Investment News articles from July 2006

Investment News archives from July 2006

Insurance brokers seek advisers as producers; They are eager to ramp up sales by acquiring financial, life-, health-insurance knowledge.(News)
July 10, 2006... Byline: Gary S. Mogel NEW YORK - For financial advisers who have been mulling getting more involved in insurance sales, now may be an excellent time to pull the trigger. Many full-service insurance brokers, which sell employee benefits...

Horror story site aims to prevent financial grief.(Short Interests)
July 10, 2006... Byline: Gary S. Mogel NEW YORK - Avoiding the dawn-of-the-dread planning snafu is the goal of a financial-horror-story website launched last month. The site, welcometomynightmare.org, aspires to become a "don't let this happen to you''...

Global savings glut? There is no such thing.(Other Views)
July 10, 2006... Byline: William L. Tedford Jr. Rarely has a day passed without discussion of the "global savings glut'' hypothesis - which attempts to explain away the U.S. current-account deficit and low long-term real interest rates. The basic tenet...

IRS up and swimming, er, running, after the flood.(Tax Watch)
July 10, 2006... Byline: Mark Battersby The Internal Revenue Service's headquarters building in Washington is likely to remain closed at least until early next month due to flooding and electrical outages. The building sustained extensive damage to the...

Merrill plans to offer more in-state 529 plans; Move may help to fend off regulators, observers say.(News)
July 10, 2006... Byline: Brooke Southall SAN FRANCISCO - Merrill Lynch & Co. Inc. soon will offer more in-state Section 529 college savings plans to compete with its proprietary version in what securities lawyers and industry experts say is a smart...

Being laid off can prove deadly.(Short Interests)
July 10, 2006... Byline: Aaron Siegel NEW YORK - Being laid off or fired from a job might take its financial toll, but the health implications can be far more deadly. Involuntary job loss near retirement more than doubles the risk of heart attack and...

A look at the seamy side of Wall Street.(Monday Morning)
July 10, 2006... Byline: Bruce Kelly Reading a reporter's insights into Wall Street or Washington is typically as much fun as dealing with a case of poison ivy, but Gary Weiss' latest book is an exception. A BusinessWeek investigative journalist turned...

One on One With Christian W. Thwaites of Sentinel Asset Management Inc.(One on One)(Company overview)
July 10, 2006... Byline: Frederick P. Gabriel Jr. Eighteen months into the overhaul of Sentinel Asset Management Inc., real progress has been made, thanks in part to Christian W. Thwaites. But the 47-year-old president and chief executive's past...

Federal oversight of hedge funds still being sought; Rejection of reg pulls Congress into debate.(News)
July 10, 2006... Byline: Sara Hansard WASHINGTON - In the wake of a recent federal appeals court ruling that raises uncertainty over regulation of the fast-growing hedge fund industry, Connecticut Attorney General Richard Blumenthal is pushing hard for...

Advanced Equities to buy an RIA; Greenbook deal is its first for a planning firm.(News)
July 10, 2006... Byline: Bruce Kelly NEW YORK - Advanced Equities Inc. is expected to announce today its acquisition of Greenbook Financial Services Inc., a registered investment adviser and financial planning firm that so far has focused on doctors and...

Overseas funds: Catching their breath or catching a cold?(The Markets)
July 10, 2006... Byline: Jeff Tjornehoj, Lipper senior research analyst Recent performance has been especially good for funds invested outside the United States - the popular MSCI EAFE Index has beaten the Standard & Poor's 500 stock index by at least 6...

Are large-caps ready to pop, emerging markets to burst?(Conference Call)
July 10, 2006... Byline: Lisa Shidler CHICAGO - Several financial advisers and fund managers are convinced that now is the time for large-cap stocks to soar. Does that sound familiar? For some time, fund managers and advisers have predicted that...

AssetMark-Genworth combo to aim for No. 1 spot; Sets its sights on SEI, Russell.(News)
July 10, 2006... Byline: Brooke Southall SAN FRANCISCO - Although AssetMark Investment Services Inc. is being swallowed up by Genworth Financial Inc., it plans to wreak more havoc than ever on competitors in the turnkey-asset-management-program arena. ...

Hedge fund industry faces rule uncertainty; Registration is delayed, perhaps not denied.(News)
July 10, 2006... Byline: Jeff Benjamin DETROIT - As regulators and politicians scramble to figure out what to do next to impose stricter regulation on hedge funds, the $1.2 trillion industry is in a state of flux. "I think there won't be a single,...

PIABA cries foul over arbitration proposal; Says NASD snuck changes in at 11th hour.(News)
July 10, 2006... Byline: Dan Jamieson IRVINE, Calif. - A major rewrite of NASD's arbitration code has erupted into controversy, with some plaintiff's attorneys accusing the self-regulatory organization of trying to sneak in industry-friendly changes at the...

Schwab ax puts heat on Fidelity; Price cuts a game of follow-the-leader.(News)
July 10, 2006... Byline: Brooke Southall SAN FRANCISCO - Fidelity Investments may slash the last of its fat commissions, but for now, its mutual fund trading fee is more expensive than the fees its rivals charge. Charles Schwab & Co. Inc. caved in to...

At the Bell; Aviva in talks to buy AmerUs Group.(Late News)
July 10, 2006... Aviva PLC, based in London, confirmed Friday that it is negotiating for the possible acquisition of AmerUs Group Co. in Des Moines, Iowa. Aviva, one of the United Kingdom's largest life insurers, gave no price for the possible deal with...

Here's a true market bet.(Short Interests)
July 10, 2006... Byline: Brooke Southall SAN FRANCISCO - People often accuse Wall Street of being nothing more than a casino, but Freddy Harris is out to make an online casino into Wall Street. The general manager of YouWager.com established a betting...

People.
July 10, 2006... ING U.S. Financial Services of Atlanta has named Susan Anderson, 40, president and chief executive of ING Trust USA in Minneapolis. She will oversee the growth and development of the trusts across the nation. Ms. Anderson has had 25...

Janus hands keys to Olympus to Orion's Sachs; Manager takes helm of fund from Claire Young.(News)
July 10, 2006... Byline: Kathie O'Donnell BOSTON - Janus Capital Group Inc. has handed control of one of its stock funds - the $2.2 billion Janus Olympus Fund (JAOLX) - to a guy who zips to work on a foot-propelled scooter. "The ride to work is mostly...

GAO, IRS urge cost basis reporting; Say requiring it would help reduce capital gains reporting errors.(News)
July 10, 2006... Byline: Sara Hansard WASHINGTON - Requiring brokers to report the cost basis of their clients' securities transactions would help reduce capital gains reporting mistakes, the comptroller general of the Government Accountability Office and...

It gets even harder out there for a pimp.(Reverse Spin)
July 10, 2006... Byline: Frederick P. Gabriel Jr. This gives a whole new meaning to the term "sin tax.'' The Senate Finance Committee approved legislation that would allow the Internal Revenue Service to go after pimps and sex traffickers with the...

Canada's finance minister tackles securities cop issue; Ontario is his only ally among the provinces.(News)
July 10, 2006... Byline: David Clarke OTTAWA - Canadian Finance Minister Jim Flaherty isn't making much progress in the latest battle to create a national securities regulator. But it has been a long war, with many more battles yet to ensue. Mr....

Study: Performance depends on asset class; Active-versus-passive debate gets a fresh look.(News)
July 10, 2006... Byline: Kathie O'Donnell BOSTON - Asset class matters when it comes to deciding between actively managed mutual funds and index - or passive - strategies, according to a study to be released July 17. The study, conducted by wealth...

Money market funds appeal to wary investors and advisers; Attraction of safety and higher interest rates causing a jump in assets.(News)
July 10, 2006... Byline: David Hoffman PHILADELPHIA - Rising interest rates are causing many investors, and some financial advisers, to cozy up to cash. But industry experts are split as to whether that's such a good idea. Those against moving to cash...

Calendar.(Calendar/Datebook)
July 10, 2006... July 12 - 2006 Code Section 409A Nonqualified Workshops, SunGard Corbel Inc. Holiday Inn Rosslyn at Key Bridge, Arlington, Va. webtechsem@relius.net. 12-14 - Fundamentals of 401(k) and Other Qualified Plans, SunGard Corbel Inc....

401(k) hallmark: Greeting cards for TPAs to send.(Short Interests)
July 10, 2006... Byline: Lisa Shidler CHICAGO - In an unusual move, Metrics Partners has begun creating 401(k) greeting cards to send to plan sponsors. Sending out greeting cards to third-party administrators will help them retain business with plan...

Industry e-marketing push seen up in '06, report shows.(News)
July 10, 2006... Byline: Aaron Siegel NEW YORK - The financial services industry appears to be increasing its Internet marketing push this year. Online-advertising spending in the financial services industry is expected to increase 33% this year to $2...

Making executive pay more transparent.(Editorial)
July 10, 2006... Extravagant executive pay continues to have an effect on investor confidence. Along those lines, the Securities and Exchange Commission is putting the finishing touches on plans to give investors a shot in the arm by mandating that...

Berolina's sweet spot is tactical asset allocation.(Street Wise)
July 10, 2006... Byline: Jeff Benjamin The February launch of the AdvisorOne Berolina Fund (CLBLX) was intended to round out the fledgling fund group managed by CLS Investment Firm LLC in Omaha, Neb. Although the firm launched two more funds in April,...

Closing Quote.(Quotes)
July 10, 2006... "There's almost as much chance of the SEC appealing the decision as there is of me becoming the next chairman of the SEC.'' Phillip Goldstein, a Pleasantville, N.Y.-based hedge fund manager who spent $30,000 of his own money to get the...

Vanguard wipes out VIPER name.(Short Interests)
July 10, 2006... Byline: David Hoffman PHILADELPHIA - The Vanguard Group Inc. last week officially changed the name of its exchange traded funds from Vanguard Index Participation Equity Receipts, known as VIPERs, to simply Vanguard ETFs. Why the...

SEC wins kudos on plan to study broker, adviser regs; Consumer Federation, FPA applaud decision to use outside contractor.(News)
July 10, 2006... Byline: Sara Hansard WASHINGTON - The Consumer Federation of America and the Financial Planning Association are applauding the Securities and Exchange Commission's decision to use an outside contractor to study the differing regulatory...

Americans less stressed financially.(Short Interests)
July 10, 2006... Byline: Darla Mercado NEW YORK - Americans are feeling less stress over their finances, according to a survey by the InCharge Education Foundation Inc. The survey, called the COPE Scale, also showed a correlation between stress and the...

Advisers can help make news more accurate.(Monday Morning)
July 17, 2006... Byline: Jim Pavia I was part of a panel during a recent media discussion, "The Future of the Industry: A Media Perspective.'' It could easily have been dubbed: "Why financial advisers think the media are clueless.'' There clearly...

Paulson joins Bush at economy's helm.(Reverse Spin)
July 17, 2006... Byline: Frederick P. Gabriel Jr. Let's hope that Henry Paulson showed up for his first day of work wearing boat shoes. Last Monday, the former chief executive of The Goldman Sachs Group Inc. of New York was sworn in as the 74th U.S....

At the Bell; Advisers like 'style' of retirement funds.(Late News)
July 17, 2006... About 76% of advisers said they were recommending lifestyle or life cycle products to their clients, according to a Russell Investment Group survey that is slated to be released today. According to the survey, a majority of respondents said...

Jacob warms to value, diversity, higher turnover.(Street Wise)
July 17, 2006... Byline: Jeff Benjamin Ryan Jacob, manager of the $75 million Jacob Internet Fund (JAMFX), has experienced enough of the technology sector to realize that it is no longer only about growth stocks. Mr. Jacob, founder of Jacob Asset...

S&P 500 Growth Fund of America? Big inflows partly to blame for index look of No. 1 fund, Morningstar analyst says.(News)
July 17, 2006... Byline: Kathie O'Donnell BOSTON - The nation's biggest and best-selling mutual fund - American Funds' $140 billion Growth Fund of America (AGTHX) - is beginning to resemble an index fund. At the end of May, the large-cap-growth fund's...

SEC wraps up B share fraud case; Broker to pay 36K; charges against ING firm dropped.(News)
July 17, 2006... Byline: Bruce Kelly NEW YORK - Putting an end to a B share saga, the Securities and Exchange Commission last week said that an independent-contractor registered representative who was with an ING Advisors Network Inc. broker-dealer in the...

Little chance that small-caps can continue run.(Other Views)
July 17, 2006... Byline: William Berg You don't have to be able to see very far to know that certain investors have done well in the past few years by standing on the shoulders of dwarves. Over the six calendar years through 2005, the Standard &...

Data security belongs on the front burner.(Editorial)
July 17, 2006... Data security should be a major concern for government agencies, financial institutions, data processors and especially Congress. The past 12 months have seen more than a half dozen breaches of data security in both the government and...

Adviser warns on tech.(Short Interests)
July 17, 2006... Byline: Darla Mercado NEW YORK - Investors should avoid putting all their eggs in the technology basket for the long term, one financial adviser contends. High returns in tech stocks appear promising on the surface but often are not...

The rich prefer a Rolls-Royce.(Short Interests)
July 17, 2006... Byline: Gary S. Mogel NEW YORK - When it comes to cars, the wealthy don't skimp. Rolls-Royce, Maybach and Bentley are their top three brands, according to a survey of 500 people with at least $5 million in net worth that was released...

A call for more due diligence.(Short Interests)
July 17, 2006... Byline: Jeff Benjamin DETROIT - When it comes to hedge fund investing, investors and financial advisers are taking due diligence too lightly, according to Ron Surz, president of San Clemente, Calif.-based PPCA Inc. He published a short...

Price war heats up at donor-advised funds; Schwab is the latest firm to cut fees.(News)
July 17, 2006... Byline: Darla Mercado NEW YORK - The price war among donor-advised mutual funds is heating up. The latest salvo was announced recently by San Francisco-based Charles Schwab & Co. Inc., which dropped the fee it charges for...

Rogue broker's Ponzi scheme takes $2 million bite out of Prudential; Arbitration panel awards compensatory, punitive damages.(News)
July 17, 2006... Byline: Bruce Kelly NEW YORK - Prudential Financial Inc. has exited the brokerage business, but it still has to pick up the $2 million tab for an arbitration award involving a rogue broker who ran a Ponzi scheme that defrauded 13 investors...

Unclipping hedge funds for a profit.(Short Interests)
July 17, 2006... Byline: Brooke Southall SAN FRANCISCO - A decision last month by a federal appeals court to overturn a Securities and Exchange Commission regulation requiring most hedge fund advisers to register with the agency may present a slew of new...

Settlement $ may exceed payouts, some say; 401(k) investors could get as little as $10 apiece.(News)
July 17, 2006... Byline: Sara Hansard WASHINGTON - The cost of getting the money from the mutual fund trading and revenue-sharing settlements to 401(k) plan participants is likely to far exceed the amount of money the participants actually will receive,...

Roth 401(k) picking up speed? Vanguard, Hartford, Fidelity report growing interest.(News)
July 17, 2006... Byline: Lisa Shidler CHICAGO - After a sluggish start, the new Roth 401(k) has begun to gain momentum now that questions about how to administer the product have been ironed out, some industry insiders say. It isn't uncommon for new...

NASD softens 'bad boy' disclosure rule; Change won't apply to unproven marks that predate new reg.(News)
July 17, 2006... Byline: Dan Jamieson IRVINE, Calif. - NASD is backtracking on disclosing all the dirt on "bad boy'' brokers. For several years, the Washington-based brokerage industry self-regulatory association has been working on a rule change that...

SEC clamps down on 'soft dollars'.(Short Interests)
July 17, 2006... Byline: Sara Hansard WASHINGTON - Money managers who pay above-average trading commissions in return for research and brokerage services face new restrictions on what services they may buy from brokerages with those commissions. In...

For Advent watchers, the long wait is over; New package to supplant Axys for high-end advisers.(News)
July 17, 2006... Byline: Brooke Southall SAN FRANCISCO - After years of milking its legacy product, Advent Software Inc. is back on the offensive with a big new offering for financial advisers that includes higher prices but easier terms. When the San...

Nearly 70% ill-prepared to meet LTC needs, survey shows; But two-thirds of Americans expect to live at least to 85.(News)
July 17, 2006... Byline: Gary S. Mogel NEW YORK - Despite the recent publicity surrounding rising nursing-home and other long-term-care costs, nearly 70% of Americans refuse to buy LTC insurance or adequately plan for future care. That was a key...

Senate holds powwow on insurance regulation; Hearing focuses on possibility of optional federal charter.(News)
July 17, 2006... Byline: Sara Hansard WASHINGTON - The Senate Banking Committee last week held the first of a series of hearings this year on modernizing insurance regulation, looking particularly at whether insurers should be given the option of being...

Savings bill for kids gets thumbs up from advisers; Would allow accounts to be used for college, house, retirement.(News)
July 17, 2006... Byline: Lisa Shidler CHICAGO - Financial advisers are optimistic about a congressional bill that would simplify clients' ability to save for their children. If passed, the bill, which was introduced in May, would allow parents to...

Analyst calls for an end to government regulation.(News)
July 17, 2006... Byline: Aaron Siegel NEW YORK - At least one financial analyst feels that government regulation in all forms is detrimental to the economy. In the newly released book "Unwarranted Intrusions: The Case Against Government Intervention in...

Wealthy clients aren't all satisfied with advisers; Affluent investors seek a planning approach, survey shows.(News)
July 17, 2006... Byline: Aaron Siegel NEW YORK - A surprising number of wealthy investors don't have financial advisers, and many of those who do give their advisers less than stellar ratings, according to a new survey. Wealthy investors are most...

Closing Quote.(Quotes)
July 17, 2006... "Multistrategy is the beginning of the end of single-strategy hedge funds.'' Charles Gradante, managing principal at Hennessee Hedge Fund Advisory Group LLC in New York. Page 27

Smaller firms push for changes in proposed SIA-BMA merger; Group would have a stronger voice in D.C., execs say.(News)
July 17, 2006... Byline: Dan Jamieson IRVINE, Calif - As voting proceeds on the proposed merger between the Securities Industry Association and The Bond Market Association, some smaller SIA members are worried about losing influence in the new, larger...

Insurers on prowl for deals; Some say they are looking to purchase asset managers.(News)
July 17, 2006... Byline: David Hoffman PHILADELPHIA - The race for baby boomers' retirement assets soon may ignite a pickup in deal making between insurance companies and asset managers. The Mutual of Omaha Cos. is on the prowl for an asset management...

Fidelity lets advisers keep cake, give it, too; Donors of $1M-plus can appoint them to handle gift assets.(News)
July 17, 2006... Byline: Brooke Southall SAN FRANCISCO - In a time of euphoria for some charitable organizations, Fidelity Investments is introducing a way for advisers to help give away client assets without parting with the associated fee income. On...

Closed-end funds try to get SEC moratorium lifted; Say that ban on plans avoiding discounts tilts playing field.(News)
July 17, 2006... Byline: David Hoffman PHILADELPHIA - A moratorium imposed by the SEC two years ago is causing closed-end funds to compete on an uneven playing field, some industry experts say. The moratorium keeps closed-end funds from adopting what...

Time to create legacy?(Short Interests)
July 17, 2006... Byline: Darla Mercado NEW YORK - Affluent individuals looking to preserve their wealth should consider creating a legacy, according to Bruce Bickel, a senior vice president of PNC Wealth Management. In light of philanthropic...

Arbitration code rewrite should be rethought.(Editorial)
July 17, 2006... NASD should take the proposed rewrite of its arbitration code back to the drawing board. The revised code was awaiting approval by the Securities and Exchange Commission when the Public Investors Arbitration Bar Association of Norman,...

Penny-wise in a sideways market.(The Markets)
July 17, 2006... Byline: Tom Roseen, Lipper senior research analyst Open-end-fund expenses are on the decline. From 2004 to 2005, the average and median total expense ratios declined 0.02 percentage points and 0.07 percentage points, respectively, to 1.3%...

One on One With Ann Hughes of ING U.S. Financial Services.(One on One)
July 17, 2006... Byline: Gary S. Mogel Ann Hughes knows how to immerse herself in the businesses of financial advisers - especially when it comes to helping them use variable annuities to reach their clients' financial goals. As senior vice president...

Sideways-market study: EIAs top stock indexes; Validity of back-testing results is challenged.(News)
July 17, 2006... Byline: Gary S. Mogel NEW YORK - Some equity index annuity advocates are attempting to bolster EIAs' shaky reputation among potential clients and regulators by back testing to show their allegedly superior investment performance in a...

Multistrategy funds' growth may force FOFs to send SOS; The hedge fund subcategory poses a potential threat to funds of funds.(News)
July 17, 2006... Byline: Jeff Benjamin DETROIT - In this age of increased focus on regulatory oversight of hedge funds, the multistrategy version is shaping up as a popular alternative to many traditional hedge funds and funds of funds. The general...

Log on to our webcast.(News)
July 17, 2006... InvestmentNews will present a live webcast for advisers, "Retirement and its impact on the financial advisory industry." It will be held Tuesday, Sept. 12, from 2 p.m. to 3:15 p.m. Eastern time. To register, go to:...