Money Management Executive articles from August 2005

Money Management Executive archives from August 2005

Mutual Funds Reap $150B YTD: Strategic Insight.(stock price)(Brief Article)
August 1, 2005... Weighing heavily towards value versus growth, mutual fund stock investors added close to $150 billion to their holdings during the first six months of 2005, according to the New York-based research firm Strategic Insight. Stock prices,...

Amerindo Fund Officially Folds Into Munder Internet.(Amerindo Technology Fund.)(Brief Article)
August 1, 2005... The board of directors of the Amerindo Technology Fund, a portfolio of Amerindo Funds, Inc., approved an agreement and plan of reorganization of the fund into the Munder Internet Fund on July 18, according to a regulatory filing with the...

Magellan Fund Weighs In On Fund Giant Fidelity Sales.(Fidelity Investments.)(Brief Article)
August 1, 2005... Fund giant Fidelity Investments is having a hard time generating sales for its mutual funds this year due to the losses of its once-mighty flagship fund, the Fidelity Magellan Fund, Boston Globe columnist Steven Syre writes. Syre asserts...

BISYS, SEC on Brink of Settlement: Financial Restatements Ahead.(BISYS Group Inc.)
August 1, 2005... BISYS Group is inching closer to a settlement with the Securities and Exchange Commission over some rusty marketing and distribution agreements it has with a handful of its mutual fund services clients, although the exact nature of its...

NASD Narrows Guidance on Outsourcing: Demands Due Diligence, Written Policies for Third-Party Vendors.(National Association of Securities Dealers.)
August 1, 2005... With advisory firms and brokerage houses that sell mutual funds increasingly looking to outsource activities to third-party service providers, NASD is now calling for more detailed oversight of vendors and explicit written policies and...

RIAs Shift Strategies to Life Planning'.(registered investment advisor.)
August 1, 2005... It appears that reports of the retail registered investment advisor's death have been greatly exaggerated. Motivated by a change in investor demand, however, as well as profitability, capacity and compliance issues, the intermediary...

Incoming SEC Chair Vows Vigorous Enforcement'.(Christopher Cox)(Brief Article)
August 1, 2005... The Senate Banking Committee on Thursday approved President Bush's nomination of Rep. Christopher Cox to replace William Donaldson as chairman of the Securities and Exchange Commission. The committee also endorsed the nominations of Roel...

Nasdaq Enhances Platform For Near-'Active' Indexes.(Nasdaq Stock Market Inc.)(Brief Article)
August 1, 2005... The Nasdaq Stock Market has created an enhanced index platform that will allow the firm to "calculate and disseminate an unlimited number of indexes on a real-time basis." The new system allows calculation and dissemination of indexes that...

Wilmington Trust Profits Up 11% on Banking Efforts.(Brief Article)
August 1, 2005... Wilmington Trust Corp. posted higher second-quarter profits late last month on the strength of its regional banking and wealth advisory businesses, along with slower growth of business expenses. The Wilmington, Del.-based financial services...

Report Places T. Rowe Opening Up Shop in India.(T. Rowe Price Associates Inc.)(Brief Article)
August 1, 2005... Baltimore-based T. Rowe Price is widely expected to soon join some of its key competitors in setting up an asset management venture in India, news reports from Asia speculate. Prudential, Franklin Templeton, Principal and Merrill Lynch...

Ex-Magellan Chief Vinik Takes Time for Relaxation.(Jeffery Vinik of Vinik Asset Management L.P.)(Brief Article)
August 1, 2005... Jeffery Vinik may have left the spotlight to strike out on his own - but he isn't out of the money. Vinik, former chief of Fidelity Investments's flagship Magellan mutual fund, has been running a hedge fund since leaving Fidelity in 1996....

For Hedge Funds, All Of The Greek Gods Are Taken.(Brief Article)
August 1, 2005... It's fun naming hedge funds. Think of an animal or river or Greek god and just run with it. But for Alan Ware, finding the right name has become increasingly difficult. He eventually decided on Pike Place Capital Management, named after a...

As Some Fixed-Income Funds Come, Others Go.(Reserve Management Co.)
August 1, 2005... Births and deaths are facts of life, even in the fund industry. While Reserve Funds of New York, the father of the money market fund, has just launched a new and innovative cash management fund that expects to sport a boosted yield, American...

New FPA Booklet Clarifies Fee-Based Accounts.(Financial Planning Association.)(Brief Article)
August 1, 2005... Now, broker/dealers not registered as investment advisors will be required to give brokerage customers a disclosure stating: "Our interests may not always be the same as yours." Timed to coincide with the compliance deadline for the rule, which...

NYSE's VWAP' Probe Investigating House Trades.(New York Stock Exchange, Volume Weighted Average Price)(Brief Article)
August 5, 2005... The New York Stock Exchange is looking into nipping Volume Weighted Average Price, or "VWAP," an increasingly common trade-order and hedging technique, in the bud. As part of ongoing scrutiny of more than 10 of Wall Street's largest...

DTCC Order Routing Now Embraces Life Insurance.(Brief Article)
August 5, 2005... Life insurance is traditionally a labor-intensive and complex sale, one that turns away many brokers accustomed to the ease of "dropping a ticket" in a simpler securities transaction. Depository Trust and Clearing Corp. (DTCC), however, has...

Placemark UMA Program Participants Number 100+.(unified managed account)(Brief Article)
August 5, 2005... Placemark Investments has announced that more than 100 investment managers are now participating in its unified managed account (UMA) programs via the firm's overlay management process. According to company officials, the expanding manager...

Skifter Ajro, Ex-Pru, Faces Criminal Charges: U.S. Attorney General's Case Could Seek Testimony on Bigger Fish.
August 5, 2005... In what could set a new precedent in the persisting mutual fund scandal, Federal prosecutors have filed criminal charges against a former broker at Prudential Securities for wire and securities fraud related to mutual fund market timing. ...

Merrill Lynch Banks on Second Half Rally: Equity Markets to Rise Against Economic Slowdown.
August 5, 2005... Muddle through. That's the sort of euphemism that might send money managers scrambling for meaning, much as they do whenever Fed Chairman Alan Greenspan speaks, but it's exactly how Merrill Lynch Investment Managers President and CIO Bob...

Wirehouses to Take Hit in Indy Advice Push.
August 5, 2005... Wirehouses are losing customers, assets and, according to some analysts, their brokers as affluent investors increasingly turn to independent channels for advice. Ultra-wealthy investors are using registered investment advisors - including...

AIM, Invesco Outflows Pull Amvescap Profits -7%.
August 5, 2005... Amvescap, parent to the AIM and Invesco fund brands, indicated last Tuesday its second quarter profit had fallen 7% to 60.3 million pounds, or $106.9 million, from 59.1 million the previous quarter. Analyst consensus had forecast that figure at...

Nuveen Plans to Acquire California Asset Manager.(Nuveen Investments, Santa Barbara Asset Management)(Brief Article)
August 5, 2005... Nuveen Investments of Chicago announced Monday it has agreed to buy Santa Barbara Asset Management. Santa Barbara, which has $2.8 billion of assets under management, specializes in managing growth stock portfolios for institutions and...

Federated Profit Falls 25% While Assets Increase 11%.(Federated Investors Inc.)(Brief Article)
August 5, 2005... Federated Investors has reported a 25% decline in second-quarter profit partly because of a charge the Pittsburgh investment management company had to take related to improper trading. Net income was $37.8 million, down from $50.6 million...

Putnam Says No' to Wamu Providian Takeover Plan.(Putnam Investments Inc., Washington Mutual Inc., Providian Financial Corp.)(Brief Article)
August 5, 2005... Putnam Investments indicated Monday it will oppose Washington Mutual's plan to take over Providian Financial, of which it owns 7.5% of stock. With Washington Mutual, the nation's oldest thrift, offering to pay 0.45 of its shares for each...

Cox Named Chairman; ICI Praises Appointment.(Investment Company Institute)(Brief Article)
August 5, 2005... Federal Reserve Chairman Alan Greenspan swore Christopher Cox in last Wednesday as the 28th chairman of the Securities and Exchange Commission. Investment Company Institute President Paul Schott Stevens issued a statement shortly after,...

CPI Names Gregory Southeast Sales Manager.(CPI Qualified Plan Consultants appoints Christina Gregory)(Brief Article)
August 5, 2005... CPI Qualified Plan Consultants, a third-party recordkeeping and administration company, has announced that Christina Gregory has assumed responsibilities as regional manager for the Southeast region. Working out of Tampa, Fla., Gregory is...

Private Equity Could Be This Year's Hedge Fund; Lower Minimums Draw More Individual Investors.(Brief Article)
August 5, 2005... Once reserved for only the wealthiest of individual and institutional investors, private equity funds are now targeting more high-net-worth individuals by slashing the minimum investment to as little as $25,000. That's a far cry from the $10...

New Hedge Fund Offers Several Performance Floors.(Brief Article)
August 5, 2005... Old Mutual is starting a protected hedge fund that guarantees investors a minimum return. The Old Mutual Prosper 80 fund will give investors a return of at least 4% over the Bank of England base rate, according to ifaonline.co.uk. Furthermore,...

Proxy Leader ISS Backs Harvard Fund Proposal.(Brief Article)
August 5, 2005... The nation's largest proxy advisory firm is backing Harvard College's attempt to liquidate the Korea Equity Fund. Institutional Shareholder Services is also reportedly recommending that investors give the green light to Harvard's proposal...

Oppenheimer CEO Faces NASD Breakpoint Charges.(Brief Article)
August 15, 2005... Oppenheimer Holdings is bracing for the NASD to recommend action against its Chairman and Chief Executive Officer Albert G. Lowenthal for breakpoint neglect. NASD claims Oppenheimer filed inadequate breakpoint information in a March 2003...

Online Broker E-Trade Undertakes Buying Spree; Buys HarrisDirect for $700M, Kobren Insight in Second Deal.(Kobren Insight Management)(Brief Article)
August 15, 2005... Discount broker E-Trade Financial announced Tuesday it would acquire Massachusetts-based asset manager Kobren Insight Management for an undisclosed amount. Now Full-Service The deal, which came just 24 hours after the online giant...

529 Plans Now Under Scrutiny of SEC: Utah Case A Warning Shot' to Other Plan Administrators.(Utal Educational Savings Plan Trust)
August 15, 2005... The Securities and Exchange Commission has settled a cease-and-desist proceeding against the Utah Educational Savings Plan Trust (UESP), but the action might be more noteworthy for the singular detail that the regulator has asserted itself in...

Citi Execs to Fight $100M TA Payoff Charge: Former CEO, CFO Hit With SEC Kickback Suit.
August 15, 2005... Two former executives within the asset management unit of Citigroup will fight Securities and Exchange Commission charges that they siphoned nearly $100 million from mutual fund investors through a finely executed, behind-the-scenes scheme...

Run With All of Donaldson's Rules, Mr. Cox.
August 15, 2005... There was a good reason why former Securities and Exchange Chairman William Donaldson chose as his last official act a vote to reapprove controversial mutual fund governance reforms. Faced with a narrow 3-2 voting margin on some of his...

NASD: B/Ds Must Adopt Special Procedures on EIAs.(National Association of Securities Dealers)(Brief Article)
August 15, 2005... The NASD last Tuesday issued its long-awaited, controversial notice to members regarding equity index annuities (EIAs), sending ripples through the annuity and brokerage industries. Notice to Members 08-50, Member Responsibilities for...

Terror Bombs Shift Attitude Of U.S. Rich, Survey Finds.(Brief Article)
August 15, 2005... In the wake of the London subway and bus bombings, top concerns among affluent Americans have shifted from the economy to terrorism, safety and security. The latest quarterly McDonald Financial Group Affluent Consumer Confidence Index...

Executive Moves.(Mellon Financial)(U.S. Bancorporation Asset Management Inc.)(City National Bank )
August 15, 2005... Mellon Promotes Graham To Regional President, Private Wealth Management Mellon Financial has promoted Vicary M. Graham to regional president of its private wealth management group in Massachusetts. In this role, she is to be responsible...

Bank Reps: Where Have all the Wholesalers Gone?
August 15, 2005... Financial advisers feeling neglected by their wholesalers over the last year are not alone. Although mutual fund and annuity companies are spending more on their marketing efforts, strategic changes in the industry mean that financial...

Wealthy Turn Attention Back to Old Standby, Mutual Funds.
August 15, 2005... A recent survey of the ultra-high-net-worth, as conducted by the Spectrem Group of Chicago, raises some questions and quandaries for investment advisors who are hoping to entice these wealthiest of investors. For one thing, it indicates...

U.S. Mutual Fund Market Remains Flat in 1st Quarter.(investment fund assets grow worldwide)(Brief Article)
August 22, 2005... The U.S. mutual fund market remained broadly flat in the first quarter of 2005, while European cross-border UCITS fund assets rose by 5.1%. The statistics, provided by the European Fund and Asset Management Association, also showed that...

All Mutual Funds Are Not Created Equal, ICI Says.(S&P 500 mutual fundscould pay the investor considerably less when compared to other mutual funds)(Brief Article)
August 22, 2005... Based on the fact that all S&P 500 mutual funds track the same index, it could be assumed that any one of these some-odd 65 funds is as good as the other, but a recent study by the Investment Company Institute suggests otherwise. According...

Economic Growth, Reflation Seen in Merrill Lynch Poll.(fund managers feel more optimistic about global economy growing stronger)(Brief Article)
August 22, 2005... The nation's fund managers are bullish about the prospects for the global economy, according to a poll Merrill Lynch released last week. The poll leveraged 288 fund managers who control a combined $933 billion of assets and indicates that...

Schwab Unit Starts Platform For Managed Account FAs.(a managed account platform for independent advisers)(Brief Article)
August 22, 2005... A subsidiary of Charles Schwab has introduced a managed account platform for independent advisers. Schwab Institutional, which supplies custodial, operational, and trading support to independent advisers, is now offering a bundled Managed...

Indy Chair Decision Headed for Photo Finish: Any Outcome Could Cause Ripple Effect.(independent chairman rule)
August 22, 2005... If the ongoing legal fracas between the U.S. Chamber of Commerce and the Securities and Exchange Commission over the controversial independent chairman rule illustrates anything, experts say, it's that the mutual fund industry has entered an...

A Talk With Jack Bogle: Will The Scandal Make The History Books?(vanguard Group's founder on the mutual fund trading scandal)(Interview)
August 22, 2005... Jack Bogle, founder of Vanguard, one of the most formidable mutual fund companies and investing approaches in the United States, is always a good man to check in with on weighty industry issues. Money Management Executive Editor Lee Barney...

CFA Drafts Global Guidelines for SMAs.(Centre for Financial Market Integrity gives Global Investment Performance Standards)
August 22, 2005... The CFA Centre for Financial Market Integrity of Charlottesville, Va., has issued new guidelines for Global Investment Performance Standards (GIPS), a universal and completely voluntary set of standards intended for separately managed account...

PFPC Lands Veteran Mills As VP, Senior Director.(Edward J. Mills)(appointments)(PFPC Trust Co.)(Brief Article)
August 22, 2005... PFPC, a leading provider of back office services to the mutual fund industry, announced last week that Edward J. Mills has joined the company as a vice president and senior director. Mills will report directly to Bill Salus, executive vice...

Byrd Plans to Widen Reach Of City Nat'l Wealth Unit.(Richard D. Byrd moves into the wealth management division of City National Bank)(appointments)
August 22, 2005... For Richard D. Byrd, the opportunity to move into the driver's seat at the wealth management division of City National Bank in Los Angeles was a no-brainer. It meant moving from the much bigger Wells Fargo private-client services division,...

NYSE Socks Merrill Unit With $10 Million Fine.(Merrill Lynch and Company Inc. asked to pay fine for failure to deliver prospectuses to mutual fund customers)(Brief Article)
August 22, 2005... The New York Stock Exchange has ordered Merrill Lynch to pay a $10 million fine for failure to deliver prospectuses to customers in mutual fund transactions and other supervisory and operational lapses. Merrill failed to deliver...

NASD Fines Hantz $700K In Revenue-Sharing Case.(National Association of Securities Dealers claims Hantz Financial Services failed in its fundamental obligation to put its customers' interests first)
August 22, 2005... The NASD has fined Hantz Financial Services $675,000 and its CEO another $25,000 for fraud and misrepresentations relating to undisclosed revenue-sharing arrangements, along with other violations. John Hantz, the Southfield, Mich.-based...

SEC Investigating CEO Of Mass Mutual, O'Connell.(Securities and Exchange Commission investigates Robert O'Connell)(Brief Article)
August 22, 2005... The former chief executive of OppenheimerFunds parent Mass Mutual Financial Group, Robert O'Connell, is under investigation by the Securities and Exchange Commission. O'Connell was fired from the firm in June on grounds of misconduct. The...

The Scandal That Just Won't Quit.
August 22, 2005... Even with New York Attorney General Eliot Spitzer breathing down their necks on Sept. 3, 2003, leading mutual fund industry executives were assuring Money Management Executive that Canary Capital's market timing and late trading was merely a...

State of New Mexico Fuses 529 Plans: Further Downsizings, Pullouts Seen Among College Savings Plans.(New Mexico has merged its two parallel advisor-sold 529 plans, and appointed Evergreen Investments as the program manager)
August 22, 2005... At a time when some state municipalities are adding new 529 plan options for investors, the Department of Higher Education of New Mexico has done just the opposite. New Mexico has merged its two parallel advisor-sold 529 plans, thereby...

Hitting Oregon's 529 Trail.(New Mexico and Oregon revamp their 529 plans)
August 22, 2005... New Mexico is not the only state forced to pare back 529 providers, due to Schoolhouse Capital's recent exit from the college savings market. In fact, Oregon has had to twice revamp its 529 plan within the past two years due to unusual...

SEC Charges Five Brokers In Squawk Box Scheme.(squawk boxes were used improperly at least 400 times between February 2002 and September 2003)(Brief Article)
August 22, 2005... The Securities and Exchange Commission has charged four brokers and a day trader for improperly using a squawk box. According to federal regulators, John J. Amore, a day trader at Watley Group, has been charged with paying off brokers from...

Fidelity Eyes Boston Mart For Electronic Network.(Boston Stock Exchange's revamp will help it to rival New York and Nasdaq Stock Exchanges)(Brief Article)
August 22, 2005... Fidelity Investments has partnered with several Wall Street firms, including Citigroup, Credit Suisse First Boston and Lehman Brokers, to revamp the Boston Stock Exchange, turning the 170-year-old mart into an electronic network rivaling the...

Lawmakers No Closer On Privatization Plan.(the United States administration intends to slip its private accounts into the program's reform plan)(Brief Article)
August 22, 2005... The latest news out of Washington has President Bush's top Social Security adviser playing to Democrats in the hopes that the administration can slip its controversial private accounts into the program's reform plan. Reiterating a party...