Investment News articles from February 2003

Investment News archives from February 2003

For execs, it's Fat Citi no longer; Giant's options freeze may start a trend.(News)
February 3, 2003... Byline: Bruce Kelly ***** Correction: In a Feb. 3 article, ``For execs, it's Fat Citi no longer,'' Citigroup Inc.'s stock option policy was improperly characterized as a new policy. In fact, the program, under which Citigroup's top...

Schwab gives up co-CEO designation. (At the Bell).
February 3, 2003... * Charles R. Schwab, 65, relinquished his title as ca-CEO of Charles Schwab Corp. on Friday, leaving David S. Pottruck, 54, as the sole CEO. The change in Mr. Schwab's title doesn't reflect any shift in his duties, says spokesman Lance Berg....

Vice chairman quits at J.P. Morgan. (At the Bell).
February 3, 2003... * Mark Davis, the high-profile vice chairman of J.P. Morgan Chase & Co.'s investment bank, resigned Friday, the company announced. Mr. Davis will depart Feb. 14 to pursue other interests, ending a six-year tenure. Press reports said the...

For execs, it's Fat Citi no longer: giant's options freeze may start a trend.
February 3, 2003... A giant of the financial services industry is slamming the brakes on top executives who want to unload options to cash in on rising stock prices, a practice that played a role in several corporate scandals. Vying to restore credibility with...

It's baaack! SEC mulls watchdog for industry: floats compliance rules and SRO for funds, advisers.
February 3, 2003... To the dismay of the Financial Planning Association, the debate on investment adviser oversight is, like some Frankenstein monster, alive again. The trade group thought the issue of a self-regulatory organization for advisers, possibly...

Ticket (charge) blitz at AmEx: own funds to carry trading fees now.
February 3, 2003... The free ride is ending at American Express Financial Advisors Inc., where more than 10,000 financial planners will have to get used to paying a bit more trading for inhouse mutual funds. By midyear, the Minneapolis-based financial services...

John Hancock flees Olympic 403(b) plan. (At the Bell).
February 3, 2003... * John Hancock Funds in Boston withdrew last week as an option in the 403(b) plan offered to the employees of the United States Olympic Committee. The news comes a mere two weeks after its initial announcement on the addition. A spokesman for...

Morningstar, AmEx pair up. (At the Bell).
February 3, 2003... * American Express Retirement Services in Boston has selected Morningstar Associates LLC, to provide the independent investment advice component of its retirement plan advice and guidance platform. The product, which will be rolled out this...

Corrections.
February 3, 2003... * A front-page story last week, "Analyst conflict regs may hit advisers, too," misstated the membership of the Financial Planning Association. It has about 30,000 members. * A profile in InvestmentNews' broker-dealer section last week...

Options offer opportunities for advisers. (Insights & Analysis).
February 3, 2003... Senior corporate executives have reaped hundreds of millions of dollars of wealth during the past 15 years by exercising large options grants they received as compensation. Many lower-level employees at Silicon Valley companies also got...

High apple-pie-in-the-sky hopes. (Tips, Trends & Observations).
February 3, 2003... Despite the market's dismal start in 2003, hedge fund manager Ian Fraley sticks by his prediction that the Standard & Poor's 500 stock index will finish the year with a gain of between 45% and 60%. The contrarian perspective, which he...

Foot in the door. (Tips, Trends & Observations).
February 3, 2003... The Financial Planning Association recently introduced an internship program to connect financial planning students with experienced financial planners. The FPA, which has headquarters in Atlanta and Denver, will list internship positions...

Sign o' the times. (Tips, Trends & Observations).
February 3, 2003... When the Nasdaq Composite Index was at dizzying heights three years ago, the only thing that seemed less likely than a technology crash was that Silicon Valley's only highbrow social event would crash, too. But the Silicon Valley Charity Ball...

Money market funds zap Fidelity: total inflows off 78% in 2002 despite 14% rise by long-term funds.
February 3, 2003... Fidelity Investments, battling a treacherous bear market and a massive retrenchment from money market funds, experienced a stunning 78% drop in net inflows in 2002. The world's largest mutual fund company added just $8.2 billion in new...

Pitching prosperous fellow pros isn't easy: bad market has made sports stars skeptical.
February 3, 2003... It takes more than a phone call from former star quarterback Joe Montana to entice wealthy athletes to write a check these days. Like other investors, sports figures are more skeptical of all deals since they've watched their portfolios --...

As an investor, he shanked this one.
February 3, 2003... When Lee Johnson drops back to punt, you have to wonder whether he is thinking about a stock pick that didn't pan out. That's because Mr. Johnson, 41, is a former broker with Merrill Lynch & Co. Inc. in New York. He gave up that career to...

Proxy win fires up activists: they want further mutual fund reform.
February 3, 2003... Emboldened by a victory over mutual fund disclosure of proxy votes, activists now are turning up the heat for further mutual fund reform. Their wish list includes computing trading costs as part of expense ratios and shareholder nomination...

U.S. economy in slo-mo during 4Q. (The Week in Review).
February 3, 2003... The brakes you heard squeaking at the end of last year belonged to the economy. Thanks to the weakest consumer spending in nearly a decade, gross domestic product inched ahead at a 0.7% annual rate in the fourth quarter, according to the...

Do-nothing strategy. (The Week in Review).
February 3, 2003... * It's wait and see from the FOMC. The Federal Open Market Committee, the Federal Reserve's policy-setting arm, last Wednesday unanimously voted to keep the federal funds rate for overnight loans between banks at 1.25%. The committee said...

The few, the proud. (The Week in Review).
February 3, 2003... * The Marines are coming. President Bush last Tuesday formally nominated Wall Street banker and former Marine William Donaldson to be chairman of the Securities and Exchange Commission. Senate Banking Committee Chairman Republican Richard...

Not a Harvard man. (The Week in Review).
February 3, 2003... * We know of one portfolio manager who is unlikely to send his kin to Harvard. Franklin Resources Inc. of San Mateo, Calif., Thursday sued Harvard over the way the company that manages the university's $18 billion endowment has handled two...

Advent takes on Statementone for broker biz: leverages Techfi's technology, access.
February 3, 2003... Advent Software Inc. is muscling in on the broker-dealer market with a vengeance. But relative upstart StatementOne Inc., which now controls that niche, is unfazed. Executives from San Francisco-based Advent plan to win customers by using...

Retirement savings needs revamping. (Editorial).
February 3, 2003... While the merits are sure to be widely debated, President Bush's proposals to revamp how Americans save for retirement have opened the floor to a much-needed national debate. The baby boomers are moving through their middle years. The...

Vanguard, Fidelity CEOs doth protest too much. (Opinion).
February 3, 2003... The chairmen/CEOs of the country's two largest mutual fimd firms doth protest too much. In a joint op-ed in the Jan. 14 Wall Street Journal, John J. Brennan and Edward C. "Ned" Johnson III of The Vanguard Group Inc. and Fidelity...

Who defizzed options reform? (Opinion).
February 3, 2003... I think reporter David Hoffman did an outstanding job ["Stock-option reform fizzling," Jan. 20] on the fizzling, and practically nonexistent, reform on ridding the economy of the chief tool of its present malaise. As a practicing certified...

Outlook for variable annuities fairly dim: rising prices a likely deterrent.
February 3, 2003... On the surface, estimates that new variable-annuities sales rose 5% last year might be cause for high-fives all around. But executives, who know what's behind the numbers, say the apparent gains are deceptive. If anything, the figures...

Fidelity 529 adds Inflation-Protected-Bond portfolio. (New Products, Services).
February 3, 2003... Fidelity Investments Institutional Services Co. Inc. in Boston has added the Fidelity Advisor Inflation-Protected Bond Fund and C-class unit pricing to the individual fund portfolios within its intermediary-sold 529 college savings plan. ...

SBLI USA offers tax-deferred annuity. (New Products, Services).
February 3, 2003... SBLI USA Mutual Life Insurance Co. Inc. in New York has introduced Gash Deluxe, a single-premium tax-deferred annuity. The product comes with a choice of a one- or five-year interest rate guarantee, currently offered at 3%. SBLI USA says the...

Tool on alternatives to split-dollar. (New Products, Services).
February 3, 2003... * The Manufacturers Life Insurance Co. (U.S.A.) of Boston, part of Toronto-based Manulife Financial Corp., offers a tool kit for advisers interested in learning more about using life insurance as a catalyst for executive compensation. The...

Allianz annuity adds guarantee. (New Products, Services).
February 3, 2003... * USAllianz Investor Services LLC, a Minneapolis-based affiliate of Allianz Life Insurance Company of North America, has added an income guarantee to its USAllianz Rewards variable annuity. The annuity also offers bonuses on purchase payments,...

Succession-planning tool gets upgrade. (New Products, Services).
February 3, 2003... * Business Transitions LLC in Portland, Ore., has launched the latest in a series of online succession-planning programs for certified public accountants and other accounting practitioners. CPA Transitions was built to meet accountants' growing...

Pricing function added to MFACT. (New Products, Services).
February 3, 2003... * An agreement between Global Investment Systems Ltd. in Hackensack, N.J., and FRi Corp. in Toronto has led to the creation of an expanded pricing-interface option for users of MFACT, an automated system designed for in-house operations to...

ETF program has derivatives option. (New Products, Services).
February 3, 2003... * Clark Capital Management Group Inc., a Philadelphia wealth management firm, has launched a client-driven customized portfolio management program of exchange-traded funds. The Navigator ETF Program will be customized to the individual client's...

H&R Block unveils tax savings product. (New Products, Services).
February 3, 2003... * H&R Block Inc. of Kansas City, Mo., has introduced DeductionPro, a software package that enables taxpayers to claim the full value of their charitable donations. The product provides thousands of fair-market values for hundreds of the most...

AIG unit adds a pair of variable annuities. (New Products, Services).
February 3, 2003... * AIG SunAmerica Inc. in Los Angeles has introduced Polaris Platinum and Polaris Choice, a new line of variable annuity products. The products come with a principal protection feature and offer equity investments from the managers of American...

Matrix adds turnkey asset management. (New Products, Services).
February 3, 2003... * Matrix Advisory Services LLC in Denver has introduced a mutual fund asset management program. The service includes a suite of Internet-ready account management tools that can be customized by financial institutions such as banks,...

U.S. Clearing offers E-Document service. (New Products, Services).
February 3, 2003... * U.S. Clearing, the securities clearing arm of FleetBoston Financial Corp., has launched E-Documents, an Intemet delivery and storage service for the clients and account executives of its broker-dealer correspondents. The product delivers and...

Pershing to use Intuit tax tools. (New Products, Services).
February 3, 2003... * Pershing, a clearing company in Jersey City N.J., will use Intuit Inc.'s interactive personal finance management tools in its TaxCenter tax planning service. Pershing will roll out TaxCenter through NetExchange, its Internet-based account...

DST's vision adds AIG, Sun Life VAs. (New Products, Services).
February 3, 2003... * Vision, an Internet portal for financial advisers operated by DST Systems Inc., has added AIG SunAmerica Inc. and Sun Life Financial/Keyport variable annuities. DST is a Kansas City Mo.-based provider of record-keeping services to fund...

Date book.
February 3, 2003... EVENTS & HAPPENINGS FEBRUARY 5-8--Partnership 2003 National Conference, TD Waterhouse Institutional Services Inc. Westin Century Plaza Hotel and Spa, Los Angeles. (800)934-6124 Option 3 or tdwconferences.com. 6-7--Advanced...

Fund industry said to have its work cut out for it. (Meetings, Conventions & Hearings).
February 3, 2003... Investor pessimism, retiring baby boomers and companies with too much capital are just some of the problems the mutual fund industry faces in the coming years. That was the assessment executives at Strong Capital Management Inc., adviser...

Changing focus to the big advisory guns. (Fast Track).
February 3, 2003... It's a good thing Harold R. Groom Jr. isn't afraid of competition. As the new chief executive of AdvisorCentral LLC, which runs a website that provides broker-dealers with one-stop access to 41 mutual fund companies, Mr. Groom competes...

The Financial Planning Standards Board. (Hirings & Promotions).
February 3, 2003... The Financial Planning Standards Board, a new international body being set up to oversee the global certified financial planner qualification, has named John S. Carpenter chairman and Noel Maye chief executive officer. Mr. Carpenter, 49, a...

The National Association of Insurance and Financial Advisors. (Hirings & Promotions).
February 3, 2003... The National Association of Insurance and Financial Advisors in Falls Church, Va., has named David F. Woods, 67, CEO. He will remain president of the Life and Health Insurance Foundation for Education in Washington.

Neuberger Berman Inc. (Hirings & Promotions).
February 3, 2003... Neuberger Berman Inc. in New York has appointed William I. Rau, 58, and J. Darren Wilcox, 43, regional vice presidents of private asset management. Both Mr. Rau and Mr. Wilcox will serve clients in Georgia and other states in the Southeast. ...

Quick & Reilly Inc. (Hirings & Promotions).
February 3, 2003... Quick & Reilly Inc., the New York-based brokerage unit of FleetBoston Financial Corp., has named Jane-Marie Baker senior vice president and regional director for Florida and New Orleans. Ms. Baker, 50, previously was a vice president in charge...

Promethean asset management LLC. (Hirings & Promotions).
February 3, 2003... Promethean Asset Management LLC, an investment firm in New York, has appointed Christopher Greer, 37, a partner in charge of marketing and client services. Mr. Greer previously was managing director and marketing head at Stark Investments in...

The Trust Company of Virginia. (Hirings & Promotions).
February 3, 2003... The Trust Company of Virginia in Roanoke has named Colin C. Murchison, 60, vice president. Mr. Murchison once was a financial adviser at the Roanoke, Va., office of Wheat First Securities in Richmond, now part of Wachovia Securities Inc. in...

Stephens Inc. (Hirings & Promotions).
February 3, 2003... Stephens Inc. of Little Rock, Ark., has hired Frank O. Sloan, 58, as a vice president and senior portfolio manager in its Dallas office. Mr. Sloan previously was a senior portfolio manager with UBS PaineWebber Inc. in New York.

The New York Stock Exchange. (Hirings & Promotions).
February 3, 2003... The New York Stock Exchange has named Bryant W. Seaman III, 49, group executive vice president, international. Mr. Seaman will develop new non-U.S. listings and coordinate relationships with exchanges in other nations. He previously worked in...

Closed-end funds: corporates continue to make the grade. (The Markets).
February 3, 2003... The markets Closed-end funds Corporates continue to make the grade JUNK BOND PREMIUM Fund Premium 1 year 3 years 5 years BlackRock High Yield Trust 56.9 -2.56 -7.54 N/A...

Fund manager sees global 'Ice Age' thawing out. (Commentary).
February 3, 2003... After three years of what he calls the "Ice Age' for global equity markets, Remi Browne is hopeful, if not downright optimistic, about 2003. Mr. Browne, the manager of the $60 million Standish International Equity Fund (SDIEX), sees new...

Fund gets love from advisers, if not investors: American Century fund has solid returns but big outflows.
February 3, 2003... The American Century Target Maturities Trust 2025 Portfolio (BTTBX) has had a strange couple of years, but a loyal group of advisers swears by the long-term-bond fund. The fund posted a return of 2 1.45% last year and ranked No. 38 out of...

We're developing a message, an economic message". (One on One).
February 3, 2003... The life insurance industry's top lobbyist has struck out on his own. Philmore B. Anderson, who formerly oversaw lobbying activities at the American Council of Life Insurers in Washington, has opened a Washington-based consulting firm, Anderson...

Bush proposal could render 529 plans passe; College plans would find it hard to compete.(The College Money Hunt)
February 17, 2003... Byline: Sara Hansard ***** Correction: Due to inaccurate information provided to InvestmentNews, a Feb. 17 ranking of 529 plans misstated the assets in the Indiana savings plan CollegeChoice. The assets should read $97.6 million,...