Investment News articles from January 2006

Investment News archives from January 2006

Dan Genter.(Investment Outlook)
January 9, 2006... Byline: Charles Paikert President, chief executive and chief investment officer RNC Genter Capital LLC Los Angeles Assets under management: $2.3 billion Forecast: The biggest negative factor Mr. Genter sees is "some...

Joe Battipaglia.(Investment Outlook)
January 9, 2006... Byline: david hoffman Yardley, Pa.-based chief investment officer Ryan Beck & Co. Inc. Florham Park, N.J. Assets under management: $17 billion Forecast: The economy will continue to improve in 2006, Mr. Battipaglia...

John Blood.(Investment Outlook)
January 9, 2006... Byline: Bruce Kelly Vice president and director of investments Commonwealth Financial Network Waltham, Mass. Forecast: Since equity markets now are fairly valued, investors will look for a rise in corporate earnings for...

Tim Guinness.(Investment Outlook)
January 9, 2006... Byline: David Hoffman Chief investment officer and -portfolio manager Guinness Atkinson Asset -Management LLC Woodland Hills, Calif. Assets under management: $290 million Forecast: The domestic economy will be "quite...

Jeffrey Kleintop.(Investment Outlook)
January 9, 2006... Byline: Charles Paikert Chief investment strategist and senior vice president PNC Financial Services Group Inc. Pittsburgh Assets under management: $50 billion Forecast: The "Fed" factor will play a big role in the...

Chris Johnson.(Investment Outlook)
January 9, 2006... Byline: Jeff Benjamin Director of quantitative analysis Schaeffer's Investment Research Inc. Cincinnati Forecast: The outlook for 2006 is neither bright nor particularly logical, according to Mr. Johnson. "It's hard...

Chris Orndorff.(Investment Outlook)
January 9, 2006... Byline: Jeff Benjamin Managing principal Payden & Rygel Investment Management Los Angeles Assets under management: $50 billion Forecast: Mr. Orndorff described himself as being "generally optimistic" about the...

Jim Spence.(Investment Outlook)
January 9, 2006... Byline: Bruce Kelly President Spence Asset Management Inc. Las Cruces, N.M. Assets under management: $108 million Forecast: With the "hot money" in real estate, investors will have to grow disenchanted with that...

Keith Wirtz.(Investment Outlook)
January 9, 2006... Byline: Sara Hansard President and chief investment officer Fifth Third Asset Management Inc. Cincinnati Assets under management: $23 billion in institutional assets and mutual funds Forecast: Mr. Wirtz expects that...

People.
January 9, 2006... Spectrum Advisory Services Inc. in Atlanta has hired Edward P. Crotty, 38, as a managing director. He will be responsible for research, portfolio management and business development in support of the firm's separately managed accounts and its...

Overall, equity VIP investors should be pleased when they open their year-end statements.(The Markets)
January 9, 2006... Positive performance in equity variable insurance products should leave most investors happy when 2005 annual statements are reviewed. Many analysts had expected relatively low performance in 2005 after above-average returns in the preceding...

Tax cut extensions may be delayed until next year.(Tax Watch)
January 9, 2006... Byline: Mark E. Battersby While praising the tax cuts enacted during President Bush's first term for their contribution to economic growth, Senate Majority Leader William H. Frist, R-Tenn., said extending them could wait until next year....

InvestmentNews names publisher.(News)
January 9, 2006... NEW YORK - Suzanne Fitzpatrick Siracuse (above) has been named publisher of InvestmentNews, effective Jan. 1. Charles Dixson, formerly a district sales manager, becomes advertising sales director. William T. Bisson Jr. announced the...

Morningstar names top fund managers.(Short Interests)
January 9, 2006... Byline: Carlise Peterson CHICAGO - Morningstar Inc. has selected its domestic-stock-, international-stock- and fixed-income-fund managers of 2005. Domestic-stock-fund managers of the year were Christopher Davis and Ken Charles...

Marsh Mac sued for breach of duty.(Late News)
January 9, 2006... Milwaukee-based bank Marshall & Ilsley Corp. sued Marsh & McLennan Cos. Inc. on Thursday, accusing the New York-based insurance broker of breaching its fiduciary duty. The bank alleges in its suit, filed in a federal district court in...

Woodbury draws reps with 'human touch'; Support, products, technology reel in the brokers.(News)
January 9, 2006... Byline: Bruce Kelly NEW YORK - One growing insurance-owned broker-dealer says that it is the human touch that keeps and attracts registered representatives. The market is such that "with meaningful reps, they want to find a home and...

Brokerage industry on a roll.(Investment Outlook)
January 9, 2006... Byline: Dan Jamieson IRVINE, Calif. - Times are good on the Street. In fact, according to the Securities Industry Association of New York and Washington, 2006 could end up being the second-most-profitable year for the brokerage...

Another big hurdle: A shortage of stocks for shorting; Registration issue not sole speed bump for growing industry.(Investment Outlook)
January 9, 2006... Byline: Jeff Benjamin DETROIT - By most measures, 2006 could represent a turning point for the bustling world of hedge fund investing. Although the most immediate issue facing the $1 trillion industry is the February deadline for...

Citadel unloads technology jobs; Outsourcing cuts hedge fund's head count 18%.(News)
January 9, 2006... Byline: Kate Ryan CNS CHICAGO - Citadel Investment Group LLC laid off about 200 technology staff members recently, reducing the hedge fund's work force by 18% to about 900. Chicago-based Citadel is outsourcing computer-programming work...

Rydex looks to make the best of a bad situation.(Street Wise)
January 9, 2006... Byline: Jeff Benjamin In a few months, if all goes according to plan, the fledgling $14.3 million Rydex Absolute Return Strategies Fund (RYMSX) could see an assets-under-management spike of about 1,500% to more than $225 million. ...

Identity thieves may target your affluent clients.(Practice Management)
January 9, 2006... Byline: Peter Spicer While today's criminals are attracted to anyone with a vulnerable identity, it's your affluent clients whom they find particularly irresistible. Criminals quickly have begun to learn that identity theft offers a...

The flexible inflexible trust: A versatile tool.(Practice Management)
January 9, 2006... Byline: Alan R. Eber When your clients have accumulated wealth, they should consider protecting their money from creditors, divorce and the tax man, while leaving a financial legacy for generations to come. The flexible inflexible...

Leaders should focus on spending, taxes.(Editorials)
January 9, 2006... New Year's Day has passed, but here are some resolutions we hope various people of influence made Jan. 1. President Bush: "I resolve to veto at least a few major spending bills this year to goad Congress into being serious about the budget...

'Barely boomers' looking to build their nest eggs.(Short Interests)
January 9, 2006... Byline: Charlie Paikert NEW YORK - The "barely boomers'' - baby boomers, ages 41 to 46 - have more sophisticated financial needs than the rest of their generation, according to a new report, "The Barely Boomers: How They Will Impact Future...

Life insurance, annuity providers strive to break sales slump; Many advisers lukewarm toward industry's offerings.(Investment Outlook)
January 9, 2006... Byline: Gary S. Mogel NEW YORK - Life insurance companies will revamp their offerings and marketing strategies in 2006 in order to spur growth and counter adviser resistance to using their products in financial planning, industry insiders...

How to define, or recognize, fiduciary excellence.(Fiduciary Corner)
January 9, 2006... Byline: Donald B. Trone, Blaine F. Aikin and J. Richard Lynch When the Foundation for Fiduciary Studies began to formally define investment fiduciary practices five years ago, an environmental engineer suggested we develop our practices...

With David J. Goerz III of HighMark Capital Management Inc.(One on One)
January 9, 2006... Byline: Brooke Southall HighMark Capital Management Inc. is not well known east of Utah. David J. Goerz III, who became the sole chief investment officer of HighMark's $20 billion in mutual fund and private-client assets last month,...

Morgan Stanley suffers asset drain; Firm lost $10 billion in assets in last half of fiscal year.(News)
January 9, 2006... Byline: Dan Jamieson IRVINE, Calif. - With some of its best-producing brokers bolting - and taking billions in assets with them - Morgan Stanley's retail-brokerage business poses a formidable challenge to James Gorman, who is set to begin...

Snapshot.(One on One)
January 9, 2006... Byline: Source: Morningstar Inc. David J. Goerz III, 42, senior vice president (since August 2003) and chief investment officer (since December) of San Francisco-based HighMark Capital Management Inc. in Salt Lake City; sole CIO since...

More plan participants roll over cash.(Short Interests)
January 9, 2006... Byline: Sara Hansard WASHINGTON - A larger portion of workers are rolling over all their lump-sum distributions from employer-sponsored retirement plans into another retirement savings account when they leave their job, and fewer are...

A year of deals - maybe even a big one; More competition, compliance costs to spur consolidation.(Investment Outlook)
January 9, 2006... Byline: David Hoffman NEW YORK - It's been a long time coming, but 2006 finally may be the year investors see real consolidation in the mutual fund industry, according to several industry experts. The signs that consolidation is coming...

BISYS gets clients group rate on OneSource; New platform offers select funds discount at the supermarket.(News)
January 9, 2006... Byline: David Hoffman NEW YORK - The BISYS Group Inc. of New York this month will roll out a new platform for its fund company clients to provide marketing and sales services aimed at luring registered investment advisers. Some...

Planners hurt by hurricanes are getting back on track; But storms' legacy includes lost business, plus continuing problems for clients.(News)
January 9, 2006... Byline: Charles Paikert NEW YORK - Financial planners and advisers in New Orleans and on the Gulf Coast are beginning to recover from the devastating effects of last year's hurricanes. "We're on the road back,'' said Ron Chapoton,...

Calendar.(Calendar/Datebook)
January 9, 2006... January 12 - Ready for Roth? Sungard Corbel Inc. Holiday Inn Independence (Ohio); Embassy Suites Hotel, Denver Southeast/North Tech Center; Doubletree Hotel Nashville (Tenn). sungardcorbel .com. 12 - Distributions and Taxation, Sungard...

Investors lack survival skills.(Short Interests)
January 9, 2006... Byline: Carlise Peterson CHICAGO - Most American investors do not possess fundamental investor survival skills needed to build their savings into retirement nest eggs, according to a survey conducted by the Securities Investor Protection...

Pondering the pros and cons of national health.(Editorials)
January 9, 2006... Byline: Mike Clowes Is the time right for a national health-care system? I always have been philosophically opposed to national health, because I believe in keeping the federal government as small as possible. A large federal...

Bill would decentralize SEC compliance efforts; House proposal draws fire from Levitt.(News)
January 9, 2006... Byline: Sara Hansard WASHINGTON - Legislation has been proposed that would reorganize the Securities and Exchange Commission's office of compliance inspections and examinations, and could make it more difficult for regulators to detect...

Website to offer support for advisers; Startup to compete with Horsesmouth.com.(News)
January 9, 2006... Byline: Charles Paikert NEW YORK - There's a new practice-management portal in town. Industry veterans Kristofer R. Behn and David Drucker have launched Practicelifecycle.com, which offers financial planners and advisers a wide range...

Congress, industry prep for baby boomer wave; Retirees face a reality check.(Investment Outlook)
January 9, 2006... Byline: Carlise Peterson CHICAGO - This year will see the first wave of baby boomers turn 60, and they - and financial advisers - won't lack for products and ventures that will make "the spending years'' easier. New undertakings...

On the agenda: DC plans, tax issues; SEC likely to target fund disclosure, directors' duties.(Investment Outlook)
January 9, 2006... Byline: Sara Hansard WASHINGTON - After focusing its efforts on strengthening defined benefit retirement plans in 2005, Congress is likely to attend to defined contribution plans and encourage Americans to save more for retirement. ...

Banks to pursue HSA business; Washington group to promote health accounts.(News)
January 9, 2006... Byline: Gary S. Mogel NEW YORK - Banks increasingly are viewing health savings accounts as a lucrative source of potential income and are promoting themselves as naturals for managing them, according to industry insiders. Last month,...

Closing Quote.(Quotes)
January 9, 2006... "The card can't distinguish between asthma medication and a case of beer.'' Kevin McKechnie, staff director at the HSA Council, on the difficulties of ensuring that bank clients who participate in health savings accounts use the debit...

Wachovia recruits top exec to oversee indie brokerage unit; Acquisitions are a possibility as firm plots growth strategy; Raymond unit seen a fit.(News)
January 9, 2006... Byline: Bruce Kelly NEW YORK - It is a game of musical chairs for executives at leading independent-contractor broker-dealers, with Wachovia Securities LLC plucking a top manager from Raymond James Financial Services Inc. Last month,...

Women still live longer, but men are catching up.(Short Interests)
January 9, 2006... Byline: Gary S. Mogel NEW YORK - Women continue to outlive men - by an average of four and a half years - but men gradually are closing that gap. That was the key finding of the Credit Suisse Longevity Index, which was launched last...

Smith Barney's use of 'advisor' irks NAPFA; Organization contends the term is misleading.(News)
January 9, 2006... Byline: Brooke Southall SAN FRANCISCO - Smith Barney has joined the rest of Wall Street in calling its securities sales force "financial advisors,'' but the title shift has drawn some howls from an industry association. Last month, the...

Advisers warming to relationship management platforms; Once peripheral, such technology is now a focal point.(Investment Outlook)
January 9, 2006... Byline: Brooke Southall SAN FRANCISCO - Financial advisers, as a group, have not traditionally been technology minded, but that began to change in 2005. With increased competition and a desperate need to avoid drowning in their own...

Use swollen cash reserves for capital spending.(Editorials)
January 9, 2006... By all accounts, U.S. corporations are cash rich. Profits have been strong for more than two years and seem likely to have topped $220 billion last year, once the final figures are in. Yet corporate spending has been relatively weak....

Tax benefits of ETFs overrated.(Short Interests)
January 9, 2006... Byline: David Hoffman NEW YORK - The supposed tax efficiency behind exchange traded funds has been one of their biggest selling points, but over the past five years, ETFs have been no more tax efficient than the average mutual fund,...

IBM's defined benefit plan bites dust.(Reverse Spin)
January 9, 2006... Byline: Frederick P. Gabriel Jr. The old-fashioned defined benefit plan is continuing its move up the list of endangered species. IBM Corp. of Armonk, N.Y., said Thursday it will put the freeze on its $48 billion pension plan in 2008....

Soothsayers bullish on the economy for '06; Consensus: Indexes to gain 6% to 7%.(Investment Outlook)
January 9, 2006... Byline: Frederick P. Gabriel Jr. BOSTON - Despite a softening real estate market and the likelihood of a modest slowdown in economic growth, 2006 may be the year investors begin looking at the economic cup as half full rather than half...

Mark Jordahl.(Investment Outlook)
January 9, 2006... Byline: Frederick P. Gabriel Jr. Chief investment officer First American Funds Minneapolis Assets under management: $53 billion Forecast: The question investors face in the year ahead is what life will be like after...

Bob Straus.(Investment Outlook)
January 9, 2006... Byline: Gary Mogel Chief investment officer ICON Advisers Inc. Greenwood Village, Colo. Assets under management: $5 billion Forecast: "The economy will continue growing, and GDP will be strong," said Mr. Straus....

Bob Kargenian, certified market technician.(Investment Outlook)
January 9, 2006... Byline: Dan Jamieson President and principal TABR Capital Management LLC Orange, Calif. Assets under management: $155 million Forecast: Mr. Kargenian expects tough going for the equity markets - down 15% to 20%, with...

Barry Mendelson, CIMA.(Investment Outlook)
January 9, 2006... Byline: Dan Jamieson Managing partner Capital Market Consultants LLC Milwaukee Forecast: Although he thinks the major indexes will finish nearly flat this year, Mr. Mendelson, managing partner at Capital Market...

Jeff Layman.(Investment Outlook)
January 9, 2006... Byline: Sara Hansard chartered financial analyst Director of investment services BKD Wealth Advisors LLC Springfield, Mo. Forecast: Although many are suggesting there will be a slowdown next year, BKD Wealth Advisors...

Quincy Krosby.(Investment Outlook)
January 9, 2006... Byline: Gary Mogel Chief investment strategist The Hartford Financial Services Group Inc. Hartford, Conn. Assets under management: $316 billion Forecast: "The key driver is the Federal Reserve Board's determination...

Christian W. Thwaites.(Investment Outlook)
January 9, 2006... Byline: Frederick P. Gabriel Jr. President and chief executive Sentinel Asset Management Inc. Montpelier, Vt. Assets under management: $17.8 billion Forecast: Despite rising interest rates and talk of a twin-deficit...

Jeffrey Auxier.(Investment Outlook)
January 9, 2006... Byline: Brooke Southall President Auxier Asset Management LLC Lake Oswego, Ore. Firm's assets under management: $350 million Forecast: This is a year when market leadership may change, because interest rates are...

Barbara Walchli.(Investment Outlook)
January 9, 2006... Byline: Brooke Southall Phoenix-based portfolio manager Aquila Investment Management LLC New York Assets under management: $22 million Firm's assets under management: $2.5 billion as of October Forecast: The U.S....

Duo touts 'essential portfolio theory'; They claim that it updates classic Markowitz ideas.(News)
January 16, 2006... Byline: Charles Paikert NEW YORK - Investors and advisers need to move beyond modern portfolio theory and embrace more diversification and alternate asset classes, according to Princeton University professor of operations research and...

Top court to hear stockholder case against Merrill; Ex-rep seeking shift to state court for fraud charges.(News)
January 16, 2006... Byline: Dan Jamieson IRVINE, Calif. - The U.S. Supreme Court is set to hear oral arguments Wednesday in a case filed by a former Merrill Lynch broker which will decide a key issue affecting securities class actions. The legal question...

Fund of funds eyes radical fee structure; Belstar Group acts to whittle down costs.(News)
January 16, 2006... Byline: Jeff Benjamin DETROIT - As hedge funds come under increased criticism for charging steep fees while underperforming, one firm is taking the unusual tack of appealing to well-heeled investors by underpricing the competition. ...

Retirees seen going through five phases.(Short Interests)
January 16, 2006... Byline: Carlise Peterson CHICAGO - Investors approaching retirement experience five stages, according to a new Ameriprise Financial Inc. study: imagination, anticipation, liberation, re-orientation and reconciliation. The insights...

One on One With Donald W. Hodges of Hodges Capital Management Inc.(One on One)
January 16, 2006... Byline: Dan Jamieson Donald W. Hodges is living proof that small niche mutual funds can succeed. Of course, good results are critical, and Mr. Hodges, co-portfolio manager with his son Craig Hodges of the $264.5 million Hodges Fund in...

Secondary market for annuities expands; Last resort for clients with unwanted contracts.(News)
January 16, 2006... Byline: Gary S. Mogel NEW YORK - A secondary market for annuities similar to life insurance viatical contracts is becoming an increasingly viable option for advisers with clients who no longer want their annuities. "We estimate that 5%...

Is the cost of agility too high? Smaller funds carry a bigger tab.(The Markets)
January 16, 2006... Does a small fund, often meaning a portfolio with less than $100 million in assets, stand a better chance of outperforming a large one? This question has been debated for years. Some argue that managers of smaller funds can make their trades...

ICI war chest way up, so are contributions; Disbursements to individual members of Congress through November rose 61.4% from 2004 level.(News)
January 16, 2006... Byline: Frederick P. Gabriel Jr. BOSTON - Facing a slate of key legislation as well as continuing efforts by Congress to impose stiffer regulation, the mutual fund industry's chief trade group is significantly bolstering its political war...

Insurance stocks ready to shine, analysts say; Mutual funds beef up insurer holdings.(News)
January 16, 2006... Byline: Gary S. Mogel NEW YORK - Last year's hurricanes, floods and scandals won't prevent insurers from having a record year in 2006, according to several industry analysts. Insurance stocks rose almost 16% last year, according to...

Transition aid for midmarket entrepreneurs; New web service targets the owners of midsize businesses.(News)
January 16, 2006... Byline: Carlise Peterson CHICAGO - With the onset of retirement for baby boomers, some business owners in that age bracket are faced with numerous estate-planning challenges: sell the business to another party, liquidate it among family...

Advisers lower fees to capture assets; Many firms have decided they will compete on price.(News)
January 16, 2006... Byline: Brooke Southall SAN FRANCISCO - Armed with little more than the conviction that if they charge lower fees, clients will come, a small but growing number of financial advisers are turning to deep-discount pricing strategies. The...

Judge hammers at Chamber about SEC decision; At issue is commission's hasty readoption of fund director rule.(News)
January 16, 2006... Byline: Sara Hansard WASHINGTON - At a Jan. 6 hearing, a federal appeals court judge repeatedly questioned the U.S. Chamber of Commerce about why the Securities and Exchange Commission's hasty readoption of its landmark mutual fund...

Killin' em at Kiwanis.(Short Interests)
January 16, 2006... Byline: Brooke Southall SAN FRANCISCO - An ex-A.G. Edwards & Sons Inc. broker and executive has put down his secrets to prospecting success in a 50-page report. George Miller, principal of Miller Resources Inc. of DeBary, Fla., left...

FPA changes dates, location of confab.(Short Interests)
January 16, 2006... Byline: Jeff Benjamin DETROIT - The Financial Planning Association has scratched its plans to hold this year's annual membership conference in New Orleans. The Denver-based association said late Monday that the location and dates of...

Time to improve SEC office, not kill it.(Editorial)
January 16, 2006... The bill proposed by Reps. Michael Castle, R-Del., and Vito Fossella, R-N.Y., to do away with the Security and Exchange Commission's office of compliance inspections and examinations is a bad idea. The two congressmen should drop it...

Canadian insider probe on its radar, SEC says.(Short Interests)
January 16, 2006... Byline: David Clarke OTTAWA - The Securities and Exchange Commission has responded to a Canadian politician concerning a possible leak of insider information from the Canadian government to traders. "We are taking your complaint very...

Ameriprise inks deal for office space.(Short Interests)
January 16, 2006... Byline: Bruce Kelly NEW YORK - Ameriprise Financial Inc. of Minneapolis is dedicated to lower Manhattan. The company said that it has signed a 10-year lease for office space at Seven World Trade Center, which is being rebuilt after its...

Public fund firms seen as good bets; Stock pickers see growth opportunities for sector.(News)
January 16, 2006... Byline: David Hoffman NEW YORK - Wall Street analysts see opportunities for growth among publicly traded asset management companies, though some industry observers expect the firms to have trouble building assets and profits. Banc of...

Designations proliferate, causing lawsuit worries; Less-than-rigorous standards raise hackles.(News)
January 16, 2006... Byline: Charles Paikert NEW YORK - Those financial planning designations just keep on coming, and investor lawsuits may not be far behind, some in the industry say. There are nearly 100 certifications or designations - and counting -...

Marketing opportunities elude asset managers.(Short Interests)
January 16, 2006... Byline: Charles Paikert NEW YORK - Despite the extensive publicity surrounding the leading edge of the nation's 77 million baby boomers as they begin to turn 60, two in three asset managers still hadn't developed a marketing strategy aimed...

Goldberg out; may seek entrepreneurial challenge; A longtime industry executive ponders his next career move.(News)
January 16, 2006... Byline: Bruce Kelly NEW YORK - Mark Goldberg, who is out as president and chief executive of Royal Alliance Associates Inc. of New York, is likely to make a splash when he returns to the brokerage industry, according to one top adviser...

Warn clients about the newest e-mail scams.(Monday Morning)
January 16, 2006... Byline: Mike Clowes Just as the so-called Nigerian scam e-mails have started to decline in number, a new scam has begun to flood my in-box. I used to get at least half a dozen Nigerian scam letters every day promising to make me rich...

At the Bell; AIM adds Roth option to Solo 401(k).(Late News)
January 16, 2006... AIM Investments added a designated Roth 401(k) contribution option to its Solo 401(k) program last Thursday that allows plan participants to begin making designated contributions to the plan. To add the Roth contribution to the plan,...

Ex-Vice Fund manager plans gaming portfolio.(Street Wise)
January 16, 2006... Byline: Jeff Benjamin Dan Ahrens has found his way back into the business of money management, following his September resignation from Mutuals.com Inc. in Dallas, where he managed the $44 million Vice Fund (VICEX) to an 18.7% annualized...

Closing Quote.(Quotes)
January 16, 2006... "While some members of Congress understand what mutual funds are all about, others clearly do not and only care when there is a check written for them.'' Russel Kinnel, director of fund research at Chicago-based Morningstar Inc., on the...