Harvard's fund managers got a huge raise
Harvard's fund managers got a huge raise (Reuters)
Harvard University says its six in-house money managers earned a combined $49.3 million in 2013, a jump of more than 70% from the previous year. The surge in pay was a result of 'outperformance' in growing the endowment, which is the largest in the world among universities. According to Reuters, "Stephen Blyth was the top-paid manager with $11.5 million in compensation, more than double the $5.3 he earned in 2012."
The House and Senate introduced the Lifetime Income Disclosure Act (Think Advisor)
Both the House and Senate are discussing legislation that would require employer-sponsored retirement plans to give employees an idea of how much monthly income their savings may generate in retirement. Think Advisor says, "Both bills require participants in workplace retirement plans to receive an annual statement of how their lump-sum savings translate into a guaranteed lifetime stream of monthly income from an annuity." There is no word yet as to if or when the bills be the subject of a vote.
Political risk isn't a reason to avoid Europe anymore (Charles Schwab)
The results of this month's UK election showed mainstream parties are gaining momentum in Europe. "If political risk has kept you from investing in Europe, it might be time to take another look," notes Jeffrey Kleintop, Schwab's Senior Vice President and Chief Global Investment Strategist. Aside from the results in the UK, Kleintop also points to the outcomes of regional elections in France and Germany and polls in Spain as more evidence European voters are supporting mainstream parties.
Talking to clients about rising interest rates (Hartford Funds)
The continued US economic recovery has many investors speculating a Fed rate hike will happen sometime this year. Hartford Funds' John Diehl has some advice for advisors, and how they should prepare their clients for rate normalization. Diehl says advisors should keep investors "focused on the long term," "act as a trusted partner" and "provide them [clients] with educational resources."
The SEC is suing ITT for allegedly lying about student loan defaults (Financial Advisor)
The US Securities and Exchange Commission is suing for-profit college operator ITT Educational Services for allegedly trying to hide the "abysmal" track record of its student loan program. "Our complaint alleges that ITT's senior-most executives made numerous material misstatements and omissions in its disclosures to cover up the subpar performance of student loans programs that ITT created and guaranteed," stated Andrew J. Ceresney, director of the SEC's Division of Enforcement. The company operates ITT Technical Institute, a for-profit college that has more than 130 campuses in 38 states.