Money Management Executive articles from February 2006

Money Management Executive archives from February 2006

Talk of M&A Activity Boosts Fund Share Prices.(Acquisitions and mergers)
February 6, 2006... A rising stock market and talk of merger and acquisition activity are driving up the share prices of many publicly traded mutual fund companies. According to a report from The Financial Times, it hasn't been terribly tough for managers to beat...

Experts: Scrutinize Your Soft Dollars Closely: SEC Proposal Nuances Some Rules, Changes Others.
February 6, 2006... NEW YORK - The Securities and Exchange Commission's proposed interpretive release on soft dollars has been on the comment block for a good three months now, which is a good two months beyond its intended period, and most industry experts are...

SRI, Mainstream Funds Agree: Corporate Governance Reforms Are Key.
February 6, 2006... When it comes to protecting shareholders' interests, mainstream and socially responsible investing (SRI) mutual fund managers agree: supporting corporate reforms is key; but when it comes to voting their proxies on other SRI issues, the two...

America's Savings Gap Widens: Awareness, Product Innovation Seen as Key Solutions.
February 6, 2006... Alarms went off across the country last week when the Commerce Department reported that the national savings rate is near an all-time low, but it's unclear exactly how those numbers should be read by the money management industry. For...

Merrill Selects Princeton' As New Name for Funds.(Merrill Lynch and Company Inc)(Brief Article)
February 6, 2006... Starting in May, Merrill Lynch will market its mutual funds under the name Princeton Portfolio Research & Management. The company hopes the name change will appeal more to third-party advisers, who were turned off by selling products named...

Scudder Wants to Rename Funds Under DWS' Label.
February 6, 2006... The Scudder Funds' investment advisor, Deutsche Investment Management Americas, is asking shareholders to approve a host of changes among the funds, most notably renaming the funds DWS Funds, according to filings with the Securities and...

Executive Moves.(Janus Capital appoints David Corkins and promotes Jonathan Coleman and David Decker)(Federated Investors promotes John B. Fisher )(Michael Feldschuh joins Morgan Stanley)
February 6, 2006... Janus Taps New Manager For Flagship Janus Fund Janus Capital has appointed a new portfolio manager for its flagship Janus Fund. With the fund's peers outperforming the fund since 2000, David Corkins will be taking over the helm of the fund...

M&A Earn-Outs Under the Microscope.
February 6, 2006... Earn-outs, those additional contingency payments that executives at firms being acquired can earn if specified certain targets are met in the future, are nothing new within the financial services industry. But the earn-out terms of Amvescap's...

Investors Optimistic Despite Economic Challenges.
February 6, 2006... Despite economic challenges - such as rising healthcare costs, the federal budget deficit and soaring energy prices - affluent investors with at least $100,000 in financial assets have an optimistic outlook toward the investment climate for the...

Female Fund Managers Perform as Aptly as Males.
February 6, 2006... Male and female mutual fund managers employ different strategies but achieve very similar results, according to a study released by researchers at the University of Cologne in Cologne, Germany. While women may be more methodical, and men...

SEI Investments Wins Westwood Business.(Brief Article)
February 13, 2006... In an agreement that further reflects the popularity of outsourcing non-core business, SEI Investments will provide mutual fund administration, accounting, distribution and compliance services to Westwood Holdings Group. SEI, which...

Fidelity Hopes to Triple Assets in Japan by 2010.(Fidelity Investments )(Brief Article)
February 13, 2006... Fidelity Investments Japan's new president is very optimistic that market will surpass the United Kingdom to become Fidelity's No. 1 overseas market by 2010. Thomas Balk told Dow Jones he hopes the triple assets from three trillion yen to 10...

Janus Moves Intech Closer to the Fold: More Products, Co-Branding Ahead, Execs Say.
February 13, 2006... In a move that further reflects the changing face of Janus Capital, the Denver firm recently increased its stake in its quantitative equities division, Intech. In a recent conference call, Janus CEO Gary Black said the company has...

IRAs Winning Out Over 401(k)s.(individual retirement accounts )
February 13, 2006... Maybe it's that rugged American individualism. Or maybe it's fallout from watching pensions peter out, Social Security shrivel and the prospects for their golden years begin to look rather glum. More and more workers are choosing individual...

State Street Adopts Indy Chair Rotation.
February 13, 2006... In an unusual move, the board of directors that oversees the 26 proprietary, non-ETF mutual funds managed by State Street Global Advisors Funds Management (SSgA) of Boston, has adopted a two-year rotating term for its independent trustees to...

401(k) Plan Fees Expected To Continue to Fall in 2006.(Brief Article)
February 13, 2006... Fund scandals and the recent probes in the financial industry have caused retirement plan fees to decrease since 2003, and in 2006 they will continue on their descending path, according to sister publication Employee Benefit News. The pressure...

Funds Increase Capitol Hill Contributions to $1.3M.(Brief Article)
February 13, 2006... Executives at mutual fund companies increased their contributions to Washington politicians in 2004 to $1.3 million, data from opensecrets.com shows. That's a significant increase from the last presidential election year, in 2000, when they...

Executive Moves.(Kunal Kapoor, Dan McNeela, Christopher Traulsen joins Morningstar)(Mary M. Refior joins John Hancock)(Goldman Sachs Asset Management has recruired many people)
February 13, 2006... Wilmington CEO Named To Federal Advisory Council Wilmington Trust's chairman and chief executive officer, Ted T. Cecala, has been asked to serve on the Federal Advisory Council, which consults with the Federal Reserve Board of Governors on...

Redemption Rule Reaches Far and Wide: But the SEC Mandate Could Hold Hidden Treasures.
February 13, 2006... As mutual fund firms prepare to meet the costly demands of the Securities and Exchange Commission's new redemption rule, known officially as Rule 22c-2, they're also discovering just how extensively it will impact their everyday business...

Morningstar Ranks Best, Worst 529 Plans.
February 13, 2006... School is in session for those shopping for the best college-savings plan. Morningstar of Chicago has just released its third annual list of best and worst 529 college savings plans in the country, comparing costs, performance, quality of...

NASD Grants Universities $407K to Improve Investor Information.
February 13, 2006... * ASD Foundation Funds Research, which the NASD established in 2003 to improve the public's understanding of investing, has just donated $407,240 to two universities to undertake research to help make financial product information more...

Not Everything is Rosy At Cap Group, as $40B Leaves Institutional Unit.(Brief Article)
February 20, 2006... Although it is the world's top-selling fund manager on the retail side, Capital Group has reportedly suffered institutional outflows of more than $40 billion. American Funds, which is Cap Group's retail mutual fund subsidiary, had net inflows...

Arizona 529 Fires Back at Morningstar's Low Score.(Brief Article)
February 20, 2006... Arizona is among the states with the worst 529 college savings plan, according to the most recent Morningstar rating, but the plan's director thinks it wasn't accurately evaluated. Morningstar was particularly critical of Pacific Life and...

Fund Firms Wrestle E-Mail Monster: Industry Takes Save Everything' Approach.
February 20, 2006... There's a story the folks at the James Advantage Funds like to tell about the last bull market, when the contrarian lost close to $600 million in assets by largely ignoring the tech boom. Instead of battening down the hatches and letting a few...

Alternative Fund Leaps to Fund-of-Funds.
February 20, 2006... In order to achieve greater flexibility and improve efficiencies, one of the first open-end mutual funds to wholly embrace hedge fund-like investment strategies will be seeking a face-lift of sorts. Executives at Alternative Investment...

American Century: Put Your Lance Face On': Armstong Appears in New Advertising Campaign.
February 20, 2006... You can't necessarily judge a mutual fund by its "Lance Face." But American Century Investments is betting that partnering with seven-time Tour de France winner and cancer survivor Lance Armstrong will at least attract investors' attention...

Neutron Jack Sounds Off On Eliot Spitzer's Record.(Brief Article)
February 20, 2006... There's certainly no love lost between Wall Street and New York Attorney General Eliot Spitzer, but it appears the would-be governor can add former General Electric CEO Jack Welch to the "do-not-call" list for campaign contributions. Welch...

Henderson Global Unveils Japan-Asia Focus Fund.(Brief Article)
February 20, 2006... London-based Henderson Global Investors has launched a new Japan-Asia Focus fund, investing in Japanese and other Asian companies. "We are excited about launching this fund right now, because we believe that the Japanese economy may be poised...

Executive Moves.(Sam Peters joins Legg Mason )(Cynthia Prince-Fox and Sarah Calvert Doerr gets promoted at Austin Calvert Flavin )(Krishnamurthy Vijayen joins JPMorgan)
February 20, 2006... Legg Asks Peters to Solo On Special Trust' Fund; Selects New Board Member Legg Mason Capital Management has tapped Sam Peters to serve as the sole portfolio manager for Legg Mason Special Investment Trust. Peters, who has been with the...

Comprehensive Financial Plans Falling Short.
February 20, 2006... Investors who believe they are getting a comprehensive financial plan from their advisers may not be receiving all the advice that they need, according to a recent study published by Key Financial, a certified financial planning firm in West...

T+1 Accounting Leads to Stale Fund Pricing.
February 20, 2006... Accounting that allows for settlement of mutual fund trades one day past the trade, or T+1, uses stale portfolio valuations, leading to variations between funds' reported net asset values (NAVs) and their true worth, a new study warns...

Bill Would Allow Coverdell, 529 Assets to Move into LSAs: President Bush Attempts to Simplify, Encourage College Saving.(lifetime savings accounts )
February 20, 2006... In his 2007 budget proposal, President George Bush is looking to expand tax-free savings opportunities for investors in Coverdell education savings accounts and 529 college savings plans and at the same time permanently increase the amount...

Transfer Agents Becoming More Proactive Consultants.
February 20, 2006... In the wake of recent regulatory challenges in the mutual fund industry, the very relationship between fund companies and their transfer agents has begun to change. Transfer agents today have expanded their role to reflect the growing need in...

Employee Participation in 401(k)s Decreases to 70%.(Brief Article)
February 27, 2006... Employee participation in 401(k) plans continued to decrease in 2005, to a participation rate of 70%, down 12.5% from 80% in 1999, and the percentage of salary contributed has fallen 20% in that time, from 8.6% to 6.9%, according to the...

Fidelity Small-, Mid-Sized 401(k) Business Up 16%.(Brief Article)
February 27, 2006... Assets and the number of plans in Fidelity Investments' Advisor 401(k) programs, designed for small- and mid-sized employers, increased in 2005. Assets increased 16% over the year before, to $13.5 billion, while the number of new plans Fidelity...

IT Execs See New Regs Slowing Down: Attention Turns to Fine-Tuning Existing Rules.
February 27, 2006... MIAMI - With the whirlwind of legislation that started with the mutual fund scandals in 2003 seemingly subsiding, fund companies can stop scurrying to comply and do a better job of focusing on existing rules, speakers at The National Investment...

Morgan Stanley M&A Plans at a Crossroad: Experts: Mack's Best Move Might Be to Just Move On.(mergers and acquisitions)
February 27, 2006... The recent marriage between Merrill Lynch's investment management unit and fixed-income manager BlackRock did more than create a $1 trillion colossus. It would also seem that it has left Morgan Stanley desperately seeking a new mate. After...

Lipper Leaders Reflect Stock Picker's Mart Migration from Value to Growth Finally Afoot.
February 27, 2006... NEW YORK - Let's just say they agree to disagree. A septet of leading money managers from across the country recently gathered in midtown Manhattan to offer their perspectives on the state of the nation's capital markets, and their outlooks...

SEC Says it Will Lean on Independent Directors.(Securities and Exchange Commission)(Brief Article)
February 27, 2006... Newly minted Securities and Exchange Commission General Counsel Brain Cartwright told the Mutual Fund Directors Forum that going forward, independent directors would serve as the centerpiece of the mutual fund regulatory regime. "As...

Fund Industry Reaching $10 Trillion in Assets.(Brief Article)
February 27, 2006... Strong inflows and a robust stock market are driving continued growth in the mutual fund industry in 2006, Strategic Insight reported last week. Assets in mutual funds in the U.S. reached $9.9 trillion at the end of January. Of particular note,...

Merrill Bows to Pressure, Drops Princeton Name.(Brief Article)
February 27, 2006... On the heels of its deal with BlackRock and pressure from Princeton University, Merrill Lynch has decided not to name its mutual funds unit Princeton Portfolio Research and Management. The university had protested Merrill's right to the name,...

Executive Moves.(Robert S. Tull joins Compliance Consultants)(Joel Press retires E&Y Hedge Fund)(Mark Eicker joins Touchstone Investments )
February 27, 2006... Robert S. Tull Moves From SEC's Philadelphia Office To Consulting Firm Robert S. Tull has moved from the Securities and Exchange Commission's Philadelphia district office, to become a senior compliance consultant at SEC Compliance...

Defined Contribution Plans Abroad Expected to Abound: Opportunities for International Markets Multiply.
February 27, 2006... MIAMI - While employers at home are increasingly abandoning defined benefit plans in favor of defined contribution programs, other countries are following suit, said Jay Hooley, executive vice president of State Street Corp. of Boston. ...

Mutual Fund Shareholders Increasingly Web-Savvy.
February 27, 2006... Mutual fund shareholders are more likely than all Americans to have Internet access, according to a new report from the Investment Company Institute of Washington. In 2005, 88% of mutual fund shareholders had access to the Web, compared to 79%...