Money Management Executive articles from October 2005

Money Management Executive archives from October 2005

Senators Renew Push For Social Security Reform.
October 3, 2005... Nearly 10 months since President Bush first revealed his desire to include private accounts in Social Security reform - an effort that included a three-month, nationwide barnstorming campaign to drum up support - the administration is no closer...

Industry Execs Debate Worth of Form N-Q: New Disclosure Requirement a Costly Headache for Many.
October 3, 2005... CHICAGO - The Securities and Exchange Commission plans to make all footnotes and related commentary for Form N-Q filings public, which is causing consternation in the industry. One of several issues that industry executives confronted at...

Goldman Sachs Launches Everyman' Fund: Seeks to Generate Cash for Retirees in a Flat Market.(Goldman Sachs and Co.)
October 3, 2005... NEW YORK - In 1934, German engineer Ferdinand Porsche invented the "people's car," known today as the Volkswagen Beetle. Affordable and reliable, it was arguably the first car within reach of the everyday consumer and almost instantly brought...

Janus Tests Performance-Based Fees.(Janus Capital Group Inc.)
October 3, 2005... Janus Capital Group must really be confident in the potential performance of its funds, because the Denver-based mutual fund company's management board voted unanimously on Sept. 20 to charge performance-based fees on 13 of its 59 funds,...

Funds Vote Against Stocks Revealing Political Monies.(Brief Article)
October 3, 2005... Mutual fund complexes, which own more than 22% of U.S. corporate stocks, are the puppets of corporate bigwigs, and the relationship is harming shareholders, a new study from the Center for Political Accountability (CPA) claims. According...

Only One in Three Expect To be Ready for Retirement.(Brief Article)
October 3, 2005... Only 34% of Americans expect to be prepared for retirement, according to a recent Wall Street Journal Online/Harris Interactive poll of 1,772 people who are key financial decision-makers in their households. Nearly a third, 27%, don't think...

SEC to Hold First National CCO Outreach Seminar.(Securities and Exchange Commission)(chief compliance officer )(Brief Article)
October 3, 2005... The Securities and Exchange Commission will host its first national CCO Outreach Seminar on Nov. 8 at the Commission's headquarters. With space available for only 500, the SEC is accepting registrations online and giving priority to chief...

Fitzrovia Finds Fund Fees Almost Double in Europe.(Brief Article)
October 3, 2005... European mutual funds fees are almost twice as high as U.S. fees, as portfolios in the states benefit from economies of scale in a unified market, according to research firm Fitzrovia, a division of Lipper. The average total expense ratio...

Executive Moves.(appointments)
October 3, 2005... Fulbright & Jaworski Taps Former SEC Heavyweights Fulbright & Jaworski has recently announced that former SEC Commissioner and Division Director Irving Pollack and SEC Enforcement Specialist Laurence Storch have joined the firm. Storch...

401(k) Balances Up 36% in Five Years Since 1999: Average Account Balances Top $90K.
October 3, 2005... In the five years since the end of 1999 through 2004, those Americans who consistently maintained their 401(k) accounts in that time period saw their balances rise 36% to an average of $91,042, according to a study released last week by the...

ICI Applauds Senators for Introducing GROWTH Act.(Investment Company Institute)(Brief Article)
October 10, 2005... Paul Schott Stevens, president of the Investment Company Institute, applauded Senators Michael Crapo (R-Idaho), Tim Johnson (D-S.D.) and Jim Bunning (R-Ky.) for introducing companion legislation for the GROWTH Act in the Senate. Representatives...

Fund Firms Lean Harder on Marketing: Cluttered Market Demands Consistent Strategies.
October 10, 2005... If asset management firms hope to break through the marketing clutter of an increasingly complex and competitive financial services industry, experts say they must start with a consistent, compelling message. Such a seemingly rote task,...

Jobs Creation Act Carries Big Implications: Tiny Tax Law Keeps Foreign Investors in U.S. Funds, Experts Say.
October 10, 2005... The mutual fund industry is pushing to make a relatively obscure, short-term capital gains tax exemption, broadly known as the American Jobs Creation Act of 2004, a permanent rule in accounting books before it expires in 2008. A provision...

Hancock Launches Fiduciary Warranty: Pledges to Return 401(k) Plan Losses, Pay Litigation Fees.
October 10, 2005... John Hancock Retirement Plan Services, a full service provider to 401(k) plans headquartered in Boston, announced that it has created the retirement industry's first fiduciary standards warranty. Most 401(k) providers are not plan...

NASD Fines Three Brokers $3.1M for Market Timing.(National Association of Securities Dealers)
October 10, 2005... The NASD last week fined three brokerage firms a total of $3.1 million for permitting improper market timing and ordered them to repay the affected mutual funds $2.7 million in restitution. All three firms, Janney Montgomery Scott, ING Funds...

Executive Moves.(Ronald Loukas joins Commerce Capital Markets )(Arbor Realty Trust promotes Mark Fogel )(Richard Blasing joins Placemark Investments )
October 10, 2005... Commerce Capital Recruits Loukas as Managing Dir. Commerce Capital Markets has announced that Ronald Loukas has joined the firm as managing director of fixed income, in charge of fixed income sales and trading, as well as derivatives,...

Small Fund Watches Game from The Dugout on Purpose.(GKM Advisers of Los Angeles' president Timothy J. Wahl's views)(Interview)
October 10, 2005... Think back to 1985 and remember the John Fogerty song, "Centerfield": "Put me in, coach. I'm ready to play today. Look at me. I can be centerfield." Although many Money Management Executive readers are already successfully in the game,...

Schwab Talk To Chuck' Campaign Launches: Firm Stresses How its Reps Guide Investors in the Spirit of Charles Schwab.
October 10, 2005... Charles Schwab of San Francisco has launched a new, multimedia national advertising campaign called "Talk to Chuck." The campaign, which debuted this month and is budgeted for $30 million in the fourth quarter, is an attempt to emphasize that...

Fund Firms Outperformed S&P 500 Through 3Q.(Standard & Poors )(Brief Article)
October 17, 2005... Shares of publicly traded mutual fund companies rose an average of 6.6% in the first nine months of the year, as opposed to 2.8% for the S&P 500, and one high-profile analyst expects firms to report strong earnings for the third quarter, it was...

Capital Gains Fuel Tax Code Debate: Industry Supports Reform, But Timing Might Be Off.
October 17, 2005... This year's capital gains payouts are expected to be the largest since the boom of the late 1990s, and while that's good news for the mutual fund industry and the 39 million U.S. households that invest in them, it's increasingly unclear whether...

Sihpol Skirts Spitzer's Final Charges: But Industry Still Grappling With Definition on Late Trading.(Theodore Sihpol III)(Eliot Spitzer )
October 17, 2005... In a turn of events that 25 months ago would have seemed unthinkable, former Bank of America Securities broker Theodore Sihpol III walked out of a Manhattan courtroom last week absolved of all securities fraud charges. New York Attorney...

Lipper Reports Weak Outlook for 4Q: Also Foresees Continued Volatility in Fixed Income.
October 17, 2005... Lipper held a third quarter mutual fund review and outlook session last week, in which equity and fixed income mutual fund performance and the debate over actively managed versus index funds was on the agenda. Highlights of the report were...

NASD Fines Eight B/Ds for Accepting Fund Kickbacks: Orders Firms to Pay $7.75 Million for Directed-Brokerage Abuses.(National Association of Securities Dealers)
October 17, 2005... The NASD last week fined eight broker/dealers, including one fund distributor, $7.75 million for giving preferential sales treatment to mutual funds in exchange for lucrative trading commissions from directed-brokerage agreements. These...

Executive Moves.(Byron Wien appointed)(Paula Sausville Arthus appointed)(Richard G. Malconian appointed)
October 17, 2005... Industry Veteran Wien Joins Pequot as Strategist But Retains Morgan Ties Byron Wien has been selected to join Pequot Capital as chief investment strategist. He will continue to act as senior advisor to Morgan Stanley's research department...

SEI Drives New Dashboard' into SMA Market.(separately managed accounts)(SEI Investments Co.)
October 17, 2005... SEI Investments of Oaks, Pa., has enhanced the data management services it provides on an outsourced basis to investment managers of separately managed accounts with a new sales management program. Its new Web-based SEI Manager Dashboard...

Funds Begin Testing RSS Extensible Markup Language.(really simple syndication)
October 17, 2005... It's not on most fund advisors' radar screens just yet, but really simple syndication (RSS) technology, a form of XBRL (extensible markup language) that is still in its infancy, is beginning to make its way into the financial services realm....

Hedge Funds Invested in Emerging Markets +14.7%.(Brief Article)
October 24, 2005... Hedge funds investing in emerging markets have outperformed their benchmarks this year, according to data from Hedge Fund Research. Hedge funds investing in emerging markets delivered returns of 14.7% in the first nine months of the year, as...

Offshoring Gains Momentum, Sophistication: But Pitfalls Remain for Firms that Act Too Hastily.
October 24, 2005... Offshoring in the financial services industry is expected to double by 2008, but firms that approach the strategy solely from a cost-savings perspective, or that fail to address quality control, turnover and compliance costs, run the risk of...

CCOs Still Grappling With New Role: Upcoming Annual Reviews Among Biggest Concerns.(chief compliance officers)
October 24, 2005... One year after assuming their new roles, chief compliance officers at mutual fund advisory firms shouldn't expect to be off the hot seat anytime soon. There are still policies and procedures to review, update and expand upon where gaps are...

Fidelity Slashes Index Fund Fees by 30%: Launches Fidelity Advantage Class Shares.
October 24, 2005... Fidelity Investments of Boston last week launched the Fidelity Advantage Class shares on its five Spartan index funds, which will provide qualified investors with a bonus 30% reduction in fees, a remarkably lower price than what the rest of the...

Schwab Funds Available On Third-Party Platforms.(Brief Article)
October 24, 2005... Charles Schwab is making its Schwab and Laudus MarketMasters funds available to third parties through four clearinghouses and brokers outside of the company. The dealers who are currently licensed to sell its funds include: Ameritrade, Fidelity...

Index Funds Outperform Actively Managed Funds In the Long Run: S&P.(Brief Article)
October 24, 2005... Through the first nine months of this year, Standard & Poor's has found that 55.8% of actively managed large-cap funds have outperformed the S&P 500. But mid- and small-cap funds have not fared so well, with only 27.9% of mid-cap funds besting...

Executive Moves.(Loren M. Starr joins Amvescap )(Investment Company Institute selects Martin L. Flanagan)(Alastair Borthwick joins Banc of America Securities )
October 24, 2005... Starr Joins Amvescap as Chief Financial Officer Loren M. Starr has joined Amvescap as senior vice president and chief financial officer, reporting directly to Martin L. Flanagan, president and CEO of the firm. Starr is replacing James...

Funds' Adviser Education Platforms Not up to Par: Unorganized, Deficient, Unimpressive, Corporate Insight Finds.
October 24, 2005... In order to be a successful financial adviser, it is imperative to provide high-level service to clients and be knowledgeable about products, the markets and the investment management industry. But even the most adept advisers need help, via...

Wealth Management Would Improve Savings Rate: $30 Trillion in Assets Remain Untapped: Expert.
October 24, 2005... NEW YORK - As the demand for unified managed accounts continues to grow at a brisk pace, the money management industry has an opportunity to improve the nation's savings rate, which is slower today than at any point in its history and threatens...

Small Banks Seek Edge with Managed Accounts.
October 24, 2005... Compass Bancshares knew it had to dump its proprietary fund family if it wanted to make any impact as a wealth manager, and it, like many smaller banks, believes it has found an impact product in separately managed accounts. Todd Smurl,...

The Compliance Rule: One Year Later.
October 24, 2005... Here we are, one full year after the Securities and Exchange Commission adopted a new compliance program through Rule 38a-1 under the Investment Company Act of 1940, requiring fund boards to adopt written compliance policies and procedures...

SEC Lawyers Defend Independent Chairman Rule.(Securities and Exchange Commission)(Brief Article)
October 31, 2005... Securities and Exchange Commission attorneys recently filed a legal brief arguing that that SEC's pending requirement that mutual funds be chaired by independent chairmen is an appropriate action. The U.S. Court of Appeals for the D.C....

ICI Panel Deconstructs Compliance Riddles: One Year Into Rule 38a-1, Funds Have More Questions Than Answers.(Investment Company Act of 1940)
October 31, 2005... AUSTIN, Texas - The mutual fund industry has its first full year of the new compliance era under its belt, but a host of questions remain unanswered. Rule 38a-1 of the Investment Company Act of 1940, for example, requires that a mutual...

SEC Proposes Curbs on Soft Dollars: Restricts Usage to Advice, Analysis, Reports.
October 31, 2005... Questions having to do with compromising best execution of trades and paying above-average trading commissions in exchange for the receipt of soft dollars - be it research, equipment, software or other goods and services - have prompted the...

AARP Readies New State Street Funds: New Sub-Advisor Deal Imperils Scudder Partnership.(American Association of Retired Persons )
October 31, 2005... The 50-and-over crowd will soon have new mutual funds to consider investing their hard-earned money in. AARP of Washington, the not-for-profit organization that caters to mature individuals, has registered with the Securities and Exchange...

Calvert CCO Reports Painstaking SEC Exams.(Karen Becker, Securities and Exchange Commission)(Brief Article)
October 31, 2005... AUSTIN, Texas - Karen Becker has met the "new" Securities and Exchange Commission, and she said it's a more thorough, more knowledgeable regulator than it was prior to the scandal. Becker, chief compliance officer and senior vice president...

Dow Jones, Arrivato Offer Target-Date Funds.(Arrivato Advisors, Arrivato Dow Jones)(Brief Article)
October 31, 2005... Arrivato Advisors has launched the Arrivato Dow Jones U.S. Target Date Funds, a family of five target-date funds based on the Dow Jones U.S. Target Date Indexes. The funds are: The Arrivato Dow Jones U.S. 2010 Fund, the Arrivato Dow Jones...

Executive Moves.(appointments at investment companies)
October 31, 2005... Pali Capital Hires Yanello As Managing Director James Yanello has been appointed to serve as managing director and senior utilities strategist, covering natural gas and electric and coal equities, at Pali Capital. Prior to his hire, he...

Fund Industry Braces for Redemption Day: Cost of Rule 22c-2 is Staggering; Who Accounts for What is Unclear.
October 31, 2005... AUSTIN, Texas - The deadline for mutual funds to implement agreements with intermediaries to accommodate the Securities and Exchange Commission's Rule 22c-2, or the redemption fee rule, is an entire year away, but experts have this message for...

Alliance Provides Blueprint for Target-Date Funds.(AllianceBernstein)
October 31, 2005... Adequate equity exposure, proper diversification, active management and targeted communications to encourage steady investments over a long time horizon are some of the key ingredients for a successful target-date retirement fund, according to...

Collaboration Can Increase Wholesaler Productivity.
October 31, 2005... It's a Hobbesian world out there for the sales team charged with selling asset management products. While it's the nature of a successful salesperson to work independently, focused on their own individual goals, they can be taught to work for...