Money Management Executive articles from July 2004

Money Management Executive archives from July 2004

NASD Fines Five Brokers $625,000 in Late Trading.(National Association of Securities Dealers)
July 5, 2004... The NASD has fined five brokerage firms $625,000 for failure to have the supervisory systems in place to detect and prevent late trading. The five are D.A. Davidson & Co., T.D. Waterhouse Investor Services, Stifel Nicolaus & Co., National...

Bank One Coughs Up $90M for Shady Deals: Beeson Banned From Fund Industry.
July 5, 2004... Bank One Corp.'s mutual fund arm on Tuesday agreed to a $90 million settlement with New York state and federal regulators for allowing hedge funds to engage in abusive round-trip trading of its fund shares, a racket that depleted the returns of...

Experts Warn of Slim Stock Pickings in 2005 Morningstar Conference Panelists Paint Bleak Investment Picture.
July 5, 2004... CHICAGO - While the majority of the mutual fund industry's attention has been squarely focused on the scandal and operational aspects of the business, the investment climate has taken a sharp turn for the worse. Morningstar officials...

Fed Lifts Interest Rates to Quell Inflation: Greenspan to Maintain Measured Approach.(Alan Greenspan and Federal Reserve Board)
July 5, 2004... The Federal Reserve began its much anticipated belt-tightening effort last week by ratcheting up its target for short-term interest rates for the first time in four years. As widely expected, the Fed, in a unanimous vote, raised its...

Fidelity Scales Back Use Of Soft Dollars by 25%.(Fidelity Investments)
July 5, 2004... On July 1, Fidelity Investments began to phase out its use of soft dollars to pay for such market data services as earnings estimates and securities quotations, the company said. The company will continue to use brokerage commissions to pay for...

Executive Moves.
July 5, 2004... State Street Promotes Two; Garrelick, Crouch Get Nod State Street Research has promoted two of its employees into high-level retail positions, the company announced. Jenine Garrelick, formerly State Street's regional sales director for...

It's Not Just Compliance, But Ethics and Values That Count.(Interview)
July 5, 2004... In a new era for independent directors, Dawn-Marie Driscoll, already a busy woman, is likely to be even more in demand. She is president of Driscoll Associates, a Cape Coral, Fla.-based business ethics consulting firm, and executive fellow and...

Bullard Calls for Overhaul, While Execs Warn of Overregulation.
July 5, 2004... CHICAGO-During a star-studded Morningstar investment conference panel, investor advocate Mercer Bullard called for a complete overhaul of the way fund companies conduct business, while Bob Pozen and Ed Haldeman warned of the unintended...

BoA Fee-Based Unit Plans Unified Managed Account.(Bank of America Corp.)
July 19, 2004... Bank of America Corp.'s consulting services group is planning to launch a unified managed account platform early next year to enhance its quickly expanding fee-based services program. "From a technology standpoint, the foundation is here for us...

If SEC Fails, We Will do the Job': Shelby: Alabama Senator Talks Scandal, Reform, Campaign Contributions.(Securities and Exchange Commission)(Interview)
July 19, 2004... Many Congressmen are finding out that when it comes to fund reform, "you can't always get what you want," as Mick Jagger sings. The House overwhelmingly passed the "Baker bill" last November, and there are a number of reform bills pending...

Invesco Facing Further Fraud Charges: List of Defendants in Timing Case Growing.
July 19, 2004... Things went from bad to worse for Invesco Funds, as federal securities regulators announced plans to increase the number of individuals facing civil fraud charges. The Securities and Exchange Commission last week filed a motion with the...

Choosing Which Big Cheese Becomes CCO.(chief compliance officer)
July 19, 2004... In a little over 11 weeks, firms are going to have to hire a chief compliance officer, a requirement that could prove to be a tall task for fund shops, particularly smaller ones. The key date is Oct. 5. That is when the Securities and...

Executive Moves.
July 19, 2004... Gonzalez Now Touchstone Southeast Vice President Dan Gonzalez, whose most recent role saw him work close to Touchstone Investments as its parent company's internal wholesaler, now works for Touchstone itself, as the company's new Southeast...

Fremont May Face Action For Improper Fund Trading.(Brief Article)
July 19, 2004... The Securities and Exchange Commission reportedly may soon charge Fremont Investment Advisors and an ex-employee for late trading and market timing, the company said. In filings with the SEC and admissions on its company Web site, Fremont...

Investors File Lawsuit Against Salomon Funds.(Brief Article)
July 19, 2004... Investors have filed a class-action suit against Salomon Smith Barney for allegedly breaching its fiduciary duty between March 22, 1999 and March 22, 2004 by claiming its financial advisers were selling mutual funds objectively when, in fact,...

First American R Shares To Target Retirement Plans.(Brief Article)
July 19, 2004... The parent company of First American Funds has entered a retirement share class into its mutual fund family. Through its fund subsidiary, U.S. Bancorp Asset Management, First American is reaching out to companies with assets ranging from $1...

Calvert Launches New Women's Corporate Code.
July 19, 2004... NEW YORK - At a recent news conference held here, Calvert, a socially responsible investment management firm headquartered in Bethesda, Md., unveiled new corporate guidelines it created for the proper ethical and moral treatment of women...

Favoritism Fuels Flap Over 401(k) Fees: SEC Probes Revenue Sharing at Major Fund Houses.
July 19, 2004... Playing favorites and making quid pro quo deals have been longstanding practices in the financial services industry, and the 401(k) marketplace is not immune to its ill effects. As such, federal regulators have joined their state counterparts...

Equity Funds Reap $18.8B.(Brief Article)
July 26, 2004... A rebound in stock mutual fund inflows could be the long-awaited harbinger of rejuvenated investor confidence in the market, according to Lipper. Recent shifts into stock mutual funds potentially signal an end to lackluster sales that have...

Mellon to Handle SMA Back Office for Old Mutual.(Separately managed accounts)(Old Mutual Investment Partners )(Brief Article)
July 26, 2004... Old Mutual Investment Partners has signed a deal handing the majority of its separately managed accounts operations' back- and middle-office operations to Mellon Global Securities Services, a subsidiary of Mellon. Previously, Old Mutual relied...

Fidelity Supports Lifecycle Funds for 401(k) Accounts.(Brief Article)
July 26, 2004... Noting that 71% of the retirement savings plans that it services now offer its Freedom Funds lifecycle funds, Fidelity Investments last week issued a report recommending that more sponsors offer such default options. "Many employers have...

Nuveen Reports Record Second-Quarter Earnings.(Brief Article)
July 26, 2004... Nuveen Investments last week reported a 14% increase in its second-quarter earnings of $36 million over the same period of a year earlier, on a restated basis. The firm's operating revenues were $120.4 million, up 13% from 2003. Nuveen took in...

MFS CEO Sees Research as Key to Success: Manning Says Next Year Will be a Stock-Picker's Market.(MFS Investment Management)(Interview)
July 26, 2004... Robert Manning took the helm of the nation's oldest fund shop during its darkest hour, but five months removed from its monumental settlement with regulators, it's time to refocus on performance, he said. With the majority of MFS...

Hedge Fund Debate Heads for the Hill: Spat Over Registration Heats Up.
July 26, 2004... The noise surrounding hedge fund registration grew to a thunderous clap last week, as Congress heard testimony from several industry professionals and government officials on the merits of such a groundbreaking move. The series of hearings...

Three Invesco Execs Out Amid Timing Probe: SEC to Charge Portfolio Manager With Fraud.
July 26, 2004... Just when the mutual fund scandal seemed to be offering little in the way of new twists and turns, the plot thickens. The Securities and Exchange Commission on Monday plans to file additional claims and add new defendants to its civil fraud...

Oxley Calls for Reform of 529 College Savings Plans.(Brief Article)
July 26, 2004... In a recent letter to SEC Chairman William Donaldson, House Financial Services Committee Chairman Michael Oxley (R-Ohio) urged the chief securities regulator to consider revamping the structure of 529 plans. Oxley said he is particularly...

MFS 529 Assets Top $1B, Fueled by Array of Options.(Brief Article)
July 26, 2004... MFS Investment Management's 529 plans have eclipsed the $1 billion plateau, the company announced, thanks to what it calls "a wide range of investment choices, gifting and estate tax benefits, and MFS investment management expertise." ...

Executive Moves.
July 26, 2004... Integrity Names Kamies, Norris Marketing Directors Integrity Mutual Funds has hired Mark J. Kamies to market its funds in the Kansas and Missouri areas and Richard Norris to serve Arizona. Each will hold the title of regional director of...

Putnam Forecasts Mid-Single-Digit Returns.(Putnam Investments Inc.)
July 26, 2004... With an unprecedented interest rate environment and last year's bullishness gone, Putnam Investments will seek out micro opportunities in the market, according to Jeffrey Knight, managing director and co-head of the firm's capital markets...

Veteran Pairs Independent Directors, Boards.
July 26, 2004... If you can't join em, beat em! That's the seemingly backward battle cry from Irving Straus, the chairman of Straus Corporate Communications of New York. Straus, who had been on a one-man crusade to snare a job as an independent director...