reasons,” said Vanguard CEO John J. Brennan, in the announcement.

Vanguard Quantitative Equity Group will manage the new payout funds. The funds will feature an estimated expense ratio of 0.34%, and will not charge a sales commission or a 12b-1 fee. In addition, investors may redeem or exchange shares of the funds at any time without charge or penalty, subject to Vanguard frequent-trading policy limits.

More information about Vanguard funds is at www.vanguard.com.

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