Investment News articles from January 2009

Investment News archives from January 2009

DALE BROWN.(Outlook 2009)
January 5, 2009... Byline: Andrew Coen Executive director Financial Services Institute Atlanta General outlook: "Uncertainty and volatility may continue into 2009. It will continue to create a challenge for everyone,'' said Mr. Brown,...

TOM POTTS.(Outlook 2009)
January 5, 2009... Byline: Darla Mercado President-elect, 2009 Financial Planning Association Denver, Colo. Professor of finance Baylor University Waco, Texas Forecast: A rapid economic recovery isn't likely during 2009, and...

Diahann W. Lassus.(Outlook 2009)
January 5, 2009... Byline: Aaron Siegel Chairwoman National Association of Personal Financial Advisers Arlington Heights, Ill. President Lassus Wherley & Associates PC New Providence, N.J. Assets under management: $300 million ...

JOHN C. COFFEE.(Outlook 2009)
January 5, 2009... Byline: Bruce Kelly Adolf A. Berle professor of law Columbia Law School New York General outlook: In 2009, look for an increase in individual lawsuits, rather than class actions, filed by institutional investors such as...

SURESH KUMAR.(Outlook 2009)
January 5, 2009... Byline: Davis Janowski Managing director and chief information officer Pershing LLC Jersey City, N.J. General outlook: Despite the stress experienced by the financial services industry, now is not necessarily the time to...

LOU STANASOLOVICH.(Outlook 2009)
January 5, 2009... Byline: Sara Hansard Chief executive and president Legend Financial Advisors Inc. Pittsburgh Assets under management: $340 million Forecast: "We're going to be in a series of bull and bear markets, very short-term,...

ROBERT GLOVSKY.(Outlook 2009)
January 5, 2009... Byline: Sue Asci President Mintz Levin Financial Advisors LLC Boston Assets under management: $850 million Forecast: "I think it will be a little bit bumpy for the economy and the markets for the first few months of...

NEIL HENNESSY.(Outlook 2009)
January 5, 2009... Byline: Andrew Coen Chief investment officer Hennessy Mutual Funds Inc. Novato, Calif. Assets under management: $597 million Forecast for 2009: The economy will slowly start to rebound in 2009, with hiring starting...

ERIC R. DINALLO.(Outlook 2009)
January 5, 2009... Byline: Darla Mercado Superintendent New York State Insurance Department New York General outlook: Mr. Dinallo will focus on securities lending this year, asking each life insurance company about its approach toward these...

LARRY LETTERIO.(Outlook 2009)
January 5, 2009... Byline: Jed Horowitz President Peregrine Advisers Inc. Wexford, Pa. Assets under management: $300 million Forecast: Mr. Letterio is "moderately positive'' about equities in 2009, expecting a strong year-end finish...

DR. ANDREW W. LO.(Outlook 2009)
January 5, 2009... Byline: Sue Asci Founder and chief scientific officer Alpha Simplex Group LLC Cambridge, Mass. Assets under management: $800 million Forecast: "I think you'll see gridlock in the economy for the first two quarters of...

CHRISTOPHER M. LAMB.(Outlook 2009)
January 5, 2009... Byline: Dan Jamieson Principal Old Mission Investment Co. LLC Traverse City, Mich. Assets under management: $233 million Forecast: Market predictions have little value for Mr. Lamb, but he is willing to hazard a...

Fund liquidations may reach record; As industry trims costs, look for few new offerings and lots of plain vanilla.(News)
January 5, 2009... Byline: Sue Asci Mutual fund liquidations could reach record levels in 2009 as assets decline and fund management companies trim overhead. "I think we are likely to see in excess of 500 fund liquidations this year,'' said Geoff...

Advisers want strong industry response to Madoff scandal; But FPA sees 'no problem' for planners and no need for PR campaign.(News)
January 5, 2009... Byline: Bruce Kelly Despite the fact that a large majority of financial advisers are looking to industry organizations to help bolster their image in the wake of the Bernard Madoff scandal, the FPA said the matter is not a significant...

The week ahead.(Calendar/Datebook)(Calendar)
January 5, 2009... Jan. 5 The Practising Law Institute's two-day seminar "Preparation of Annual Disclosure Documents 2009'' begins in San Francisco. December's Challenger Job-Cut Report is due out at 7:30 a.m. ET. Jan. 6 Data on November...

Charter plots a steady course; Low exposure to financials and high cash led to smoother ride.(News)
January 5, 2009... Byline: Jeff Benjamin Even in the best economic environment, you are not likely to see the Aim Charter Fund (CHTRX) hitting the top of most performance charts. It is by design that this 40-year-old mutual fund has a lower profile and...

CHRISTOPHER J. MOLUMPHY.(Outlook 2009)
January 5, 2009... Byline: David Hoffman Executive vice president and chief investment officer for fixed income Franklin Templeton Investments San Mateo, Calif. Assets under management: $404.6 billion General outlook: The markets will...

REAL ESTATE HEADING FOR A ROUGH RIDE; Severity and duration of the current downturn are question marks.(Outlook 2009)
January 5, 2009... Byline: Janet Morrissey Commercial real estate is heading into its worst year since the industry's crash of 1991-92 and likely won't see a significant rebound until 2011 at the earliest, according to industry experts. Many predict that...

Regulators move to reduce capital reserves for VAs; Insurance commissioners' recommendation already gets push-back.(News)
January 5, 2009... Byline: Darla Mercado Insurance regulators tentatively have agreed to allow insurers to reduce reserves for variable annuities in hopes of strengthening the carriers' balance sheets. As of last Tuesday, the new reserves standards had...

Jeffrey Kleintop.(Outlook 2009)
January 5, 2009... Byline: Aaron Siegel Market strategist LPL Financial Boston Assets under management: $254 billion Forecast: Mr. Kleintop predicts that the U.S. economy will emerge from the recession in the second half of 2009. He...

Retail takes hit as securities firms suffer; Client confidence tumbles amid deteriorating markets, economy.(Outlook 2009)
January 5, 2009... Byline: Dan Jamieson Needless to say, it's a fearful time for the retail-securities industry. Not only did the major stock market indexes plummet in 2008, leaving many clients wondering whether they'll be able to retire, but any faith and...

DOUG REGAN.(Outlook 2009)
January 5, 2009... Byline: Charles Paikert President, Wealth Management Group Northern Trust Corp. Chicago Assets under management: $200 million Forecast: Although Mr. Regan isn't optimistic about the economy, he does foresee a strong...

BOB BACH.(Outlook 2009)
January 5, 2009... Byline: Janet Morrissey Chief economist Grubb & Ellis Co. Santa Ana, Calif. Value of real estate managed: $6.7 billion General outlook: "It will be a difficult year. We expect commercial-property investment volume to...

Wirehouse grids squeeze low producers; Merrill, Morgan, Smith Barney cut pay.(News)
January 5, 2009... Byline: Dan Jamieson The lowest-producing brokers at New York-based wirehouses Merrill Lynch & Co. Inc., Morgan Stanley and Smith Barney are likely to see smaller paychecks in 2009. Smith Barney reps doing less than $400,000 in...

NICK STONNINGTON.(Outlook 2009)
January 5, 2009... Byline: Charles Paikert President Stonnington Group LLC Los Angeles Assets under management: $250 million Forecast: The country is about to enter "an era of sustainability'' that will affect both the economy and the...

SAM LIEBER.(Outlook 2009)
January 5, 2009... Byline: Janet Morrissey Chief executive, portfolio manager Alpine Funds Alpine Woods Capital Investors LLC Purchase, N.Y. Assets under management: $5 billion Forecast: Rising unemployment and declining industrial...

'Life events' ignored.(Short Interests)
January 5, 2009... Byline: David Hoffman Employees who were recently laid off won't find a lot of advice from mutual fund companies about what they should do with their cash. Just 50% of firms offered information about "life events'' such as layoffs,...

Investors seek independent advice.(Short Interests)
January 5, 2009... Byline: Sue Asci Although many people are worried about their finances, a growing number think that financial advisers can help them, according to a study released recently by TD Ameritrade Holding Corp. In a telephone survey of 1,005...

Merrill website focuses on same-sex couples.(Short Interests)
January 5, 2009... Byline: Andrew Coen In an effort to enhance its wealth management services for gay, bisexual and transgender clients, Merrill Lynch & Co. Inc. recently launched a domestic-partner website that highlights financial planning techniques for...

TRIMMER BUDGETS MEAN FEWER TECH DOLLARS; Advisers forced to expand use of existing software.(Outlook 2009)
January 5, 2009... Byline: Davis D. Janowski For many advisory practices, the technology focus will be making do with smaller budgets - and doing more with existing technology. "Rather than seeing the opportunity that this market downturn presents, and...

LIGHT AT THE END OF THE TUNNEL? Despite losses, hedge fund industry poised to show improvement in 2009.(Outlook 2009)
January 5, 2009... Byline: Jeff Benjamin By some measures, 2008 was one of the darkest periods in the history of the hedge fund industry. The immediate impact of the global financial meltdown could trim the overall size of the hedge fund industry 30% to...

The lessons of Bernie.(Viewpoint)
January 5, 2009... The Madoff Ponzi scheme has shocked investors but offers many lessons. The first is that no one can rely on the Securities and Exchange Commission to spot all, or even most, of the bad guys in the financial system before they hurt people. ...

Art slumps along with other asset classes; But Old Masters fared well, and inflation could prompt a recovery.(News)
January 5, 2009... Byline: Charles Paikert As the art world's next major round of auctions begins this month, buyers and sellers will encounter a market as depressed as that for stocks and real estate. Auction and art fair sales in November and December...

Something about Mary worries many; RIAs fretful about Finra grabbing regulatory oversight.(News)
January 5, 2009... Byline: Dan Jamieson The nomination of Financial Industry Regulatory Authority Inc. chief Mary Schapiro to head the Securities and Exchange Commission has intensified worries about whether Finra will take over the regulation of financial...

Custodians face daunting market; Staff cuts, threat of fee reductions make for tough 2009.(Outlook 2009)
January 5, 2009... Byline: Jed Horowitz The great riddle for The Charles Schwab Corp., Fidelity Investments and other firms providing custodial and business services to independent advisers as they enter 2009 is how to maintain and improve their services...

Broker ties concern shareholder activists, plaintiff's attorneys; Something about Mary worries many.(News)
January 5, 2009... Byline: Jed Horowitz The carping about Mary Schapiro's appointment to run the Securities and Exchange Commission began three weeks ago on the very day that President-elect Barack Obama nominated her to head the agency. In addition to...

RECESSION MAY STYMIE GREEN INVESTING; Some still question the validity of the movement.(Outlook 2009)
January 5, 2009... Byline: Sue Asci Although political sentiment is warming to environmentally sensitive policies, the green movement may not be ready for a boom in investing in 2009. Some observers question the viability of green industries, and...

Academics call short-selling ban ineffective; Several studies show the strategy did not drive down prices.(News)
January 5, 2009... Byline: Jeff Benjamin The knee-jerk reaction by regulators to restrict short selling in the midst of the stock market's September nose dive may have done more harm than good, according to academic studies conducted in December. "We...

Prime Numbers.(News)
January 5, 2009... Go figure 43 The number of days left until U.S. full-power broadcasters shut off analog television signals. Source: Zenith $225B An estimate of the cost of natural catastrophes and man-made disasters in 2008, of which about...

MARK TIBERGIEN.(Outlook 2009)
January 5, 2009... Byline: Jed Horowitz Chief executive officer Pershing Advisor Solutions LLC Jersey City, N.J. General outlook: "It's going to be a tough year for advisers. They will experience real pressure in profitability and in...

REGULATORS TO TAKE HARD LOOK AT LTC INSURANCE; Conseco, Penn Treaty shortfalls point to future scrutiny.(Outlook 2009)
January 5, 2009... Byline: Darla Mercado Long term care insurers, already on the radar screen of regulators as a result of questionable practices, will come under greater scrutiny this year as they struggle to fulfill their contracts under a spate of new...

ADVISERS FACE 'REALITY CHECK'; Financial meltdown leads disgruntled investors to shop for new wealth managers.(Outlook 2009)
January 5, 2009... Byline: Charles Paikert Among the changes wealth managers will confront this year, the most challenging might be the accumulation of new clients and the preservation of old ones, according to industry executives. "It's going to be a...

At The Bell: Merrill settles discrimination suit.(Late News)
January 5, 2009... Merrill Lynch & Co. Inc. has agreed to pay $1.55 million to settle a lawsuit involving an employee who said he was fired because he was an Iranian Muslim, the U.S. Equal Employment Opportunity Commission announced last week. The lawsuit,...

BURTON MALKIEL.(Outlook 2009)
January 5, 2009... Byline: Jeff Benjamin Professor of economics and finance Princeton University Princeton, N.J. General outlook: The best part about the year ahead will be that it will last only 12 months, Mr. Malkiel said. "Nobody...

STEVE LUPARELLO.(Outlook 2009)
January 5, 2009... Byline: Sara Hansard Senior executive vice president of regulatory operations Financial Industry Regulatory Authority Inc. Washington General outlook: Over the next few months, there will be a lot of focus on the ongoing...

Stace Hilbrant.(Outlook 2009)
January 5, 2009... Byline: Lisa Shidler Managing director 401k Advisors LLC Wilmette, Ill. Assets under management: $750 million Forecast: "Most of the bad economic news that can possibly happen has already happened,'' Mr. Hilbrant...

ROGER J. SCHREINER.(Outlook 2009)
January 5, 2009... Byline: Dan Jamieson Chief executive Schreiner Capital Management Inc. Exton, Pa. Assets under management: $160 million Forecast: "A big transition will be [occurring] in the international marketplace,'' said Mr....

YOUNG ADVISERS FACE LONGER, ROCKIER ROAD TO OWNERSHIP; As practices decline in value, current owners hold on; fewer newcomers hired.(Outlook 2009)
January 5, 2009... Byline: Aaron Siegel Young advisers raring to make their mark in the financial planning profession will find themselves in an industry dealing with shelved succession plans, lower firm values and a tightening job market. First of all,...

DESPITE WARINESS, ADVISERS EXPECT IMPROVEMENT; Two-thirds of advisers expect the new administration's stimulus policies to boost economy.(Special Report: Outlook 2009)
January 5, 2009... Byline: Jeff Benjamin The global economic meltdown that will forever define 2008 had only a negligible effect on the optimism of financial advisers as they headed into 2009. An InvestmentNews survey of more than 1,000 advisers last...

DUNCAN RICHARDSON.(Outlook 2009)
January 5, 2009... Byline: Jeff Benjamin Chief equity officer Eaton Vance Corp. Boston Assets under management: $144 billion Forecast: All signs point toward a brighter 2009, according to Mr. Richardson, with one caveat. "It's almost...

ED SLOTT, CPA.(Outlook 2009)
January 5, 2009... Byline: Lisa Shidler Owner Ed Slott & Co. Rockville Centre, N.Y. General outlook: Mr. Slott is convinced that taxes will go up in 2009 and believes that advisers should work with eligible clients to help convert...

Mutual fund industry faces uphill climb; Strong brand awareness provides edge in difficult market.(Outlook 2009)
January 5, 2009... Byline: David Hoffman Investors will likely continue to yank assets from mutual funds, more funds will close, and fund launches will come to a crawl this year, according to analysts. "I think it probably is a bleak picture,'' said Don...

ROBERT KLOSTERMAN.(Outlook 2009)
January 5, 2009... Byline: Davis Janowski President and chief executive White Oaks Wealth Advisors Inc. Minneapolis Assets under management: $200 million Forecast: The effects of government action domestically and globally will be felt...

JEFFREY C. VAHANIAN.(Outlook 2009)
January 5, 2009... Byline: Bruce Kelly President Vahanian and Associates Financial Planning Inc. Saratoga Springs, N.Y. Assets under management: $88 million Forecast: The economy will continue to weaken, but the financial markets will...

LARRY CARROLL.(Outlook 2009)
January 5, 2009... Byline: David Hoffman President Carroll Financial Associates Inc. Charlotte, N.C. Assets under management: $1.1 billion Forecast: The stock market hasn't hit bottom yet, but by the end of 2009 it will have turned...

IN events.(Short Interests)
January 5, 2009... Feb. 10 Adviser-to-adviser webcast: "Using ETFs to Build Client Portfolios'' Key topics covered during the webcast include: * How to incorporate ETFs into a portfolio * Concerns about ETFS * Evaluating ETF indexes *...

LPL unlikely to go public before 2010; Company says there is no connection between layoffs, cutbacks and stalled IPO.(News)
January 12, 2009... Byline: Bruce Kelly Moribund capital markets and a recent round of cost cutting and layoffs signal a delay, perhaps until 2010, of an initial public offering of shares in LPL Financial. Anticipation of an IPO has been building since...

'Slugflation' may lie ahead.(Viewpoint)
January 12, 2009... The bear market and recession that began late in 2007 are perhaps barely half over, but it isn't too soon for financial planners and investment advisers to begin preparing clients for the aftermath of government efforts to halt the crisis. ...

Investors shun advisers for retirement planning; Just 20% said they look to planners as main source of advice, survey shows.(News)
January 12, 2009... Byline: Sue Asci Talk about overlooking the obvious. Just 20% of 1,100 surveyed investors characterized financial advisers as their main source of advice when it comes to planning for retirement. Conversely, 29% of respondents said...

Frank proposes TARP restrictions.(Late News)
January 12, 2009... The Department of the Treasury would be required to take significant steps to mitigate foreclosures under legislation outlined Friday by House Financial Services Committee Chairman Barney Frank, D-Mass. The bill, which hasn't yet been...

To athletes and coaches, young advisers are No. 1; They feel they select aggressive investments.(News)
January 12, 2009... Byline: Andrew Coen Professional athletes and coaches prefer to work with younger financial advisers, whom they consider to be bold investors. "Younger advisers tend to be more aggressive, and that tends to match with a lot of players...

The new thundering herd? Morgan Stanley, Citi talk retail merger.(News)
January 12, 2009... Byline: Bruce Kelly The proposed merger of Morgan Stanley and Citigroup Inc.'s brokerage businesses would create a brokerage behemoth, with 23,000 registered representatives and financial advisers, managing more than $2 trillion in assets....

Variable life sales tank, but term holds steady; Slump spurs interest in low-cost insurance.(News)
January 12, 2009... Byline: Darla Mercado Cash-strapped clients are taking a new look at low-cost, plain-vanilla term life insurance and avoiding higher-cost alternatives, according to financial advisers. Sales of most varieties of cash value life...

Financial advisers, promote yourselves.(Viewpoint)
January 12, 2009... Byline: Jim Pavia With Bernard Madoff serving as the poster boy for the ugly side of the financial services world, now is the time for the financial advisory industry to band together and launch a national awareness advertising campaign....

Adviser group urges that investor assets be held by custodians; Proposal comes as House committee mulls Finra oversight for RIAs.(News)
January 12, 2009... Byline: Sara Hansard Deflecting attention from proposals that they come under Finra regulation, investment advisers are recommending that all advisory assets be handled by outside custodians. The custodian recommendation was proposed...

Vanguard bond offering beat the odds in 2008; Long-duration fund, ETF share class posted returns above 50.(News)
January 12, 2009... Byline: David Hoffman Although most funds performed dismally last year, a Vanguard fund and its exchange traded fund share class bucked the trend with spectacular results, returning more than 50%. The Vanguard Extended Duration...

Treasury money funds are turning down new cash from investors; Firms squeezed by low yields, influx of money.(News)
January 12, 2009... Byline: Sue Asci Historically low interest rates, coupled with a torrent of new cash from investors, are forcing many mutual fund companies to close the doors on their Treasury money market funds. Among the companies that have recently...

Crisis inspires artists.(Short Interests)
January 12, 2009... Byline: Lisa Shidler A growing number of paintings and photographs displayed on an online art gallery have themes associated with the economic crisis. Artwork dealing with the financial climate displayed at Chicago-based...

Regulators should sweat the big stuff; Critics take examiners to task for focusing on small firms and small problems.(News)
January 12, 2009... Byline: Dan Jamieson Regulators had an obsessive focus on meaningless rules and exams while big players such as Bernard Madoff got away with fraud and major Wall Street firms precipitated a worldwide financial panic, according to some...

Clearing firms face client defections; Pershing loses Vanguard; two big customers of NFS may walk.(News)
January 12, 2009... Byline: Jed Horowitz Securities clearing firms such as Bank of New York Mellon Corp's Pershing LLC and Fidelity Investments' National Financial Services LLC are likely to suffer collateral damage from the financial-markets cataclysm that...

Professional athletes fumble their wealth; Many fail to create a budget or protect their assets.(News)
January 12, 2009... Byline: Charles Paikert It is no surprise that so many professional athletes have difficulty with their financial affairs, according to a white paper released last month by Rothstein Kass. Two-thirds of pro athletes aren't focused on...

IN Events.(Short Interests)
January 12, 2009... Feb. 10 Adviser-to-adviser webcast: "Using ETFs to Build Client Portfolios'' Key topics covered during the webcast include: * How to incorporate ETFs into a portfolio * Concerns about ETFs * Evaluating ETF indexes *...

The Week Ahead.(Short Interests)(Calendar)
January 12, 2009... Jan. 12 Atlanta Federal Reserve Bank President Dennis Lockhart will speak about the U.S. economic outlook in that city at 12:40 p.m. ET. Jan. 13 International-trade data for November are slated for release at 8:30 a.m. ET. ...

Off the beaten track.(Short Interests)
January 12, 2009... Byline: Jeff Benjamin Advisers might want to listen more closely to songs on the radio. According to an as-yet-unpublished study, there is at least a loose correlation between stock market volatility and the average beat variance of...

Working themselves sick.(Short Interests)
January 12, 2009... Byline: Aaron Siegel In addition to - or perhaps as a result of - dealing with worried clients and declining assets under management, financial planners are sacrificing their own health, according to a recently released study by Vestment...

B-D offers financial training for wounded veterans; Firm starts program amid Wall Street ashes.(News)
January 12, 2009... Byline: Aaron Siegel Even as Wall Street firms continue to bleed assets and cut jobs, a broker-dealer has launched a program to provide training to wounded soldiers who want to succeed on Wall Street. The Wall Street Warfighters...

Go figure.(Prime Numbers)
January 12, 2009... Go figure $7.7B Total venture capital investment in green- technology and renewable-energy projects in 2008, more than double the 2007 figure. Source: Greentech Media Inc. 8K The approximate number of claim forms mailed to...

Fidelity goes outside to fill top positions; Fund giant hires Cieszko and Orazem.(News)
January 12, 2009... Byline: Sue Asci With the announcement last week of two new division chiefs, Fidelity Investments is continuing a trend of hiring outside talent for top jobs. The Boston-based fund firm named Peter Cieszko, former president of...

Finra: Beware of cash alternatives, high yields; Regulator warns firms when promoting 'safe' investments.(News)
January 12, 2009... Byline: Dan Jamieson The Financial Industry Regulatory Authority Inc. wants to make sure that investors' cash balances are invested appropriately. In two notices sent to members last month, Washington- and New York-based Finra warned...

RICHARD H. BAKER; The head of the Managed Funds Association gears up to befriend Washington.(Newsmakers)
January 12, 2009... Byline: Jeff Benjamin Last year was among the worst ever in the history of hedge funds, with $210 billion in losses during the third quarter alone, 693 funds closed through Sept. 30 and an average 16% decline through November. To bolster...

Wealthy investors turn away from advisers; Shock of losses, scandal lead high-net-worth clients to question advice.(News)
January 12, 2009... Byline: Charles Paikert Financial scandals and decimated investments are changing the behavior of wealthy investors in ways that may reshape the wealth management business. "Before [Bernard] Madoff, wealthy investors diversified their...

Financial advisers bullish on mortgage refinancing; Meanwhile, homebuyers are urged to proceed with caution.(News)
January 12, 2009... Byline: Janet Morrissey As mortgage rates dip to 38-year lows, financial advisers are urging clients to jump at the chance to refinance but are offering mixed advice on home buying. "If you look at previous downturns, it's unusual that...

Amid gloom, ETFs' future looks brighter; As American Funds, others raise expenses, ETFs stand to gain.(News)
January 19, 2009... Byline: David Hoffman Financial advisers will likely be drawn to the allure of exchange traded funds in 2009, thanks to an anticipated rise in open-end mutual fund expenses, according to industry experts. "I definitely expect to see...

175 Wachovia employees receive walking papers from Wells Fargo; Bank won't rehire its former workers, including some brokers.(News)
January 19, 2009... Byline: Bruce Kelly and Dan Jamieson In a move that smacks of corporate retribution, Wells Fargo & Co. has fired 175 employees of newly acquired Wachovia Corp. who once worked at the San Francisco-based bank. The 175 affected employees...