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☆ U.S. SEC to vote on proposing new liquidity, pricing rules for mutual funds
▼ + stars: | 2022-11-02 | by ( ) www.reuters.com time to read: +2 min

Nov 2 (Reuters) - The U.S. Securities and Exchange Commission on Wednesday will vote on proposing new rules aimed at better preparing the mutual fund industry for distressed market conditions, including a new pricing mechanism that has drawn opposition from fund managers. The market disruptions of March 2020 reinforced the fact that liquidity can deteriorate rapidly, the SEC said. The proposal, if adopted, would require mutual funds, and some exchange-traded funds, to ensure that at least 10% of their net assets are highly liquid. The new rules would also require a hard daily closing time for mutual funds, and the use of "swing pricing," which involves adjusting a fund's value in line with trading activity so redeeming investors bear the costs of exiting without diluting remaining investors. Mutual funds managed $4.1 trillion, or 63%, of assets held in 401(k) plans at the end of June, as well as $5.1 trillion, or 43%, of IRA assets, according to the Investment Company Institute.

☆ Retail money market funds inflows are the highest in 30 years as investors seek safety. Best funds to buy
▼ + stars: | 2022-10-26 | by ( Carmen Reinicke | ) www.cnbc.com time to read: +5 min

One fixture of overall money market funds is seeing the highest growth in decades this year – retail money market fund inflows hit $122.1 billion in the week ending Oct. 19, the most since 1992, according to data from Refinitiv Lipper. Overall, the market is seeing outflows driven by institutional investors, with $189.5 billion being withdrawn from U.S. money market funds through Oct. 19. Money market mutual funds offer investors safety, making them a solid place to park cash. He added that investors should also note that not all money market mutual funds are insured by the FDIC, unlike checking and savings accounts or money market deposit accounts. In the quarter ending Sept. 30, Charles Schwab reported $132 million in revenue from money market funds.

Individual employees will be able to contribute up to $22,500 to their 401(k) retirement plans for the 2023 tax year, up from $20,500 in 2022, the Internal Revenue Service announced Friday. Under the IRS's defined contribution plan provision, employees will also see a total annual limit of $66,000 in 2023, up from $61,000 this year. This provision governs limits to the retirement plan contributions made through an employer-sponsored program, which can include matching-dollar amounts that some companies make toward employee retirement savings. The IRS also increased the limit on annual contributions to an Individual Retirement Arrangement (IRA) from $6,000 to $6,500. “More than one-third of workers feel they are 'significantly behind' on their retirement savings,” Greg McBride, Bankrate chief financial analyst said in a Bankrate.com release.

☆ The U.S. retirement system gets a ‘C+’ grade, experts say — even though it’s worth $39 trillion. Here's why
▼ + stars: | 2022-09-19 | by ( Greg Iacurci | ) www.cnbc.com time to read: +9 min

The U.S. has a voluntary retirement savings system. But most IRA funds aren't contributed directly — they were first saved in a workplace retirement plan and then rolled into an IRA. 1 issue," Will Hansen, chief government affairs officer at the American Retirement Association, a trade group, said of workplace retirement savings. "[However], the retirement system is actually a good system for those who have access," Hansen said. In such cases, it may not be fair to place primary blame on the structure of the U.S. retirement system, Hansen said.

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