Products December 31, 2008

Calvert Launches Government Fund

Investment management firm Calvert has announced the launch of the Calvert Government Fund.
Reported by

The Calvert Government Fund (ticker: CGVAX) seeks to provide a high level of current income while preserving capital, primarily through investment in debt securities issued or guaranteed by the U.S. government or its agencies or instrumentalities, according to the firm. It may also invest in futures contracts related to U.S. Government securities.

The new fund adds to Calvert’s taxable fixed-income lineup for a total of nine funds, and is managed by Calvert’s taxable fixed-income team led by Greg Habeeb, SVP and head of the taxable bond division at Calvert.

Never miss a story — sign up for PLANADVISER newsletters to keep up on the latest retirement plan adviser news.

“We will apply a relative value strategy, which involves constantly comparing the appreciation potential and attractiveness of the securities held in the fund’s portfolio against those available in the marketplace and will employ an active trading strategy,” said Habeeb. “The fund will provide a low credit risk alternative for fixed-income investors.”

“The portfolio team will manage the fund’s duration and position its exposure along the yield curve to take advantage of market volatility and return opportunities. The portfolio management team applies multiple strategies to adjust the interest-rate sensitivity of the portfolio as market conditions fluctuate,” said Cathy Roy, CIO of Fixed Income at Calvert. “The addition of the fund allows shareholders and their advisers an opportunity to diversify their portfolios for the right mix of income, stability, and growth potential,” she added.

Compliance December 31, 2008

DoL Finalizes Rules on Disclosure Penalties

Ringing out the old year, today the U. S. Department of Labor (DoL) has unveiled another final regulation.
Reported by
According to a DoL press release, this regulation implements the DoL’s authority to assess civil penalties against plan administrators who fail to disclose certain documents to participants, beneficiaries and others as required by the Employee Retirement Income Security Act, as amended by the Pension Protection Act (PPA).
The DoL notes that the PPA established new disclosure provisions relating to:
  • funding-based limits on benefit accruals and certain forms of benefit distributions;
  • plan actuarial and financial reports;
  • withdrawal liability of contributing employers; and
  • participants’ rights and obligations under automatic contribution arrangements.
The PPA also gave the DoL authority to assess civil monetary penalties of up to $1,000 per day per violation against plan administrators for violations of the new disclosure requirements.
The final regulation sets forth the administrative procedures for assessing and contesting such penalties and does not address the substantive provisions of the new disclosure requirements.
This final regulation is to be published in the January 2, 2009 Federal Register.

«