MUTUAL FUNDS:INVESTING IN AMERICA'S FUTURE

ICI Welcomes SEC Proposal to Simplify Launch of ETFs, May 2008
In a comment letter to the SEC, the Institute expresses its strong support for a proposal for a new rule to govern launch of exchange-traded funds. The rule will replace the current process, which requires new ETFs to seek SEC exemptive orders. The proposal will allow for the continued growth of the increasingly popular ETF sector.

ICI Welcomes U.S. Supreme Court's Municipal Bond Ruling, May 2008
Tax-free investment returns are vital for millions of investors, ICI said in a statement welcoming the U.S. Supreme Court's decision in Department of Revenue of Kentucky v. Davis. The decision preserves income that is free of state as well as federal taxes for investors who held about $156 billion in 450 single-state municipal bond funds at the end of 2007.

ICI Urges Flexibility in IRS Automatic Enrollment Rules, May 2008
Testifying on behalf of the Institute, Frank Nessel of Vanguard Plan Consulting Group urged the Internal Revenue Service to modify its proposed regulations to give employers more options in offering automatic enrollment in 401(k) and other defined contribution plans under the Pension Protection Act of 2006. Creating flexibility for employers will encourage them to offer auto enrollment and promote greater retirement savings, ICI said.

ICI Fact Book Reports 7% Growth in Retirement Assets, May 2008
Growth in IRAs and defined-contribution retirement accounts, including 401(k)s, fueled a $1.1 trillion increase in retirement assets in 2007, according to data released in the 2008 Investment Company Fact Book. The annual volume reports on a wide range of data on the funds industry, including characteristics of mutual fund-owning households and rapid growth in lifecycle and lifestyle funds.

Stevens Urges Policy Makers to Build on 401(k)'s Success, May 2008
The nation's 401(k) system has become the "dominant private-sector device for retirement savings," and its success will continue if regulators, employers, and the financial services industry work together to encourage more plans and greater worker participation, ICI President and CEO Paul Stevens told attendees at the Institute's 50th Annual General Membership Meeting.

GMM Chairman Celebrates Industry's Foundation in Investor Service, May 2008
Edward C. Bernard, Chairman of T. Rowe Price Mutual Funds and Chairman of the 50th Annual General Membership Meeting, urges the fund industry to build upon its foundations as it looks to the future. Three key foundations, he says, are "our fiduciary culture; our embrace of regulation, and our laser-sharp focus on serving investors."

ICI President Paul Stevens Lauds Commissioner Atkins' Service to American Investors, May 2008
ICI President and CEO Paul Schott Stevens describes SEC Commissioner Paul Atkins as "a strong and independent voice, urging policies that reflect his powerful intellect, strong principles, extensive experience, and diligent consideration," in a statement following the announcement Atkins will step down from the Commission when his current term expires.

Other recent developments




A Guide to Understanding 529 Plans
This brochure outlines the options available for investing in 529 savings plans.

A Guide to Unit Investment Trusts
This brochure discusses how UITs operate, and provides a general overview of the different types of UITs.

A Guide to Closed-End Funds
This brochure reviews the types of closed-end funds and their operations.

A Guide to Exchange-Traded Funds
This brochure summarizes exchange-traded funds (ETFs) and explains how they differ from index mutual funds.

More about investing





Frequently Asked Questions About Municipal Bonds
In light of recent credit market conditions, ICI has provided detailed background information on municipal bonds that includes a discussion of credit ratings, bond insurance, and monoline insurers.

Frequently Asked Questions About Closed-End Funds
ICI's comprehensive look at closed-end funds includes a discussion of the auction rate preferred securities issued by closed-end funds, the causes and implications of a failed auction, and the responsibilities of a closed-end fund in the event of a failed auction.

Frequently Asked Questions About Money Market Funds
ICI's updated background information on money market funds takes a closer look at the credit enhancements, such as bond insurance, that securities issuers employ to maintain a security's eligibility to be held in a money market fund.

Frequently Asked Questions About Bond Mutual Funds
The Institute has updated its background information on bond funds with 2007 data.

More questions and answers




2008 Investment Company Fact Book (pdf), May 2008
The Fact Book is a primary source for statistics and analysis concerning investment companies and household, institutional, and foreign owners of fund shares.

Characteristics of Mutual Fund Investors, 2007 (pdf), April 2008
ICI takes an in-depth look at mutual fund investors in this new research, which shows that fund investors are in their peak earnings and savings years; are employed and have moderate household incomes; frequently own equity funds; and focus on retirement savings.

More ICI research







Unit Investment Trust Data, April 2008
Unit investment trusts, investment companies that hold fixed portfolios of selected stocks or bonds, had total deposits of $2.77 billion in April, according to statistics compiled by ICI.

Trends in Mutual Fund Investing, March 2008
The combined assets of the nation's mutual funds decreased by $24.1 billion, or 0.2 percent, to $11.734 trillion in March, according to the Investment Company Institute's official survey of the mutual fund industry.

Money Market Mutual Fund Assets, May 22, 2008
Total money market mutual fund assets increased by $11.17 billion to $3.509 trillion for the week ended Wednesday, May 21, the Investment Company Institute reported.

More ICI statistics




ICI President and CEO Testifies Before Labor Department Regarding 401(k) Service Provider Proposal, April 2008
ICI President and CEO Paul Schott Stevens reiterated the Institute's strong support for disclosure rules that will help assure that 401(k) plan fiduciaries have all the information they need to make the decisions entrusted to them under ERISA.

ICI President's Remarks at Mutual Funds and Investment Management Conference (speech), March 2008
ICI President and CEO Paul Schott Stevens focused on the SEC's "momentous" Summary Prospectus proposal in his remarks at an industry conference. "The Commission has seized upon the potential of the Internet in re-conceiving its approach to mutual fund disclosure," said Stevens. "Our own extensive research and the SEC's ... strongly suggest that this is the right approach."

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