Investment News back issues from August 2005:
North American wirehouses and regionals ranked by retail reps.(Broker-Dealers)
Aug 08, 2005 ... Broker-dealer No. of reps 1 Merrill Lynch & Co. Inc. 13,320 Four World Financial Center 250 Vesey St. New York, NY 10080 (212) 449-1000 E. Stanley O'Neal, chairman, CEO and president 2 Citigroup Global Markets ...
Ruling offers lesson in fiduciary responsibility; Some 401(k) advisers might be plan fiduciaries under ERISA.(News)
Aug 08, 2005 ... Byline: Rick Miller CHICAGO - A federal appeals court case involving a Utah investment adviser who confessed to embezzlement in a suicide note and an accountant whose actions unwittingly contributed to the scheme serves as a lesson to retirement plan advisers about fiduciary ...
One on One With Jane M. Young of Pinnacle Financial Concepts Inc.(One on One)
Aug 08, 2005 ... Byline: Charles Paikert Jane M. Young, co-owner of Pinnacle Financial Concepts Inc., has been passionate about investing since she was 15 years old. "I always wanted to know how the stock market worked,'' she said, "and I read everything I could about investing ....
LTC holders could catch a Medicaid break; 2 bills in Congress would give states option on eligibility.(News)
Aug 08, 2005 ... Byline: Sara Hansard WASHINGTON - Americans may soon have a new incentive to buy long-term-care insurance. Two bills introduced the day before the August congressional recess would encourage the purchase of LTC insurance by allowing policyholders to bypass rules ...
Congress showing signs of life.(Short Interests)
Aug 08, 2005 ... Byline: Gary S. Mogel NEW YORK - In September, consumers' fancies will turn to thoughts of life insurance - or so Congress, the life insurance industry and actress Marilu Henner hope. On July 25, the U.S. House of Representatives designated September as Life ...
Independent directors launch counterattack; Out to foil Chamber in its bid to stop SEC governance rule.(News)
Aug 08, 2005 ... Byline: Dan Jamieson IRVINE, Calif. - Independent mutual fund directors are mounting a counterattack against efforts to stop a new rule that would require independent chairmen for mutual fund boards. The Securities and Exchange Commission rule is due to go into ...
Simon Cowell's 'Million Dollar' baby.(Short Interests)
Aug 08, 2005 ... Byline: Sara Hansard WASHINGTON - Sharp-tongued Brit Simon Cowell, who regularly disparages would-be pop stars on the "American Idol'' television show, now is looking for budding or overlooked entrepreneurs with promising business ideas. That's the premise behind ...
Want to replace Greenspan? Get in line.(Reverse Spin)
Aug 08, 2005 ... Byline: Rick Miller Heard about the three candidates most likely to succeed Federal Reserve Board Chairman Alan Greenspan when he retires in January? Actually, make that four. The candidates that the White House is reportedly looking at include a former ...
Court limits advisory-fee deductions.(Tax Watch)
Aug 08, 2005 ... Byline: Mark Battersby The U.S. Tax Court recently ruled that investment advisory fees paid by a trust are not unique to the administration of an estate or trust, as required for a full deduction. Therefore, the court ruled that they are subject to the 2% floor on ...
Firms are moving away from fee-based accounts; Regulatory spotlight influencing moves by brokerage houses.(News)
Aug 08, 2005 ... Byline: Dan Jamieson IRVINE, Calif. - Brokerage firms are de-emphasizing fee-based brokerage accounts as a result of the regulatory spotlight aimed at the programs. In some cases, broker-dealers are developing advisory accounts to take the place of the fee-based ...
S&P to track top-performing funds for consistency; Finds past performance may be an indicator of future results.(News)
Aug 08, 2005 ... Byline: Frederick P. Gabriel Jr. BOSTON - Standard & Poor's has a new measure for evaluating mutual funds: consistency. The company, which already ranks funds based on their performance, has unveiled a score card designed to track consistency of top-performing funds ....
Schwab makes separate accounts more portable; New platform may entice wirehouse brokers.(News)
Aug 08, 2005 ... Byline: Brooke Southall SAN FRANCISCO - The king of asset custodians is adding a key item to its fast-food menu in an effort to keep its current adviser clients happy as well as to entice wirehouse and regional brokers. Schwab Institutional is launching a platform ...
There's little longing for the long bond.(Short Interests)
Aug 08, 2005 ... Byline: Rick Miller CHICAGO - The 30-year Treasury bond will return, but don't bet on a welcome-back party from investment advisers and portfolio managers. "I don't think it's a huge deal,'' said Warren Pierson, senior portfolio manager at Robert W. Baird & Co. Inc., ...
Setting a new standard at the SEC.(Other Views)
Aug 08, 2005 ... Byline: Paul Schott Stevens The controversial manner in which the Securities and Exchange Commission readopted its mutual fund governance requirements should not obscure the fact that the decision of the U.S. Court of Appeals for the District of Columbia Circuit has far-reaching ...
Smith Barney serves up attractive comp packages; Top reps to get bonuses of $1M+ in cash, stock.(News)
Aug 08, 2005 ... Byline: Bruce Kelly NEW YORK - In the wake of the the parent companies' proposed June swap of business units, Smith Barney appears intent on making retail brokers at Legg Mason Wood Walker Inc. happy with an attractive compensation package. In the deal, New ...
Looking for firms on the right side of China's yuan switch; Currency revaluation by China is good and bad for U.S. companies.(News)
Aug 08, 2005 ... Byline: Liz Skinner WASHINGTON - The ubiquitous "made in China'' label just got more expensive. The recent revaluation of China's yuan boosted the currency by about 2% against the U.S. dollar. While the scale of the revaluation is not huge, fluctuations in ...
Advice to advisers: Don't give away insurance business; No-load execs say fee-based advisers can charge.(News)
Aug 08, 2005 ... Byline: Gary S. Mogel NEW YORK - Fee-only financial advisers are leaving money on the table when they refer clients to agents instead of handling the business themselves, says the head of a life insurer specializing in no-load insurance products. No-load products ...
Investors hedge their bets.(Short Interests)
Aug 08, 2005 ... Byline: Jeff Benjamin DETROIT - Investors are starting to tighten their purse strings when it comes to hedge funds, according to the latest data from Tremont Capital Management Inc. The Rye, N.Y.-based hedge fund industry consulting firm reported that the $11.6 ...
Estate lawyers fear being cut out of will; Legislation could diminish their role in living wills.(News)
Aug 08, 2005 ... Byline: Rick Miller CHICAGO - In the wake of the Terry Schiavo right-to-die case, Congress has been considering ways to promote living wills to the general public. But some estate planning lawyers are concerned that proposed legislation would sideline them in the ...
Only 20% of pre-retirees understand LTC; Adviser puts costs of care in terms clients can fathom.(News)
Aug 08, 2005 ... Byline: Gary S. Mogel NEW YORK - Long-term-care costs continue to threaten retirees' assets and lifestyles, yet few retirees understand how LTC insurance works, according to research released last month. A financial adviser specializing in long-term-care insurance ...
Gabelli-run fund cautiously invests in M&A targets.(Street Wise)
Aug 08, 2005 ... Byline: Jeff Benjamin It is safe to say that the Enterprise Mergers & Acquisitions Fund (EMAAX) came to the market in February 2001 with a certain amount of momentum. The $350 million fund is subadvised by Gabelli Asset Management Inc., a $29 billion Rye, N.Y.-based ...
Raymond James to stop battling with regulators; Concedes there are some fights it can't win.(News)
Aug 08, 2005 ... Byline: Bruce Kelly NEW YORK - Raymond James Financial Inc. is through publicly jousting with securities regulators and is developing a new system for its affiliated registered representatives to ensure clients get a better deal on variable annuities. In a meeting ...
NASD keeping the heat on fee-based brokerage accounts; Fines Morgan, says other probes are under way.(News)
Aug 08, 2005 ... Byline: Bruce Kelly NEW YORK - NASD last week took another swipe at a leading broker-dealer for failing to monitor sales of fee-based brokerage accounts properly, this time fining Morgan Stanley $1.5 million and ordering it to pay $4.6 million in restitution. The ...
Closing Quote.(Quotes)
Aug 08, 2005 ... "It's going to encourage people to go see a doctor.'' David A. Rubin, an estate-planning ...
Boston Capital Corp. offers its first REIT; It can be used as a hedge against more volatile real estate investments.(News)
Aug 08, 2005 ... Byline: Jeff Benjamin DETROIT - Boston Capital Corp. has carved out a section of the real estate market that could provide financial advisers with some ballast for their client's portfolios. The Boston-based asset management shop is leveraging more than 30 years of ...
Monitoring investment strategy: Beyond performance.(Fiduciary Corner)
Aug 08, 2005 ... Byline: Donald B. Trone Once a client's optimal portfolio has been designed and implemented, the final critical step is the monitoring of the investment process. Monitoring should extend beyond a strict examination of investment performance. By definition, it involves the ...
Five key lessons from top managers.(Investment Strategies)
Aug 08, 2005 ... Byline: Scott Kays It seems as though you can't pick up a financial publication or watch CNBC without reading and hearing about the latest stock-picking methodology "guaranteed'' to make you rich. But financial advisers know that if there were one surefire way to get wealthy by ...
Calendar.(Calendar/Datebook)
Aug 08, 2005 ... AUGUST 9 - Semiannual Market Forecast: Market Forecast Poker - Hold 'Em or Fold 'Em?, New York Society of Security Analysts. The Harvard Club, New York. (212)541-4530 or nyssa.org. 10 - On-campus review class, GS 836 Business Succession Planning I, The American ...
Brokers must come to terms with the changing business; Industry now seeks wealthy clients while building fee business.(Broker-Dealers)
Aug 08, 2005 ... Byline: Dan Jamieson IRVINE, Calif. - Traditional brokerage firms are having a midlife crisis. They're attempting to create a "wealth management'' approach built around fee-based business in the hopes of capturing more assets from wealthy investors. They'll have to ...
Industry is hopeful SEC chief will stem flood of regulations; But consumer units fear anti-investor bias.(News)
Aug 08, 2005 ... Byline: Sara Hansard WASHINGTON - All eyes are upon Christopher Cox as he begins his first full week as chairman of the Securities and Exchange Commission. While some consumer groups are sounding the alarm about his pro-business record in Congress, many lobbyists for ...
Optimism about retirement linked to level of control.(Monday Morning)
Aug 08, 2005 ... Byline: Mike Clowes A new survey of international attitudes toward retirement, sponsored by AARP of Washington, suggested that Australians and Canadians are the most optimistic about retirement, followed by Americans and the Japanese, while the Germans, French and Italians are ...
New kid on the blog.(Short Interests)
Aug 08, 2005 ... Byline: Charles Paikert NEW YORK - Blogging fever has hit financial services. Financial planners and advisers can now vent, rant, report, commiserate, ask questions or discuss current financial topics on a new web log, or blog, launched last month by The American ...
529 plan community unhappy with proposal to boost scrutiny; States, providers see regulations discouraging sales.(News)
Aug 08, 2005 ... Byline: Charles Paikert NEW YORK - A regulatory proposal that would shed more light on the sale of 529 plans through brokers is drawing fire from state officials and financial services companies. Under a rule proposed by the Municipal Securities Rulemaking Board, ...
Tax reform, long overdue, must deliver predictability.(Editorial)
Aug 08, 2005 ... This country is at a very promising moment in time. Suddenly, the idea of tax reform is back on the radar of our legislators - and none too soon. For many years, the powers that be have tried a variety of Band-Aid solutions to solve the tax code problems. It now appears that ...
High hopes for repealing sunset on 529 exemptions.(Conference Call)
Aug 08, 2005 ... Byline: Charles Paikert BALTIMORE - State officials who oversee Section 529 college savings plans are becoming more and more confident that legislation to make their federal tax-exempt status permanent could become law by the end of 2006. Tim Berry, Indiana state ...
Getting in on the top floor.(Short Interests)
Aug 08, 2005 ... Byline: Frederick P. Gabriel Jr. NEW YORK - What goes up must come down, and mutual funds are no exception. ProFund Advisors LLC, which is best known for catering to market timers, is betting against some of the hottest segments of the stock market: real estate, ...
Separates managers may drag feet on performance reports; CFA Institute's authority on rules could be challenged.(News)
Aug 08, 2005 ... Byline: Jeff Benjamin DETROIT - In a last-ditch effort to dodge tougher performance-reporting standards, the separately managed accounts industry is going for the jugular of the CFA Institute. If the standards are implemented in their current form on Jan. 1, many ...
CFP Board raises bar for mark; Tightens standards for designation.(News)
Aug 08, 2005 ... Byline: Riva Froymovich ***** Correction: An article, "CFP Board raises bar for mark,'' in the July 25 issue described an online-course option offered by the College for Financial Planning in Greenwood Village, Colo., as "a fast way to obtain CFP certification'' and ...
Memo to U.S. workers: Time to follow the leader.(Monday Morning)
Aug 15, 2005 ... Byline: Jim Pavia Summer vacation is a time when many people consciously practice the art of relaxation. But for many American workers, kicking back is hard to do. There is one American, however, who has embraced the vacation concept. President Bush departed at the ...
Merrill settles lawsuit over error policy, overtime; Calif. reps will get checks; policies won't necessarily change.(News)
Aug 15, 2005 ... Byline: Dan Jamieson IRVINE, Calif. - Merrill Lynch & Co. Inc. of New York has settled a class action that challenged the firm's policies of forcing brokers to pay for trading errors and sales assistants, and of not paying brokers overtime. The suit, which was filed ...
States probe MetLife over payout practices; Subpoenas signal push to crack down on incentives.(News)
Aug 15, 2005 ... Byline: Bruce Kelly NEW YORK - MetLife Inc. has received subpoenas from the attorney general of Florida and the insurance commissioner of Oklahoma seeking documents detailing compensation for, respectively, "intermediaries'' and "insurance producers.'' The New ...
Cowell, ABC sued.(Short Interests)
Aug 15, 2005 ... Byline: Sara Hansard WASHINGTON - A lawsuit filed in federal court in Los Angeles Aug. 10 claims that Simon Cowell, the prickly judge on the "American Idol'' reality television show, and ABC Television Network stole a trademarked brand - a "Million Dollar Idea'' television show ...
Ventura highway to Social Security reform? Calif. FPA chapter tired of waiting for national to act.(News)
Aug 15, 2005 ... Byline: Sara Hansard WASHINGTON - As Washington lobbyists ponder upcoming Social Security and pension bills, one California chapter of the Financial Planning Association isn't waiting for its national organization to act. The Ventura County chapter of the FPA has ...
FSI calls proposed NASD contest rule 'anti-competitive'; Trade group points to `unintended consequence'.(News)
Aug 15, 2005 ... Byline: Bruce Kelly NEW YORK - The Financial Services Institute says NASD's recent rule proposal on sales contests is "anti-competitive'' and "confusing,'' and would be a burden to independent-contractor broker-dealers. If the proposed rule change is approved, it ...
Owners setting up their furred and feathered friends for life; Pet trusts are a business opportunity that financial advisers may be missing.(News)
Aug 15, 2005 ... Byline: Rick Miller CHICAGO - Should something unfortunate occur to Steven and Kay Wyatt of Depoe Bay, Ore., they've made arrangements so that Blackie, Kaydee, Sasha, Smokey, Elliot, Nala and Heidi are set for life - probably all nine of their lives. "If something ...
One on One With E. Thomas Foster Jr. of The Hartford.(One on One)
Aug 15, 2005 ... Byline: Rick Miller E. Thomas Foster Jr. says God gave him a second chance at life. And as The Hartford's retirement plan guru, he spends each day trying to live up to his end of the bargain. Nine years ago, doctors told Mr. Foster, a pension lawyer and ...
A shift for iShares.(Short Interests)
Aug 15, 2005 ... Byline: Brooke Southall SAN FRANCISCO - Barclays Global Investors believes that the health of its exchange traded funds is best served by moving most of them. But it still fears that they could end up with bum tickers. The San Francisco-based company is ...
The k's not for 'kryptonite'.(Short Interests)
Aug 15, 2005 ... Byline: Rick Miller CHICAGO - Faster than a day trader, more powerful than New York Attorney General Eliot L. Spitzer, able to read mutual fund prospectuses in a single sitting: It's Captain 401(k). With personal-savings rates at dismal levels, the Profit ...
Charter seen likely to halve regulatory costs.(Short Interests)
Aug 15, 2005 ... Byline: Sara Hansard WASHINGTON - About 55% of the nearly $1.2 billion in annual regulatory costs for the life insurance industry could be eliminated by offering the industry an optional federal charter for regulation, according to a study released early this month. ...
NASD offers guidance in sale of indexed annuities.(News)
Aug 15, 2005 ... Byline: Bruce Kelly NEW YORK - Continuing its push to regulate broker-dealer sales of insurance products, NASD last week issued guidance to its member firms for sales of equity-indexed annuities. In a notice to members last Monday, the Washington-based association ...
NASD investigating two execs of small N.Y. broker-dealer; Target of PIPEs probe, it faces `solvency issue'.(News)
Aug 15, 2005 ... Byline: Bruce Kelly NEW YORK - NASD is investigating two top executives of a small New York broker-dealer for a variety of rule violations, including a failure to maintain the firm's net capital requirements. Anthony Ottimo, chief executive of Ehrenkrantz King ...
Assisted living gets boost from decline in nursing home beds.(Short Interests)
Aug 15, 2005 ... Byline: Gary S. Mogel NEW YORK - A decline in the amount of nursing home beds has caused more elderly and disabled people to rely on assisted living, according to a study released this month by the Center for Personal Assistance Services at the University of California, San ...
Retirement planning, insurance top issues.(Short Interests)
Aug 15, 2005 ... Byline: Gary S. Mogel NEW YORK - Three-quarters of 47 respondents to an adviser's client survey released last week said that retirement planning is the most pressing issue they face. Among their other key concerns was that they might not have enough life insurance (36%) and ...
Fraudsters pose as anti-fraud group.(Short Interests)
Aug 15, 2005 ... Byline: David Clarke OTTAWA - Fraudsters are attempting to fleece financial institutions by claiming to represent an intergovernmental policy-making group that works at both national and international levels to combat money laundering and terrorist financing. The ...
Closing Quote.(Quotes)
Aug 15, 2005 ... "The friends who do not have pets think we are nuts.'' Kay Wyatt, who with ...
Russell's new index a beacon to micro-cap manager.(Street Wise)
Aug 15, 2005 ... Byline: Jeff Benjamin When the Russell Investment Group of Tacoma, Wash., launched its first micro-cap-stock index June 24, Stephen Shipman felt as though a light was being shone upon his efforts. Mr. Shipman, a portfolio manager with Bjurman Barry & Associates of ...
SIA draws fire for trying to delay the Merrill rule; Bureaucracy said to trump investor needs.(News)
Aug 15, 2005 ... Byline: Brooke Southall SAN FRANCISCO - The Securities Industry Association's attempt at delaying the so-called Merrill Lynch rule drew caustic responses from various industry observers, including securities lawyers, industry consultants, registered investment advisers and those ...
VA sales fuel strong 2Q for many life insurers; But CFOs worry about new biz, capital.(News)
Aug 15, 2005 ... Byline: Gary S. Mogel NEW YORK - To an industry in the midst of so much regulatory scrutiny and other troubles, second-quarter financial results for the major life and annuity insurers looked pretty good. But most life insurance company chief financial officers remain ...
Independent fund boards? Not yet.(Reverse Spin)
Aug 15, 2005 ... Byline: Rick Miller Independence Day for mutual fund boards is off the calendar for now. A federal appeals court last week ordered the Securities and Exchange Commission to delay implementation of a rule requiring mutual-fund-board chairmen to be independent of the ...
Antidote for investor fear: Some careful planning.(Other Views)
Aug 15, 2005 ... Byline: John Valentine I recently spent some time engaged in some deep introspection. It was during a flight home from one of the frequent trips I make to meet with my clients in different parts of the country. My trip had gone well, and I was leaving behind a client who was ...
Retail future cloudy at Morgan Stanley; With 1,000 reps gone, survivors ponder firm's direction.(News)
Aug 15, 2005 ... Byline: Dan Jamieson IRVINE, Calif. - The first "Mack attack'' at Morgan Stanley, which eliminated about 1,000 lower- producing reps last Thursday, has left survivors wondering about their own futures and the future of retail at the firm. The terminations were part ...
Advisers plowing back profits into growth; Significant increases in capital spending.(News)
Aug 15, 2005 ... Byline: Brooke Southall SAN FRANCISCO - At long last, independent financial advisers are spending on the future. "This feels like a spending year,'' said Dan Skiles, the Denver-based senior vice president of technology consulting at Schwab Institutional, which is ...
At the Bell; NASD hits Mich. firm with 675G fine.(Late News)
Aug 15, 2005 ... NASD has hit another broker-dealer with a fine over revenue sharing. Hantz Financial Services Inc. of Southfield, Mich., was fined $675,000 Thursday for "fraud and misrepresentation relating to undisclosed revenue-sharing arrangements'' and other violations. John Hantz, the ...
Board's education policy riles CFPs; Would narrow scope of available courses, according to critics.(News)
Aug 15, 2005 ... Byline: Jeff Benjamin DETROIT - The Certified Financial Planner Board of Standards Inc. has inadvertently ruffled the feathers of some financial advisers in its efforts to improve the management and organization of the continuing-education credits required of the more than ...
Analysts question wirehouses' fee-based numbers; Some lump together all non-commission biz in calculating fee revenue.(News)
Aug 15, 2005 ... Byline: Dan Jamieson IRVINE, Calif. - A report issued this month by the Securities Industry Association offers good news: A third of retail brokers' production comes from "fee-based products.'' But some analysts question that number. "They're not being ...