Money Management Executive articles from August 2003

Money Management Executive archives from August 2003

At Deadline.(News briefs.)
August 4, 2003... SMA Firm GlobalBridge Targets Community Banks GlobalBridge, a Minneapolis managed account provider, has hired a former U.S. Bancorp Piper Jaffray executive as president in an effort to expand distribution through community banks and small...

Integrity Bill Loses Punch With Changes.
August 4, 2003... While the Investment Company Institute and politicians are endorsing proposed legislation to reform the mutual fund industry, critics are crying foul, saying recent revisions have gutted the bill of its integrity. The Mutual Fund Integrity...

Tech Fund Resurgence May be Short-Lived.
August 4, 2003... Cash from the sidelines is pouring into technology funds these days as investor fear has abated, sparking a phase of accumulation on Wall Street. Following three years of devastating losses in which it took more blows than Gerry Cooney in...

SMA [Separately Managed Account] Redemptions Exceed Funds: Cerulli.
August 4, 2003... Cerulli Associates has launched a new separately managed account product that aims to provide clients with access to key industry metrics, data and analysis. The Boston-based research firm introduced Quantitative Update in late July to...

529 Sponsors Tout Estate-Planning Role to Affluent Investors.
August 4, 2003... High-net-worth clients are in demand these days and are being targeted by some unlikely sources. Associated most with separately managed accounts and hedge funds, affluent investors are now being courted by 529 plan sponsors. Sponsors are...

Nuveen's Mantra: Buy and Build Parallel Investment Vehicles.
August 4, 2003... For Nuveen Investments of Chicago, it's been a long, evolutionary journey through the world of money management. That voyage has transformed the firm from a small niche municipal bond player into a broad-based, multi-disciplinary equity,...

What do Financial Advisers Need?(Column)
August 4, 2003... Financial intermediaries often explain to clients that wants and needs are two different animals. But the same holds true for the intermediaries themselves, particularly separately managed account advisers. According to John Nersesian,...

Most Affluent Procrastinate On Forming Estate Plan.(Brief Article)
August 4, 2003... Affluent Americans over 45 may intend to leave a legacy to their children, but 75% of them haven't made any such plans, according to a study from Charles Schwab conducted by Harris Interactive. As a result, a large percentage of the assets now...

Eaton Vance Fund Takes Advantage of Dividend Tax.(Brief Article)
August 4, 2003... Eaton Vance has launched the Eaton Vance Tax-Managed Dividend Income Fund, an equity-income fund designed to take advantage of new favorable tax rates on dividend income. The fund's investment objective is to achieve after-tax total...

MassMutual DB, DC Plans Now Include Push E-Mails.(Brief Article)
August 4, 2003... MassMutual Financial has added push e-mails to its defined contribution and defined benefit services. MassMutual will provide plan sponsors and third-party administrators with updated and relevant information about participants in their...

Bank One Hires Cusack as Private Client Executive.(Brief Article)
August 4, 2003... Bank One has hired Jeff Cusack as product and marketing head in its private client services unit. Cusack has more than 15 years of experience in financial services, with an emphasis on managed accounts and mutual funds. Most recently, he...

Federated Investors Recruits Four Equity Analysts.(Brief Article)
August 4, 2003... Federated Investors has hired four investment analysts for its global equity research division. Francisco Duque, Guy Hardwick and Naimish Shah have joined the firm as senior investment analysts, while Jun Zhao comes on board as an intermediate...

Lucas to Cover Publishing, Broadcasting as Analyst for Gabelli Asset Management.(Brief Article)
August 4, 2003... Gabelli Asset Management Barry L. Lucas has joined Gabelli Asset Management as a senior analyst focusing on publishing and broadcasting, industries he has been following for more than 20 years. "We are delighted to have Barry on the...

Lai Leaves Taiwan Fund; Huang Now Acting Manager.(Vincent Lai.)(Brief Article)
August 4, 2003... As Vincent Lai has resigned as the portfolio manager of The Taiwan Fund, the fund's investment advisor, HSBC Asset Management, has appointed Alan Huang to act as the fund's lead portfolio manager. Jovi Chen will continue to serve as deputy fund...

Senior Suitability Reg Set for Fall NAIC [National Association of Insurance Commissioners] Vote.
August 4, 2003... NEW YORK Despite the appearance of some hiccups, a senior annuity sales suitability model regulation will be approved in time for the fall meeting of the National Association of Insurance Commissioners (NAIC) of Kansas City, Mo. Merwin...

At Deadline.(Aided by equity funds, mutual funds took in a net $47.2 billion during June; notes other news)
August 11, 2003... Funds Take in $47.2 Billion Fueled by strong inflows into equity funds during the month of June, mutual funds took in a net $47.2 billion, according to Merrill Lynch. Equity funds attracted $18.7 billion, bond funds $5.4 billion and money...

Under the Heat, B Shares Start to Fizzle.(At least 3 mutual fund advisors have decided to at least temporarily pull plug on selling B shares)
August 11, 2003... B-shares are beginning to show signs of wear. At least three mutual fund advisors have recently decided to at least temporarily pull the plug on selling B shares. These include JPMorgan of New York, Quaker Funds of Valley Forge, Pa., and Bank...

Ad Campaign to Convey Janus Makeover.(Janus Capital Group)
August 11, 2003... Words most associated with Janus Capital Group during the last three years are generally unflattering and are usually along the lines of "downtrodden," "hurting" or "struggling." It's also hard to forget the massive losses suffered by...

Mellon Plans to Keep on Acquisition Trail.(Mellon Financial Corp.)
August 11, 2003... Mellon Financial Corp. hardly sounds done making acquisitions to expand its private wealth management unit, which includes separately managed accounts. Craig R. Sutherland, national director for the Pittsburgh banking company's private...

Strong 529s Offer Systematic Exchange Program.
August 11, 2003... Struggling to maintain profitability in 529 plans and facing low general public awareness about the products, firms are increasingly adding features and catering to the needs of the high-net-worth client, hoping to snag the bigger fishes in the...

Amvescap Looks to Merge AIM, Invesco Boards.(Brief Article)
August 11, 2003... Amvescap's independent trustees are seeking permission to ask shareholders to approve the merging of the boards of its subsidiaries AIM and Invesco. The trustees, in a registration statement filed with the Securities and Exchange Commission,...

NY Replaces TIAA-CREF With Vanguard in 529 Plan.(Brief Article)
August 11, 2003... Taking advantage of the expiration of its five-year contract with TIAA-CREF on July 30, New York State's College Savings Program has selected Columbia Management Group, a division of Fleet Bank, and Vanguard to manage its $1.8 billion 529 plan....

Small Employers Lead Growth in Sponsored Plans.(Employers expanded number of 401(k) plans in US by 4% in 2002)(Brief Article)
August 11, 2003... Employers expanded the number of 401(k) plans in the nation by 4% in 2002, according to the National Defined Contribution Council (NDCC) and the Spectrem Group. The growth in 401(k) plan sponsorship is concentrated primarily among...

Janus Earnings Fall 36%To $47.5 Million in 2Q03.(Brief Article)
August 11, 2003... Janus reported second-quarter earnings of $47.5 million, or 21 cents a diluted share, a 36% decline from $73.7 million, or 33 cents a diluted share in the second quarter of 2002. Janus said that despite an increase in its assets, which have...

Wharton Professor Joins ReFlow to Head Research.(Joined ReFlow Management as managing director of research)(Brief Article)
August 11, 2003... Roger Edelen, formerly a professor at Wharton Business School, has joined ReFlow Management as managing director of research. Edelen is an expert in portfolio risk, fair value and portfolio turnover. "When we sought an expert in the field...

Anderson Named President Of BISYS Education.(Brief Article)
August 11, 2003... Eric Anderson has joined BISYS as president of its education and licensing services division. Anderson, who reports to Joe Suquet, president of BISYS' insurance and education services group, was previously with S1 Corp. "I am extremely...

Baird Oversees Research At CRA Business Strategies.(Brief Article)
August 11, 2003... Lisa Baird left her position as a senior analyst with Cerulli Associates to join CRA Business Strategies Group, a consultant to the investment management industry, as director of research. Having also worked at Fidelity Institutional Retirement...

Oppenheimer Promotes CIO Robinson to President.(Oppenheimer Asset Management)(Brief Article)
August 11, 2003... Tom Robinson has been promoted from chief investment officer to president of Oppenheimer Asset Management. "Tom is a visionary and a well-respected leader within Oppenheimer Asset Management and throughout our organization," said Albert G....

Joseph to Help Rydex Build Hedge Fund Business.(Rydex Capital Partners)(Brief Article)
August 11, 2003... Jeff Joseph has joined Rydex Capital Partners as a managing director to help the firm expand its hedge fund business. Rydex launched a hedge fund of funds called the Rydex Sphinx Fund earlier this year. "We are very pleased to have Jeff...

Vanguard Jumps on ETF Bandwagon.(Vanguard Group)
August 11, 2003... Vanguard Group plans to beef up its fund lineup by adding 11 new index funds and 20 ETF versions of its mutual funds. The Valley Forge, Pa.-based asset manager has filed a registration statement with the Securities and Exchange Commission...

Investors Snap Up Pricy REIT Funds.
August 11, 2003... The real estate sector is being pegged as a pullback candidate, but that hasn't stopped new money from pouring into these funds. Real estate mutual funds have quietly built a strong track record, having outpaced all domestic equity funds...

Mark-to-Market in Face of Illiquidity.(Bank loan fund's book value is adjusted to reflect current market value)
August 11, 2003... Mark-to-market activities in the loan marketplace, whereby a bank loan fund's book value is adjusted to reflect its current market value, are in a state of transition. Regulatory non-compliance as dictated by the Sarbanes-Oxley Act and risk of...

At Deadline.(Among independent reps and fee-only planners, mutual funds are by far the most popular investment vehicle for use with clients)
August 18, 2003... Fee-Only Planners, Reps Stick With Mutual Funds Hedge funds, separately managed accounts and other alternative investments may be getting a lot of hype in the press, but some intermediaries prefer old-fashioned mutual funds. According...

NASD to Bring Broker Pay to Light.
August 18, 2003... Courtside seats and free bottles of vino may be a thing of the past once regulators are through retooling broker compensation. The National Association of Securities Dealers of Washington has proposed a rule that would require brokerages...

Phoenix Debuts Fund With SMA Features.(Phoenix Investment Partners )
August 18, 2003... Phoenix Investment Partners of Hartford, Conn., has launched two novel asset allocation mutual funds-of-funds that take their cues both from the increasing popularity of multiple-disciplinary separately managed accounts and the way large...

S&P 12b-1 Fee Report Irritates Industry.(Report about levying of 12b-1 fees by funds closed to new investors )
August 18, 2003... Standard & Poor's recent research calling into question the levying of 12b-1 fees by funds closed to new investors has many in the mutual fund industry scratching their heads and poking holes in S&P's assessment. The 12b-1 fees, which...

How 529s Jump-Started a $2 Billion Practice.(Interview)
August 18, 2003... Fund companies have jumped on the 529 bandwagon as a way to boost assets, but Ric Edelman, chairman of Edelman Financial Services, believes these college savings vehicles are a way to cement relationships and cross-sell a variety of investment...

NASD Fines Four Brokers For Selling Fund B Shares.(National Association of Securities Dealers)(Brief Article)
August 18, 2003... The National Association of Securities Dealers last week suspended four brokers for inappropriate sales of B shares of mutual funds. A fifth broker is contesting the charges. The brokers will be suspended for up to nine months and pay a...

Massachusetts Sues Morgan.(Morgan Stanley)(Brief Article)
August 18, 2003... Massachusetts regulators last Monday filed administrative proceedings against Morgan Stanley for providing its brokers with higher commissions and bonuses to sell in-house funds and funds of partner firms (see related story, page 1). The state...

Hedge Fund Group Issues Self-Regulation Guidelines.(Brief Article)
August 18, 2003... While the SEC and Congress consider regulating the hedge fund industry, the Managed Funds Association has issued guidelines for its member hedge fund managers. The guidelines suggest best practices for monitoring various types of risk; fair,...

Chiefs of Worldwide Firms Optimistic About Outlook.(Brief Article)
August 18, 2003... Sixty percent of the leaders of U.S. multinational corporations are optimistic about the prospects for the economy over the next 12 months, PricewaterhouseCoopers' Management Barometer survey found. Another 42% said they are confident about the...

Gerth Fills Janus's New National Sales Position.(Janus Capital)(Brief Article)
August 18, 2003... Erich Gerth has joined Janus Capital as national sales director, a new position at the firm in which he will oversee distribution through broker/dealers, financial advisers and institutions. Gerth was previously national sales director of...

Zurlo Named CFO of GoldK.(Brief Article)
August 18, 2003... GoldK, a retirement outsourcing firm, has named Paul K. Zurlo chief financial officer, in charge of financial activities and corporate affairs. Zurlo joins GoldK from MCK Communications, where he was a senior vice president and chief financial...

Crowe to Head Research for Bank of N.Y. Asset Mgmt.(Brief Article)
August 18, 2003... Bank of New York's asset management division has named Patrick Crowe director of research, reporting to Kevin J. Bannon, executive vice president of the Bank and CIO of BNY Asset Management. Crowe, who has been with the bank since 1993,...

Hutchinson Joins Boards of Salomon Closed-End Funds.(Brief Article)
August 18, 2003... William R. Hutchinson has joined the board of five Salomon Brothers closed-end funds: the Emerging Markets Floating Rate Fund, High Income Fund, Municipal Partners Fund, Worldwide Dollar Government Term Trust and Worldwide Income Fund....

Wiggs Leads BB&T's New Wealth Management Unit.(Brief Article)
August 18, 2003... Steve Wiggs is heading up BB&T Corp.'s new wealth management division. Formerly president of BB&T's Piedmont Region and a veteran of the firm since 1979, Wiggs assumes control of a division solely dedicated to affluent clients. He reports to...

Colby Oversees Hancock's Municipal Bond Division.(James T. Colby III joins John Hancock Advisers as head of municipal bond group)(Brief Article)
August 18, 2003... James T. Colby III has joined John Hancock Advisers as head of the municipal bond group, which has nearly $1 billion in assets in privately managed accounts and five funds. Colby will also carry the title of vice president and senior...

Latin America Storms Higher, But Doubts Remain.
August 18, 2003... Latin American funds have been outstanding performers this year, but let's not break out the piatas just yet. There has been plenty of news to cheer about south of the border in the first seven months of 2003, as political stability and...

Performance Ads in Bad Taste, Critics Claim.(Mutual fund industry)
August 18, 2003... While mutual fund firms asked investors to look the other way when it came to performance during the bear market, some fund companies are now treading in dangerous territory following the market's recent rally, by promoting their year-to-date...

At Deadline.(Advisers turn to separately managed accounts to restore investor trust)
August 25, 2003... Advisers to Turn to SMAs To Restore Investor Trust At the core of the relationship between an investment advisor and client is trust, making the past three years especially trying. As a result, money has fled the market and headed for...

Fido No Longer Freddie's Best Friend: Fidelity Could be Hedging Against Higher Interest Rates.(Fidelity Investments)
August 25, 2003... In a move that could influence others in the mutual fund industry, Fidelity Investments has dumped a large portion of its holdings in mortgage companies Freddie Mac and Fannie Mae. The Boston-based fund giant ditched 48% of its holdings in...

AIMR SMA Standards Present Challenge.(Association for Investment Management & Research's separately managed account performance presentation standards)
August 25, 2003... Much has been said about the growth of the separately managed account industry both in terms of the growth this market segment has experienced in the past few years and also in terms of the anticipated growth that many analysts predict. Once...

Equity Fund Assets Rise by $21B in July.
August 25, 2003... Equity funds continued to plow ahead in July, but both bonds and money market funds were hurting in the month, marking notorious firsts for both in recent history, according to data from New York-based Lipper. Equity funds pulled in $21...

Survival of the Fittest Means Big Changes.(Global investment management firms will need to change fundamental mindset and core practices)
August 25, 2003... Darwinism is here with a vengeance," predicts a new research study co-conducted by KPMG International of London and CREATE Research, a research firm in Kent, U.K. To survive, global investment management firms will need to change their...

Schwab to Close 20 Offices.(Charles Schwab)(Brief Article)
August 25, 2003... On top of the 9,000 it has already laid off and the 23 branches it has already shut down since 2001, Charles Schwab will lay off another 250 people and close 20 branches. This will result in charges of $35 million to $50 million in the second...

NASD Suspends Four for Sales of B Shares on Funds.(Brief Article)
August 25, 2003... The National Association of Securities Dealers has suspended four brokers for inappropriate sales of B shares on mutual funds. A fifth broker is contesting the charges. The brokers will be suspended for up to nine months and pay a combined...

Managers' Faith in Markets Restored: Merrill Survey.(Most fund managers think equities are fairly valued)(Brief Article)
August 25, 2003... Most fund managers believe equities are fairly valued, and 85% think the economy will improve over the next 12 months, Merrill Lynch's monthly survey of fund managers shows. Their cash positions of 4% of assets this month remain at the same...

Investor Focus Moves From Growth to Guarantees.(Brief Article)
August 25, 2003... The three-year bear market and unemployment have caused investors to be less concerned with growing their portfolio than merely protecting their assets, a John Hancock Financial survey shows. And this focus is likely to continue for some time...

No B Shares on New Funds From Phoenix Investment.(Phoenix Investment Partners)(Brief Article)
August 25, 2003... Phoenix Investment Partners' new asset allocation mutual funds (see MME 8/18/03) are noticeably lacking back-end loaded B shares. Phoenix spokeswoman Sharon Bray notes that B shares sales at the fund firm have dropped dramatically over the past...

Leading Regulator Dinallo Joins Morgan as Director.(Morgan Stanley and Company Inc.)(Brief Article)
August 25, 2003... Eric R. Dinallo, chief of the investment protection bureau in the office of the New York State Attorney General Elliot Spitzer, has joined Morgan Stanley as managing director and head of regulatory affairs. In this role, Dinallo will work with...

Esherick Leaves Fidelity for FleetBoston's Finance Unit.(Brief Article)
August 25, 2003... FleetBoston Financial has hired Tracey Esherick to be a managing director for the banking and investing products group in Fleet's personal financial services business. In this role, Esherick is responsible for designing, pricing and building...

Fraise, Marchand Return To John Hancock Advisers.(Brief Article)
August 25, 2003... Portfolio managers George P. Fraise and Gordon M. Marchand have returned to John Hancock Advisers as managers of the John Hancock U.S. Global Leaders Growth Fund. The two had managed the fund through sub-advisor and Hancock subsidiary Yeager,...

Wells Real Estate Names Veteran as Chief Marketer.(Wells Real Estate Funds)(Brief Article)
August 25, 2003... Wells Real Estate Funds has hired Michael Dobbs, formerly senior vice president of marketing for Cingular Wireless, as its chief marketing officer. Dobbs has worked as a marketer in the real estate and communications fields for nearly 20 years....

Annuities Hurt by Lack of Understanding.
August 25, 2003... NEW YORK If only they knew. Many investors who don't own annuities, most of whom own mutual funds, might be interested in buying one that is, if only they understood how annuities worked, according to a recent survey unveiled here at the...