Investment News articles from October 2004

Investment News archives from October 2004

FPA pushes planning week.(Short Interests)
October 4, 2004... Byline: Brooke Southall SAN FRANCISCO - The Financial Planning Association is taking a short-term approach to getting people to think long term about their finances. The Atlanta- and Denver-based group will conduct its third annual...

Three-way split seen in retirement survey.(Short Interests)
October 4, 2004... Byline: Rick Miller CHICAGO - Clark Consulting Inc. found nearly a three-way split when it asked 124 corporate executives and employees how optimistic they were about reaching their long-term retirement savings goals. Clark, an...

Calendar.(Calendar/Datebook)
October 4, 2004... October 6 - Educational and Legislative Symposia, National Tax Sheltered Accounts Association. Doubletree Hotel San Francisco Airport, Burlingame, Calif. (785)842-4983 or ntsaa.org. 6 - 2004 Safe Harbor 401(k) Plan Specialty Workshop,...

FPA website educates consumers, advisers about health-care costs; Pushes connection between benefits and financial planning.(News)
October 4, 2004... Byline: Rick Miller CHICAGO - The Financial Planning Association sees a dire need to educate consumers and advisers about health-care costs - and its efforts are just beginning. The Atlanta- and Denver-based association's campaign...

Looking to the stars.(Short Interests)
October 4, 2004... Byline: Jennifer Blecher NEW YORK - Henry Weingarten, managing director of The Astrologers Fund Inc. in New York, pores over charts before he makes his financial decisions - but not the usual kinds of charts. He looks to the skies for...

Entrepreneurs, not presidents, create jobs.(Editorial)
October 4, 2004... Sen. John Kerry, D-Mass., claims he will create millions of "good-paying jobs'' if he is elected president. President Bush claims to have created millions of jobs since the economic recovery began. Enough! Presidents and other politicians...

Help your clients know their credit score.(Editorial)
October 4, 2004... Byline: Jim Pavia Most Americans are clueless about their credit scores. Not knowing your credit score can keep you from getting better rates on credit cards, mortgages and car loans, as well as lower premiums on insurance policies. It...

Litman's test: Get high rollers to aim lower; Offering mutual fund wrap program to newsletter subscriber base via big custodians.(News)
October 4, 2004... Byline: Brooke Southall SAN FRANCISCO - An investment advice service for high-end fee-only financial advisers is trying to lure its big fish downstream. The bait: turnkey mutual fund wraps with a $50,000 minimum. Litman/Gregory Asset...

Ibbotson to offer mutual fund, ETF data from S&P.(Product Watch)
October 4, 2004... Ibbotson Associates Inc. in Chicago has selected Standard & Poor's in New York as the featured provider of mutual fund data sold to its clients in the United States. Ibbotson is also receiving exchange traded fund and closed-end fund data from...

Deciphering SECspeak.(Short Interests)
October 4, 2004... Byline: Vineeta Anand WASHINGTON - Having a tough time interpreting what Securities and Exchange Commission officials mean when they discuss the timing of pending rules? Robert G. Bagnall, a partner in the Washington law firm Wilmer...

Large-cap growth: Back to the fundamentals; Quantitative research seen as keying revival.(News)
October 4, 2004... Byline: Vince Calio NEW YORK - Well-known large-cap-growth managers are banking on a renewed focus on qualitative research and fundamental quantitative analysis to help them bounce back from the hammering they have received during the past...

At the Bell.(Late News)
October 4, 2004... Raymond James balks at SEC charges Raymond James Financial Services Inc. in St. Petersburg, Fla., said Thursday that it disagreed with Securities and Exchange Commission's civil-fraud charges based on the conduct of a former broker. ...

Reverse Spin: Camp Cupcake to welcome baking fan.(Reverse Spin)
October 4, 2004... Byline: Frederick P. Gabriel Jr. It is one of those "good news, bad news'' things. The good news is that Martha Stewart will be spending the next five months at a prison with less security than most five-star hotels. The bad news is...

Rush to comply leaves some reps caught in middle; Some call regulatory tactics too aggressive.(News)
October 4, 2004... Byline: Bruce Kelly NEW YORK - Some registered representatives are feeling increasingly punch-drunk from the unprecedented rush to regulate the securities industry, according to brokers, executives with broker-dealers, attorneys and...

People.
October 4, 2004... Wilmington Trust Corp. in Delaware has appointed Robert M. Balentine, 46, to head its investment management group and has made several other major additions to the group. He led Balentine & Co., an Atlanta-based investment counseling firm...

Upromise draws both praise and skepticism; Company continues roll by snagging Colorado 529 plan.(News)
October 4, 2004... Byline: Charles Paikert NEW YORK - Upromise Investments Inc. has been on a roll. The subsidiary of Needham, Mass.-based Upromise Inc. that provides program management and administrative services to state-sponsored 529 college savings...

Distressed-debt market bets on smaller companies; It might take longer for investors to profit.(News)
October 4, 2004... Byline: Liz Skinner WASHINGTON - The flood of filings for bankruptcy protection, such as those from Global Crossing Ltd. and WorldCom Inc., has subsided, leaving a market full of small to midsize companies. For distressed-debt investors,...

One On One With Amy Jensen Wolff of AJW Financial Inc.(One on One)
October 4, 2004... Byline: Jeff Benjamin Amy Jensen Wolff didn't start out in the financial planning industry with the goal of serving primarily women. Like many advisers, she started out wanting merely to serve somebody. But after 10 years of...

Stock optimism tempered by sector worries.(Short Interests)
October 4, 2004... Byline: Frederick P. Gabriel Jr. BOSTON - The phrase "cautiously optimistic'' strikes again. U.S. money managers are generally bullish on the 12-month outlook for stocks, but that optimism is often tempered by concern for specific...

Brokers set sights on booming 403(b) market; Hiring explosion among teachers seen as growth opportunity.(News)
October 4, 2004... Byline: Brooke Southall SAN FRANCISCO - A teacher hiring boom is attracting attention from broker-dealers and financial advisers. The Spectrem Group Inc. of Chicago last year said U.S. schools are expected to hire 2 million teachers...

Smart cards ease medical payments.(Short Interests)
October 4, 2004... Byline: Gary S. Mogel NEW YORK - Smart cards that small-business owners, independent contractors and employees can use to pay medical expenses from their health savings accounts or other health-care-related accounts may make it easier for...

Banks told it's time to hop on to separates train.(Conference Call)
October 4, 2004... Byline: Jeff Benjamin DALLAS - When it comes to the banking industry's move into separately managed accounts, the general theme has become something along the lines of better late than never. When more than 100 executives from the...

Calvert launches two socially conscious value funds; Orientation is unusual in a realm where growth usually rules.(News)
October 4, 2004... Byline: David Hoffman NEW YORK - The Calvert Group Ltd. in Bethesda, Md., which offers mutual funds that practice socially conscious investing, launched two funds with a value orientation Friday. The Calvert Small Cap Value and Calvert...

Funds leaving well enough alone fare better.(Conference Call)
October 4, 2004... Byline: Rick Miller CHICAGO - Sometimes, mutual fund managers might be better off leaving their fund portfolios alone. Morningstar Inc. in Chicago came to that conclusion in a recent "hands on/hands off'' comparison of some of the...

Scandals diminish confidence.(Short Interests)
October 4, 2004... Byline: David Hoffman NEW YORK - Investor confidence in the mutual fund industry appears to have fallen off since the fund trading scandal broke over a year ago, according to a survey released last month by Dalbar Inc., a Boston-based...

Treasury Department provides guidance for 'stapled' stock.(Tax Watch)
October 4, 2004... Byline: Mark Battersby The Department of the Treasury and the Internal Revenue Service have proposed guidance aimed at preventing the abuses contained in the stapled-stock rules, including guidance on when two corporations should be...

Regionals join a shift to planning; Many midsize banks leave transactional approach behind.(News)
October 4, 2004... Byline: Charles Paikert NEW YORK - Regional banks are joining national giants such as Wachovia Corp. and Wells Fargo & Co. in a relentless push into financial planning as part of a shift from a strictly transactional to a more consultative...

Broker-dealers brace for upcoming regulatory changes.(Conference Call)
October 4, 2004... Byline: Bruce Kelly NEW YORK - As registered representatives continue to be concerned about the pace of regulators' proposals concerning sales practices, their broker-dealers brace for the coming changes. That much was clear here last...

Life, health insurers see their profits soar; Weiss study provides useful ammunition to advisers who work with insurers.(News)
October 4, 2004... Byline: Gary S. Mogel NEW YORK - Profits of U.S. life and health insurers in the first quarter of 2004 rocketed to $8.7 billion, from $2.8 billion during the comparable period last year - an increase of 212.5%, according to Jupiter,...

SEC: No need for SOS over CCOs; Insists firms have nothing to fear from compliance chiefs' findings.(News)
October 4, 2004... Byline: Frederick P. Gabriel Jr. BOSTON - With tomorrow's deadline for hiring a compliance chief looming, asset management companies and investment advisers are fretting, perhaps unnecessarily. While most companies have either already...

Even in winning at SEC, a small fund firm loses; Battle started in '93 has a $1M price tag.(News)
October 4, 2004... Byline: David Hoffman NEW YORK - Fighting the Securities and Exchange Commission can be painful. "It's like fighting Superman without kryptonite,'' said Robert Bacarella, president of Monetta Financial Services Inc. in Wheaton, Ill....

NASD plays the tough cop.(News)
October 4, 2004... Byline: Bruce Kelly NEW YORK - NASD will continue to use a tough tactic against broker-dealers that fail to make the grade in compliance over sales practices and suspend firms from opening new client accounts. "I think you'll see more...

Most employees can retire securely, if they seek advice early.(Practice Management)
October 4, 2004... Byline: Frank Sortino A basic tenet of modern portfolio theory is that investors can make rational choices if someone helps them identify their preferences and tolerance for risk. On the contrary, empirical investigations in behavioral...

Fund tries to become publicly traded company.(Street Wise)
October 4, 2004... Byline: Jeff Benjamin Nicholas D. Gerber is a portfolio manager with a dream and enough of a stubborn streak to suggest that he might eventually get there. And along the way, he said, investors could end up making some money. Mr....

Hundreds of planners write off Merrill rule; Tell SEC they want brokers to make same disclosures.(News)
October 4, 2004... Byline: Sara Hansard WASHINGTON - Hundreds of financial planners have written to the Securities and Exchange Commission urging the withdrawal of the so-called Merrill Lynch rule, or demanding at least better disclosure by brokers. The...

Gross moves up retirement age.(Short Interests)
October 4, 2004... Byline: Brooke Southall SAN FRANCISCO - Bill Gross moved his retirement age up a few years between May and September. The managing director of Pacific Investment Management Co. LLC said in a May 8 speech to the graduating class of Duke...

CFP Board should recognize fiduciaries.(Editorial)
October 4, 2004... It is time for the Certified Financial Planner Board of Standards Inc. to recognize that CFPs, when acting as financial planners and investment advisers, are fiduciaries. The Denver-based board should acknowledge this fact in its ethics...

Step right up and get advice.(Short Interests)
October 4, 2004... Byline: Charles Paikert NEW YORK - What better place for a financial planner to be on a beautiful fall weekend than at his very own booth at a crowded street fair? You won't get any arguments from David Mihlon, a resident of Hoboken,...

Hedge fund industry tries to thwart added regs; Enough information is already available, the MFA contends.(News)
October 4, 2004... Byline: Sara Hansard WASHINGTON - The hedge fund industry is getting more aggressive in its attempt to fight off increased regulation by the Securities and Exchange Commission. The Washington-based Managed Funds Association, which...

Closing Quote.(Quotes)
October 4, 2004... "It's like fighting Superman without kryptonite.'' Robert Bacarella, president of Monetta Financial Services Inc., on his 11-year battle with the Securities and Exchange Commission. Page 2.

Independence may take hit from Waterhouse's travails.(News)
October 11, 2004... Byline: Brooke Southall SAN FRANCISCO - The aftershocks of the charges brought by the Securities and Exchange Commission against TD Waterhouse Investor Services Inc. may subtract independence from independent financial advisers, according...

Separates may see regulation; Bundled fees could be focus, some say.(News)
October 11, 2004... Byline: Jeff Benjamin DETROIT - As regulators continue to scan the financial services landscape, the general consensus holds that it is only a matter of time before the spotlight finds separately managed accounts. When that time comes,...

Indy brokers look to beef up branch offices; Linsco has added a recruiting service.(News)
October 11, 2004... Byline: Bruce Kelly NEW YORK - Pushed by compliance demands and growth strategies, leading independent broker-dealers are looking to fortify their branch-office systems. Firms are using a variety of tactics to give their branch offices...

529s a hot topic in Washington; Senator says it's `a no-brainer' to remove the states from involvement in the plans.(News)
October 11, 2004... Byline: Charles Paikert NEW YORK - The lame-duck Republican who heads a Senate panel scrutinizing Section 529 plans wants the states out of the college savings plan business. Citing what he described as excessively high and unnecessary...

There's no place like home.(Short Interests)
October 11, 2004... Byline: Sara Hansard WASHINGTON - The National Association of Insurance and Financial Advisors is re-establishing its presence here after a four-and-a-half-year hiatus. The association, whose headquarters are in nearby Falls Church,...

Waterhouse plans to keep rewarding RIAs for new biz; Under new policy, the firm makes payments only to third parties, on behalf of advisers.(News)
October 11, 2004... Byline: Brooke Southall SAN FRANCISCO - TD Waterhouse Institutional Services is now using indirect payments to reward advisers for bringing it business. The firm's policy, however, remains less definitive than that of its primary...

Gadflies blast NASD's regulation of VA industry; They charge that the positive features of annuities are ignored.(News)
October 11, 2004... Byline: Gary S. Mogel NEW YORK - Delivering their harsh words at the annual meeting of the National Association of Variable Annuities here last week, two variable annuity experts blasted NASD for over-regulating the industry. "The NASD...

SEI's loss is a gain for Fidelity's RIA group.(Short Interests)
October 11, 2004... Byline: Jeff Benjamin DETROIT - Fidelity Investments' latest enhancement to its independent-investment-adviser business has come in the form of Scott W. Dell'Orfano, a new executive vice president hired away from SEI Investments Co. ...

Variable annuities: A value proposition.(Other Views)
October 11, 2004... Byline: John B. Deremo The variable annuity industry is deservedly proud of the financial benefits its products have provided to investors. Over time, variable annuities have enabled millions of Americans to accumulate trillions of dollars...

MetLife hikes max policy limits.(Short Interests)
October 11, 2004... Byline: Gary S. Mogel NEW YORK - MetLife Inc. has announced a new maximum policy limit of 30 times an applicant's annual income, which applies to all its life insurance products. The new maximum, an increase from the former limit of 25...

Don't worry, be happy, financial advisers say.(Short Interests)
October 11, 2004... Byline: Charles Paikert NEW YORK - Financial advisers are feeling better about the economy and the markets, according to AdvisorBenchmarking Inc., an affiliate of Rockville, Md.-based Rydex Investments. Driven by positive economic...

Brokers get some support for complaints about being hamstrung by conflicting regs.(News)
October 11, 2004... Byline: Sara Hansard WASHINGTON - Regulators investigating Section 529 plans for unsuitable sales, and one of the financial services industry's severest critics, agree with brokers' contention that they are put between a rock and a hard...

One on One With Michael L. Kalen of Hartford Life Inc.(One on One)
October 11, 2004... Byline: Gary S. Mogel Life insurance is the straw that stirs many of the drinks that financial advisers make for their clients. In estate planning, business continuation strategies, trust funding and tax-advantaged asset accumulation,...

In praise of a civil debate about 12(b)-1 fees.(Editorial)
October 11, 2004... Byline: Mike Clowes It is great to receive feedback from readers on our editorials and columns, even if many of those readers disagree with us. And we certainly heard from a number about our editorial calling on the Securities and...

Hone compliance to guard investor trust.(Editorial)
October 11, 2004... Increased regulatory scrutiny has become a part of the financial services landscape. And things are only going to continue to heat up as advisers and broker-dealers face a growing number of compliance issues. Therefore, financial experts...

To sell VAs, stress income, investment advantages.(Conference Call)
October 11, 2004... Byline: Gary S. Mogel NEW YORK - Advisers who explain variable annuities to clients in simple terms and hammer home the income and investment advantages can sell more and have more-satisfied clients. That was the consensus of a panel...

NASAA issues `best practices' guidelines; Regulators' sweep exams of state-registered investment advisers reveal some major deficiencies.(News)
October 11, 2004... Byline: Sara Hansard SCOTTSDALE, Ariz. - Sweep exams of the investment advisory industry by state securities regulators have found a host of problems and led to the creation of "best practices'' for state-registered advisers by the North...

Stock exchanges should behave more like public companies.(Editorial)
October 11, 2004... Kudos to the Securities and Exchange Commission for its plan to recommend increased disclosure requirements for the stock exchanges. The proposed rules would require that the exchanges start acting more like public companies. The SEC will...

Schwab is expanding its banking services; Also cuts head count, and commissions for online trades.(News)
October 11, 2004... Byline: Bruce Kelly NEW YORK - Charles Schwab Corp. is increasing banking services, including mortgages, to the close to 5,000 financial advisers that use its platform. Schwab of San Francisco is going through a wide recalibration of...

Calendar.(Calendar/Datebook)
October 11, 2004... October 12-14 - 2004 Adviser Conference, How to Grow Your Retirement Plans Business Part II: Changing Business Practices, Center for Due Diligence. Radisson O'Hare, Rosemont, Ill. (630)662-0284 or 401kduediligence.com. 13 - Fall...

AmEx advisers excited about big ad campaign; Firm spending more than $20M on TV and print blitz.(News)
October 11, 2004... Byline: Rick Miller CHICAGO - On a recent "Monday Night Football'' telecast, Jim Gembarosky of American Express Financial Advisors Inc. watched and cheered as his company kicked off a $20 million-plus television and print advertising...

Many large corporations avoid tax bite, report finds.(Tax Watch)
October 11, 2004... Byline: Mark E. Battersby A recent report issued jointly by two Washington-based lobbying groups, the Citizens for Tax Justice and the Institute on Taxation and Economic Policy, found that many of the nation's largest companies are paying...

Genworth Financial seeks CEO for its broker-dealer subsidiary; Some question if Terra Securities can turn a profit.(News)
October 11, 2004... Byline: Bruce Kelly NEW YORK - On the heels of the year's largest initial public offering, Genworth Financial Corp. is looking to raise the profile of its broker-dealer, Terra Securities Corp. Genworth Financial, the Richmond,...

People.
October 11, 2004... AXA Financial Inc. in New York has named James Mullery, 40, a senior vice president and chief sales officer of AXA Distributors LLC, a wholly owned subsidiary. He will be responsible for annuities and mutual funds within the broker-dealer, bank...

College is taking liberty.(Short Interests)
October 11, 2004... Byline: David Hoffman NEW YORK - The American College of Bryn Mawr, Pa., is raising money to bring the Liberty Bell Pavilion, which no longer houses the bell, to its 35-acre campus. The college has said it needs to raise $800,000 by...

Mutual funds become part of the game.(Short Interests)
October 11, 2004... Byline: Jennifer Blecher NEW YORK - The Securities Industry Association's Stock Market Game Program, in a move to designed to make itself more relevant to future investors, has added mutual funds to its list of virtual offerings. ...

Growth on the outside, value on the inside.(Street Wise)
October 11, 2004... Byline: Jeff Benjamin There is an unmistakable sense of optimism flowing through the analyst ranks at Westfield Capital Management Co. LLC in Boston, and it begins with president and chief executive Will Muggia. He and his team of...

At the Bell; Workers see pinch after retirement.(Late News)
October 11, 2004... About four-fifths of U.S. workers responding to a survey released Thursday by Des Moines, Iowa-based Principal Financial Group Inc. said they were very concerned about their long-term financial future. According to the firm's 2004 Financial...

Fee-based brokerage accounts under fire.(Reverse Spin)
October 11, 2004... Byline: Frederick P. Gabriel Jr. So much for being a cure-all for the conflicts plaguing the brokerage industry. The Securities and Exchange Commission is looking into potential abuses involving fee-based brokerage accounts, according...

Closing Quote.(Quotes)
October 11, 2004... "I say, `Hi, I'm Jim Gembarosky from American Express.' I may get a response like this: `I don't need another credit card.''' An AmEx financial adviser, explaining why the company's ad campaign is necessary. Page 29.

Advisers back effort to oust states from 529s; Coverdell education savings accounts could serve as a template for an alternative.(News)
October 18, 2004... Byline: Charles Paikert NEW YORK - While many financial planners and advisers enthusiastically back Sen. Peter Fitzgerald, R-Ill., in his call to eliminate state involvement in 529 college savings plans, they shouldn't hold their breath,...

Foot-in-mouth candidates cause investor jitters.(Monday Morning)
October 18, 2004... Byline: Jim Pavia A presidential election always brings a feeling of uncertainty into the marketplace. Luckily, once investors know who will occupy the White House, the cloud hanging over their heads will lift. Industry experts...

Parents have regrets.(Short Interests)
October 18, 2004... Byline: Charles Paikert NEW YORK - A new study of American parents by Boston-based Fidelity Investments revealed that while saving for their children's education was a top financial priority, a whopping 93% of those surveyed said they...

Market timing mess: Et tu, o Canada? Four fund firms face enforcement action.(News)
October 18, 2004... Byline: David Clarke OTTAWA - Does Canada have a mutual fund market-timing issue? That's hard to say. The response to allegations that it does - from the industry and regulators alike - has been sluggish. The Ontario Securities...

Universities taking in hefty donations.(Short Interests)
October 18, 2004... Byline: Jennifer Blecher NEW YORK - Donations to universities are on the rise, with some schools hitting all-time highs in terms of single-donation amounts. Last week, Howard University in Washington received a gift of software and...

Putnam wary of bond market.(News)
October 18, 2004... Byline: Frederick P. Gabriel Jr. BOSTON - Putnam Investments LLC is warning investors to tread carefully in the bond market. Low inflation, rising interest rates and slow economic growth have all conspired to reduce the chances of "any...

Junk bonds continue to have their day in the sun; But fund managers have trouble finding value.(News)
October 18, 2004... Byline: Ilana Polyak NEW YORK - Although stocks have barely budged this year, investors haven't given up risky investments altogether. Junk bonds, those rated double-B and lower by the rating agencies, are sporting healthy returns on...

FASB opts for more time.(Short Interests)
October 18, 2004... Byline: Sara Hansard WASHINGTON - The Financial Accounting Standards Board of Norwalk, Conn., last week decided to give public companies six more months to adopt a new standard for deducting the value of stock options from their financial...

Taking on the fund industry; Lawyer's suits claim firms price-gouged individual investors.(News)
October 18, 2004... Byline: Frederick P. Gabriel Jr. BOSTON - Thomas R. Grady is well on his way to becoming persona non grata in mutual fund circles. Over the past year, the go-getter securities lawyer has filed nearly a dozen lawsuits, accusing many of...

One on One With Jim Barnash of the Financial Planning Association.(One on One)
October 18, 2004... Byline: Charles Paikert Jim Barnash, who takes over as president of the Atlanta- and Denver-based Financial Planning Association in January, has bridged both ends of the spectrum. He knows what it is like to be both a financial planner...

Brazil helps Latin American funds surge; Volatility issue aside, some see potential for continued growth.(News)
October 18, 2004... Byline: David Hoffman NEW YORK - Mutual funds that invest in Latin American stocks continue to post the best returns in the international-stock-fund category. Year-to-date though last Tuesday, Latin American funds were up 19.05%,...

You shouldn't re-balance; reallocate instead.(Investment Strategies)
October 18, 2004... Byline: John Valentine When undertaken properly, portfolio reallocating may truly be as unique as a Picasso or Chagall. InvestorWords.com defines "allocation'' as "the systematic distribution of a limited quantity of resources over various...

Calendar.(Calendar/Datebook)
October 18, 2004... October 20-21 - MMI Managed Account Solutions Fall Conference, The Money Management Institute. Roosevelt Hotel, New York. moneyinstitute.com. 21 - 2004 Cross-Tested Specialty Workshop, SunGard Corbel. Crowne Plaza North Dallas/Addison...

N.Y. Life service pushes retirement reality check.(Short Interests)
October 18, 2004... Byline: Rick Miller CHICAGO - The newest way to get Americans to save enough for retirement in their 401(k) plans mixes discretionary management with an annual reality check. NYLIM Retirement Plan Services in Parsippany, N.J., a...