Products January 2, 2007

“Clean″ ETF Set to Launch

First Trust Advisors is slated to introduce this month an exchange-traded fund (ETF) that tracks the NASDAQ Clean Edge US Liquid Series Index.
Reported by
The Nasdaq Stock Market, Inc. and Clean Edge, Inc. in November announced that First Trust Advisors L.P. had licensed the NASDAQ Clean Edge U.S. Liquid Series Index, in order to launch a new exchange traded fund (ETF) that would begin trading in January 2007. The ETF will be managed by First Trust Advisors L.P. and listed on NASDAQ.
The NASDAQ Clean Edge U.S. Liquid Series Index (ticker: CELS), developed jointly by NASDAQ and Clean Edge, is designed to track the performance of clean-energy companies that are publicly traded in the U.S. It includes companies engaged in the manufacturing, development, distribution, and installation of emerging clean-energy technologies such as solar photovoltaics, biofuels, and advanced batteries, according to a press release.
The four major sub-sectors the index covers are:
  • Renewable Fuels and Electricity Generation,
  • Energy Storage & Conversion,
  • Energy Intelligence, and
  • Advanced Energy-Related Materials.
In April, NASDAQ and First Trust Advisors announced the launch of the First Trust NASDAQ-100 Equal Weighted Index Fund (ticker: QQEW) and the First Trust NASDAQ-100 Technology Sector Index Fund (QTEC), ETFs based on the NASDAQ-100 Equal Weighted Index and the NASDAQ-100 Technology Index, respectively.
Compliance January 2, 2007

Fidelity Tagged in Another 401(k) Fee Suit

The St. Louis-based law firm of Schlichter Bogard&Denton has filed another 401(k) fee lawsuit.
Reported by
The suit – this one against plan sponsor ABB Inc., and plan trustee Fidelity Management Trust – was filed last week in the Western District of Missouri on behalf of five participants in Norwalk, Connecticut-based ABB Inc’s Personal Retirement Investment and Savings Management Plan (ABB has a subsidiary in Jefferson City, Missouri).
Fidelity was recently named in a similar suit last month by the same law firm (see Deere Workers Hit Fidelity with Excessive 401(k) Fee Suit). However, they have not been a party to the dozen or so fee-related suits filed thus far.
“Unreasonable and Excessive” Fees Alleged
As have a series of other actions filed by the St. Louis-based law firm, the suit alleges that the fees and expenses paid by the plan, “…and thus borne by plan participants … are unreasonable and excessive; not incurred solely for the benefit of the plan and their participants.’ Additionally, as have similar actions, the suit, which seeks class action status, claims that the fees paid were not adequately disclosed to participants (see Lawyer: Excessive Fee Suits Not an Organized Anti-Plan Campaign).
“We disagree with many of the factual and legal assertions in the complaint, and we intend to defend the suit vigorously,” said Vin Loporchio, a spokesman for Fidelity Investments, in published reports.
According to the Associated Press, Loporchio said the company doesn’t comment on litigation or specific fee arrangements with clients, but “we believe that we provide valuable services to 401(k) clients for whom Fidelity serves as a record keeper and a trustee.”

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