Investment News articles from September 2004

Investment News archives from September 2004

Fernwood to offer art-based funds in '05.(Short Interests)
September 6, 2004... Byline: Meredith Deliso NEW YORK - Through Fernwood Art Investments LLC, investors can own a piece of the portrait. The New York-based company, founded last year by former Merrill Lynch & Co. Inc. veteran Bruce Taub, will offer...

With S. Timothy Kochis of Kochis Fitz Tracy Fitzhugh & Gott Inc.(One on One)
September 6, 2004... Byline: Brooke Southall S. Timothy Kochis can breathe a little more easily these days because his company, Kochis Fitz Tracy Fitzhugh & Gott Inc. in San Francisco, survived one of the worst stock slumps in recent memory with an intact...

Sunset for value stocks? Economic fundamentals bode well for growth.(News)
September 6, 2004... Byline: David Hoffman NEW YORK - Mutual funds that invest in value stocks are among the top performers right now, but some market watchers don't expect that to continue. Even some financial advisers who favor value investing said that...

NASD draws the ire of brokers; It calls clients to quiz them about their fee-based accounts.(News)
September 6, 2004... Byline: Bruce Kelly NEW YORK - NASD, in its effort to discover information about fee-based accounts, has taken a highly uncommon and aggressive step against a number of broker-dealers, according to some brokerage executives. Last...

At the Bell; Fund scandal? What scandal?(Late News)
September 6, 2004... Regulators apparently care a lot more about the mutual fund scandal than the investors they are trying to protect. Eighty-six percent of 744 fund investors said that the fund scandal had not changed their investments in any way, and 75%...

Dodge & Cox fund goes to the head of the class.(Short Interests)
September 6, 2004... Byline: Charles Paikert NEW YORK - Morningstar Inc. has begun ranking funds by best practices, but the nation's largest funds may not be too happy about it. The new fiduciary ranking grades funds on five categories: regulatory issues,...

People.
September 6, 2004... Allianz Life Insurance Company of North America in Minneapolis has named Jay J. Melquist, 56, senior vice president, long-term-care and life distribution, for the individual-insurance-products division; Vince Vitiello, 48, senior vice president...

Small-cap manager graduates to mid-cap portfolio.(Street Wise)
September 6, 2004... Byline: Jeff Benjamin What does a money manager do when the stocks in his small-cap mutual fund become such good performers that they outgrow the definition of a small-cap stock? At Sentinel Funds in Montpelier, Vt., the answer was to...

Vanguard's Citi suit gets boost from N.Y. rival of bank; BONY sues to bar a lowering by Enron.(News)
September 6, 2004... Byline: David Hoffman NEW YORK - When several mutual funds offered by The Vanguard Group Inc. filed a lawsuit in April 2003 against subsidiaries of Citigroup Inc. alleging Enron-related fraud, some legal experts said the funds were wasting...

Savings education for all ages.(Conference Calls)
September 6, 2004... Byline: Charles Paikert NEW YORK - President Bush's education trademark has been the No Child Left Behind Act of 2001. The message at a financial-literacy forum tied to the Republican National Convention in New York last week was similar:...

New look in planning: Not just value but values; Business approach incorporates the client's life philosophy.(News)
September 6, 2004... Byline: Charles Paikert NEW YORK - Chuck Hollander has a perfectly respectable financial planning office in Bala Cynwyd, Pa., on Philadelphia's tony Main Line, so there is nothing wrong with his seeing clients there. But because he...

FPA provides compliance template.(Short Interests)
September 6, 2004... Byline: Jeff Benjamin DETROIT - The Financial Planning Association of Atlanta and Denver is offering advisory firms a leg up in meeting the higher compliance standards being set by the Securities and Exchange Commission. The FPA, an...

U.S. Chamber of Commerce speaks up.(Reverse Spin)
September 6, 2004... Byline: Frederick P. Gabriel Jr. Perhaps the U.S. Chamber of Commerce is living in some sort of parallel universe where independent mutual fund watchdogs are a bad thing. On Thursday, the chamber filed a lawsuit against the Securities...

FPA seeks more clout from contributions.(News)
September 6, 2004... Byline: Sara Hansard WASHINGTON - The Financial Planning Association for the first time is trying to spread its small amount of political contributions evenly among the congressional political caucuses. This year, the FPA, based in...

Bush raking in more Wall Street money this time; Top 14 contributors to re-election bid tied to financial firms.(News)
September 6, 2004... Byline: Sara Hansard WASHINGTON - President Bush has gained more financial support from traditionally Republican Wall Street this year than he did four years ago. "The surprise is how many inroads Bush has made compared to the 2000...

Managers to feel effects of equity research pact; Information demand seen increasing.(News)
September 6, 2004... Byline: Gregory Crawford NEW YORK - The final piece of last year's $1.4 billion settlement between regulators and 10 top Wall Street brokerage firms over their equity research practices has been put in place, but the ramifications for...

Is Fidelity's plan to cut index fees a bid to steal investors from Vanguard? Strategy may incite price war between titans.(News)
September 6, 2004... Byline: Frederick P. Gabriel Jr. BOSTON - Let the battle begin. That's the message that was loud and clear from Boston-based Fidelity Investments last week when it slashed the fees it charges on five stock index funds - a move clearly...

The competition to provide 401(k) advice is heating up; Top advisory firms may be in line for windfalls.(News)
September 6, 2004... Byline: Rick Miller CHICAGO - The latest trend in delivering 401(k) advice through discretionary managed accounts has led to stepped-up competition between independent firms trying to cash in on what could be the next advice-driven gold...

Moonlighting appeals to hedge fund managers; Some are running separates or mutual funds.(News)
September 6, 2004... Byline: Jeff Benjamin DETROIT - In the high-stakes world of hedge fund management, some managers have discovered the advantages of moonlighting as a separate-account or mutual fund manager. While the fees earned for managing more...

In managed equity accounts, value is king; Returned median 28.3% for 12 months through June.(News)
September 6, 2004... Byline: Doug Appell BOSTON - Hunters of stocks selling at steep discounts to their underlying value racked up the biggest gains in managed equity accounts over the 12-month period ended June 30, according to PIPER, a manager performance...

Calendar.(Calendar/Datebook)
September 6, 2004... SEPTEMBER 8 - Building Compliance Programs for Investment Buyers, National Regulatory Services. Hyatt Regency Newport (R.I.) Hotel and Spa. (860)435-0200 or nrs-inc.com. 8-10 - Advance Pension Conference, SunGard Corbel. Westin...

'Alternative' lifestyles are traditional.(Other Views)
September 6, 2004... Byline: Robert Boyda Advisers seeking to help clients achieve their savings goals should consider an emerging generation of lifestyle funds or funds of funds. Investors have already become very comfortable using lifestyle funds as a way to...

Options should be reflected in statements.(Editorial)
September 6, 2004... Members of Congress need to let the Financial Accounting Standards Board do its job, and steer clear of the political debate involving stock options. The Norwalk, Conn.-based board issued a proposal in March that firms be required to count...

Morningstar buys ePIPER database.(Short Interests)
September 6, 2004... CHICAGO - Pensions & Investments, the sister publication of InvestmentNews, has sold the ePIPER database of manager performance to Morningstar Inc. Terms of the deal weren't announced. P&I will continue to publish quarterly PIPER...

'Apprentice' star touts life insurance.(Short Interests)
September 6, 2004... Byline: Gary S. Mogel NEW YORK - Kwame Jackson might never have starred on the hit television reality show "The Apprentice'' or even met Donald Trump had it not been for life insurance. That's why Mr. Jackson - the last person fired in the...

Everything's coming up roses.(Conference Calls)
September 6, 2004... Byline: Bruce Kelly SALT LAKE CITY - Raymond James Financial Services Inc. has had a record year, and it isn't even over yet. In a little more than nine months of fiscal 2004, the firm generated more revenue than it did during its entire...

Product providers' sites can integrate Vision.(Product Watch)
September 6, 2004... DST Vision, offered by DST Systems Inc. of Kansas City, Mo., is available for integration within the websites of its participating mutual fund and variable annuity companies. Fund and annuity providers can present Vision alongside their...

Saving isn't easy or fun, but it is necessary.(Monday Morning)
September 6, 2004... Byline: Mike Clowes The Bureau of Labor Statistics reported last week that consumer spending increased 0.8% in July, versus that of June, while personal income edged up just 0.1%. That is good news in the short term because it means...

IRS improves disclosure by Section 527 groups.(Tax Watch)
September 6, 2004... Byline: Mark E. Battersby In light of the uproar over campaign financing and the many ways of circumventing campaign financing restrictions recently imposed by Congress, the Internal Revenue Service's announcement of steps to improve...

Clearing up some misunderstandings about VAs.(Other Views)
September 13, 2004... Byline: Eldon C. Williams I would like to address recent articles and concerns about the appropriate use of variable annuities. There are several attractive standard features found in variable annuities, such as the basic death...

Financial firms shine on AARP's senior-friendly list.(Short Interests)
September 13, 2004... Byline: Gary S. Mogel NEW YORK - If you are over 50 and work in financial services, you made a good career choice. Six of the 35 companies on AARP's Best Employers for Workers Over 50 list are in the investment, insurance or banking...

Morningstar's new rankings get C from advisers; More than grades needed in wake of the scandals.(News)
September 13, 2004... Byline: Frederick P. Gabriel Jr. BOSTON - A new governance ranking system for mutual funds is receiving so-so grades from financial advisers. While many advisers applaud Morningstar Inc.'s attempt to assign letter grades to how closely...

Fund fee waivers are on the increase; Benefits to investors are in question, however.(News)
September 13, 2004... Byline: Frederick P. Gabriel Jr. BOSTON - Heightened sensitivity to mutual fund fees, coupled with intense pressure to attract and retain assets, is forcing many fund companies to resort to blue-light specials. At the end of the first...

IRAs hit the big 3-0, though heyday ended in the 1980s; These accounts have become overly complex and confusing, limiting their use.(News)
September 13, 2004... Byline: Rick Miller CHICAGO - Thirty years after its creation, the individual retirement account has delivered on its promise - and disappointed. "Not many people are contributing to IRAs anymore,'' said Doug Charney, president of The...

Industry awakens to ETF wrap accounts; Several brokerage firms are offering them; more are expected.(News)
September 13, 2004... Byline: David Hoffman NEW YORK - The brokerage community is finally waking up to the world of ETF wrap accounts, according to market experts. Within the past few months, a handful of regional brokerages have begun offering them. And a...

At the Bell; Putnam realigning investment teams.(Late News)
September 13, 2004... Putnam Investments LLC in Boston said Friday it is realigning some of its investment teams. The company will bring all the small-cap-portfolio teams, covering value, core and growth styles, under Edward "Ned'' T. Shadek Jr., currently...

Broker-dealers sit tight in regulators' hot seat; Several have cut their net asset value transfer.(News)
September 13, 2004... Byline: Bruce Kelly NEW YORK - As regulators look into whether some broker-dealers passed along appropriate sales charge waivers to customers moving from one fund group to another, concern over the outcome of that investigation is...

Kiplinger jumps into advice business.(Short Interests)
September 13, 2004... Byline: Brooke Southall SAN FRANCISCO - The publisher of a do-it-yourself-personal-finance magazine is now promoting pay-as-you-go financial advice from a company that knows what it is doing. The Kiplinger Washington Editors Inc.,...

Clinton to speak from heart.(Short Interests)
September 13, 2004... Byline: Brooke Southall SAN FRANCISCO - Bill Clinton survived surgery, and then Charles Schwab & Co. Inc. survived a few nervous days of waiting. The former president, 58, told the San Francisco-based brokerage company last week...

Pulse check on many issues for consumers.(Short Interests)
September 13, 2004... Byline: Jennifer Blecher NEW YORK - U.S. consumers lack brand loyalty, distrust the financial industry and are heading increasingly online for financial advice. Those were some of the findings of the Prosumer Pulse survey,...

Some advisory firms unprepared for Oct. 5; Compliance deadline looms; many aren't ready.(News)
September 13, 2004... Byline: Sara Hansard WASHINGTON - If a survey of investment advisers conducted by an industry publication is any indication, many advisory firms haven't yet met an Oct. 5 deadline for having in place a compliance program. As of that...

Income needed in retirement rising.(Short Interests)
September 13, 2004... Byline: Jerry Geisel WASHINGTON - The amount of income employees will need in retirement is rising, increasing the likelihood that they will have to work longer and save more, a study conducted by Aon Consulting in Chicago and Georgia...

401(k) blunder.(Short Interests)
September 13, 2004... Byline: Rick Miller CHICAGO - Many investors in 401(k) plans are missing out on a huge pot of company matching money, possibly to the tune of $30 billion. The Profit Sharing/401(k) Council of America in Chicago used the occasion of...

People.
September 13, 2004... Financial Profiles Inc. in San Diego has named Cliff Flowers, 46, as senior vice president of finance and operations, and Peter Muldowney, 35, as vice president of sales. Mr. Flowers will be responsible for the development and execution of...

Everson to used-car donors: 'Play it straight'.(Tax Watch)
September 13, 2004... Byline: Mark E. Battersby The hosts of the popular National Public Radio show "Car Talk'' were reportedly sweating bullets when Mark Everson, the commissioner of the Internal Revenue Service, made a surprise telephone call to them Aug. 21....

VA sales increased 11% in 2003.(Short Interests)
September 13, 2004... Byline: Gary S. Mogel NEW YORK - Driven by the best sustained equity market returns of the past four years, new sales of variable annuities posted an 11% increase in 2003, according to Finetre Corp., a Herndon, Va.-based data and research...

Chamber suit against SEC could succeed, lawyers say; But successful suit could backfire for mutual fund industry.(News)
September 13, 2004... Byline: Sara Hansard WASHINGTON - The lawsuit by the U.S. Chamber of Commerce against the Securities and Exchange Commission's month-old rule requiring mutual fund boards to have independent chairmen stands a good chance of prevailing,...

Viaticals shouldn't be overlooked, some say; They may be suitable investments for wealthy individuals who can wait.(News)
September 13, 2004... Byline: Gary S. Mogel NEW YORK - Scandals involving mutual funds and corporate governance haven't stopped people from investing in - or advisers from recommending - funds and stocks. In light of that, some in the viatical-settlement field...

Proposed insurance regs seen as boon to agents; Changes could be biggest for industry in 60 years.(News)
September 13, 2004... Byline: Gary S. Mogel NEW YORK - A proposal circulating in the Houseto amend the way insurance is regulated would be the biggest regulatory change the industry has seen in the past 60 years. For agents, advisers, financial planners and...

New horizon for alternatives? Hedged separates aim at retirement plans.(News)
September 13, 2004... Byline: Jeff Benjamin DETROIT - Alternative-investment strategies may have found a back door into the potentially lucrative world of qualified retirement plans. Lake Partners Inc. plans to wrap a separately managed account strategy...

Eager-to-shift managers raise quality worries.(News)
September 13, 2004... Byline: Arleen Jacobius and Christine Williamson CHICAGO - Consultants and hedge-fund-of-funds managers fear that the convergence of private equity and hedge funds will result in neither class of managers succeeding at wringing alpha...

As oil boom fuels energy stocks, timing is key; Independents, drillers seen most likely to hit a rich market deposit.(News)
September 13, 2004... Byline: Ricki Fulman NEW YORK - Savvy investors are reaping rewards from the oil boom by moving into energy stocks or beefing up existing allocations. But timing is everything. Investors should overweight or market-weight the energy...

A pioneer feels the competitive heat; Market share slumps as big boys horn in on ITG's trading system.(News)
September 13, 2004... Byline: Aaron Elstein CNS NEW YORK - Wall Street workers returned to work in large numbers last week after the Labor Day holiday and the distractions of the Republican convention. Unfortunately for Investment Technology Group Inc., not...

Do not pass Go, do not collect $200.(Reverse Spin)
September 13, 2004... Byline: Frederick P. Gabriel Jr. So long, Frankie. On Wednesday, former investment banker Frank Quattrone, who once earned $120 million in a single year, was sentenced to 18 months in prison for standing in the way of probes into...

Action step.(Practice Management)
September 13, 2004... Begin using the six-point-proposal system. Here is an example of what a six-point proposal for an investment portfolio might look like. 1. Alex, you have stated that you want a diversified investment portfolio. I recommend that you put...

NASD empowered to ban wayward brokers from industry; Those who fail to pay arbitration awards or settlements face suspension.(News)
September 13, 2004... Byline: Bruce Kelly NEW YORK - The Securities and Exchange Commission has given NASD increased authority to ban some brokers from re-entering the securities industry. Last Thursday, that change to NASD bylaws went into effect, giving...

Fee-only pension consultants join in call for reform; Eight firms have united to revamp industry.(News)
September 13, 2004... Byline: Rick Miller CHICAGO - Like Paul Revere's warning, "The British are coming,'' a small group of fee-only pension consultants - calling themselves the Revere Coalition - have banded together to express their own call to arms to reform...

New designation offers insight into gerontology; CASL geared toward advising baby boomer clients.(News)
September 13, 2004... Byline: Liz Skinner WASHINGTON - With baby boomers on the verge of inheriting $20 trillion to $30 trillion over the next several decades, financial advisers may want a CASL to put after their names. The chartered adviser of senior...

Venture capitalists prosper despite Google setback; While IPOs have fizzled, mergers and acquisitions are hot.(News)
September 13, 2004... Byline: Brooke Southall SAN FRANCISCO - Google Inc.'s initial public offering three weeks ago humbled two top venture capital firms. They stood by and watched the Mountain View, Calif.-based search engine company go public without...

Advisers find charity support boosts business, good will; Siebert helps Florida hurricane victims.(News)
September 13, 2004... Byline: Liz Skinner WASHINGTON - Muriel Siebert & Co. began offering the Jewish Federation of South Palm Beach County in Boca Raton, Fla., free trades on donated stock six years ago when the organization was raising money for a hospital....

Congress questions sale of high-fee funds to military; Contractual plans come under scrutiny.(News)
September 13, 2004... Byline: Gary S. Mogel NEW YORK - Much of last week's hearings by the House Financial Services Committee involving the sale of relatively high-cost investment products to members of the military focused on contractual plans. Such plans...

Economic pessimism up.(Short Interests)
September 13, 2004... Byline: Charles Paikert NEW YORK - Affluent investors are becoming more pessimistic about the economy, according to a monthly study by The Spectrem Group Inc., a Chicago-based research and consulting company. The Spectrem Affluent...

To us, that inkblot looks like a bull fighting a bear.(Other Views)
September 13, 2004... Byline: William Berg Imagine you have lost a large percentage of your portfolio. You are enraged at your broker, manager or investment adviser. You know you should have had a more disciplined investment process with an adviser you could...

Street rediscovers a passion for energy trading; Firms re-enter the biz or ramp up existing trading operations.(News)
September 13, 2004... Byline: Aaron Elstein CNS NEW YORK - How times and markets change. Three years ago, seeing no future in energy trading, Merrill Lynch & Co. Inc. sold off its power-trading unit for a modest $490 million. Late last month, New...

Independent research firms hurt by reluctance to use soft dollars.(Short Interests)
September 13, 2004... Byline: Sara Hansard WASHINGTON - A survey last month of 37 independent-research companies found that 95% of them reported being adversely affected by the growing reluctance of money management firms to use commission payments for...

Giving plan sponsors peek at participants' activity; Firm's reports target four trouble spots.(News)
September 13, 2004... Byline: Rick Miller CHICAGO - In light of plan sponsors' fiduciary obligation to educate participants, a retirement plan provider in St. Paul, Minn., has come up with a way to target material to a single employee's needs. Securian...

Give your clients something they can say yes to.(Practice Management)
September 13, 2004... Byline: James M. Benson and Paul Karasik Lots of sales tapes and training programs suggest closing phrases and magical closing scripts. Many of these phrases can be useful to include in your sales process. But one of the most powerful...

Assets in college savings plans soar, FRC finds; They're expected to more than double in two years.(News)
September 13, 2004... Byline: Charles Paikert NEW YORK - The popularity of Sections 529 college savings plans continues to explode, as total assets soared 67% over the past year to $43 billion, according to a new report from Boston-based Financial Research...

We need some answers from Bush and Kerry.(Monday Morning)
September 13, 2004... Byline: Mike Clowes This may not be the politically correct thing to admit, but I didn't watch a minute of either political convention, and I am glad they are finally over. Whenever convention coverage appeared on the TV screen, I...

Life insurers become picky about who gets lowest rates; Dangerous lifestyles may mean denial.(News)
September 13, 2004... Byline: Gary S. Mogel NEW YORK - Premiums for term life insurance are inexpensive compared with those of 10 years ago, but insurers have created more hoops for applicants to jump through before getting the lowest rates. Cigar bar...

States vary in approach to 529 plan fees; Some take a percentage; others prefer alternativessuch as enrollment fees.(News)
September 13, 2004... Byline: Charles Paikert NEW YORK - Fees are always a sensitive issue when it comes to financial products. They are all the more so in the case of state-offered Section 529 college savings plans, which have come under increased scrutiny by...

Lines blurring between hedge funds, private-equity firms; Managers invading one another's turf.(News)
September 13, 2004... Byline: Christine Williamson and Arleen Jacobius CHICAGO - Hedge fund and private-equity managers are trolling in one another's waters in search of higher returns, but investors worry about the risk of overfishing. Among the concerns:...

Turf war between estate-planning lawyers and financial advisers beginning to erupt; Issue: Should lawyers advise as well as draft documents?(News)
September 13, 2004... Byline: Gary S. Mogel NEW YORK - Many financial advisers are performing every estate-planning service for clients short of creating the estate plan documents. Lawyers and advisers agree that advisers shouldn't draw up the...

M Financial teams up to create money management platform; Partners with Bear Stearns to focus on the wealthy, eyes proprietary investments.(News)
September 13, 2004... Byline: Bruce Kelly NEW YORK - One of the fastest-growing independent broker-dealers in the industry is teaming up with a top Wall Street firm to create a proprietary money management platform. In a move that mimics its relationships...

Calendar.(Calendar/Datebook)
September 13, 2004... SEPTEMBER 14 - ERISA/Presenting Performance and Advertising, National Regulatory Services. New York Helmsley Hotel. (860)435-0200 or nrs-inc.com. 14-15 - Fundamentals of 401(k) Plans, SunGard Corbel. Holiday Inn Independence,...

States eye securities industry for additional revenue; Education funding, budget gaps spark push for tax raising.(News)
September 13, 2004... Byline: Sara Hansard WASHINGTON - States are eyeing the securities industry as a source of increasing revenue as they try to bridge budget gaps and as they face more court challenges against unequal funding of public education. The...

Frances raises 'cane with Florida advisers; Time, focus lost as power, phones go down.(News)
September 13, 2004... Byline: Brooke Southall SAN FRANCISCO - Adviser Richard Steinberg was tending to his frightened children Sept. 3 as the winds from Hurricane Frances began to whistle around his Boca Raton, Fla., home. "It's beyond serious,'' he said,...

States seen pushing uniform rules for firms; As many as 20 expected to mull legislation in '05.(News)
September 13, 2004... Byline: Sara Hansard WASHINGTON - Next year, as many as 20 states are expected to start considering new securities legislation that would make filing requirements and other regulations for investment advisory and brokerage firms more...

Executive summary.(Practice Management)
September 13, 2004... * Every financial professional needs some easy-yes questions (EYQs) so you can get agreement with a prospective client on at least part of your recommendations. * The EYQ moves you toward the close by distilling complicated products and...

Goldman's purchase of Ayco looks like a mistake; Synergy proving elusive as cultures fail to blend.(News)
September 13, 2004... Byline: Brooke Southall SAN FRANCISCO - The Goldman Sachs Group Inc. made a bold move into financial planning last year by acquiring a national company with a plum market. But the move might backfire for both companies, analysts and...

Sailing CFO counts on 'trade winds'.(Short Interests)
September 13, 2004... Byline: Arleen Jacobius LOS ANGELES - Joe Harris, chief financial officer of New Boston Fund Inc. in Boston, has a two-year plan that he hopes will yield returns for the $1.5 billion real estate investment firm. After winning this...

Peeking over the shoulders of others for insight.(Street Wise)
September 13, 2004... Byline: Jeff Benjamin To Jonathan Ferrell, manager of the $20 million Rock Canyon Top Flight Fund (TOPFX), which stocks to buy and sell is less important than which stocks the investment community in general is likely to buy and sell. ...

ACLI decries NASD plan to register branches.(Short Interests)
September 13, 2004... Byline: Sara Hansard WASHINGTON - A proposal by NASD to set up a system for broker-dealers to uniformly register their branch offices electronically with regulators will hurt brokers affiliated with life insurers, according to the American...

Hancock offers small-business variable-life policy.(Product Watch)
September 13, 2004... John Hancock Financial Services Inc. in Boston, a subsidiary of Toronto-based Manulife Financial Corp., will be offering Performance Executive Variable Life, a group policy for small to midsize businesses. The product is designed for both...