Investment News articles from December 2006

Investment News archives from December 2006

Learning to save a natural for teachers; Study: Ahead of others in financial planning.(News)
December 4, 2006... Byline: Aaron Siegel NEW YORK - When it comes to financial planning, many Americans can learn a thing or two from their teachers. A study released by AIG VALIC, a Houston-based subsidiary of New York's American International Group...

With Andrew 'Buddy' Donohue of the SEC.(One on One)
December 4, 2006... Byline: Sara Hansard Six months into his tenure as director of the division of investment management at the Securities and Exchange Commission, Andrew "Buddy'' Donohue is beginning to stake claim to some issues he would like to tackle. ...

Family anchors feel a strain.(Short Interests)
December 4, 2006... Byline: Aaron Siegel NEW YORK - For the many baby boomers that support parents or grown children, there is now another moniker that can used to define their predicament: the "we generation.'' About 29.3 million working adults 45 or older...

Linsco, thinking big, builds management; Fills three new posts, sets retirement services team.(News)
December 4, 2006... Byline: Bruce Kelly NEW YORK - Snagging top talent from industry rivals, Linsco/Private Ledger Corp. is expanding its roster of top management, and adding to and building out services - including a dedicated retirement services team - for...

American Airlines fund keeps its seat belt fastened.(Street Wise)
December 4, 2006... Byline: Jeff Benjamin The basic portfolio management philosophy behind the $4.8 billion American Beacon Large Cap Value Fund (AADEX) is exactly what one might expect from a money management shop owned by a commercial-airline company. ...

Lipper may upgrade classification; Initiative would complement Lipper Leaders.(News)
December 4, 2006... Byline: David Hoffman PHILADELPHIA - Mutual fund tracker Lipper Inc. is evaluating plans to overhaul its fund classification system, a move that could pose formidable competition to rival Morningstar Inc. The new classification system...

EIA sales slump lingers as class actions loom; Allianz looks to brokerage channel to bolster sagging market share.(News)
December 4, 2006... Byline: Gary S. Mogel NEW YORK - Equity index annuity sales were down for the three-month period ended Sept. 30, the third year-over-year decline in the past four quarters. The specter of tighter regulation - along with product stigma from...

Attorneys question portfolio-monitoring services; Claim it's a red herring for more lawsuits.(News)
December 4, 2006... Byline: Sara Hansard WASHINGTON - Some securities lawyers are concerned that portfolio-monitoring services offered to institutional investors by plaintiff's lawyers are disguised attempts to stir up more lawsuits. "It shows you how...

At the Bell.
December 4, 2006... MFS making job cuts to improve efficiency MFS Investment Management, the nation's 16th-largest mutual fund company, is cutting about 20 jobs as part of a continuing effort to improve operating efficiencies, according to a source familiar...

Advisers in a quandary over need for fiduciary training; Only a third say they understand the liability involved, poll shows.(News)
December 4, 2006... Byline: Lisa Shidler CHICAGO - Many advisers considering becoming a fiduciary adviser are puzzled about whether or not to get additional training. And deciding where to get training also is proving difficult, especially since there appears...

Canada gets an F in enforcing securities regs; Legislator, regulators and the top Mountie attest to problems.(News)
December 4, 2006... Byline: David Clarke OTTAWA - Are Canada's securities laws being enforced properly? To the presumed delight of crooks - but probably not cops - a Canadian legislator, regulators and at least one American professor agree that they are...

Scuttling SRO deal might not be easy; Cash incentive seen as a bribe by some.(News)
December 4, 2006... Byline: Dan Jamieson IRVINE, Calif. - Critics of the effort to create a single self-regulatory organization for the securities industry could face an uphill battle in their efforts to kill the deal. Bylaw changes needed to carry out...

Fisher hires M&A expert.(Short Interests)
December 4, 2006... Byline: Brooke Southall SAN FRANCISCO - Fisher Investments Inc. has ratcheted up its efforts to become a major acquirer of investment managers by hiring a prominent expert in that field. The Woodside, Calif.-based registered investment...

Following the (Lipper) Leaders to find a fit.(The Markets)
December 4, 2006... Byline: Andrew Clark As we have done for past articles, we screened funds - in this case, international funds - based on their Lipper Leader scores. In particular, we looked for funds that were Lipper Leaders for total return and...

Calendar.
December 4, 2006... December 6 - Introduction to the Securities Industry: Structure and Trends training class, Global Investment Operations. Palmer House, Chicago. gioperations.com/training. 6 - Tenth annual Homebuilding Conference, New York Society of...

Android doesn't fit life insurers' mold.(Short Interests)
December 4, 2006... Byline: Gary S. Mogel NEW YORK - She appears to be in her early 20s, doesn't smoke or drink, has a perfect weight-to-height ratio and can't die - yet life insurers have shunned her. Robot management firm Solubot of Seoul, South Korea,...

NASD 'petition candidates' upset committee elections; Wins overshadowed by NASD/NYSE merger announcement.(Short Interests)
December 4, 2006... Byline: Bruce Kelly NEW YORK - The results are in for the NASD district committee and National Adjudicatory Council elections, with candidates backed by the Financial Industry Association winning more than half the district committee seats...

Non-traded REITs face legislative roadblock; Fear regs proposed by NASAA will ax sales.(News)
December 4, 2006... Byline: Jeff Benjamin DETROIT - A strong run for an obscure but increasingly popular asset class known as non-traded real estate investment trusts could be derailed if state regulators get their way. The North American Securities...

Web exchange targeting advisers; Broad scope of bond market unnerves advisers.(News)
December 4, 2006... Byline: Brooke Southall SAN FRANCISCO - Squeezed out in the merger of TD Waterhouse Group Inc. and Ameritrade Holding Corp., James Wangsness - armed with an online trading system - is attempting to wean advisers away from bond funds. ...

Sheen of dividends lures many investors; Attractive yields spark rich paydays.(News)
December 4, 2006... Byline: Aaron Siegel NEW YORK - For most investors, separating the wheat from the chaff is simple: dividends. A resounding 73% of investors preferred to invest in dividend- paying stocks, because they were "predictable cash...

American Funds to offer target date funds; Tough competition expected from established firms.(News)
December 4, 2006... Byline: Kathie O'Donnell BOSTON - American Funds, which long has resisted calls from retirement plan sponsors and others to offer target date retirement funds, plans to do just that early next year. Although the funds are unlikely to steal...

Immigrants burn entrepreneurial flame.(Short Interests)
December 4, 2006... Byline: Riva Froymovich NEW YORK - During the past several decades, immigrants to the United States have seen an opportunity to become entrepreneurs, and they have pursued it, a recent study suggests. Fully 47% of all private...

There is no such thing as bad publicity.(Reverse Spin)
December 4, 2006... Byline: Gary S. Mogel Star power trumps reputation when it comes to getting the best price. That's the most logical explanation to suitors willing to pay top dollar to buy Boston-based Putnam Investments from Marsh & McLennan Cos. Inc. ...

SEC must be tough on fund governance.(Editorial)
December 4, 2006... Those who think that the mutual fund industry has put its scandals behind it are fooling themselves. A new round of sordid practices is coming to light in a Securities and Exchange Commission investigation of BISYS Fund Services Inc., which...

Misdirected speeches further corporate agenda.(Monday Morning)
December 4, 2006... Byline: Dan Jamieson The speech given last month by Treasury Secretary Henry Paulson at The Economic Club of New York was pretty much the same as the one given earlier by New York Stock Exchange chief executive John Thain at a Securities...

Closed-end-fund offerings rouse some investors; High yields too good for advisers to ignore.(News)
December 4, 2006... Byline: David Hoffman PHILADELPHIA - Two new closed-end funds are generating a lot of excitement in a year when few such funds have come to market. Year-to-date though the end of October, just 16 closed-end funds had made their debut -...

Onward, thrifty shoppers.(Short Interests)
December 4, 2006... Byline: Aaron Siegel NEW YORK - To give is divine, and doing so this year may require less cash than in past holiday seasons. "It's not less Christmas cheer'' that is driving consumer spending but the "anticipation of a holiday season...

Monetta plans to launch young-investor fund; Takes the leap, despite rocky performance of kids-themed funds.(News)
December 4, 2006... Byline: Polya Lesova NEW YORK - Weeks after the pioneer of kids-themed funds was merged out of existence, Monetta Financial Services Inc. is launching its own young-investor fund, which will combine index investing with equities appealing...

Premium financers decry insurer 'sabotage' attempts.(Conference Call)
December 4, 2006... Byline: Gary S. Mogel NEW YORK - Premium finan- cers are girding for battle against life insurers and regulators who still question their right to exist. That was the essence of a panel discussion at a conference here last week hosted...

SEC to clarify status of EIAs; Soon will spell out if they are securities or insurance products.(News)
December 4, 2006... Byline: Sara Hansard WASHINGTON - The Securities and Exchange Commission soon will clarify whether equity index annuities should be classified as securities or insurance products. The commission is expected to complete its review of...

Magellan generates less in fees.(Short Interests)
December 4, 2006... Byline: Kathie O'Donnell BOSTON - It looks as if last year's manager change at struggling Fidelity Magellan Fund hasn't done much for Fidelity Investments' coffers. Magellan, which Harry Lange took over from Robert Stansky in October...

Closing quote.(Reverse Spin)
December 4, 2006... "Bonds used to be a roach motel. You could check in but never leave.'' - John Pigott, chief executive of ValuBond Inc., on the benefits to advisers from trading bonds online. Page 3

Simplifying process of buying bonds.(Short Interests)
December 4, 2006... Byline: David Hoffman PHILADELPHIA - Buying and selling bonds can be a tricky business, but one brokerage company is peddling services aimed at making it easier. J.W. Korth & Co. in October launched Bonds4Sale.com, a website aimed at...

Opinion Poll.
December 4, 2006... Previously, we asked: The Charles Schwab Corp.'s decision to sell U.S. Trust Corp., its wealth management subsidiary, to Bank of America Corp. for $3.3 billion clears the way for the discount-brokerage company to: A. Acquire a rival -...

Impact 2006: Post-Conference Report; Table of Contents.(Special Advertising Supplement)
December 11, 2006... Alan Greenspan: Big Picture is Rosy - Page 3 Eight Steps to a Simple and Effective Marketing Plan - Page 4 Managing Longevity Risk for Retirement Page 6 Wealth Training: Financial Education for Families and Their Children - Page 8...

Closing Quote.(Reverse Spin)
December 11, 2006... "If you don't have an informed opinion about a particular currency, then [using such products is] as good as throwing darts at a dartboard.'' -Jeff Tjornehoj, senior research analyst at Lipper Inc., on the risks of currency-exchange-traded...

Wilshire, others to support 401(k) SMAs; But costs to participants could be prohibitive.(News)
December 11, 2006... Byline: Lisa Shidler CHICAGO - For employees who don't know much about retirement investments - who just look at a mutual fund prospectus and turn the pages - help is on the way. Employers now can provide separately managed accounts as the...

Website predicts market.(Short Interests)
December 11, 2006... Byline: Aaron Siegel NEW YORK - A private-investment firm has unveiled a new website that attempts to predict the future for individual investors. For a fee, The Market Prophets' new site, themarketprophets.com, provides investors with...

Hot Schwab, BofA dish served at bash.(Reverse Spin)
December 11, 2006... Byline: Charles Paikert The bar was crowded, the music was live and the gossip was juicy. In other words, Allan Starkie's Christmas party at the Madison Bistro in Manhattan was the place to be last week if you were in the wealth management...

Falling dollar, rising appetite for risk lift non-U.S. portfolios.(The Markets)
December 11, 2006... Byline: Jeff Tjornehoj International funds (funds investing exclusively outside the United States) and global funds (funds investing at home and abroad) have performed relatively better than many domestic funds this year. Some of that...

More banks under regulator's thumb for payoffs; More firms implicated in fund kickback scandal.(News)
December 11, 2006... Byline: David Hoffman PHILADELPHIA - Finally, some names are starting to come out in relation to a Securities and Exchange Commission investigation into illegal kickbacks paid to fund advisers. But industry experts said they don't expect...

Asset distribution versus accumulation.(Editorial)
December 11, 2006... Much has been written about how planners, advisers, asset managers, insurance companies and financial management software developers see the retirement of the baby boomer generation as a watershed. The financial services industry has always...

Smith Barney to slice rep pay; Savings will be used to pay bonuses to sales assistants.(News)
December 11, 2006... Byline: Dan Jamieson IRVINE, Calif. - Smith Barney will be unveiling pay changes to its 13,000-broker sales force this week that could have a significant effect on lower producers. The key change is that Smith Barney reps will get a...

At the Bell.
December 11, 2006... Merrill says BoA eyeing Barclays Bank of America Corp. of Charlotte, N.C., may be about to make a bid for London's Barclays Bank PLC, creating the world's biggest bank, according to a research report released Friday by Merrill Lynch & Co....

Deutsche Boerse's future called into question; Exchange may be left out of merger frenzy for lack of a partner.(News)
December 11, 2006... Byline: Riva Froymovich NEW YORK - The future of Deutsche Boerse AG is in question as other big exchanges make plans to merge, industry observers say. The Frankfurt, Germany-based exchange must find a way to compete with two developing...

Miller's stumble jeopardizes streak; Larger holdings among the worst Value Trust performers.(News)
December 11, 2006... Byline: Kathie O'Donnell BOSTON - Shares of Nike Inc. and KB Home were added in the third quarter to Bill Miller's Legg Mason Value Trust, which - short of a miracle - likely will see its winning streak against the Standard & Poor's 500...

Quest for cash trumps appreciation.(Short Interests)
December 11, 2006... Byline: Riva Froymovich NEW YORK - In a new book, "Covered Calls and LEAPS - A Wealth Option'' (Wiley, 2006), authors Joseph Hooper and Aaron Zalewski maintain they have found the Holy Grail of investing and are bringing it to the people:...

Schwab up close and personal with confab attendees; Latest effort to woo wirehouse brokers may go national.(News)
December 11, 2006... Byline: Brooke Southall SAN FRANCISCO - Angling to recruit more top financial advisers from Wall Street, Schwab Institutional is getting personal on the conference circuit. The San Francisco-based broker last week unveiled a new...

Retirement catch-up.(Short Interests)
December 11, 2006... Byline: Sara Hansard WASHINGTON - Sixty-three percent of Americans aged 50 to 59 said they were concerned about having enough money in retirement, but 32% of baby boomers said they weren't comfortable investing in the stock market. ...

Advisers overlook the mass market, study says; Client's life stage, asset accumulation key marketing factors.(News)
December 11, 2006... Byline: Lisa Shidler CHICAGO - Advisers tend to focus their attention mostly on wealthy and affluent clients, but a recent report suggests that there are opportunities with people who have less money. Some in the retirement industry are...

Western China viewed as next investing frontier; Scores of businesses are setting up shop in the region.(News)
December 11, 2006... Byline: Riva Froymovich NEW YORK - The next investing frontier is in China's underdeveloped western interior, where natural resources are abundant and manufacturers are lured by government incentives, some industry observers say. The...

CEOs down on economy.(Short Interests)
December 11, 2006... Byline: Riva Froymovich NEW YORK - Chief executives of smaller U.S. companies are an optimistic bunch when it comes to their own companies - but not the economy as a whole, according to the findings of a recent survey. The six-question...

Pacific Select in flux as one CEO resigns; Merger or consolidation of network seen as likely.(News)
December 11, 2006... Byline: Bruce Kelly NEW YORK - After less then two years at the helm of Associated Securities Corp., chief executive John Hurley last Tuesday resigned from the broker-dealer. Mr. Hurley's move comes at a time when many observers...

New York Life arm makes generous gift.(Short Interests)
December 11, 2006... Byline: Aaron Siegel NEW YORK - The New York Life Foundation, the charitable wing of New York Life Insurance Co., donated $10 million to help pay for the expansion of the Colin Powell Center for Policy Studies at the City College of New...

IRA column begins.(News)
December 11, 2006... IRA Alert makes its debut today on Page 26. Author Ed Slott, a certified public accountant in Rockville Centre, N.Y., is a nationally recognized individual-retirement- account distribution expert, professional speaker and author. He also has...

Mutual fund industry denounces 'costly' rules; Calls for regulatory cost-benefit analysis.(News)
December 11, 2006... Byline: Sara Hansard WASHINGTON - The mutual fund industry is warning in a soon-to-be released report that a New York Stock Exchange proposal to eliminate broker voting in director elections would cost the fund industry at least as much as...

Private-equity firms set sights on wealth management biz; Cash-flush holding companies are snapping up local firms.(News)
December 11, 2006... Byline: Charles Paikert NEW YORK - Private-equity firms are zeroing in on the wealth management business. New York-based Circle Peak Capital LLC's acquisition last month of WealthTrust Inc., a Nashville-based financial holding company...

Currency ETFs attract assets, despite the risks; Potential for stellar returns are luring investors to speculative market, experts say.(News)
December 11, 2006... Byline: David Hoffman PHILADELPHIA - Assets in exchange-traded investments that provide exposure to foreign currencies are growing rapidly as investors look to profit from a declining dollar, a strategy many financial advisers consider too...

Gulf Coast clients may snub their insurers; Storm woes sour some on companies' other products.(News)
December 11, 2006... Byline: Gary S. Mogel NEW YORK - Gulf Coast clients fighting with insurers over hurricane-related damages may not want to have anything else to do with those insurers, according to advisers in the region. "I doubt that clients who have...

Why bonds don't get the respect they deserve.(Other Views)
December 11, 2006... Byline: William Berg Rodney Dangerfield's shtick was to complain that he didn't "get no respect.'' Bond managers must feel as if they are channeling the late comedian's spirit. Bonds preceded stocks in the development of finance -...

Trust is lacking in business, survey shows; Banking industry scores high, while insurance ranks low.(News)
December 11, 2006... Byline: Riva Froymovich NEW YORK - Earning the trust of business partners, customers and employees isn't an easy task, though it is essential to business growth, accord- ing to the results of a recent survey. Nearly one in three...

With Jeffrey Knight of Putnam Investments.(One on One)
December 11, 2006... Byline: Kathie O'Donnell The challenge for investors in a market environment where "everything has gone up together'' is preserving gains if it all comes down together, said Jeffrey Knight, chief investment officer for global asset...

Opinion Poll.
December 11, 2006... Previously, we asked: Does the $35,000 payout NASD is offering to member firms if its proposed regulatory merger with the New York Stock Exchange is approved constitute a bribe? Yes - 83% No - 17% Respondents: 86 This...

Hartford debuts life insurance for the rich.(Short Interests)
December 11, 2006... Byline: Gary S. Mogel NEW YORK - The rich are different, and among those differences are their complex life insurance needs. The Hartford (Conn.) Financial Services Group Inc. this week announced a private-wealth- management initiative...

Young urged to stash cash.(Short Interests)
December 11, 2006... Byline: Lisa Shidler CHICAGO - When it comes to saving for retirement, baby boomers advised younger workers to do as they say, not as they did. A majority of baby boomers (71%) readily admitted to younger workers that they wished they had...

Insurers wary of NASD/NYSE regulator; Cite `costly' compliance, non-inclusive rulemaking.(News)
December 11, 2006... Byline: Gary S. Mogel NEW YORK - Life insurers are concerned that a combined NASD/NYSE regulator will promulgate rules without sufficient proof that additional regulation is necessary or without regard for compliance cost burdens, industry...

'Anti-Wall Streeter' partial to undiscovered gems.(Street Wise)
December 11, 2006... Byline: Jeff Benjamin On the surface, a company like Medtronic Inc. (MDT) might look like a dog to most portfolio managers. The Minneapolis-based manufacturer and marketer of medical devices has seen its stock endure some wild rides...

Did MFS top executives help scrap takeover talks? Reportedly vetoed deals because suitors wouldn't retain them.(News)
December 11, 2006... Byline: Kathie O'Donnell BOSTON - MFS Investment Management's top executives torpedoed potential deals from suitors interested in acquiring the mutual fund company's assets - but not in retaining them, according to sources familiar with...

'Chuck' Schwab eyes short list of successors; Retiring chief mulls acquisition of E*Trade, others.(News)
December 11, 2006... Byline: Brooke Southall SAN FRANCISCO - Charles R. Schwab probably won't step down as chief executive of his eponymous corporation for another two years. In the meantime, he'll groom a successor and see through the remarkable turnaround he...

Calendar.(Calendar)
December 11, 2006... December 12-13 - Tenth annual Biotech/ Specialty Pharma Conference, New York Society of Security Analysts Inc. NYSSA headquarters. nyssa .org. 13-14 - Annual Hedge Funds Business Operations Forum, Financial Research Associates LLC. The...

High schools need to focus on financial lesson.(Monday Morning)
December 11, 2006... Byline: Jeff Benjamin Talk with a financial adviser anywhere in the country, and you will hear a litany of frustrations related to bringing clients up to speed when it comes to basic financial and economic literacy. We know - based on...

Choices abound for designations.(Short Interests)
December 11, 2006... Byline: Frank Kelly NEW YORK - A bidding suit in bridge should have both length and strength, and one fiduciary training organization apparently subscribes to the same theory as it tries to build a bridge to financial advisers. ...

Angst over Nasdaq leads analyst to downgrade stock; But others are predicting strong performance.(News)
December 11, 2006... Byline: Bruce Kelly NEW YORK - One analyst has downgraded shares of Nasdaq has Stock Market Inc. because of worries about retaining market share and its acquisition strategy. Robert C. Rutschow of Prudential Equity Group LLC in New...

Evergreen hires SMA veteran from MFS; Goal is to make Wachovia unit a top 10 player.(News)
December 11, 2006... Byline: Jeff Benjamin DETROIT - Evergreen Investment Services Inc., the Boston-based asset management arm of Wachovia Corp. in Charlotte, N.C., has taken another step toward increasing its share of the fast-growing separately managed...

Small potatoes can keep feeding your bank account.(IRA Alert)
December 11, 2006... Byline: Ed Slott Yet another opportunity for advisers to bring in new business is available under a provision in the Pension Protection Act of 2006 that allows the deposit of all or part of an income tax refund into the taxpayer's...

Tales from the IRS.(IRA Alert)
December 11, 2006... Here's an example of your tax dollars at work: A lawyer owes the Internal Revenue Service several thousand dollars, so the agency puts a levy on his bank. The bank levy freezes his account up to the amount he owes. The bank is supposed to...

Simplified IRA rules, subsidized savings urged.(Conference Call)
December 11, 2006... Byline: Sara Hansard WASHINGTON - Rules governing individual retirement accounts need to be simplified so workers can save for retirement outside of employer- sponsored plans, and the government should subsidize retirement savings for...

Canada mulls new foreign-takeover restrictions; Oil investments by China is one area receiving scrutiny.(News)
December 11, 2006... Byline: David Clarke OTTAWA - The Canadian mergers-and-acquisitions boom continues, but the minority Conservative federal government is pondering steps that would prevent foreign investors from taking full advantage of the opportunities...

Arbitration lawyers debate effects of single forum; Some bemoan the loss of a choice.(News)
December 11, 2006... Byline: Dan Jamieson IRVINE, Calif. - Some plaintiff's attorneys aren't keen on the possible loss of the New York Stock Exchange's arbitration forum due to the planned merger of the regulatory operations of NASD and NYSE Group Inc., but...

CORRECTIONS.
December 18, 2006... In a story from the Nov. 27 issue titled "GunnAllen finds some relief in court,'' One Resource Financial Consultants' fees and commissions were identified incorrectly. The Fort Wayne, Ind., firm has $500 million in assets under management and...

Big mutual funds aren't rushing to offer advice after New Year; They are waiting for more guidance on the Pension Protection Act.(News)
December 18, 2006... Byline: Lisa Shidler CHICAGO - Although mutual fund companies were expected to rush to offer advice programs to 401(k) plan participants as of the new year, most of the major firms say they are taking a wait-and-see approach, and some are...

Fund Store dealing with growing pains; Shifting strategy from franchises to corporate stores.(News)
December 18, 2006... Byline: Brooke Southall SAN FRANCISCO - The Mutual Fund Store LLC opened a slew of new locations this year, but its success leaves its owners at a fork in the strategic road. The Overland Park, Kan.-based fund retailer will have opened...

Good financial advisers are heaven sent.(Monday Morning)
December 18, 2006... Byline: Jim Pavia My parents were married for 56 years, so when my dad passed away this summer, it was no surprise that my mom suddenly found herself lost and alone. Becoming widowed is surely one of life's most traumatic events. The...

SEC proposal could be a boon for banks.(News)
December 18, 2006... Byline: Sara Hansard `Reg R' would give them a share of reps' commission WASHINGTON - A proposal issued by the Securities and Exchange Commission and the Federal Reserve Board last week could mean a big and long-awaited win for banks....