BOSTON (Reuters) – General Electric Co said on Thursday it will stop paying its senior executives dividends on stock awards that have not yet vested, after investors urged the company to end the long-held perk.
The move, which affects only new stock awards and not old ones, comes amid growing scrutiny by shareholders of senior executive pay, which has been on the rise for years even as average Americans’ salaries plateau. The dividends can add up to millions of dollars for executives with long tenure.
BOSTON (Reuters) – The downgrade of Puerto Rico’s debt to junk status earlier this month has resulted in a rough ride for some municipal bond funds that focus on the debt of specific states.
Many managers of single-state fund managers hunting for juicy returns and a way to diversify their holdings have relied heavily on Puerto Rico’s high-yielding bonds, which are tax-exempt in every U.S. state.
BOSTON (Reuters) – General Electric Co (GE.N: Quote, Profile, Research) Chairman Jeff Immelt said Wednesday he could not close a business deal with one of the richest men in Africa on his cell phone because of poor broadband coverage at his home in Connecticut.
He offered the anecdote at business conference to underscore how he believes the United States has slipped in its infrastructure competitiveness.
BOSTON (Reuters) – Municipal bond fund managers, facing heavy redemptions from funds holding unfavorable debt, have been forced to juggle their holdings to pacify moody retail investors.
U.S. investors over the past 12 months have pulled $20 billion from municipal bond funds stuffed with Puerto Rico’s recently junk-rated debt, and have also spurned longer-duration bonds.
BOSTON, Feb 20 (Reuters) – Fidelity Investments, the
second-largest U.S. mutual fund company, said on Thursday that
its fixed-income chief will lead the Boston firm’s $1.9 trillion
asset management division.
With Charles Morrison as the new president of the unit,
Fidelity is betting on an Ivy League-educated, homegrown talent
who has overseen a robust expansion of the company’s bond
PROVIDENCE, Rhode Island, Feb 14 (Reuters) – Rhode Island
officials on Friday said they reached a proposed settlement to
end six challenges to the state’s sweeping pension fund reform,
a development that would remove road blocks to saving taxpayers
several billion dollars over the next couple of decades.
Under the settlement, the state’s unfunded pension liability
would fall to $5.05 billion, down from an unfunded liability
that approached $9 billion before reform action was taken from
2009 to 2011. The state’s reform had originally called for
paring the unfunded liability to about $4.8 billion.
BOSTON (Reuters) – Some investors in OppenheimerFunds may be exposed to more uncertainty than they bargained for: The company has ramped up holdings of Puerto Rican debt in two of its lower-risk municipal bond funds, even as much of the U.S. mutual fund industry reduces its exposure to the island’s newly junk-rated debt.
The $387 million Oppenheimer Rochester Short Term Municipal Fund’s exposure to the Caribbean island’s debt surged to 13 percent of net assets at the end of December, from 7 percent a year ago, according to Lipper Inc, a unit of Thomson Reuters. Its smaller, $66 million Intermediate Term Municipal Fund saw its exposure more than double to 17 percent.
BOSTON, Feb 12 (Reuters) – Fidelity Investments, the No. 2
U.S. mutual fund company, said on Wednesday that operating
profit rose 13 percent to $2.6 billion last year as clients
pulled less money from its funds.
Despite improved performance for some of Fidelity’s
products, the results showed the company losing ground to
competitors who focus more on index and exchange-traded funds.
BOSTON (Reuters) – U.S. mutual funds with heavy exposure to Puerto Rico bonds have sold off some of the cash-strapped island’s debt to meet investor redemption demands, taking heavy losses after a year-long slide in prices.
The sellers included some of Puerto Rico’s most bullish U.S. mutual fund investors including OppenheimerFunds, a vocal supporter of the territory’s recent financial improvements, according to analysts and public filings.
BOSTON (Reuters) – Investors are paying hefty fees for mutual funds that bill themselves as actively managed but in large part are mimicking a benchmark stock index.
Such funds have less chance of beating the market. And they charge fees comparable with those of funds that offer investors more stock pickings that are different from their benchmarks.