Products July 17, 2007

Money Manager Teams with Wilshire for Lifecycle Funds

Los Angeles-based money manager Payden&Rygel has launched a series of target maturity funds using the investment research of Wilshire Funds Management.
Reported by

A news release said the Payden/Wilshire Longevity Funds consist of four target maturity portfolios – 2010, 2020, 2030 and 2040 – that are designed to take investors through retirement.

“Up until now, most target maturity funds have been designed to manage retirement assets for individuals until they reach their retirement age, but not afterwards,” said Gregory P. Brown, principal at Payden & Rygel and the firm’s lead in launching the new fund family.

According to the news release, Wilshire’s research found that many glide paths turn conservative too quickly, while others take on unacceptable risk, disregarding the investor’s liabilities and funding status.

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The blending of the traditional asset-only efficient frontier with the liability-aware surplus frontier is a proprietary technique developed by Wilshire. The surplus frontier is the curve that gives preference to asset classes that will maximize the likelihood of having a surplus starting at retirement.

The announcement said Payden will lead the distribution and servicing effort for the Longevity Funds, focusing on financial intermediaries and third party administrators in the defined contribution market. Wilshire will serve as sub-adviser, responsible for construction of the portfolios, including the asset allocation, the selection of the underlying investments, and the ongoing adjustments to the glide path.

More information can be found at http://www.payden.com.

Deals & People July 17, 2007

Fidelity Taps Lawson as President of FMR Corp.

Fidelity Investments announced on Monday that it had tapped Rodger A. Lawson as president of FMR Corp., Fidelity's holding company.
Reported by

Fidelity said in a news release that the 60-year-old Lawson, who was most recently vice chairman responsible for the International Insurance and Investments Division of Prudential Financial, will assume his new position August 6. Lawson will report to Edward C. Johnson 3d, Fidelity chairman and chief executive officer, the announcement said.

“Rodger has the breadth of financial services experience, as well as experience with Fidelity, which makes him ideally suited for this job,” said Johnson, in the press release. Lawson headed Fidelity’s Retail Operation in the late 1980s. “Since then,” Johnson said, “he has significantly broadened his experience at Prudential and elsewhere and we believe he is the right person for the job.”

According to Fidelity, Lawson will be responsible for:

  • Fidelity Employer Services Company,
  • Fidelity Investments Distribution and Operations Company; and
  • Fidelity Technology Group.

Johnson will continue to oversee Fidelity Management & Research Company, Pyramis Global Advisors and Devonshire Investors, and the firm’s administrative function.

The Fidelity news release said Lawson was elected vice chairman of Prudential Financial in August 2002 following a stint as executive vice president.

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