Investment News back issues from July 2007:
Closing quote.(Reverse Spin)
Jul 09, 2007 ... "If you ... have competent people in charge ... you sit there as the highest-paid person in the company and do nothing. So [CEOs try to] acquire or ...
Mother-daughter firm finds its sweet spot; Unprofitable clients are `fired' - or made profitable.(News)
Jul 09, 2007 ... Byline: Gary S. Mogel NEW YORK - Cynthia Keithley, principal of Keithley Investment Group LLC, goes to almost any length to serve her small-fry clients. But as a financial advisory business grows, the ability to say "no'' can be the difference between profitability ...
Be wary of retirees' risk, says a software maker; Advisers should look beyond client assets and investment income.(News)
Jul 09, 2007 ... Byline: Darla Mercado NEW YORK - Advisers may want to think twice before loading a new retiree's portfolio with equity investments, according to a retirement software developer. Charles S. Yanikoski, president of Still River Retirement Planning Software Inc. in ...
Working with the media.(Editorial)
Jul 09, 2007 ... Advisers seeking to raise their visibility through publicity are invited to take part in a live webcast, "How to Work with the Media.'' To be held Wednesday, July 11, from 3-4 p.m. ET, the webcast will include panelists Karen Altfest, vice president of L.J. Altfest & Co. Inc ....
Credit card has luxury perks.(Short Interests)
Jul 09, 2007 ... Byline: Gary S. Mogel NEW YORK - A new credit card is part concierge, part travel agent, part charitable foundation. Bank of America Corp. started issuing the card - called Express Accolades - this month, according to a company statement. Applicants must have at ...
Brookstreet clients, counting losses, ponder arbitrations; The firm's 500 indie-contractor reps have scattered.(News)
Jul 09, 2007 ... Byline: Bruce Kelly NEW YORK - The collapse of Brookstreet Securities Corp. last month is likely to spawn dozens of arbitration claims from investors facing losses that, in some cases, run into the millions, according to one plaintiff's attorney familiar with the matter. ...
It's clearly time to tackle the AMT.(Editorial)
Jul 09, 2007 ... Now that the Senate has disposed of the immigration reform bill, perhaps it and the House of Representatives can turn their attention to a matter at least as serious: reform or repeal of the alternative minimum tax - preferably repeal. The country does not need another ...
Sale of Rydex to insurer: They love it, they hate it; Advisers see positives and negatives in deal.(News)
Jul 09, 2007 ... Byline: Charles Paikert NEW YORK - Advisers are reacting to the impending sale of Rydex Investments to the Security Benefit Group of Companies with a mixture of enthusiasm, caution and disapproval. "It's a strategic acquisition that should be a positive for everybody ...
Suscribers get discount on FPA's scorecard.(News)
Jul 09, 2007 ... Byline: Evan Cooper NEW YORK - The FPA Practice Management Scorecard is now available to subscribers of InvestmentNews at $195, a discount of more than 20% from the regular price of $245. The score card is a comprehensive set of benchmarks for financial advisory ...
Lawyers see more suits with dually registered reps; Clients may not be clear about what to expect from such professionals.(News)
Jul 09, 2007 ... Byline: Darla Mercado NEW YORK - Dual broker-adviser registration may become more common as brokerage firms shift from fee-based brokerage accounts, but the adviser's new role could lead to more litigation, according to lawyers. The problem, advisers and attorneys ...
Multifamily offices rethink their pricing; Charging flat fees is seen as an emerging trend.(News)
Jul 09, 2007 ... Byline: Charles Paikert NEW YORK - Pressed by very wealthy clients who feel they are overpaying, and under cost pressures of their own, multifamily offices increasingly are searching for alternatives to asset-based fees, according to industry executives and observers. ...
Barclays Bank exchange traded notes gather $2.6B; Some advisers still question the appeal, future of ETNs.(News)
Jul 09, 2007 ... Byline: David Hoffman PHILADELPHIA - Although iPath exchange traded notes have amassed more than $2.6 billion since making their debut more than a year ago, their appeal remains a mystery to some industry experts. "I kind of sit back, scratch my head and ask what I'm ...
Opinion poll.
Jul 09, 2007 ... Previously, we asked you: Should brokers who have been banned from the industry be required to report annually their business activities to some oversight body? Yes: 74.9% No: 25.1% ...
Shareholders always come first.(Monday Morning)
Jul 09, 2007 ... Byline: Dan Jamieson You almost could hear the groans at A.G. Edwards & Sons Inc. when Wachovia Corp. chief executive G. Kennedy Thompson told analysts during a conference call that he expects to excise $650 million in expenses from the combined organization. Forget ...
At the bell.
Jul 09, 2007 ... Goldman Sachs reports death threats The Goldman Sachs Group Inc. said Friday that the FBI is investigating letters sent to nine newspapers nationwide threatening "hundreds'' of the New York investment bank's employees with death. The letters were postmarked from New ...
Remaining regional firms say, 'We're not for sale'; Client-first culture, not greater size, produces best results, brokerage execs contend.(News)
Jul 09, 2007 ... Byline: Dan Jamieson IRVINE, Calif. - As the number of regional brokerage firms dwindles, executives at those that remain insist they're better off staying independent. "We have no intention of being sold,'' said William Johnstone, chief executive of employee-owned ...
Alternatives IPO bandwagon is rolling.(Reverse Spin)
Jul 09, 2007 ... Byline: Charles Paikert Possible tax hikes and stagnant stock price movement aside, hedge funds and private-equity funds continue to beat a path to the public markets. Last week, New York-based Kohlberg Kravis Roberts & Co. became the latest 800-pound gorilla to ...
Mergers of advisers and benefit firms seen as a natural fit; Lenox Advisors, Murphy Todd combine in order to hone investment synergies.(News)
Jul 09, 2007 ... Byline: Gary S. Mogel NEW YORK - Mergers between employee benefit and financial advisory firms may become common as they set their combined sights on baby boomers' retirement assets, according to industry observers. Such mergers make sense because one of the biggest ...
Trading costs have predictive power; Transaction costs weigh heavily in mutual fund performance, study concludes.(News)
Jul 09, 2007 ... Byline: Kathie O'Donnell BOSTON - Forget expense ratios. Portfolio trading costs can be an even bigger drag on mutual fund performance. On average, U.S. stock funds spent $1.44 per $100 of assets on trading costs, compared with $1.21 on costs that comprised their ...
12(b)-1 fees come under attack again; Consumer advocates question their use in fee-based accounts.(News)
Jul 09, 2007 ... Byline: Sara Hansard WASHINGTON - On the heels of the federal appeals court decision rejecting fee-based brokerage accounts, brokers are facing yet another challenge from consumer advocates who are questioning whether 12(b)-1 fees are being used illegally. Using such ...
Panel to help firm attract rich women.(Short Interests)
Jul 09, 2007 ... Byline: Charles Paikert NEW YORK - Carl Domino Inc. has formed an advisory board to help the firm attract high-net-worth women. Formed as part of a target marketing strategy, the women's financial services advisory board will "help us communicate the message of the ...
Retirement has some in a panic.(Short Interests)
Jul 09, 2007 ... Byline: Lisa Shidler CHICAGO - Most investors feel prepared for retirement, but a significant number are antsy, nervous and worse, according to a survey conducted by the Securities Industry and Financial Markets Association of New York and Washington. The remedy for ...
Advisers to American Beacon share a philosophy.(Street Wise)
Jul 09, 2007 ... Byline: Jeff Benjamin The first priority behind the management of the American Beacon Mid Cap Value Fund (AACIX) is to build solid relationships with subadvisers that share a core value investing philosophy with American Beacon Advisors Inc. With that in place - and ...
Vanguard's fund inflows top rivals' in first five months; Fidelity, American trail as index funds, ETFs score big.(News)
Jul 09, 2007 ... Byline: Kathie O'Donnell BOSTON - Fidelity Investments and American Funds lagged behind The Vanguard Group Inc. in stock and bond mutual fund sales for this year through May as investor appetite for low-cost index and exchange traded funds increased. Vanguard's ...
With Don Schreiber Jr. of WBI Investments.(One on One)
Jul 09, 2007 ... Byline: Jeff Benjamin Don Schreiber Jr. believes he has found a sweet spot in the financial services industry: helping retiring baby boomers make their money last longer. Toward that end, the 52-year-old founder and chief executive of WBI Investments of Little ...
Clutter a 'health hazard'.(Short Interests)
Jul 09, 2007 ... Byline: Lisa Shidler CHICAGO - Some investors don't even realize it's a problem. Others, who at least notice that shopping bags full of 15-year-old credit card receipts are overtaking their closets, consider it a harmless vice. But advisers know the ...
SEC panel to scrutinize financial reporting; Plans to focus on high number of restatements.(News)
Jul 09, 2007 ... Byline: Sara Hansard WASHINGTON - The Securities and Exchange Commission is setting up an advisory committee on financial reporting to scrutinize the high number of financial restatements by public companies, according to Robert Pozen, who will head the committee. ...
As the UMA evolves, a clear definition is needed.(Investment Strategies)
Jul 09, 2007 ... Byline: Thomas Sholes The current state of the unified managed account can be summed up as follows: * It is a powerful concept. * Virtually every major separate-account sponsor today claims to offer a UMA. * All that is missing is a clear and ...
A tutorial on creating a 'raving' marketing plan.(Marketing Strategies)
Jul 09, 2007 ... Byline: Libby Dubick Successful marketing programs don't exist in a vacuum. This hit home when a financial adviser recently asked if I had a program to improve his client communications. When I asked what he wanted to accomplish, he said that his goal was to create ...
Time for federal oversight of life insurers is now.(Other Views)
Jul 09, 2007 ... Byline: Jon A. Boscia Since birth, baby boomers have influenced business and government more than any prior generation. As infants, they redefined the baby food industry. As adolescents, they required new school buildings and accelerated the migration to the suburbs ....
End mandatory arbitration for investors.(Other Views)
Jul 09, 2007 ... Byline: Andrew Stoltmann Congress and the Securities and Exchange Commission have an unprecedented opportunity to strengthen the protections for U.S. investors. Specifically, Congress is contemplating prohibiting mandatory, binding arbitration clauses in the account ...
Sudan-free ETF offered.(Short Interests)
Jul 09, 2007 ... Byline: Darla Mercado NEW YORK - Claymore Securities Inc. of Lisle, Ill., has launched the Claymore/KLD Sudan Free Large-Cap Core ETF, the first exchange traded fund based on a Sudan-free index. Following the KLD Large Cap Sudan Free Social Index, the fund answers ...
Ben Edwards blasts Wachovia merger.(News)
Jul 09, 2007 ... Byline: Dan Jamieson IRVINE, Calif. - Ben Edwards III, a former chief executive of A.G. Edwards Inc., is not happy about his family firm's merger with Wachovia Corp. Mr. Edwards, who retired in 2001, caused a stir at St. Louis-based A.G. Edwards' shareholder meeting ...
The magic of exchange-traded notes: Tax deferral.(The Tax-Conscious Adviser)
Jul 09, 2007 ... Byline: Robert N. Gordon Exchange-traded notes are the newest wrinkle from Barclays, the main sponsor of exchange-traded funds. According to Barclays, its iPath ETNs were invented to allow investors to access difficult asset classes. Akin to ...
Index tracks hedge funds with minority owners.(Short Interests)
Jul 09, 2007 ... Byline: Aaron Siegel NEW YORK - Hedge Fund Research Inc., a Chicago-based research firm and publisher of alternative-investment information, has introduced a benchmark designed to reflect the performance of minority- and female-owned hedge funds. The HFRX Diversity ...
The best insurance: Strong performance.(The Markets)
Jul 09, 2007 ... Byline: Jeff Tjornehoj Overall, investors in variable annuity funds (which combine a mutual fund investment with an insurance wrapper and which are among the most popular investment strategies) benefited from historically strong returns over the past year. As the ...
Retirement plans under scrutiny; Conflicts of interest pose enforcement challenges, GAO report says.(News)
Jul 09, 2007 ... Byline: Doug Halonen WASHINGTON - The Department of Labor and Rep. George Miller, D-Calif., are considering separate efforts to crack down on pension consultant conflicts of interests following a report by the Government Accountability Office that said undisclosed conflicts ...
CFA Institute faces trademark battle in India; Organization to make case before Delhi High Court next week.(News)
Jul 09, 2007 ... Byline: Jeff Benjamin DETROIT - A long-running trademark battle is threatening to derail the expansion of the CFA Institute in what has become one of the fastest-growing markets for financial planning professionals. On July 17, the CFA Institute, the Charlottesville, ...
Awards to honor the spirit of giving.(News)
Jul 09, 2007 ... InvestmentNews, in association with the Invest in Others Charitable Foundation, is accepting nominations for the Community Leadership Awards. The awards will honor the philanthropic spirit of financial advisers and celebrate the charities with which they partner. ...
Correction/Clarification.(Correction notice)
Jul 09, 2007 ... Correction In an article in the June 25 issue, "Suspicions are verified: Fidelity is tops in IRAs," Fidelity spokeswoman Deborah Pont was incorrectly quoted as saying the company's no-fee individual retirement accounts are attractive to advisers. She actually said they are ...
Some advisers eagerly await SEC's OK of muni ETF; Expense ratio seen as key to its success.(News)
Jul 16, 2007 ... Byline: David Hoffman PHILADELPHIA - An exchange traded fund that invests in municipal bonds is expected finally to become a reality - a prospect that excites some financial advisers. Barclays Global Investors of San Francisco has registered to offer the iShares S&P ...
Firm helps invest in China.(Short Interests)
Jul 16, 2007 ... Byline: Gary S. Mogel NEW YORK - An advisory firm launched this month makes it easier to invest in China. ThinkTrust Capital Management LLC helps investors buy stock in Chinese companies such as search engine Baidu.com Inc. and China Life Insurance Co. Ltd., both ...
Bear Stearns debacle forces hedge fund index to restate; CS/Tremont says late reporting caused abrupt shift.(News)
Jul 23, 2007 ... Byline: Bruce Kelly NEW YORK - The recent fallout in the market for subprime mortgages caused one prominent hedge fund index to revise some of its performance returns last week. Last Monday, the Credit Suisse/Tremont Hedge Fund Index reported that its index for ...
SEC's effort to track ties to terrorism ruffles feathers; Website identifies companies linked to `rogue states'.(News)
Jul 23, 2007 ... Byline: Aaron Siegel NEW YORK - A new tool on the Securities and Exchange Commission's website that provides investors with a list of companies involved in countries designated as "state sponsors of terrorism'' is raising eyebrows among lawyers and politicians. The ...
With Erin T. Botsford of The Botsford Group.(One on One)
Jul 23, 2007 ... Byline: Bruce Kelly Erin T. Botsford loves being at the center of her clients' financial well-being. And she considers identifying and attacking risk, not boosting the returns on a client's portfolio, the key to financial health. "Certainly, there's the ...
Is it time to time the stock market? Five-year bull run worries many advisers.(News)
Jul 23, 2007 ... Byline: Jeff Benjamin DETROIT - With the Dow Jones Industrial Average closing above 14,000 for the first time last week, an increasing number of financial advisers are considering the merits of market timing. To be sure, the relative security of cash and bonds appeals ...
Suitability czar plan raises questions; But some say new C-level Allianz post isn't PR fluff.(News)
Jul 23, 2007 ... Byline: Gary S. Mogel NEW YORK - Is the creation of a top-level suitability monitoring job by Allianz Life Insurance Company of North America a step forward in annuity marketing or a defensive position in response to a battery of lawsuits? That is a question many ...
Advisers face fines from IRS on more kinds of returns; New law subjects preparers of estate, gift tax returns to stiff penalties, increases those involving income tax.(News)
Jul 23, 2007 ... Byline: Lisa Shidler CHICAGO - Financial advisers who prepare various tax-related documents for their clients will likely think twice before signing off on returns that include dubious or aggressive tax positions. A new law, enacted in May, allows the Internal Revenue ...
DOL said to keep stable value off default option list; Expected to issue final regs next month.(News)
Jul 23, 2007 ... Byline: Sara Hansard WASHINGTON - The Department of Labor has rejected a proposal by the insurance industry to include stable-value funds as a default option for 401(k) plans, according to industry sources. The Labor Department on July 11 submitted to the Office of ...
Asset managers said to be overlooking Gen Y; Report highlights benefits of generation set to inherit boomers' wealth.(News)
Jul 23, 2007 ... Byline: Darla Mercado NEW YORK - Asset managers are raking in plenty of business from baby boomers but are missing the boat when it comes to boomers' children, according to a recent report from KPMG International. "The baby boomers have proved a happy hunting ground ...
Advisers want wholesaler tips, not trips; Strategies for building their businesses are preferred.(News)
Jul 23, 2007 ... Byline: Darla Mercado NEW YORK - Wholesalers seeking an adviser's good graces should forget the freebies and concentrate on developing solution-oriented consultative relationships. That's the recommendation of "Advisor Insight Wholesaler Effectiveness,'' a survey ...
NYSE Euronext's Thain faces challenges; Competition may force another acquisition.(News)
Jul 23, 2007 ... Byline: Aaron Elstein NEW YORK - Life isn't fair. Just ask John Thain. Since becoming chief executive of the New York Stock Exchange in 2004, he has taken the former membership organization public, pushed it into bond and option trading, and merged it with ...
Closing quote.(Reverse Spin)
Jul 23, 2007 ... "I adjust whenever I see happenings in the market. Buy and hold is not thinking.'' -Don Martin, president of Mayflower Capital ...
At the bell.
Jul 23, 2007 ... FPA names Barry Washington lobbyist The Financial Planning Association of Denver said Friday that it has hired a veteran to head up its lobbying efforts in Washington. Daniel J. Barry, a New York-based attorney described by the FPA as having extensive experience ...
Mickey Mouse collector bucks 'luxury' trend; Advisers say clients collect mainly for fun, not profit.(News)
Jul 23, 2007 ... Byline: Gary S. Mogel NEW YORK - Most clients' collections are a labor of love and not a quest for investment returns, according to financial advisers with collector clients. The "high-net-worth'' market, on the other hand, has loftier tastes. The rich gravitate to ...
Plan sponsors embrace default investment alternatives; Ahead of final DOL regs, a shift to separates or target date funds.(News)
Jul 23, 2007 ... Byline: Lisa Shidler CHICAGO - While the Department of Labor has yet to issue final regulations on default options for 401(k) plans, many companies are jumping ahead and incorporating a qualified default investment alternative into their retirement plans. The 2006 ...
UBS' U.S. wealth effort gets lift; Swiss bank's new CEO headed that business segment.(News)
Jul 23, 2007 ... Byline: Charles Paikert NEW YORK - The efforts of global-asset-management leader UBS AG to boost its wealth management presence in the United States may soon become turbocharged, thanks to a management shake-up this month that elevated the Swiss bank's wealth management chief, ...
Sentinel's changing of the guard a way to get distributors' attention; CEO prunes fund lineup, ditches icon, lures execs from rivals.(News)
Jul 23, 2007 ... Byline: Kathie O'Donnell BOSTON - Say goodbye to the Green Mountain Boy. As part of an ambitious growth strategy designed to get its mutual funds noticed by distributors, Montpelier, Vt.-based Sentinel Asset Management Inc. is retiring its decades-old icon. ...
Forget A-Rod; it's time to shoot for A-list stocks.(Short Interests)(Website overview)
Jul 23, 2007 ... Byline: Aaron Siegel NEW YORK-Just as fantasy baseball provides an opportunity for sports enthusiasts to manage their own ball club, a new website is giving avid investors a crack at running a million-dollar portfolio. Moneygeyser.com, a new Tempe, Ariz.-based ...
Solving the SEC net-worth 'puzzlement'.(Editorial)
Jul 23, 2007 ... "Is a puzzlement,'' the king of Siam said to Anna in "The King and I.'' He might as well have been talking about how the Securities and Exchange Commission should go about protecting inexperienced investors from esoteric alternative investments, especially hedge funds and ...
MetLife makes effort on multiculturalism.(Short Interests)
Jul 23, 2007 ... Byline: Gary S. Mogel NEW YORK - People of various races and nationalities may have similar investment and retirement concerns, but they often don't have similar access to financial advice, according to MetLife Inc. The New York-based insurer is seeking to remedy that ...
Estate planning for Fido.(Short Interests)
Jul 23, 2007 ... Byline: Charles Paikert NEW YORK - When Warren Eckstein, a renowned pet expert, mentioned the importance of estate planning for pets on his syndicated radio show this month, some listeners may have thought he was joking. Far from it. It turns out that Mr. Eckstein and ...
Clearing firms jostle to win and retain indie BDs; Growing competition emerges among several back-office providers.(Clearing Firms)
Jul 23, 2007 ... Byline: Bruce Kelly NEW YORK - Despite continued consolidation, the clearing industry in some ways is becoming more crowded, with increased competition for the clearing business of top independent-contractor broker-dealers. Of course, the number of financial services ...
'Duel' clearing arrangements on the rise; Indies pick and choose among rival offerings.(Clearing Firms)
Jul 23, 2007 ... Byline: Bruce Kelly NEW YORK - An increasing number of independent-contractor broker-dealers are doing business with more than one clearing partner, adding to the stiff competition among some clearing firms. This doesn't sit well with clearing firms, which ...
Procedures for selecting and monitoring QDIAs; Second of two parts.(Fiduciary Corner)
Jul 23, 2007 ... Byline: Donald B. Trone Part one (InvestmentNews, June 4) introduced the provisions for the new qualified default investment alternative safe harbor and the procedures an investment adviser should follow in evaluating a QDIA. This column will outline the procedures ...