Pioneer Investments has named Daniel Keith Kingsbury as the president and CEO of Pioneer Investment Management USA and head of the U.S. division of Milan-based Pioneer Investments.
Earlier, Kingsbury served as CEO of Pioneer Investments’ new markets division, with assets of nearly $11 billion. He will retain his position as a member of Pioneer’s global management committee, which he joined six years ago. In addition, he is joining the board of Pioneer Global Asset Management.
“The [U.S.] division’s assets have nearly quadrupled to $75 billion in the past five years, and the business has good momentum going into 2007,” says Kingsbury, 48. “There is tremendous potential to continue to grow the U.S. business, and I am looking forward to my new role.”
Before joining Pioneer in 1999, Kingsbury was CEO of Renaissance Capital Asset Management, based in Moscow. He worked for AIG from 1988 to 1997.
In addition, Pioneer recently launched the Pioneer Floating Rate Fund, an open-end bank loan fund that seeks a high level of current income. “Bank loans are an increasingly important part of the bond market, and we believe it’s important to participate in this sector as we expand our capabilities across global fixed-income markets,” says Kenneth Taubes, senior vice president and director of U.S. fixed income at Pioneer.
The U.S. House Committee on Education and Labor recently held hearings on the disclosure of 401(k) fees, titled “Are Hidden 401(k) Fees Undermining Retirement Security?” Several professional organizations weighed in on the matter, expressing their general support and cooperation.
“The Investment Company Institute has advocated clear, effective disclosure for retirement plans for 30 years,” says Paul Schott Stevens, president and CEO of the ICI, which represents many players in the mutual-fund industry. “Participants need clear, concise information on fees, performance, risks, the investment adviser, and investment objectives, in a form that’s easy to understand, for all investment options in their plan. Additional information can be made available, for example via the Internet.
“Plan sponsors need to understand all service relationships and fee arrangements that affect their ability to carry out their fiduciary duties,” explains Schott Stevens. “We are actively working with the Department of Labor to improve disclosure on both levels.
“We have long urged the department to adopt the same disclosure principles, for participants and for sponsors, across the whole array of 401(k) products. Mutual funds that hold 401(k) assets provide participants frequent, clear reports on fees and performance.
“Half of all 401(k) assets are in mutual funds. Our research on mutual fund fees, conducted over the last decade, shows that fees and expenses have fallen over time. Employers and investors tend to seek out lower-cost funds, both in 401(k) plans and outside plans.”
The American Society of Pension Professionals & Actuaries says it applauds the committee’s efforts to improve the transparency of 401(k) plan fee and expense information. “As it examines these issues, Congress needs to remember that 401(k) plans are not free, due in part to the costs of complying with congressionally mandated ERISA requirements applicable to these plans,” according to Brian H. Graff, ASPPA’s executive director and CEO.