Money Management Executive articles from March 2006

Money Management Executive archives from March 2006

Fidelity Expands Lineup of Target-Date Freedom Funds.(Fidelity Investments )(Brief Article)
March 6, 2006... Just as lifecycle funds change with time to conform to investors' needs, Fidelity Investments is changing the mix of its Freedom Funds to respond to market demands. By June, Fidelity plans to add four new funds to the lineup, which has grown...

Boomer Ads Demand Intricate Playbook: Target Life Stages, Not Ages; Avoid Nostalgia Trap.(Baby boom generation)
March 6, 2006... Selling mutual funds to the nation's largest and deepest-pocketed demographic, or those 77 million Baby Boomers with spending power of more than $1 trillion, would seem so easy. Just portray a bunch of 50-something actors in a variety of...

SIA to Regulators: Enough Already: Lobbyist Finds Compliance Costs Far too Burdensome.
March 6, 2006... A new report from the Securities Industry Association indicates that annual compliance costs for financial services firms have nearly doubled in the past three years, but whether the findings amount to nothing more than industry grousing or are...

Dreyfus to Terminate B-Share Offerings.
March 6, 2006... Yet another fund group has decided to pull the plug on offering B-shares to new fund investors. In a recent Securities and Exchange Commission filing, Dreyfus of New York notified fund investors that it would cease offering B-shares to new...

Fidelity Clients Get Dibs On JPMorgan Offerings.(Fidelity Brokerage and JPMorgan)(distribution agreement)(Brief Article)
March 6, 2006... Fidelity Brokerage and JPMorgan reached an agreement whereby JPMorgan's initial public offerings, secondary share sales and certain municipal bond offerings will be available to Fidelity's retail and institutional clients. These include 10.7...

Investment Management M&As Seen Rising in 2006.(mergers and acqusitions)(Brief Article)
March 6, 2006... As investment management firms increasingly look to separate the money management and distribution sides of their business, divestiture-driven mergers and acquisitions among such companies could hit a record high this year, Putnam Lovell NBF...

Executive Moves.(Chace Brundige, Robert Nightingale, Pete Morris promoted)(Mark Bateman joins IW Financial)(Nancy M. Smith joins AARP Financial )
March 6, 2006... Waddell & Reed Changes Portfolio Manager Lineup Waddell & Reed Financial has made several management changes at its Waddell & Reed Investment Management and Ivy Investment Management mutual fund units. Chace Brundige has been named...

Minimizing Errors Helps Fund Firms Retain Investors.
March 6, 2006... MIAMI - David Driskill doesn't believe in chance. He believes in statistics. The co-founder of National Quality Review of Boston says that statistics prove that even by reducing the margin of error slightly, mutual fund companies can increase...

Equity Funds Post Third Year of Positive Returns in 2005.
March 6, 2006... Despite high oil prices, the continuing war in Iraq, natural disasters and ongoing hikes in the Fed funds rate, equity mutual funds returned 9.27% and fixed income funds rose 2.06% in 2005, according to a report from Lipper of New York. ...

Declining Wages Yet Another Challenge for Funds.
March 6, 2006... As if swelling consumer debt and negative savings weren't big enough obstacles to attracting young investors, the Federal Reserve recently released a survey showing that workers today are earning less than a few years ago. Adjusted for...

SEC Officials to Propose E-Mail Rules for Funds.(Securities and Exchange Commission)(Brief Article)
March 13, 2006... The staff of the Securities and Exchange Commission has plans to propose rules that would require that e-mails at investment advisory firms be retained for a specified period of time and be made available in certain formats. The SEC would also...

Fidelity Profit Rises 20%To $1.3 Billion in 2005.(Fidelity Investments )(Brief Article)
March 13, 2006... Fidelity Investments reported net profit of $1.3 billion in 2005, up 20% from $1.1 billion in 2004. It was the second-most profitable year in the firm's 60-year history. Funds that Fidelity manages fell 46% to $17.4 billion, primarily due to...

SEC Scrutinizes Redemption Language: Redefining Intermediary' Could Save $378 Million.(Securities and Exchange Commission)
March 13, 2006... The Securities and Exchange Commission has decided to take another look at a portion of its new redemption fee rule, a development that would likely relieve a tremendous burden from the shoulders of the nation's fund companies. Officially...

Fund Firms Bulk Up Research Teams: As Soft Dollars Shrivel, Internal Research Expands.(fund management report )
March 13, 2006... As the soft dollar squeeze forces fund companies to show exactly how they spend their commission fees, they are increasingly relying on in-house research, according to a recent report by Integrity Research Associates. "Are you going to pay...

Reserve's Proxy Reveals Multiple Problems: Trustees' Independence Nixed, Contracts Lapsed.
March 13, 2006... Reserve Management of New York, advisor to both The Reserve and the Hallmark Series of Funds, filed a preliminary proxy late last month that reveals a slew of problems that the firm is grappling with, some of which could raise regulatory ire...

Morningstar Warns Against Funds Becoming Too Big.(Brief Article)
March 13, 2006... A relatively small number of funds have attracted a large share of capital in recent years, and that could mean trouble, according to Russel Kinnel, an analyst with Morningstar. In fact, in the past six years, the number of funds with more...

Morningstar Begins Rating Exchange-Traded Funds.(rating financial services)(Brief Article)
March 13, 2006... With assets in and the number of exchange-traded funds continuing to rise, Morningstar is now rating 107 ETFs on the market, based on their risk-adjusted returns in their respective peer groups, as well as their expense ratios. To be eligible...

Executive Moves.(Bill Driscoll is promoted at State Street Global Advisors)(Jeffrey Zuckerman joins Pillsbury Winthrop Shaw Pittman)(Charles W. Brady leaves Amvescap)
March 13, 2006... State Street Names Analyst New Director of Research State Street Global Advisors has promoted Bill Driscoll from analyst to director of research on its global fundamental strategies team, reporting directly to Matthew McPhee, head of the...

Loomis Sayles Divines New Equilibrium in Equities Markets: But Environment Still Favors Small-Cap, Value.(small capitalizations stocks)
March 13, 2006... NEW YORK - Fund companies that might be ramping up for a rush by investors from value to growth would be wise to listen to Warren Koontz, Jr., manager of the Loomis Sayles Large Cap Value Fund. Koontz, who has been at the helm of the Boston...

Funds, Advisers Would be Wise to Prepare for Women's Increasing Financial Power.
March 13, 2006... There was a time when investing was considered a man's job. No more. A 2004 study of 1,000 Baby Boom generation women by Prudential Financial of Newark, N.J., found that 95% of them were either solely or jointly responsible for an IRA...

Wealthy Gravitating to Alternative Investments.(portfolio management)
March 13, 2006... Driven by the desire to further grow their wealth, investors with portfolios of $1 million or more are increasingly turning to alternative asset classes, including private equity, hedge funds and real estate, a survey of high-net-worth...

NASD Fines Merrill $5M For Fund Sales Contests.(National Association of Securities Dealers, Merrill Lynch, Pierce, Fenner and Smith Inc.)(Brief article)
March 20, 2006... The NASD has fined Merrill Lynch, Pierce, Fenner & Smith $5 million for supervisory failures, impermissible sales contests, unsuitable mutual fund switches and other violations between 2001 and 2004 at two of its call centers, in Hopewell,...

ICI Calls for More Credit Rating Agencies: Says More Competition Would Make Ratings More Credible.
March 20, 2006... Credit raters' credibility came under fire once again this month as Investment Company Institute President Paul Schott Stevens called for increased competition among and oversight of credit rating agencies. Calling for Congress to act...

ICI Offers Insight on Redemption Fee Rule: But Pending Final Version, Funds Still Struggle.
March 20, 2006... Despite the industry's best efforts, it doesn't appear that the haze surrounding the Securities and Exchange Commission's controversial redemption fee rule is about to clear. Officially known as Rule 22c-2 and an amendment to the Investment...

Could New Energy Be the Next Internet? Some Say Yes, Others Say Not in this Lifetime.
March 20, 2006... President Bush is bullish on alternative energy, but experts are somewhat divided over whether his enthusiasm might spill over into the money management industry. Sure, there are a number of finely performing, socially responsible funds...

RBC Capital Launches Diversified Hedge Index.(RBC Capital Markets)(Brief article)
March 20, 2006... The alternative assets group of RBC Capital Markets has launched a diversified hedge fund index comprised of 250 funds, which is about six times larger than other investable hedge fund indexes, according to the company. The 250 funds represent...

SEC Roundtable to Assess Internet Pilot Program.(Securities and Exchange Commission)(Brief article)
March 20, 2006... One year into a pilot program promoting easy-to-search electronic filings through XBRL, or extensible business reporting language, the Securities and Exchange Commission will host a series of roundtables at its headquarters to review the...

Executive Moves.(at Dreyfus Corp., Mellon Financial, Newton Capital Management)
March 20, 2006... Dreyfus Selects Baum for New Distribution Position Dreyfus has hired Jon Baum as vice chairman of distribution, a new position at the firm. In this role, Baum will be responsible for overseeing distribution of Dreyfus's products to...

Most Colleges Make 403(b)s Mandatory: Professors Better Prepared for Retirement Than Most.
March 20, 2006... College professors could probably teach American workers a thing or two about retirement. Lesson One: When it comes to defined contribution plans, automatic, if not mandatory, enrollment works. While industry experts warn that...

GAM Funds to Consider Strategic Alternatives'.(investment branch of UBS AG acquired by Julius Baer Investment Management Inc.)
March 20, 2006... Less than four months after investment manager GAM of New York and London was sold by parent UBS AG to bank giant Julius Baer of Zurich, Switzerland, GAM's five U.S.-based open-end mutual funds are going up for a full-scale review. In a...

More Managers Link SRI to Performance.(socially responsible investing)
March 20, 2006... Socially responsible investing is gaining greater acceptance among mutual fund portfolio managers, as more managers worldwide are finding environmental, social and corporate governance (ESG) issues important and relevant to mainstream...

ICI Calls for Nearly All Disclosure to Move Online.(Investment Company Institute)(software for mutual fund industry been introduced)(Brief article)
March 27, 2006... PHOENIX - Investment Company Institute President Paul Schott Stevens announced last week that his organization has launched an initiative that would eventually move mutual fund disclosure documents almost exclusively online. Speaking at...

Fund Execs Rail Against Redemption Rule: SEC: We Have to Find a Way to Make It Work'.(Securities and Exchange Commission)
March 27, 2006... PHOENIX - Michael Koonce would be happy to offer his opinion on the Securities and Exchange Commission's new redemption fee rule. It's a pain in the neck. "This is one of the most controversial and, frankly, disruptive rules the SEC has...

Long Workdays Lie Ahead for Funds: No. 1 Priority Should Be New Products, Experts Say.
March 27, 2006... PHOENIX - Mutual fund fees and expenses are too high, their trustees are asleep at the switch, competition from alternative investments is bearing down, and the money management industry, by and large, has failed the everyday investor. A...

Are Mutual Funds That Hedge Just Hype?
March 27, 2006... Mutual funds that act like hedge funds may be more marketing than miracles, according to George Feiger, chief executive officer of Contango Capital Advisors, a financial adviser in Berkeley, Calif. "I think we're in danger of a lot of...

Fidelity Sets Up Shop On Amazon Website.(Fidelity Investments gives contract for marketing)(Brief article)
March 27, 2006... Fidelity Investments has struck an agreement with Amazon.com whereby it has set up a financial services destination, or so-called "store," to promote its mutual funds, retirement products, college savings offerings, IRAs, annuities and...

Vanguard Adds Five Funds To Target Retirement Line.(retirement funds)(Brief article)
March 27, 2006... Vanguard filed a registration statement with the Securities and Exchange Commission last Monday to offer five additional target retirement funds, expanding its current lineup of five funds plus one income fund, which have a total of $10 billion...

Executive Moves.(George A. Roche will resign from T. Rowe Price)(Alexandre Abadie joins Credit Suisse)(Dorsey D. Farr been promoted at Wilmington Trust )
March 27, 2006... T. Rowe Price Chairman To Retire After 38 Years After 38 years with T. Rowe Price, Chairman and President George A. Roche announced that he plans to retire in the fourth quarter of 2006. To replace Roche, the board of directors has...

Top-Performing CIOs Emphasize Firm Beliefs.(chief investment officers)
March 27, 2006... NEW YORK - Whether big or small, market mavericks or believers in benchmarks, the chief investment officers of top-performing mutual funds share some common elements - including a strong sense of who they are, a good understanding of where they...

U.S. Bancorp Rebrands Asset Manager as FAF Advisors.(name change)
March 27, 2006... Yet another mutual fund advisor has chosen to shed its corporate name and rebrand itself, adding to the growing list of fund groups that recently have, or soon will, change their own names or those of their proprietary mutual funds. Later...