Investment News articles from June 2004

Investment News archives from June 2004

Taking Sides: Let's avoid a health-care crisis.(Opinion)
June 7, 2004... Countless studies have concluded that American workers have seriously underestimated what they need to save to maintain a working-life standard of living in their retirement years. Making the challenge even more daunting, of course, are...

Moving Up.(News)
June 7, 2004... * The Securities and Exchange Commission in Washington has promoted Peter H. Bresnan, 49, to associate director in the enforcement division, from deputy chief litigation counsel. He will assist in planning and directing the commission's...

Background of NYSE arbitrator called into question; Concerns arise about her competency, education.(News)
June 7, 2004... Byline: Bruce Kelly A contentious New York Stock Exchange arbitration case is turning into another potential embarrassment for the Big Board. Questions are being raised about the background and competency of one of its longtime...

More disclosure requirements may mean less communication with clients.(News)
June 7, 2004... Byline: Joanna Sabatini In a tougher regulatory environment, some financial advisers are worried that the investment information they want to give to clients will be lost amid paperwork and a rigorous disclosure process. "I try to stay...

UBS takes fee-only cue from independent RIAs; Separate planning unit may be first of its kind for a company on this scale.(News)
June 7, 2004... Byline: Rick Miller UBS AG, one of the world's largest investment managers, has quietly launched a venture that takes its cues from the independent fee-only financial planning firms. While large institutions tend to tie financial...

Regulation causes nail-biting; Advisers fear footing the costs of new rules.(News)
June 7, 2004... Byline: Sara Hansard Financial advisers are worried that they may be forced to pick up the tab for implementing new regulations being imposed on the mutual fund and brokerage industries. They fear that new disclosure requirements and...

For CPAs, India offers inexpensive helping hand; They save money, can focus on financial planning.(News)
June 7, 2004... Byline: Brooke Southall Glenn Friedman is sending mountains of his company's work to India. The managing partner of Metis Group LLC in New York hired two accountants and a secretary in that South Asian country to prepare hundreds of...

Short Interests: Equities drawing crowds, at least through 2005.(Briefs)
June 7, 2004... Byline: Sara Hansard, Bruce Kelly and Joanna Sabatini Nearly half the investors surveyed in January and February said they intended to allocate most of their savings to equities through 2005, according to a Harrisdirect LLC study of more...

Hints from NASD: The times, they are a-changin'; Disclosure push seen for sales of funds, VAs.(News)
June 7, 2004... Byline: Bruce Kelly NASD has been tipping its hand to its broker-dealer members to potential changes in how registered representatives sell mutual funds and variable annuities - through comment letters, internal reorganization and...

Monday Morning: Don't be fooled by would-be Robin Hoods.(News)
June 7, 2004... Byline: Mike Clowes Robin Hood was always one of my heroes. After all, he defied the authority of the evil King John, thwarted the nasty Sheriff of Nottingham and stole from the rich to give to the poor. However, when I studied...

Other Views: It is time to take an introspective look; "If the regulators have gone too far, if the press has been irresponsible ... how do we recover as an industry?''.(Opinion)
June 7, 2004... Byline: David Shapiro Is anyone willing to stand up and say that enough is enough? Is anyone willing to put their hand up and say that the financial services industry is not being treated fairly by the press or the regulators? The very...

Tax Watch: House pushes to safeguard 1G child tax credit.(News)
June 7, 2004... Byline: Mark Battersby The House of Representatives has voted to add the $1,000 child tax credit to the list of tax reductions that it wants to safeguard. House lawmakers have already agreed to lock in President Bush's tax cuts, a...

At the Bell.(Late News)
June 7, 2004... New bill to help small businesses * House Ways and Means Committee Chairman Bill Thomas, R-Calif., Friday introduced legislation that would make it easier for small businesses to become S corporations, which receive favorable tax...

Analyst says: Hail, hail, growth is really here; Wells Capital's Paulsen optimistic about the economy.(News)
June 7, 2004... Byline: Bruce Kelly Economic growth is here, and it is for real, according to one top analyst. James W. Paulsen, the Minneapolis-based chief investment strategist for Wells Capital Management Inc. of San Francisco, wrote in a report...

New Janus skipper trying to right the ship; Takes steps to restore firm's battered image.(News)
June 7, 2004... Byline: Frederick P. Gabriel Jr. Janus Capital Group Inc. is taking bold steps to repair its image after the trading scandal. The Denver-based fund company is making plans to launch another advertising campaign aimed at restoring its...

New climate triggering a migration; More advisers now likely to partner, sell or go solo.(News)
June 7, 2004... Byline: David Hoffman More independent advisers are choosing to partner with other firms or sell their practices, according to industry experts who cited a confluence of factors such as regulatory reforms and changing demographics. At...

Street Wise: Performance? Low cost? Check. Marketing? Oops.(The Markets)
June 7, 2004... Byline: Jeff Benjamin In July 1997, when Bridgeway Capital Management Inc. launched its Blue Chip 35 Index Fund (BRLIX), there was a mind-set inside the Houston-based fund complex that if you build it, they will come. Sometimes,...

Reverse Spin: Merrill studies whether deal has legs.(Briefs)
June 7, 2004... Byline: Rick Miller and Frederick P. Gabriel Jr. With mutual fund scandals leaving some firms without a leg to stand on, Merrill Lynch & Co. Inc. may have found a pair. The New York-based wirehouse is exploring the sale of a large stake...

Datebook.(Calendar/Datebook)
June 7, 2004... June 10-11 - Hedge Funds Business Operations Forum, Financial Research Associates LLC. Princeton Club of New York. (800)280-8440 or frallc.com. 10-11 - Vision 2004, Pershing. Westin Diplomat Resort and Spa, Hollywood, Fla....

Legalizing same-sex marriages may open Pandora's box; "Many issues are going to arise from this decision, leading to lots of litigation ahead.''.(Opinion)
June 7, 2004... Byline: Roxanne Alexander Whether or not one agrees with legalizing same-sex marriages, same-sex couples believe marriage is a way to solidify or legitimize their relationship and commit to each other in society. They believe that if they...

One on One: "The average financial planner ... is somebody who is not as well trained as he should be".(News)
June 7, 2004... Byline: Joanna Sabatini More than a decade has passed since William J. Bernstein, a medical doctor, began delving into investment theories. Seeking the best way to manage his own portfolio, he turned to books and established practitioners...

Conference Call: Extending terrorism coverage gains support.(News)
June 7, 2004... Byline: Sara Hansard As Congress considers whether it should extend federal terrorism insurance, the life insurance industry is hoping that group life insurance will be included in any future coverage. The industry has support on...

Ethanol: The hot new derivative.(News)
June 7, 2004... Byline: Gregory Crawford Money managers have a new way to capture returns. On May 7, the New York Board of Trade began trading the world's first ethanol futures contracts, and on May 10, the exchange started trading options on those...

Regulatory burden not so onerous.(Opinion)
June 7, 2004... There has been a great deal of debate about regulatory issues and whether financial institutions may be facing a serious case of "overregulation.'' Regulators have emphasized that new rules are needed to clarify existing laws and to remind...

Product Watch: BISYS helps funds comply with '40 Act amendment.(News)
June 7, 2004... The BISYS Group Inc. in New York has introduced its ComplianceEDGE program, which provides the policies, procedures, testing, reporting and record keeping required for mutual fund companies to comply with the new Securities and Exchange...

Virtues of both public, private REITs touted; Spike in interest rates likely to hurt, though.(Real Estate Investing)
June 7, 2004... Byline: David Hoffman Many financial advisers and analysts agree that real estate is a key ingredient for a diversified investment blend, even when it is out of season, as it appears to be now that an improving economy has made stocks...

Banks begin to evaluate impact of project financing; Lowering the risk may aid shareholders.(News)
June 7, 2004... Byline: Joanna Sabatini By adopting principles to evaluate the environmental impact of such construction projects as building dams or pipelines in developing countries, some of the biggest multinational banks have begun to lower the risk...

Advisers step up planning efforts for reservists; Some offer military personnel discounted or free advice.(News)
June 14, 2004... Byline: Joanna Sabatini NEW YORK - As more reservists are called into active duty, and soldiers endure extended stays overseas, the need for financial planning for military personnel has become even more pressing. "There is a pretty...

Securian tries new tack to motivate clients to save; Company bets on a behavior-based approach.(News)
June 14, 2004... Byline: Rick Miller CHICAGO - Attempting to tackle the problem of 401(k) apathy, a retirement plan provider in St. Paul, Minn., is hoping to motivate employees with a new behavior-based program. Securian Retirement Services, a unit of...

Telemarketing firm matches CPAs and life agents; Makes cold calls in targeted cities.(News)
June 14, 2004... Byline: Brooke Southall SAN FRANCISCO - A marketing company has found a niche in helping to match unlikely bedfellows: certified public accountants and life insurance agents. PT Marketing Group Inc. in Pittsburgh is using telemarketers...

Debating the application of Sarbanes-Oxley.(Conference Call)
June 14, 2004... Byline: Sara Hansard WASHINGTON - State insurance commissioners will be challenged at their upcoming national meeting to defend a proposal that would require non-public insurance companies to audit financial statements annually in...

Brokers with compliance blots face uphill climb; Customer complaints hinder job mobility.(News)
June 14, 2004... Byline: Bruce Kelly NEW YORK - Brokers with the slightest nicks on their compliance records better think twice about looking to switch to other firms. In the wake of the down market and a record number of customer complaints about...

Wachovia breaks down a wall; Firm's indie broker-dealer developing plan to pluck advisers from full-service branches.(News)
June 14, 2004... Byline: Brooke Southall SAN FRANCISCO - Wachovia Securities Financial Network LLC feasted on wirehouse brokers last year, but now it is preparing to cannibalize its own. The Richmond, Va.-based independent-broker-dealer arm of Wachovia...

Beware of the realities of homeownership.(Editorial)
June 14, 2004... A house isn't just a home, it is an investment, as far as many Americans are concerned. For too many, it is regarded as a money market account from which, through the magic of refinancing or home equity loans, they can make regular...

In search of value, fund stumbles upon utilities.(Street Wise)
June 14, 2004... Byline: Jeff Benjamin Searching for value stocks in an overvalued market can lead a portfolio manager in all sorts of directions. For Tina Larsson, co-manager of the $140 million Kinetics Paradigm Fund (WWNPX), the market has driven...

Putnam ex-CEO gets a nice parting gift.(Reverse Spin)
June 14, 2004... Byline: Frederick P. Gabriel Jr. For someone who played a big role in damaging the reputation of a large fund company, Lawrence Lasser has done all right for himself. The former chief executive of Putnam Investments LLC in Boston will...

Scudder fund raises red flags; Lipper Inc. analyst suspects timing.(News)
June 14, 2004... Byline: David Hoffman NEW YORK - Market timers may have exploited a mutual fund share class managed by Scudder Investments of New York for AARP in Washington in 2002, according to an analyst from Lipper Inc. Such a possibility could...

At the Bell; Big-cap spreads tighter on Nasdaq.(Late News)
June 14, 2004... Price spreads were lower for large-cap stocks on the Nasdaq Stock Market than on the New York Stock Exchange, according to a study released last Thursday by Kenneth Lehn, a professor of finance at the University of Pittsburgh. But the...

Life in the fast lane teaches lessons.(Short Interests)
June 14, 2004... Byline: Brooke Southall SAN FRANCISCO - Serge Dacic is paying for a life in the fast lane by providing clients with a slowed-down approach to investing. The co-founder of Fraser Partners LLC in Austin, Texas, sells a service called...

People.
June 14, 2004... Schwab Institutional in San Francisco, a division of Charles Schwab & Co. Inc., has elected nine new members to two-year terms on its advisory board. Andrew Berg, 44, is chief executive of Homrich & Berg Inc. in Atlanta; Jeffrey Buckner,...

Helping advisers go independent; NFP builds `elite' investment adviser and planner group.(News)
June 14, 2004... Byline: Bruce Kelly NEW YORK - Since September, National Financial Partners Corp. of New York has quietly added another avenue to its recruiting program, focusing on brokers that specialize in financial planning and consulting. Before...

Call to arms for retirement plans.(Short Interests)
June 14, 2004... Byline: Sara Hansard WASHINGTON - The American Benefits Council of Washington, which represents large companies that offer retirement and health employee benefit plans, last week issued a report calling for better incentives for employers...

A nod to President Reagan's legacy.(Editorial)
June 14, 2004... Millions of words have been written in memory of President Ronald Reagan, so a few more might seem superfluous. However, while most commentators last week emphasized his foreign policy triumph and the crumbling of the Iron Curtain, and others...

Dividend payouts expected to hit record $186B this year.(Tax Watch)
June 14, 2004... Byline: Mark Battersby Firms in the benchmark Standard & Poor's 500 stock index are expected to pay out a record $186 billion in dividends to shareholders this year, according to a wire service report. The payouts are expected to result...

With Steve Scheid of Janus Capital Group Inc.(One on One)
June 14, 2004... Byline: Frederick P. Gabriel Jr. To say that Steve Scheid has his work cut out for him probably qualifies as one of the biggest understatements of the decade. As the new chief executive of Janus Capital Group Inc., he faces the...

Bank referral fees under the knife? SEC proposal may reduce them to no more than $25.(News)
June 14, 2004... Byline: Sara Hansard WASHINGTON - Many banks will have to cut the fees they pay to employees who refer clients to their brokerage affiliates under a proposal made by the Securities and Exchange Commission. Banks that are in the...

More than just a game.(Short Interests)
June 14, 2004... Byline: Meredith Deliso NEW YORK - After 26 years, the Stock Market Game Program is still going strong, but not without a little help from its friends. Thanks to a two-year, $285,000 grant from Morgan Stanley in New York, inner-city...

FPA: 'It's time to grow'; Increasing membership has become a key issue for planning association.(News)
June 14, 2004... Byline: Rick Miller CHICAGO - With its total membership numbers going nowhere, the Financial Planning Association is putting growth high on its priority list. Membership stands at 28,477, below the 29,286 that were part of the...

Terrorism threat jars investors; Advisers are doing a lot of hand-holding.(News)
June 14, 2004... Byline: Frederick P. Gabriel Jr. BOSTON - Investors are losing sleep over the potential negative effect of terrorism on their portfolios. "A lot of my clients have expressed anxiety over the risk of a terrorist attack,'' said Sue...

Investment in tech rises.(Short Interests)
June 14, 2004... Byline: Joanna Sabatini NEW YORK - An increase in the number of U.S. investors who hold securities in foreign markets, and worries about terrorism, are causing financial services companies to invest more in technology, the chairman of the...

Turning the table on clients.(Short Interests)
June 14, 2004... Byline: Jeff Benjamin DETROIT - The Institute for Private Investors in New York has launched an affiliate organization aimed at helping wealthy investors better appreciate the efforts of their financial advisers. The newly created...

Spontaneous order and investment rules.(Other Views)
June 14, 2004... Byline: Michael Devaney Investment research may not be "rocket science,'' but it has become increasingly complex as analysts borrowing from both the hard and soft sciences employ a variety of techniques in an attempt to make sense of...

Hartford plays hero.(News)
June 14, 2004... Byline: Rick Miller CHICAGO - As part of a rescue plan worked out with insurance regulators, tens of thousands of customers of distressed London Pacific Life and Annuity Co. will be able this fall to transfer their annuities to Hartford...

Newspaper gets new look.(News)
June 14, 2004... As you have undoubtedly noticed, we have unveiled a redesign with this issue. This was undertaken to allow InvestmentNews to deliver an expanded news section to our readers. We hope you will agree that the newspaper's new design is also more...

Performance-reporting firm hopes to score with RIAs; It bets more advisers will outsource these calculations.(News)
June 14, 2004... Byline: Jeff Benjamin DETROIT - For financial advisers faced with the monthly grind of calculating and reporting dozens of client portfolios, there might be a better way. Investment Scorecard Inc., a Nashville, Tenn., company that has...

Calendar.(Calendar/Datebook)
June 14, 2004... JUNE 17-18 - Executive Compensation: Strategy, Design and Implementation, American Law Institute-American Bar Association. Waldorf-Astoria Hotel, New York. ali-aba.org. 17-18 - Fundamentals of 401(k) Plans, SunGard Corbel. Charlotte...

LiveOffice weds compliance, conferencing tools.(Product Watch)
June 14, 2004... LiveOffice Corp., in Torrance, Calif., has introduced a fully integrated, compliance-enabled web conferencing solution to the financial services industry. Through the combination of LiveOffice's AdvisorMail compliance system with its...

SEC, NASD issue variable-products warning; Efforts needed to stamp out abuses.(News)
June 14, 2004... Byline: Sara Hansard WASHINGTON - The warnings by the Securities and Exchange Commission and NASD about variable insurance product sales practices are a step toward reducing or eliminating abuses, observers said. Continued efforts,...

The economic recovery has consumers humming.(Monday Morning)
June 14, 2004... Byline: Jim Pavia It's not like people are walking around singing "Happy Days Are Here Again,'' but there's definitely a good feeling in the air because it's clear that the economy is growing solidly. Federal Reserve Governor Donald...

A new twist on Oliver.(Short Interests)
June 21, 2004... Byline: Brooke Southall SAN FRANCISCO - Rich Swannell doesn't believe in Burton Malkiel's modern portfolio theory that chimpanzees throwing darts at the stock pages are as effective as portfolio managers. Mr. Swannell, the founder of...

Dividends counting for more in investment equation; Appeal is linked to tax cut for payouts.(News)
June 21, 2004... Byline: David Hoffman NEW YORK - Renewed interest is being shown in dividend-paying investments, according to money managers at Thornburg Investment Management Inc. in Santa Fe, N.M. Much of that interest is the result of last year's...

Fidelity helps advisers with retirement strategies; Seeks to capture business as boomers retire.(News)
June 21, 2004... Byline: Rick Miller CHICAGO - As part of Fidelity Investments' push to help investors make the transition to retirement, the company has launched a new service to help financial advisers adapt their businesses to serve retirees better. ...

Advisory firms react to scandals.(Short Interests)
June 21, 2004... Byline: Rick Miller CHICAGO - Money talks, particularly when it walks. A recent survey of 450 financial advisory firms by Bloomberg Wealth Manager found that 46.7% have made changes in the way they invest assets in light of the mutual...

Former SEC chairmen band together.(Reverse Spin)
June 21, 2004... Byline: Frederick P. Gabriel Jr. The controversial push for independent chairmen at the nation's mutual funds, which will be taken up by the Securities and Exchange Commission this week, received a big show of support from some heavy...

Age is just a number to these mutual fund managers; Some thrive well into their 60s and 70s.(News)
June 21, 2004... Byline: Michelle Leder NEW YORK - When George Mairs III turns 76 tomorrow, he plans to step down as president and co-manager of Mairs & Power Growth, a Morningstar five-star-rated fund that he started more than 40 years ago. However, that...

Planners struggle with technology, FPA study finds; Integrating client account information ranks as top challenge.(News)
June 21, 2004... Byline: Rick Miller CHICAGO - Financial planners can be a technologically challenged lot, but it isn't entirely their fault. Custodians and broker-dealers typically don't include all products in their electronic downloads of account...

Revolving door still turning at Deutsche after Scudder deal; Hurts performance, leads to outflows.(News)
June 21, 2004... Byline: Ricki Fulman NEW YORK - More than two years after Deutsche Asset Management acquired Scudder Investments, the combined New York firm still faces a clash of cultures that has led to a continuing exodus of Scudder executives and...

Oppenheimer planning platform helps smaller 401(k)s.(Product Watch)
June 21, 2004... OppenheimerFunds Distributor Inc.'s retirement plans services division in New York has introduced Record(k)eeper Pro, a retirement-planning platform for small to midsize companies in the 401(k) marketplace. The automated record-keeping program...

AIM's Canada unit makes fund push in the U.S. Firm faces selling challenges for its three offerings.(News)
June 21, 2004... Byline: David Hoffman NEW YORK - A Canadian money manager whose sale was forced to its parent because of relative poor performance during the go-go growth days of the late 1990s is being introduced to investors in the United States. ...

Striving to narrow the financial gender gap; Firm agrees that men are from Mars, women are from Venus.(News)
June 21, 2004... Byline: Christine S. Lee NEW YORK - Many women let the men in their lives make the important financial decisions, including those related to investing and retirement planning. That is an impractical way to approach one's finances, however,...

Explosive growth seen for individual 401(k)s; Assets expected to double this year and surge to $120B by 2012.(News)
June 21, 2004... Byline: Jeff Benjamin DETROIT - Thanks to tax law changes that were introduced two years ago, the individual 401(k) market is starting to emerge as an explosive opportunity for financial advisers. Assets in individual 401(k) plans are...

At the Bell; Fund inflows soared during first half.(Late News)
June 21, 2004... Inflows of nearly $200 billion into equity mutual funds during the first half of the year are a sign that investors are in an optimistic mood, according to Strategic Insight LLC in New York. In the context of economic and geopolitical...

Corporate climate no turnoff for directors.(Short Interests)
June 21, 2004... Byline: Frederick P. Gabriel Jr. BOSTON - Corporate directors may be gluttons for punishment. Although more of them are being taken to task by regulators and shareholders for being asleep at the switch, the job is more attractive today...

SEC supports practice standards targeting VAs.(Conference Call)
June 21, 2004... Byline: Sara Hansard WASHINGTON - The head of the Securities and Exchange Commission's division of investment management said last week that suitability and sales practice standards especially targeted to variable products are warranted....

All-weather mid-cap fund aims for diversification.(Street Wise)
June 21, 2004... Byline: Jeff Benjamin Gary Craven strives to position the $680 million Evergreen Mid-Cap Growth Fund (EKAAX) he manages to weather just about any storm, which means he isn't fixated on the latest macroeconomic cycles and market trends. ...

Variable annuity sellers: Put up or shut up.(Editorial)
June 21, 2004... Saying that brokers and insurance agents have confused and misled clients about the risks of buying variable annuities, NASD and the Securities and Exchange Commission have rightly urged them to get their acts together. NASD and SEC...

Governance regs receive thumbs-down.(News)
June 21, 2004... Byline: Sara Hansard WASHINGTON - Nearly half the 120 buy-side portfolio managers and research professionals recently surveyed by Broadgate Consultants Inc. said that corporate-governance regulations had gone too far. Broadgate is a New...

Report sees Social Security in deficit by 2019.(Short Interests)
June 21, 2004... Byline: Sara Hansard WASHINGTON - Social Security payments are projected to exceed revenue beginning in 2019, the Congressional Budget Office said last week in a report. The report said that under the laws that govern Social Security,...

With Daniel Silver of Adviser Investment Management Inc.(One on One)
June 21, 2004... Byline: David Hoffman When recommending investments, Adviser Investment Management Inc. sticks to mutual funds generally from just two companies: Fidelity Investments in Boston and The Vanguard Group Inc. in Malvern, Pa. The reason has...

IRS pegs resident aliens as new identity-theft target.(Tax Watch)
June 21, 2004... Byline: Mark Battersby The Internal Revenue Service warned of a new scheme to steal the identity and financial data of non-resident aliens who have income from a United States source. The scheme uses fictitious IRS correspondence and an...

When a bull market is just a lot of bull.(Other Views)
June 21, 2004... Byline: William Berg Investment professionals constantly predict what is going to happen in the financial markets. They may sound smart, but their statements are not worth considering unless they use terms that are clear, and propositions...

Plumbing the depths of USA Inc.'s 10-K.(Monday Morning)
June 21, 2004... Byline: Mike Clowes The most interesting analyst report to cross my desk in a long while is an analysis of the 2004 annual report of USA Inc. USA Inc.? Yep, it is the annual report of the U.S. economy. That is, it is an analysis of the...

Broker-dealers offer more services to lure advisers; They're helping improve efficiency, profitability.(News)
June 21, 2004... Byline: Liz Skinner WASHINGTON - Assistance may be on the way for financial advisers who fear they are better equipped to help client portfolios profit than to build their own gainful firms. Broker-dealers who compete to attract...

Lydian buys two indie firms.(Short Interests)
June 21, 2004... Byline: Sara Hansard WASHINGTON - Lydian Wealth Management Co. LLC of Rockville, Md., has acquired two independent investment-advisory firms: Copper Beech Advisors LLC of King of Prussia, Pa., and Windermere Investment Associates Inc. of...