Investment News articles from May 2001

Investment News archives from May 2001

Tax code spells pension tension.
May 7, 2001... * Benefits will be negated, experts say In their zeal to enact pension legislation, lawmakers in Washington have overlooked one small complication -- the nation's Byzantine tax code. Tax lawyers, accountants, tax agents and executives...

Fidelity joins Schwab, adds adviser referrals.
May 7, 2001... Free program debuts in eight markets Trailing its archrival by more than five years, Fidelity Investments is finally unfurling its own initiative to match investors with financial advisers. After testing it for a year, the Boston...

Energy stocks running on empty.
May 7, 2001... Rising supplies signal an end to hot market Expecting ever-higher energy stock prices? Don't. Not past the summer blip anyway. At least one fund company is cutting back its energy holdings because it believes energy stocks have already...

Cut in SEC fees hits a snag in the House.
May 7, 2001... * Agreement over a bill to cut securities transaction fees collapsed in the House last week when Rep. Dan Burton, the Indiana Republican who heads the Government Reform Committee, would not go along with giving pay raises to all the employees...

Merrill set to close sick Internet fund.
May 7, 2001... * After watching the obliteration of more than $700 million in investors' cash, Merrill Lynch & Co. Inc. of New York wants to pull the plug on its ill-timed Internet Strategies Fund (InvestmentNews, April 9). Launched in March 2000, two...

Hedge funds draw cash and scrutiny.
May 7, 2001... * Hedge fund investors are taking a more sophisticated and critical look at this class of alternative investments even though they invested $30 billion last year, according to a new survey. The survey, conducted by Hennessee Hedge Fund...

Correction.
May 7, 2001... * In an April 30 article, Robert Isbitts, president and chief investment officer of Emerald Asset Advisors, should have been quoted as saying that most of Mr. Isbitts' clients have 5% to 15% of their portfolio invested in a variety of...

Stock risk less in long run? Don't bet on it.
May 7, 2001... Two pieces of investment dogma are being branded as fallacies. They are: "The longer an investor's investment horizon, the less risky stocks are," and "Stocks are a hedge against inflation." Who says they are fallacies? Zvi Bodie,...

Money manager makes a Hail Mary play.
May 7, 2001... Investors who wish to make a few bucks in the market but want to make sure they stay on the good side of the Roman Catholic Church have a new mutual fund. The Ave Maria Catholic Values Fund offered by Schwartz Investment Counsel Inc., in...

Bipartisan clout.
May 7, 2001... The Carlyle Group is known for using such top Republicans as former President Bush and his secretary of state, James A. Baker III, to clinch private-equity deals. Its CEO, Frank Carlucci, was defense secretary under President Reagan. Now...

And the winner is.
May 7, 2001... With wholesome California looks that could supposedly tame a bear market, TechTV consumer reporter Stacee Barcelata is the winner of Playboy.com's sexiest financial newswoman poll. Out of 45,000 votes, Ms. Barcelata, dubbed the "brunette...

Time to say bye-bye to the bear?
May 7, 2001... Surprise GDP report, likely rate cut fuel rise In case you missed it -- or were too dazed to notice -- the stock market has bottomed. "The bear is dead!" screamed a recent stock market report from Alfred E. Goldman, chief market...

Insurers have rub with advisers.
May 7, 2001... 'Abuse' sends policy rider deductibles soaring Widespread abuse is turning a godsend for some financial advisers into a devilishly expensive proposition for everyone else. Battered by a rash of claims, insurance companies are hiking...

A debutante of questionable pedigree.
May 7, 2001... Insurer faces doubts on eve of IPO party With three insurance companies set to go public this year, including his own, Robert Fiondella must feel like the ugly stepsister on her way to the ball. After all, the CEO of Phoenix Home Life...

Ex-CEO of Conseco in new consolidation play.
May 7, 2001... As Stephen Hilbert labors to rehabilitate his tarnished reputation following last year's spectacular fall of Conseco Inc., the former CEO of the Carmel, Ind., insurer and consumer lender has set his sights on another consolidation play. ...

If it'll bring Fed cut, keep bad news coming.
May 7, 2001... The U.S. economy continues to look like a bobbing cork. Data released last week shows consumer confidence is down, but spending is up. The economy grew 2% in the first quarter, but some economists are still talking recession. Corporate...

Bubbly on the Street?
May 7, 2001... * Speaking of corks, don't be surprised if Wall Street firms start stocking up on champagne. While it's not quite time to celebrate, two actions in Washington last week could mean easy money for the Street. First, a pension reform bill...

Cappuccinos at golden arches Sarah O'Brien.
May 7, 2001... * At McDonald's, executives are dipping into another libation: coffee. Last week, the fast-food chain opened its first U.S. McCafe -- a Starbucks knockoff that sports golden arches. The trial McCafe in Chicago offers coffee and desserts in...

Seattle in jet stream Sarah O'Brien.
May 7, 2001... * Meanwhile, the city that was home to the first Starbucks is getting publicly lambasted by a local corporate exec. Poor Seattle. First Boeing Co. announced in March that it plans to relocate. Now, its chairman says Seattle can blame itself...

Paycheck trump Sarah O'Brien.
May 7, 2001... * Maybe Donald Trump can better afford cappuccinos wherever he erects his next monument-to-self. The real estate developer had a $250,000 raise last year, his company reported last week. The Donald's take-home pay as president and CEO of...

Critics: Heartland overheats boilerplate.
May 7, 2001... Says its other funds may be held liable Beset with legal woes, Heartland Advisors is going overboard in an attempt to cover its assets. A Heartland prospectus filed with the Securities and Exchange Commission on March 1 suggests that...

New market for SEI: Managed accounts.
May 7, 2001... Industry a buzz about separates, not wraps The leader in selling mutual fund wrap accounts is muscling into separate-account money management. SEI Investments Co. last month started offering separate accounts through 7,000 financial...

Tax fraud blossoms on the Internet.
May 7, 2001... About a dozen years ago, New York billionaire Leona Helmsley, dubbed the "Queen of Mean" by employees of her real estate empire, defiantly boasted that "only the little people pay taxes." Mrs. Helmsley, of course, was referring to the...

CFP Board publicly censures 15 planners.
May 7, 2001... At issue: client gripes, misuse of credential More than a dozen certified financial planners received a public censure last month from the Certified Financial Planner Board of Standards. Ten permanently lost the right to use the CFP...

A revolution still looking to click with advisers.
May 7, 2001... Until five years ago, getting your hands on current financial information was an adventure. Your best bet would have been someone with access to a Quotron machine, who wasn't out to lunch, on the other line or playing golf. Now...

Shakeout hits online advice, sending up 'for sale' signs.
May 7, 2001... Websites seek alliances with established firms It's time to shape up or ship out for online financial services. Only one year ago, online financial advisers were poised to corral the millions of consumers who wanted advice but had no...

Harold Evensky.
May 7, 2001... Chairman, Evensky Group in Coral Gables, Fla. $350 million under management Five favorite sites: * pietech.com (MoneyGuidepro) Best features: Great material for client presentations and education. Uses: The card game...

David Yeske.
May 7, 2001... President, Yeske & Co. in San Francisco $67 million under management Five favorite sites: * schwabinstitutional.com Best features: Client management. We custody all our client assets through Schwab Institutional. Uses: To...

Ross Levin.
May 7, 2001... Principal, Accredited Investors Inc. in Edina, Minn. $200 million under management Five favorite sites: * schwabinstitutional.com Best features: Charts, real-time quotes and stock information. Uses: Studying real-time quotes....

Sites sort through ocean of mutual fund data.
May 7, 2001... * Mutual fund research With more than 11,000 mutual funds to choose from, the biggest hurdle facing financial advisers is how to find and compare funds. Here are some sites that should make that job easier. * Morningstar at...

Thomas Henske.
May 7, 2001... Financial adviser, Cowan Financial Group in New York $108 million under management Five favorite sites: * troweprice.com Best features: Great calculators. Uses: To judge confidence intervals for clients attaining...

Back-office sites have moved front and center.
May 7, 2001... Practice-management services One of the biggest trends in the past year has been the movement of back-office functions for advisers to the Internet. The following sites provide a range of services to automate advisory practices. All...

Lou Stanasolovich.
May 7, 2001... President, Legend Financial Advisors in Pittsburgh $100 million under management Five favorite sites: * zacksadvisor.com Best features: Stock information. It's the one that's the most useful in our case. Uses: For information...

Iris Mack Dayoub.
May 7, 2001... President, Alpha Financial Management in Savannah, Ga. $25 million under management Five favorite sites: * napfa.org Best features: Updates on the latest issues affecting fee-only financial planners. Uses: The discussion...

Suffice it to say, these sites safeguard principal.
May 7, 2001... * Bond trading/research If safety of principal is your primary concern, then bonds are your game and a growing number of independent websites now provide online fixed-income trading and/or research. * Bond Market Association at...

Gregory Conway.
May 7, 2001... Principal, Conway Jarvis & Associates in Seattle $145 million under management Five favorite sites: * schwabinstitutional.com Best features: Being able to log on to one site and access three to four different individual company...

Number-crunching tools for 401 (k)s and 529s.
May 7, 2001... Retirement and college savings Saving for the long term, whether it's for retirement or college for the kids, requires thoughtful planning. Since 1980, when the first 401(k) plan was launched, more than 38 million Americans have socked...

Stephen T. Gorman.
May 7, 2001... President, Gorman Financial Management in Hingham, Mass. $80 million under management Five favorite sites: * ceoexpress.com Best features: It's a great site. It has links to just about every business news organization you can...

Garland Corley.
May 7, 2001... President, Capital Asset Management in Raleigh, N.C. $20 million under management Five favorite sites: * triad-advisors.com Best features: Account information. Uses: Compliance. * marketsmorning.com Best...

A retirement plan that exists online.
May 7, 2001... First Mercantile Trust Co. in Memphis, Tenn., is offering an Internet-based retirement plan. The Premier Online account is available to retirement plans with minimum annual contributions of $50,000 or a $50,000 initial deposit. There...

Interactive directory of plan providers.
May 7, 2001... * Search40lk in Mendota Heights, Minn., has introduced the Search40lk Provider Guide, an online interactive directory with more than 90 401(k) plan products from nearly 60 plan providers. The guide provides access to more than 600 fields of...

Ameritas annuity competes on price.
May 7, 2001... * Ameritas Variable Life Insurance Co. in Lincoln, Neb., has introduced Overture Medley, a variable annuity offering a variety of choices, with a standard annual expense of 0.75%. Overture Medley's standard low fee structure, multiple death...

New England adds data for businesses.
May 7, 2001... * New England Financial in Boston has upgraded its website, nefn.com, to offer expanded services and information to business owners. The site features four major categories: * Information for Business Owners helps business owners address...

Moving Up.
May 7, 2001... HIRINGS & PROMOTIONS * New York Life Insurance Co. has named David N. Dunn, 61, senior vice president in charge of the membership association department. Mr. Dunn joins New York Life after spending 27 years working at USLife Corp. in...

Foliofn's adviser chief looks to broaden reach.
May 7, 2001... You can call it an entrepreneurial itch that just won't quit. After helping to launch an account aggregation business last year, James Vitalie has joined another company that hasn't reached its first birthday. But in his new position...

Don't discount this way of saving money for college.
May 7, 2001... Section 529 plans may be all the rage with clients saving for their kids' college education, but some advisers recently got a piece of advice: Don't forget to educate clients about discounted tuition -- an incentive that colleges use to attract...

The best and worst small funds, so far.
May 7, 2001... The best and worst small funds, so far EQUITY INCOME 1-year 3-year TOP 10 YTD % change % change Heartland Value...

IPO market's still breathing.
May 7, 2001... Afar cry from the frantic arena of two years ago, the initial public offerings market is opening up in certain sectors in which the models are traditional and the opportunities are obvious. Reliant Resources Inc. (RRI) of Houston, which...

THE MARKETS.
May 7, 2001... THE MARKETS InvestmentNews Index [*] +15.67 Up 0.97% to 1637.09 S&P 500 +13.54 Up 1.08% to 1266.61 Dow Jones Industrieals +141.19 Up 1.31% to 10951.24 ...

"Advisers can make a lot of money selling 401(k)s".
May 7, 2001... Douglas Manchester is the Johnny Appleseed of Internet 401(k) plans. First he started Fidelity Investments' e401(k) program in 1999. But at Fidelity he says, he felt constrained -- he was trying to build a New Economy company onto a...

Schwab to charge private-client fees.
May 14, 2001... * Charles Schwab Corp. tipped its hand Thursday about how it will go for the jugular of rivals such as Merrill Lynch & Co. Inc. through its previously announced Schwab private-client offices in Houston, Los Angeles and Northern California. ...

American General and AIG set deal.
May 14, 2001... * American International Group Inc. in New York reached a definitive agreement Friday to acquire Houston's American General Corp., an insurer and consumer lender, for $46 a share in stock, putting the value of the deal at $23 billion. In...

Aegon seeks to buy some WMA assets.
May 14, 2001... * Aegon NV, the Dutch insurer, is looking to buy some of the assets of World Marketing Alliance Inc. in Duluth, Ga. While declining to give specifics of the potential deal, a spokeswoman with an Aegon subsidiary in St. Petersburg, Fla.,...

Brokers, advisers spared Wall Street's job massacre.
May 14, 2001... Brokerage houses are putting their top salespeople ahead of profits in a calculated bet that the economic downturn is sharp -- but short lived. Indeed, some companies are actually hiring brokers even as job cuts spread throughout Wall...

Janus: Down but far from out.
May 14, 2001... Company shakes off slump, brain drain When Jim Craig resigned as head of the inspired brain trust of Janus Capital Corp. in August, many saw it as a sign -- after a tortured period of losses -- that the bloom was finally off the rose in...

Price war! Insurers fight it out.
May 14, 2001... Sliding annuity sales spur cutthroat battle A price war that one top executive calls "irrational" is hammering companies that sell variable annuities at a time when sales are on the skids. Variable-annuity sales are expected to shrink...

Scrutiny tightening for annuity sellers.
May 14, 2001... * Expect to see more serious enforcement cases brought against life insurance companies and the officials who work for them involving violations of rules about the sale of variable annuities. That's the word from Barry Goldsmith, executive vice...

Scudder is silent on possible buyers.
May 14, 2001... * Zurich Scudder Investments Inc. is being tight-lipped about speculation that its parent, Zurich Financial Services AG, is shopping a stake of its U.S. asset management unit. Among those with whom Zurich Financial is believed to be in...

Compromise would end death tax.
May 14, 2001... * Estate taxes would be repealed in 2011 under legislation proposed Friday by the leaders of the Senate Finance Committee. The amount of an estate not subject to taxes would rise to $4 million over the next 10 years under the bipartisan...

Memo to Mr. Pitt; Target analyst conflicts.
May 14, 2001... I received a phone call this week from a registered representative with a major Wall Street firm who was troubled about the conflicts of interest he has seen, not only at his firm, but on the Street in general. His call was prompted by a...

PaineWebber exec fills hole for Swiss.
May 14, 2001... Swiss banking giant UBS AG is looking to its U.S. subsidiary, UBS PaineWebber, for lessons in how to build its European network of financial advisers. The company is looking to hire 250 financial advisers each year over the next three...

The best game plan.
May 14, 2001... The Tigers burned brightest at the second annual American Express Planning Invitational in Minneapolis last month. Blake Allen, Damon Maughan and Jeff Schneider, seniors from Fort Hays State University in Hays, Kan., took first place at the...

CFP Board drive rallies the troops.
May 14, 2001... The Certified Financial Planner Board of Standards has recruited more than 800 CFPs to help it with its new public awareness campaign. That's how many have signed up to receive promotional kits from the Denver-based board. "What we've...

Small funds seeking ports in tech storm.
May 14, 2001... Fizzle of Internet frenzy causes Monument-al mess David Kugler knows that the clock is ticking for technology fund shops such as his. So the president of Monument Funds Group in Bethesda, Md., is teaming up with Orbitex Management Inc....

[1] Want your fund money? Get ready to pay for it or to just pay more to own mutual funds.
May 14, 2001... To ward off market timers and discourage nervous investors, a growing number of mutual funds are charging shareholders when they bail -- even if it's months, or years, after they buy the fund. The trend is also a sign that some fund...

Want your fund money? Get ready to pay for it or to just pay more to own mutual funds.
May 14, 2001... Despite down market, some companies hiking fees The market has tanked, so what better time to turn to investment fees to boost the bottom line? That's the strategy of two fund companies. Strong Capital Management Inc. in Menomonee...

Tax cuts pave way for economic recovery.
May 14, 2001... For better or worse, tax relief is on the way. The Senate on Thursday gave its final approval to a budget plan that lays the foundation for $1.35 trillion in tax cuts and places limits on government growth. The Senate voted 53-47 for...

CIBC rumored to eye Ameritrade.
May 14, 2001... * Wall Street tongues were wagging Friday amid speculation that Toronto's Canadian Imperial Bank of Commerce is in talks to buy U.S. online brokerage Ameritrade Holding Corp. in Omaha, Neb., for as much as $1.8 billion. If a deal were to...

Light at the end of the tunnel?
May 14, 2001... * With financial results such as those posted Thursday by Cisco Systems Inc., it's a wonder chief executive John Chambers sees a light at the end of the tunnel. The San Jose, Calif.-based maker of computer networking equipment Tuesday...

Records breaking.
May 14, 2001... * How about shooting the next "Survivor" series on Wall Street? One company that investors apparently think has a good chance of winning is Worldcom Inc. The troubled telecommunications company in Clinton, Miss., pulled off a...

Outlook turns hair gray.
May 14, 2001... * Looks like Palookaville is about to become the latest retirement destination. A survey released Thursday by the Employee Benefit Research Institute found that 71% of Americans polled said that they have saved for retirement, down from...

Evensky's visionary plan takes abrupt detour.
May 14, 2001... Adviser and his ex-CEO pursue goal separately It may mean the death of a dream. Harold Evensky and the man he chose to oversee the creation of a yet-to-be-born financial advisory giant are going their separate ways --sort of. Richard...

Forum finds the spotlight.
May 14, 2001... Elite group emerges with Lazio as its CEO An industry that already wields huge clout is getting another mouthpiece in Washington, but this one will echo straight from the executive suites of Wall Street -- and then some. The...

Pension bill snafu signals need to clean up tax code.
May 14, 2001... And you thought cutting taxes was going to be a no-brainer. First, Congress whacks President Bush's original $1.6 trillion, 10-year tax cut by some $3.5 billion. Now, it has run into a thicket of problems enacting the highly popular pension...

Better monetary policy, better times.
May 14, 2001... once again, all of us are on the edge of our seats, counting down to tomorrow's Federal Open Market Committee meeting. As investors and financial advisers, we need to watch for actions by the Fed that will, along with tax rate reductions,...

Investors are saying, 'What, me worry?'.
May 14, 2001... What if they called a bear market and nobody came? Actions, as they say, speak louder than words. Despite the Standard & Poor's 500 stock index falling 11.9% for the first quarter and 21.7% over the past four quarters (not to mention the...

Pitt likely to swing pendulum on SEC's priorities.
May 14, 2001... President's pick to head agency well regarded Financial executives expect Washington lawyer Harvey Pitt to make streamlining securities markets a top priority if he becomes the next chairman of the Securities and Exchange Commission. ...

Bank One will triple adviser force to go after rich.
May 14, 2001... Bank One Corp. is on the prowl for talent -- adviser talent -- to help it become a one-stop shop for the rich. That requires more than tripling the number of advisers -- to 2,000, from 600 -- says Peter Atwater, chief executive officer of...

Legislative leaders seek overhaul of SEC powers.
May 14, 2001... Gramm eyes 'dramatic review and reform' Two key legislative leaders who oversee financial issues in Congress are calling for a sweeping overhaul of securities regulation. Rep. Richard Baker, R-La., chairman of the House Financial...

SEC to offer guidelines on best trade executions.
May 14, 2001... New report to target managers, advisers Federal regulators are expected shortly to recommend guidelines directing how investment advisers and money managers should trade stocks. "The basic issue is that the investment advisers will...

New gold mine for advisers: Small-business 401 (k)s.
May 14, 2001... Pension legislation may boost such plans Financial planners who work with small-business owners could find a booming business in retirement plans as new laws pave the way for small companies to introduce 401(k)s for their employees. ...

Old Mutual goes on safari to build U.S. business.
May 14, 2001... F&G deal gives insurer distribution channel For 153 years, Old Mutual PLC never ventured beyond its South African homeland. But over the past year, on a safari into international financial services, it has bagged U.S. insurance,...

Dreyfus, with bond funds surging, also eyes equities.
May 14, 2001... Gerald Thunelius has spent 12 years heading taxable bond funds at Dreyfus Corp. of New York and has never once been asked to pitch his company's wares -- until now. He's in the middle of a three-month blitz of 25 cities, talking up his bond...

Online brokers shift ads to retaining clients.
May 14, 2001... Their 'land grab must be put on hold' Look at how times have changed. Last year, E*Trade's Super Bowl ads featured a cheeky "ER" parody about a patient afflicted with "money coming out the wazoo." This year's standout from E*Trade...