Money Management Executive articles from September 2003

Money Management Executive archives from September 2003

At Deadline.(National Association of Securities Dealers makes good on investigation into unpaid fund breakpoints )
September 1, 2003... NASD Breakpoint Order Places Onus on Brokers The National Association of Securities Dealers has made good on its investigation into unpaid fund breakpoints by ordering members last Monday to promptly pay investors this money, plus interest,...

Morgan Trustees Give Selves Fat Raises: Result of Merging Retail, Institutional Boards Into One.(Morgan Stanley Investment Management of New York)
September 1, 2003... The seven independent trustees who serve as watchdogs over 129 retail and institutional funds sponsored by Morgan Stanley Investment Management of New York have approved a restructuring of their board compensation plan that will result in a...

Holding SMAs up to Higher Standards.(Separately managed accounts )
September 1, 2003... As much as separately managed account managers want to comply with the Association of Investment Management Research's performance standards to strengthen their clients' trust, they are hampered by the strong controls that sponsor firms have...

Patriot Act Could Lead to Privacy Issues.
September 1, 2003... The Patriot Act's customer identification requirements set to take effect Oct. 1 could become a splitting headache for customer service reps if firms are not proactive in informing customers, according to Charlie O'Neill, Dalbar's manager of...

Campanale to Retain Advisory Role at Smith Barney.
September 1, 2003... Frank Campanale, recently ousted from his chief executive officer position with Smith Barney's consulting group, has agreed to stay on in an advisory role with the firm, sources tell MME. Sources did note however, that no contracts had been...

Janus Gives up DST Shares To Reduce $840M Debt.(Brief Article)
September 1, 2003... Janus plans to swap 32.3 million of the nearly 40 million shares it owns in DST Systems, its data processing subsidiary, in exchange for ownership of a commercial printing and graphics design unit of DST that Janus will rename JCG Partners. ...

Stable Value Popularity Continues on Strong Path.(Brief Article)
September 1, 2003... The market may be recovering and equity fund investing perking up, but stable value is still popular if sales at AEGON Institutional Markets are any indication. The company reported sales of $6.3 billion in the first six months of 2003, a 12.5%...

Van Eck Kills B Shares On Global Hard Asset Fund.(Brief Article)
September 1, 2003... Van Eck Funds is planning on removing class B shares on its Global Hard Asset Fund as of Wednesday this week, a filing published with the Securities and Exchange Commission revealed. Beginning Oct. 31, all shareholders with class B shares will...

DTCC Expands Partnership With Japanese Depository.(Depository Trust & Clearing Corp. and the Japan Securities Depository Center )(Brief Article)
September 1, 2003... The Depository Trust & Clearing Corp. and the Japan Securities Depository Center (JSDC) want to expand their existing partnership to share information on depository services, clearance and settlement, risk management, infrastructure and legal...

Thomson Financial Partners With CheckFree on SMAs.(Brief Article)
September 1, 2003... Thomson Financial has partnered with CheckFree Services Corp. to add separately managed account data to the Thomson ONE Advisor portfolio management software for financial advisers. CheckFree's SMA database, which covers 5,000 platforms from...

Tiberii, Linklater Join T. Rowe Price Bond Team.(Brief Article)
September 1, 2003... David A. Tiberii and Laurence Linklater have joined the fixed-income team at T. Rowe Price Group. As senior portfolio manager of corporate bonds, Tiberii will oversee the T. Rowe Price Corporate Income Fund and advise other bond managers at the...

Wander Assumes New Post at State Street Research & Management.(Brief Article)
September 1, 2003... Brett H. Wander has joined State Street Research & Management Co. as head of the market-based strategies group for fixed-income business, a new position at the firm. He will report to Mark Marinella, chief investment officer of fixed income....

Cohen & Steers Appoints Several Senior Managers.(Brief Article)
September 1, 2003... Martin Cohen and Robert Steers are now co-chairmen and co-chief executive officers of Cohen & Steers, an investment firm that specializes in real estate investment trusts. Cohen previously served as president, and Steers was chairman of the...

Schwab Says Bond Funds Fit Average Joe.
September 1, 2003... Investing in individual bonds may not be appropriate for the average investor. That was the sentiment expressed by Charles Schwab, the nation's No. 1 discount brokerage, in a recent research note. The report weighed the merits of both...

At Deadline.(News and statistics on mutual fund industry)
September 8, 2003... Bigger Complexes Do Not Necessarily Translate Into Better Results: T. Rowe Fidelity. Vanguard. JPMorgan. The names of such leading financial companies evoke security and trust. But bigger financial firms don't always mean better...

Market Rally Appears to Have Legs.
September 8, 2003... Are we there yet? Yep, it's that annoying question often heard from the backseat of your car on a long road trip. But when discussing the prospects of a recovery in the U.S. economy, answering, "We're almost there," may not be stretching...

Spitzer's Charges Could Damage Industry.(Crackdown on alleged illegal trading schemes by four mutual fund companies with a hedge fund )
September 8, 2003... NEW YORK New York Attorney General Eliot Spitzer's crackdown on alleged illegal trading schemes by four mutual fund companies with a hedge fund could wreak havoc on the mutual fund industry's insistence on its squeaky-clean image. The thought...

SMAs Just Reaching the Tip of the Iceberg.(Separately Managed Accounts)
September 8, 2003... The separately managed account industry is just reaching the tip of the iceberg. That is the battle cry heard from Len Reinhart, president of The Bank of New York's separate account services unit and a founding father of the wrap fee...

Hedge Fund Data Difficult to Decipher.
September 8, 2003... The hedge fund industry may have slowed down a bit during the quiet summer months. Then again, it may be continuing the strong growth that made the product the talk of Washington back in the spring. It all depends on who you talk to. ...

NASD Awards $110K in Case vs. NY Life, Blount.(Brief Article)
September 8, 2003... In the first of a long series of arbitrations through the National Association of Securities Dealers, a panel has awarded around $110,000 to an investor who had been sold variable annuities by John Steven Blount, a former broker for New York...

SEC Finally Moves on New Advertisement Regulation.(Brief Article)
September 8, 2003... The Securities and Exchange Commission's move to require fund advertisements to disclose a fund's most recent month's performance as well as a toll-free number or Web site where they can view up-to-date figures may soon become a reality. Paul...

SEI Workshops Aimed at Empowering Wholesalers.(Brief Article)
September 8, 2003... A good wholesaler has the personality, the character and the experience to profile their customers astutely in order to gain their trust and commitment. They know how to work as a true, comprehensive consultant to each of their clients. But...

AllianceBernstein Offers SMA-Like Mutual Funds.(Brief Article)
September 8, 2003... AllianceBernstein has rolled out six mutual funds that will be modeled after investment strategies that its private client team uses. Called the Wealth Strategies funds, the family of six funds offer growth, tax-managed growth and various...

PBHG Names Rose SVP, President of Distribution.(PBHG Funds Distributors)(Brief Article)
September 8, 2003... Pilgrim Baxter & Associates has named Mike Rose as senior vice president and president of PBHG Funds Distributors. In his new position, Rose will concentrate on expanding PBHG's distribution through the load and insurance channels by overseeing...

Grayson to Head up Sales Of Mutual Funds at Gabelli.(Brief Article)
September 8, 2003... Darryl Grayson has joined Gabelli Funds as senior vice president and national sales manager of mutual funds. He joins the firm from Ark Funds, the U.S. mutual fund subsidiary of Allied Irish Banks, where he headed national sales through...

McCann Rejoins Merrill From AXA as Vice Chair.(Merrill Lynch )(Brief Article)
September 8, 2003... Robert J. McCann has rejoined Merrill Lynch as vice chairman of the wealth management group, reporting to Stan O'Neal, chairman and chief executive officer. McCann, who is filling a new position at Merrill, will also serve on the firm's...

Hein Joins Gartmore Group As SVP, Separate Accounts.(Brief Article)
September 8, 2003... Gartmore Group has hired Richard A. Hein as senior vice president of its separately managed accounts business, in charge of business development, distribution and investment reporting. "Gartmore is committed to designing and delivering a...

STP as First Step Toward True Innovation.
September 8, 2003... What is it with straight-through processing? We've got all kinds of STP magazines, STP conferences and even STP consultants. But didn't the demise of the GSTP and the Global STP Association deliver the final word? STP just won't go away...

At Deadline.(Spitzer investigation could derail rebound of Janus Capital)
September 15, 2003... Spitzer Probe Could Derail Janus Capital's Rebound For Janus Capital, which has spent more than two years trying to right itself from the brutal outflows that accompanied the crash in tech stocks, the image damage resulting from New York...

Sarbanes-Oxley Still Troubling for Funds.
September 15, 2003... Sarbanes what? The landmark legislation passed last year in response to rampant accounting misdeeds has disappeared from the headlines but continues to be a thorn in the side of fund executives and accounting personnel. The Sarbanes-Oxley...

Litigators Take Aim at Timers, Funds.(Eliot Spitzer's probe of mutual fund trading practices triggers investor lawsuits)
September 15, 2003... It's open season on the mutual fund industry, as New York State Attorney General Eliot Spitzer's probe of mutual fund trading practices has triggered a barrage of investor lawsuits. The complaints are based on evidence that mutual funds...

New SMAs Must Vie With Mutual Funds.(Separately managed accounts)(Interview)
September 15, 2003... It may be getting awfully crowded on the separately managed account playing field. But if a firm has truly talented managers that offer great performance, and management is willing to focus the firm's efforts and resources on distributing to a...

The Blame Shifts Around on Late Trades, Market Timing.(Spitzer's investigation of mutual fund industry)
September 15, 2003... Tongues are wagging and fingers are pointing. In light of New York State Attorney General Eliot Spitzer's shocking allegations that four mutual fund companies knowingly allowed a hedge fund manager to execute illegal after-hours trades and...

Fund Industry Could be Facing First Real Scandal.
September 15, 2003... Fear and greed are what drives Wall Street. Just because the mutual fund industry serves the higher calling of providing for the retirement security of 95 million Americans, it appears to be no better than the next hypocritical analyst,...

SEC Considers Requiring Hedge Fund Inspections.(Securities and Exchange Commission )(Brief Article)
September 15, 2003... The Securities and Exchange Commission reportedly is considering subjecting hedge funds to routine inspections. The SEC is particularly interested in reviewing hedge funds' trading strategies, although the SEC reportedly does not want to...

TIAA-CREF, Tuition Plan Offer Private College 529.(Brief Article)
September 15, 2003... TIAA-CREF and Tuition Plan Consortium, an Albuquerque, N.M.-based not-for-profit group have launched the Independent 529 Plan to allow participants to put savings toward tuition at private colleges. Similar to traditional 529 plans that apply...

Kauser Management Offers Hedge-Like Mutual Fund.(Brief Article)
September 15, 2003... Kauser Management has launched The Technical Chart Fund, a market-neutral, no-load, mutual fund that incorporates hedging strategies and is managed by a former hedge fund manager. The Technical Chart Fund is designed to achieve long-term...

Upbeat Economic Data Fuels Market Recovery.(Mutual funds are up by average 19.6% so far this year )(Brief Article)
September 15, 2003... Mutual funds are up an average 19.6% so far this year small-cap funds up 30.7%. The market rally that began March 12 was first fueled by a quick outcome in the war in Iraq and, recently, positive economic data. But whether the rally...

Correction.(Correction Notice)
September 15, 2003... In the Sept. 8 issue, Robert Brown's title was incorrectly cited. Brown is senior vice president and director of the investment management team at GE Private Asset Management.

Black Appointed Senior VP Of Fidelity Outsourcing.(Chuck Black)(Brief Article)
September 15, 2003... Fidelity Investments has announced the appointment of Chuck Black as senior vice president in charge of the company's investment and benefits outsourcing consultant relations group. Black has worked at Fidelity for seven years, most...

Falci Joins Calvert as CIO.(Steven A. Falci)(Brief Article)
September 15, 2003... Steven A. Falci has joined Calvert as chief investment officer and senior vice president, equities. He was formerly a senior vice president and senior portfolio manager at Mellon Equity Associates, where he helped develop and manage the firm's...

PFPC Hires Gallagher as Head of Fund Accounting.(Rosemary A. Gallagher)(Brief Article)
September 15, 2003... PFPC, a member of The PNC Financial Services Group, has hired Rosemary A. Gallagher as director of fund accounting and administration for the alternative investment group. Gallagher was previously with MBNA as first vice president of...

Babson Names Masur CFO.(David L. Babson & Co. named James E. Masur chief financial officer and managing director)(Brief Article)
September 15, 2003... David L. Babson & Co. has named James E. Masur as chief financial officer and managing director. Masur joins the firm from Deutsche Asset Management. Before that, he was with Zurich Scudder Investments. He has also worked for Mellon Financial,...

Crawford Becomes Director, Institutional Marketing, at Principal Global Investors.(Cherisse Crawford)(Brief Article)
September 15, 2003... Cherisse Crawford has been named director, institutional marketing and consulting relations, at Principal Global Investors, a division of The Principal Financial Group. "Cherisse's diverse background in the asset management business will...

Japanese Outsider Freeze-Out Thawing.(opportunities for foreign firms in financial services)
September 15, 2003... Japanese investors have historically played the role of the hometown referee, favoring the local teams and giving foreign asset management firms a slim chance of staying in the game. However, the Japanese appear tired of giving the home team a...

How Funds Can Control Money Laundering Risk.
September 15, 2003... Since Sept. 11, 2001, governments in the U.S. and abroad have moved aggressively to combat the problem of money laundering and terrorist financing at financial institutions. To this end, Title III of the USA Patriot Act introduces many new...

Auditor Independence After Sarbanes-Oxley.
September 15, 2003... The requirements of the Sarbanes-Oxley Act and subsequent SEC rules have significant implications for the responsibilities of fund audit committees, the way they do business and the qualifications of their members. Not only did the act...

At Deadline.(New York State Attorney General Eliot Spitzer last week charged broker with securities fraud; notes other news )
September 22, 2003... BoA Broker Faces 25 Years In Prison in Canary Caper Theodore C. Sihpol III, a former broker with Bank of America who was just fired from his job (see News Flash, page 4), has been charged with state criminal and federal civil charges. ...

Funds Trim Fat But Jobs Still Exist.
September 22, 2003... A painful bear market and shrinking profit margins have forced nearly every mutual fund firm to consolidate operations and cut jobs in the past few years. With the unemployment rate sitting at 6.1%, it is difficult to sugarcoat what are clearly...

Fund Execs Lash Out on Sarbanes-Oxley.
September 22, 2003... ORLANDO, Fla. As New York State Attorney General Eliot Spitzer continues to focus on fund executives who have broken the oldest rules in the books, others in the industry gathered at the Investment Company Institute's Tax and Accounting...

SMA Net Sales Up 181% Since 2001.(Separately managed accounts)
September 22, 2003... Separately managed accounts continue to gather steam as industry data shows sales growth far outpacing mutual funds. Financial Research Corp. released vital statistics on the separately managed account business at a banking conference in...

Fair Value Pricing Gains Notoriety (Again).(Mutual fund industry and "fair value pricing")
September 22, 2003... Within the mutual fund industry recently, no three little words have become as important as "fair value pricing." Allegations of large profits derived through arbitrageur-like market timing maneuvers by New York State Attorney General Eliot...

BoA Fires Fund Chief,Three Brokers in Scandal.(Brief Article)
September 22, 2003... Bank of America has been busy doing damage control in the wake of New York State Attorney General Eliot Spitzer's probe into its and four other fund companies' trading policies. The bank has fired Robert Gordon, director of mutual funds, and...

Morningstar Backs Off Recommending Funds Named in Spitzer's Probe.(Brief Article)
September 22, 2003... Citing New York State Attorney General Eliot Spitzer's charges against Canary Capital Partners and his related investigation into Janus, Bank of America's Nations Funds, Bank One and Strong, Morningstar has suspended its recommendation on the...

Investors Fail to React to Mutual Fund Investigation.(Brief Article)
September 22, 2003... Despite the investigation by New York State's attorney general and the Securities and Exchange Commission into questionable and possibly illegal trading policies at four fund companies, the investing public at least so far is turning a deaf...

Papazian to Head Morgan's Global Marketing Efforts.(Brief Article)
September 22, 2003... Ruth Papazian is joining Morgan Stanley as the head of investment management global marketing. She was previously the president and chief marketing officer of Evergreen Investments, and before that, director of marketing for Wells Fargo...

Von Bargen Becomes SVP, Marketing at Gabelli Funds.(Brief Article)
September 22, 2003... Christopher K. Von Bargen has joined Gabelli Asset Management as a senior vice president, marketing, a new position in which he will be in charge of institutional sales in the Southeast. He will be based in Atlanta and report to Chief Operating...

Former Head of State Street Research Now With GAM.(Brief Article)
September 22, 2003... Avinash Persaud, the former head of global research and a managing director at State Street Corp., is joining GAM next month as investment director in charge of a global currency fund that will be launched by the end of the year. Persaud issued...

Chung Promoted to Prez Of Alger, Which Advances Two Other Fund Executives.(Fred Alger)(Brief Article)
September 22, 2003... Fred Alger has promoted Dan Chung from chief investment officer and director of research to president. Chung joined the firm in 1994 as chief technology analyst. He became CIO on Sept. 11, 2001. "Dan has done a remarkable job managing our...

Wagner Tapped as CEO, President, Cardinal Wealth.(Brief Article)
September 22, 2003... Rex Wagner has been appointed as president and chief executive officer of Cardinal Wealth Services. He joins the firm after having served as the manager of the Washington office of Raymond James & Associates. Copyright 2003 Thomson Media...

529s Still Hope to Become as Mainstream as 401(k)s.(Interview)
September 22, 2003... The 529 college savings plan has yet to catch America's attention the way many providers would have hoped. While it is still early in the product's lifespan, it has struggled with profitability issues, low awareness levels among average...

At Deadline.(Curian Capital will sell separately managed accounts through midsize banks)
September 29, 2003... Curian Capital to Sell SMAs Through Midsize Banks A small Denver investment adviser that offers managed accounts to the mass affluent says it is ready to announce relationships with three or four small to midsize banks in the next four...

NYSE Governance, Open Outcry in Flux.(New York Stock Exchange)
September 29, 2003... The winds of change are sweeping the floor of the New York Stock Exchange, as federal regulators look to overhaul the world's biggest marketplace. In the wake of the scandal surrounding former Chairman Dick Grasso's forced resignation and...

Legal After-Hours Activity Concerns Industry.(Industry-wide late processing of mutual fund trades worries some in the industry )
September 29, 2003... Industry-wide late processing of mutual fund trades has some in the industry worried. The practice is commonplace and perfectly legal, so why the concern? Facing the biggest scandal in the history of the industry, late processing can sound...

Banks Build Super-Managed Accounts.
September 29, 2003... As financial services firms continue to launch managed account platforms, a handful of banking companies have begun offering unified managed accounts what many believe is going to be the next generation of the hot product. Wachovia Corp.,...

Scandals Spark New and Renewed Fund Disclosure.
September 29, 2003... Ahhh, there's nothing like a good scandal to fuel additional prospectus disclosures being pushed out to financial advisers and investors. Within the last few weeks, in light of increased scrutiny and the focused attention of regulators, a...

SEC Approves Increased Fund Ad Disclosure.(Brief Article)
September 29, 2003... The Securities and Exchange Commission approved a new rule requiring mutual fund companies to provide more balanced information in their advertisements when promoting fund performance. The new rule, which was adopted with a 4-0 vote, will...

Lipper: Bond Funds Have Worst Month Possibly Ever.(Brief Article)
September 29, 2003... Bond funds had their worst month in at least 20 years and possibly ever, according to data released by Lipper. Bonds bled $15.3 billion in August, well ahead of the $11 billion in outflows suffered in November 1994. Short and intermediate...

Investors Lose 2% A Year to Timing.(Brief Article)
September 29, 2003... New York State Attorney General Eliot Spitzer's complaint against Canary Capital Partners says that market timing and late trading can cost investors as much as $4 billion a year, but another report puts it in terms that may hit home a little...

Sutton Named CEO of UBS Wealth Management Group.(Brief Article)
September 29, 2003... Joseph Grano will retire from his position as head of UBS' wealth management division on Jan. 1, and Mark Sutton, currently president, will assume his position. Grano will remain as chairman, however, until the middle of next year. As part...

Kampe Joins Sirach Team As Lead Wealth Manager.(Sirach Capital Management hired Valerie M. Kampe as principal and portfolio manager)(Brief Article)
September 29, 2003... Sirach Capital Management has hired Valerie M. Kampe as principal and portfolio manager. Kampe is now the lead manager for Sirach's private-client business. She was previously a vice president and senior portfolio manager with The Harris Bank....

Bear Stearns Hires Three Private-Client Executives.(Richard Devine, Howard Franzblau and Michael Silverstein)(Brief Article)
September 29, 2003... Bear Stearns has hired Richard Devine, Howard Franzblau and Michael Silverstein to be managing directors in its private-client services division. All three, based in New York, provide investment advisory services and alternative investments to...

Wachovia Insurance Fills New Posts of CFO, COO.(Wachovia Insurance Services appointed Stewart McDowell COO, Karen J. Lehman CFO)(Brief Article)
September 29, 2003... Wachovia Insurance Services has hired two senior executives to newly created positions in recent months. In July, Stewart McDowell joined the company as COO. More recently, Karen J. Lehman is now CFO. McDowell came from Willis Group Holdings,...

Gabelli Taps His Son Marc For New President Position.(Gabelli Group Capital Partners appointed Marc Gabelli president)(Brief Article)
September 29, 2003... Gabelli Group Capital Partners has selected the son of Gabelli Asset Management's founder, Mario Gabelli, to serve in the new position of president. Marc Gabelli has been with the company for 10 years and will remain active in portfolio...

FRC Adds Three Analysts.(Financial Research Corp. has hired Meghan Lockwood, Christopher Sporcic and Owen Martin Concannon)(Brief Article)
September 29, 2003... As part of Financial Research Corp.'s strategy to enhance its market research capabilities, the company has hired additional analysts as part of its research group. Meghan Lockwood has been brought on as a research analyst. Formerly with...

Fund Your Compliance Systems Properly, Panel Urges.
September 29, 2003... ORLANDO, Fla. Compliance automation is necessary in this day and age, but it's no way to shrink the bottom line, said experts speaking on the Investment Company Institute's Tax and Accounting Conference panel on using technology for compliance...

Fund Size Doesn't Affect Performance Size doesn't matter after all.
September 29, 2003... That was the conclusion reached by a team of researchers at mutual fund tracking firm Lipper of New York, after carefully studying the relationship between fund size and performance. In a recent study entitled "Does Fund Size Affect...