Investment News articles from December 2008

Investment News archives from December 2008

Investors and advisers viewpoints.(News)
December 1, 2008... InvestmentNews, in conjunction with National Financial Services LLC, will be conducting e-mail surveys twice a month to gauge the viewpoints of investors and advisers on key topics in the financial market. We look forward to getting feedback...

What's new on investmentnews.com.(Short Interests)
December 1, 2008... /WealthTrack A rare interview with GMO's Jeremy Grantham on the market meltdown. /OnRetirement A two-pronged approach to health care. /taxINsights President-elect Obama's tax plans. Top web stories viewed Nov. 21-26 1. Goldman Sachs...

Online opinion poll.(Short Interests)
December 1, 2008... Previously, we asked you: Are you recommending to your clients that they reduce their positions in automotive-sector stocks? Yes: 60.6% No: 39.4% Vote now! Visit investmentnews.com/poll to respond to this week's question.

Closing quote.(Short Interests)
December 1, 2008... "You have to stop [IRA] contributions. You have to stop 529 contributions. Stop everything altogether. This is survival mode." -Nicholas Yrizarry, an adviser with Nicholas Yrizarry & Associates LLC, on what he is telling some clients. Page 6

Tim Kochis; Chief executive, Aspiriant LLC, San Francisco.(Special Report: RIA Rundown)(Company overview)
December 1, 2008... Discretionary assets under management: $4.1 billion Year firm was founded: Aspiriant began operations Jan. 1 following a merger between San Francisco-based wealth manager Kochis Fitz Tracy Fitzhugh & Gott Inc. and Quintile Wealth Management...

At the bell.(News)
December 1, 2008... Volcker to head advisory board President-elect Barack Obama has tapped former Federal Reserve Chairman Paul Volcker as chairman of the newly established President's Economic Recovery Advisory Board, which will be charged with turning the...

Russell Crosson; President and chief executive, Ronald Blue & Co., Atlanta.(Special Report: RIA Rundown)(Company overview)
December 1, 2008... Discretionary assets under management: $5.4 billion Year firm was founded: 1979 Investment philosophy: We believe in multiple styles, multiple managers and asset diversification. A long-term perspective is really our watchword. ...

M&A FOR RIAs: THE TIME MAY BE RIGHT; Depressed valuations may slow deals; profitability is an issue for small firms.(Special Report: RIA Rundown)
December 1, 2008... Byline: Richard J. Koreto Without a doubt, the stock market's precipitous decline has wreaked havoc on a wide variety of portfolios, even those managed by some of the nation's top registered investment advisers. But what about the firms...

Two surveys support idea of a wirehouse exodus; Fidelity, Cerulli see move toward independent model.(News)
December 1, 2008... Byline: Aaron Siegel Two recent surveys lend credence to suggestions that the Wall Street meltdown may drive more financial advisers to independent firms from wirehouses. Following the September filing for bankruptcy protection by...

Advisers bail from insurance stocks; Many sell clients' holdings as group falls to bottom of financial barrel.(News)
December 1, 2008... Byline: Darla Mercado Deteriorating values of life insurance stocks - which have fallen harder than shares of banks and other financial companies - are leading many financial advisers to throw in the towel and sell clients' holdings. ...

The fast movers; Top 25 fee-only registered investment advisers ranked by growth in discretionary assets under management.(Special Report: RIA Rundown)
December 1, 2008... Definitions & Methodology Growth of discretionary assets under management was calculated from discretionary-assets-under-management data as defined by the Securities and Exchange Commission from Dec. 31, 2006, to Sept. 30. Firms were...

Pay for fund managers may suffer this year; Putnam latest firm to modify compensation plan.(News)
December 1, 2008... Byline: Sue Asci Since firms pay bonuses to portfolio managers based on fund performance, this year's market downturn will likely mean fewer bonuses industrywide and may even result in more turnover. Putnam Investments of Boston just...

Executive hire fuels custody rivalry; Goldman to focus on Fidelity service, Schwab on plan sponsors, as each eyes the other's sweet spot.(News)
December 1, 2008... Byline: Jed Horowitz Charles G. Goldman's appointment last week to run the RIA custody and correspondent clearing businesses of Fidelity Investments presents a challenge to The Charles Schwab Corp., his former employer, and highlights...

Financial advisers try last-resort strategies; Dipping into 401(k)s, retirement plans and 529s are options during these tough times.(News)
December 1, 2008... Byline: Lisa Shidler When a client recently told her adviser that she would be losing her public relations job in six months, Morris Armstrong gave her advice that he never thought he would dispense: He told the single mother, who had been...

Fund sites go global.(Short Interests)
December 1, 2008... Byline: Sue Asci Many fund firms are beginning to pursue overseas sales by using the Internet, according to a study released by kasina LLC, a market research firm based in New York. In a recent analysis of the top 100 largest global...

Obama's sustainable-energy ideas give hope to some fund managers; Tax breaks courtesy of Stabilization Act aim to bolster the sector.(News)
December 1, 2008... Byline: Andrew Coen The election of Barack Obama has given a new "green'' light to environmental investing, and financial advisers are taking notice. During his campaign, Mr. Obama unveiled an aggressive energy plan aimed at...

Congress may take page from TARP pay limits; Legislation could incorporate changes from the government program, experts say.(News)
December 1, 2008... Byline: Sara Hansard Severe restrictions imposed on top executives of financial services companies that take part in the Troubled Asset Relief Program could find their way into legislation that Congress takes up next year, according to...

Patrick Sweeny; Principal, Symmetry Partners LLC, Glastonbury, Conn.(Special Report: RIA Rundown)(Company overview)
December 1, 2008... Discretionary assets under management: $3.3 billion Year firm was founded: 1994 Investment philosophy: We believe in passive investment strategies as opposed to active. We believe in very broad diversification. Our belief system is...

E-mail 'phishers' looking for a few good suckers; Attacks increased 103% in one month.(News)
December 1, 2008... Byline: Bruce Kelly With the stunning decline of the stock market, scam artists and fraudsters are making a run at investors' money, as well as grabbing at highly sensitive personal information. The potential culprits range from e-mail...

MICHAEL STOLPER; Managing Partner, Veritable, Newtown Square, Pa.(Special Report: RIA Rundown)
December 1, 2008... Discretionary assets under management: $9.4 billion Year firm was founded: 1986 Investment philosophy: We provide holistic advice to wealthy U.S. families about liquid investments. The investment policy is driven and tailored to the...

Plans' lack of target date savvy presents opportunity; Sponsors are said to be struggling to evaluate the funds.(News)
December 1, 2008... Byline: Sue Asci Many plan sponsors aren't focused on the investment strategies behind target date funds, creating an opportunity for financial advisers to play a greater role in the retirement-planning process, according to a survey by...

Fears grow for REITs with high debt levels; Banks may be unwilling to issue new loans when current debt matures.(News)
December 1, 2008... Byline: Janet Morrissey Industry experts are nervously eyeing a number of real estate investment trusts whose high debt levels and upcoming debt expirations could jeopardize their future. Of particular concern are REITs whose debt...

IN events.(Short Interests)
December 1, 2008... Dec. 2 Adviser-to-adviser webcast: "Optimizing Roth IRAs'' Experts discuss how best to use Roth IRAs. Key topics include Roth IRA tax rules and advantages, how traditional IRAs and Roth IRAs differ and Roth IRA conversions. Panelists:...

PowerShares gets active.(Short Interests)
December 1, 2008... Byline: David Hoffman Actively managed exchange traded funds, which were introduced this year, haven't caught fire, but that didn't stop Invesco PowerShares Capital Management LLC from launching its fifth such ETF last month. The...

Todd Millay; Managing director, Choate Investment Advisors LLC, Boston.(Special Report: RIA Rundown)(Company overview)
December 1, 2008... Discretionary assets under management: $1.7 billion Year firm was founded: 1996 Investment philosophy: We believe strongly in the value of asset allocation. We also believe that wealth management is holistic and involves integration of...

Tapping the potential of the final frontier; 'Space economy' focuses on commercial markets.(News)
December 1, 2008... Byline: Jeff Benjamin With the global financial markets extending their record-level volatility and generally downward spirals, at least one industry is making a case for space exploration investing. Despite the passing of 39 years...

Keep the envelope closed.(Short Interests)
December 1, 2008... Byline: Lisa Shidler Advisers find themselves in unusual situations in this roller coaster financial market, and some are offering advice - which might contradict conventional wisdom. For the first time, Dorann Cafaro, founder of...

DTCC automates managed accounts; Platform communicates data among participants.(Tech Update)
December 1, 2008... Byline: Davis D. Janowski A new service from the Depository Trust and Clearing Corp. automates the account setup and maintenance of managed accounts - eliminating an onerous and non-standardized manual process. The New York-based...

The week ahead.(Short Interests)(Calendar)
December 1, 2008... Dec. 1 October data on construction spending will be released at 10 a.m. ET. The Institute for Supply Management's manufacturing index for November is slated for release at 10 a.m. ET. Dec. 2 Philadelphia Federal Reserve Bank...

Brokers are cleared in selling-away case; SEC chides Finra for 'novel' interpretation of its rule.(News)
December 1, 2008... Byline: Dan Jamieson A controversial selling-away case decided by the Securities and Exchange Commission last month serves as a warning to brokers about getting ensnared in a tricky area of the law. And it serves as a reminder of the...

JAMES McDONALD; President and chief executive, Rockefeller & Co., New York.(Special Report: RIA Rundown)(Company overview)
December 1, 2008... Discretionary assets under management: $7 billion Year firm was founded: In 1882, as the family office of John D. Rockefeller. It served as a single-family office until 1980, when it registered with the Securities and Exchange Commission...

The RIA Giants.(Special Report: RIA Rundown)
December 1, 2008... Definitions & Methodology RIA Database's Top 50 Fee-Only Advisor Report ranked registered investment advisers (RIAs) based on discretionary assets under management as defined by the Security and Exchange Commission as of Sept. 30, 2008....

STEVE BRAVERMAN; President, Harris myCFO Investment Advisory Services LLC, Menlo Park, Calif.(Special Report: RIA Rundown)
December 1, 2008... Discretionary assets under management: $5.8 billion Year firm was founded: 2002 Investment philosophy: We are a multifamily office. Money management for us is not about stock picking. We are true investment advisers that complement the...

G. MOFFETT COCHRAN; Chief executive, Silvercrest Asset Management Group LLC, New York.(Special Report: RIA Rundown)
December 1, 2008... Discretionary assets under management: $5.5 billion Year firm was founded: 2002 Investment philosophy: Our investment philosophy is one of trying to protect capital. We do that through a thoroughly diversified portfolio approach to...

Regulatory reforms needed to fix financial system.(Viewpoint)
December 1, 2008... The incoming administration should consider the regulatory reforms for the financial markets that it will propose to Congress and the regulatory agencies when it takes office in January. Indeed, such questions should be on the minds of the...

Price cuts coming to 401(k) fees; Plan providers being pressured to trim their cost structures.(News)
December 8, 2008... Byline: Lisa Shidler ***** Correction: Clarification: In the article in the Dec. 8 issue "Price cuts coming to 401(k) fees,'' Linda Wolohan, a spokeswoman with The Vanguard Group Inc. of Malvern, Pa., said that the company is in the...

Brokers in no rush to go independent; Practical, psychological barriers stand in way of flight from wirehouses.(News)
December 8, 2008... Byline: Jed Horowitz ***** Correction: In the article "Brokers in no rush to go independent,'' which ran in the Dec. 8 issue, Trish Cox's title was incorrect. She is chief operating officer of San Francisco-based Schwab...

Top 25 fund companies ranked by U.S. diversified equity assets, $ in billions.(DataBook 2008)
December 15, 2008... Company/3Q assets ($B) 1. The Vanguard Group Inc./606.7 100 Vanguard Blvd. Malvern, PA 19355 (800) 997-2798 vanguard.com 2007 3Q assets: 741.1 2006 3Q assets: 614.7 2. American Funds Investment Co./499.7 333...

25 largest fund companies ranked by average asset-weighted equity returns.(DataBook 2008)
December 15, 2008... Company/12-month return 1. Pimco Funds/-8.31 840 Newport Center Drive, Suite 100 Newport Beach, CA 92660 (866) 746-2602 pimco.com 2007 return: 15.61 2006 return: -5.91 2. MFS Investment Management/-21.68 500...

Top 20 real estate funds ranked by 3-year return.(DataBook 2008)
December 15, 2008... Fund name/3-year % return 1. CGM Trust Realty/4.39 Ticker: CGMRX Assets ($M): 1,283.4 Year-to-date % return: -39.06 1-year return: -42.15 Mgmt Co.: Capital Growth Mgmt LP Mgr: G. Kenneth Heebner (800) 343-5678...

Top 20 socially conscious mutual funds ranked by assets.(DataBook 2008)
December 15, 2008... Fund name/Assets ($M) 1. Ariel/1,845.58 Ariel Investments LLC 200 E. Randolph Drive, Suite 2900 Chicago, IL 60601 (312) 726-0140 email@arielinvestments.com arielinvestments.com 2. Pax World Balanced/1,668.33...

Top fund firms ranked by average asset-weighted fixed-income returns.(DataBook 2008)
December 15, 2008... Company/%change 1. Dimensional Fund Advisors Inc./3.07 1299 Ocean Ave. Santa Monica, CA 80401 (310) 633-7885 dfaus.com 2. American Century Investments/3.03 P.O. Box 419200 Kansas City, MO 64141 (800)...

Top 25 taxable-bond funds ranked by year-to-date return.(DataBook 2008)
December 15, 2008... Fund name/YTD % change 1. Direxion/9.05 10 Year Note Bull 2.5X Inv Assets ($M): 31.79 YTD% category rank: 1 2. Rydex Govt Long Bond/6.01 1.2x Strategy Inv Assets ($M): 49.39 YTD% category rank: 4 3....

Top 25 fund companies ranked by long-term fixed-income assets.(DataBook 2008)
December 15, 2008... Fund group/3Qassets ($B) 1. The Vanguard Group Inc./255.5 100 Vanguard Blvd. Malvern, PA 19355 (800) 997-2798 vanguard.com 2. Pimco Funds/204.2 840 Newport Center Drive, Suite 300 Newport Beach, CA 92660 ...

Asset breakdowns at the top 20 fund complexes.(DataBook 2008)
December 15, 2008... Name/Total long-term assets ($B) 1. The Vanguard Group Inc./957.0 Change from 3/08: -12% Domestic equity: $606.7 International/global: $94.8 Corporate: $128.9 Tax free: $61.6 Government: $65.0 2. American...

Top 25 worldwide ETFs ranked by 20-day-average share volume.(DataBook 2008)
December 15, 2008... Fund name/Share volume 1. S&P 500 SPDR: 11,889,533,913 State Street Global Advisors 20-day-avg vol: 516,936,257 Symbol: SPY 2. Nasdaq 100 Index Tracking Stock: 7,243,672,958 PowerShares Capital Management LLC ...

Top exchange traded funds ranked by assets.(DataBook 2008)
December 15, 2008... Fund name/Assets ($M) 1. SPDR Trust 1: 78,121.5 Ticker: SPY Year-to-date % return: -32.73 1-year % return: -35.97 Annualized 3-year return: -5.23 Expense ratio: 0.08 2. iShares MSCI EAFE Index: 26,299.6 ...

Profiling the industry's largest 401(k) managers.(DataBook 2008)
December 15, 2008... (Dollars in millions) 1. Fidelity Investments 82 Devonshire St. Boston, MA 02109 (800) 343-3548 Fax: (617) 476-6150 fidelity.com401(k) total: $434,504 Total DC assets: 548,307 Internally managed DC: 522,737 ...

Clearing firms for futures market (not ranked).(DataBook 2008)
December 15, 2008... ABN Amro Sage Corp. 220 Bush St. San Francisco, CA 94014 (415) 981-6364 abnamro.com Banc of America Securities LLC 9 W. 57th St. New York, NY 10019 (212) 583-8000 bankofamerica.com Barclays Capital Inc. ...

U.S. clearing firms ranked by broker-dealer clients.(DataBook 2008)
December 15, 2008... 1. Pershing LLC Number of clients: 900 Contact: James T. Crowley, managing director One Pershing Plaza, Eighth Floor Jersey City, NJ 07399 Phone: (201) 413-2930 brokerage.info@pershing.com pershing.com ...

Top independent broker-dealers ranked by first-half gross revenue.(DataBook 2008)
December 15, 2008... Broker-dealer/Gross revenue $ 1. LPL Financial: 1,614M One Beacon St., 22nd Floor Boston, Mass. 02108 joinlpl.com (800) 877-7210 Mutual Service Corp.: 110.3M 250 Australian Avenue S. West Palm Beach, FL 33401 ...

InvestmentNews directory of independent broker-dealers.(DataBook 2008)
December 15, 2008... For registered representatives considering a move to self-employment or for independent advisers considering a change, selecting a broker-dealer is a major consideration. Having all the facts can result in a better decision. The following...

Top life insurance companies ranked by direct premiums.(DataBook 2008)
December 15, 2008... Company/Direct premiums ($M) 1. American International Group Inc.: $30,432.50 Market share: 18.08% 70 Pine St. New York, NY 10270 (212) 770-7000 aig.com 2. Metropolitan Life Insurance Co.: 12,711.71 Market share:...

Top 25 providers of variable annuities, ranked by assets.(DataBook 2008)
December 15, 2008... Company/Assets ($M) 1. TIAA-CREF: $350,710 730 Third Ave. New York, NY 10017 (212) 490-9000 tiaa-cref.org 2. Hartford Life: 92,253 200 Hopmeadow St. Simsbury, CT 06089 (860) 547-5000 thehartford.com 3....

Top long term care underwriters ranked by premiums in force.(DataBook 2008)
December 15, 2008... Company/Assets ($M) 1. Genworth Financial Inc. (p): $1,799.0 6610 W. Broad St. Richmond, VA 23230 genworth.com (800) 844-6543 2007 sales annual prem ($M): 173.1 Policies in force: 1,034,472 2007 policies sold:...

Major trade organizations in financial services.(DataBook 2008)
December 15, 2008... American Council of Life Insurers 101 Constitution Ave. N.W., Suite 700 Washington, DC 20001 (877) 674-4659, acli.com Frank A. Keating, president and chief executive Members: 353 life insurance companies American...

Top open separate-account-consultant program sponsors ranked by assets.(DataBook 2008)
December 15, 2008... 1. Citigroup Global Wealth Management: $58.4 Smith Barney Consulting Group Market share: 25.6% 222 Delaware Ave., Seventh Floor Wilmington, DE 19801 smithbarney.com (800) 221-2826 2. BlackRock Investment Management...

Top sponsors of subadvisory separate-account consultant programs.(DataBook 2008)
December 15, 2008... Company/Assets ($B) 1. BlackRock Investment Management LLC: $105.2 Market share: 25.5% 800 Scudders Mill Road Plainsboro, NJ 08536 mlim.ml.com (800) 637-7455 2. Citigroup Global Wealth Management: 101.7 Smith...

10 metro areas with most 3Q foreclosure filings.(DataBook 2008)
December 15, 2008... Rank/% of market 1. Stockton Calif.: 3.69 Number of filings: 8,252 2. Las Vegas/Paradise Nev.: 3.48 Number of filings: 26,304 3. Riverside/San Bernardino Calif.: 3.09 Number of filings: 43,294 4. Bakersfield...

Top 40 fee-only RIAs ranked by discretionary assets.(DataBook 2008)
December 15, 2008... 1. Veritable LP 6022 West Chester Pike Newtown Square, PA 19073 Phone: (610) 640-9551 Fax: (610) 640-9554 veritablelp.com Discretionary Assets: $9,410,397,184 Accounts: 1,906 Total Assets:...

Correction and clarification.(Corrections)(Correction notice)
December 15, 2008... In the article "Brokers in no rush to go independent,'' which ran in the Dec. 8 issue, Trish Cox's title was incorrect. She is chief operating officer of San Francisco-based Schwab Institutional's adviser services unit, not its chief financial...

DataBook 2008.
December 15, 2008... Page 10. Top fund groups ranked by U.S.-sourced long-term assets 12. Top 25 fund companies ranked by U.S. diversified equity assets 13. 25 largest fund companies ranked by average asset-weighted equity returns 14. The best and...

We'll be back in Jan.(News)
December 15, 2008... This is the final print issue of the year. The next issue of InvestmentNews will be published Jan. 5 and will feature an Outlook 2009 special report. Meanwhile, look for IN EXTRA, our online-only version of InvestmentNews, which will run Dec....

Online opinion poll.(News)
December 15, 2008... Previously, we asked you: Do you think taxpayers got the shaft in the government's bailout of Citigroup Inc.? Yes: 85% No: 15% 85% of 294 readers said yes. Vote now! Visit investmentnews.com/poll to respond to this week's...

Investor and adviser viewpoints.(News)
December 15, 2008... Investors were asked: Are you currently saving as much as you should for retirement? Yes: 73% No: 27% Responses: 211 Advisers were asked: Are the majority of your clients currently saving as much as they should for...

A year of painful lessons.(Viewpoint)
December 15, 2008... Investors will be glad to see the end of 2008 - a year that may live in infamy as one that was marked by the worst investment returns since the Great Depression. But the end of such a year is an excellent time to look back to determine what...

Cost may dampen investor appeal of eclectic multiasset funds; Wide-net approach isn't new, say critics.(News)
December 15, 2008... Byline: David Hoffman A select group of mutual funds that can invest beyond stocks, bonds and cash are being heralded as the next great innovation, but some industry observers question whether the funds are merely repackaging an existing...

On the minds of top guns; Just Thinking.(Viewpoint)
December 15, 2008... Byline: Jim Pavia I always like to end the year by polling top people in the financial services industry and asking what's on their minds for the upcoming 12 months. Allow me to share some of their responses. "These are crazy times,''...

Fidelity trims jobs at unit that refers clients to RIAs; Layoffs, managerial changes raise questions about direction.(News)
December 15, 2008... Byline: Jed Horowitz Fidelity Investments, which two years ago unveiled a revamped program for referring wealthy clients to independent fee-based advisers from its discount-broker network, has cut most of the staff dedicated to the unit....

Layoffs spell opportunity for advisers; Mounting job losses to unleash a torrent of rollover assets.(News)
December 15, 2008... Byline: Lisa Shidler Financial advisers are seizing an opportunity to attract the IRA rollover accounts of employees who have been laid off recently. "Every layoff is a rollover. You can't open the paper without seeing tens of...

Groups unite on Capitol Hill; NAPFA, FPA, CFP Board strive for voice in regulation.(News)
December 15, 2008... Byline: Sara Hansard Politics does indeed make for strange bedfellows. Leaders of the Financial Planning Association, the National Association of Personal Financial Advisors and the Certified Financial Planner Board of Standards Inc....

Stanford Financial expanding despite contracting economy; Firm may hire 100 advisers next year and open New York office.(News)
December 15, 2008... Byline: Charles Paikert While many wealth management firms are hunkering down in a brutal market, the Stanford Financial Group is swinging for the fences. The risk, of course, is that the privately owned Houston-based firm could also...

Morgan Stanley hopes to attract rising stars by adjusting grid, adding 'liquidity award'; Wirehouses differ on up-and-comer pay.(News)
December 15, 2008... Byline: Dan Jamieson Morgan Stanley is changing its pay plan to reward top producers and up-and-coming younger brokers, while penalizing lower producers. Beginning in January, all $3 million-and-up producers and any broker with 20 or...

Prime numbers.
December 15, 2008... Go figure 15: The number of times former Merrill executive Winthrop H. Smith Jr. used the word "shame'' in remarks he delivered at the Dec. 5 special meeting of Merrill Lynch & Co. Inc. shareholders. Source: Bloomberg 27,771: The...

BofA opts to reward current big producers, increasing payouts; Wirehouses differ on up-and-comer pay.(News)
December 15, 2008... Byline: Bruce Kelly Bank of America Corp. shot itself in the foot by overlooking up-and-coming brokers when it announced its retention deal in late October for about half the 17,000 brokers with Merrill Lynch & Co. Inc., according to...

Deadline to track cost basis reporting looms; Financial firms work to enhance platforms so they reflect new regs.(Tech Update)
December 15, 2008... Byline: Davis D. Janowski Broker-dealers, mutual fund companies and fund custodians are updating systems to comply with the cost basis reporting requirements included in the Emergency Economic Stabilization Act of 2008. Brokers must...

Policies offer small business a credit lifeline; Advisers warn that life settlements are risky financing solution.(News)
December 15, 2008... Byline: Darla Mercado Cash-strapped small businesses looking for a lifeline may find one in an unlikely asset - life insurance policies on the companies' owners. While life settlement experts caution financial advisers that tapping...

At the bell.(News)
December 15, 2008... Madoff's arrest shocks securities industry The arrest of Bernard Madoff for securities fraud Thursday night sent shockwaves through the professional stock-trading and regulatory communities, where he has been both lionized and vilified for...