Investment News back issues from August 2007:
Senator knows where his croissant is buttered.(Reverse Spin)
Aug 06, 2007 ... Byline: Charles Paikert The New York Times headline said it all: "In Opposing Tax Plan, Schumer Supports Wall Street Over Party.'' That's right, when it came to defending a soak-the-rich tax proposal opposed by his well-heeled financial industry constituents, Sen. Charles ...
In a surprise, tech stocks jump higher; Sector seen having momentum, some say.(News)
Aug 06, 2007 ... Byline: David Hoffman PHILADELPHIA - Amid market volatility that has shaken the confidence of even the most seasoned investors, one sector continues to shine unexpectedly: technology. The information technology sector of the Standard & Poor's 500 stock index was up ...
More adviser tools coming to smart phones; Stock prices, news can be grabbed on the go.(News)
Aug 06, 2007 ... Byline: Davis Janowski NEW YORK - Financial advisers who use a BlackBerry or other smart phone soon will be able to access a wider range of financial tools and applications. Smart phones - the catchall term for any hand-held device that supports voice calling, ...
Midsize brokers take on big guns with new, creative pay packages; Firms focus on longer-term strategies, not upfront bonuses.(News)
Aug 13, 2007 ... Byline: Bruce Kelly NEW YORK - In order to take on the big boys of the independent broker-dealer market, some growing middle-tier firms are offering souped-up compensation packages in place of or along with big upfront checks. The intriguing and aggressive aspect of ...
FINRA sweep scrutinizing withdrawals; At least 10 firms eyed for misleading clients in abuse of tax code.(News)
Aug 13, 2007 ... Byline: Bruce Kelly NEW YORK - Intensifying its recent focus on protecting retirees, the Financial Industry Regulatory Authority began last month a sweep of broker-dealers focusing on the use of exemptions in the tax code to withdraw money from retirement accounts for clients ...
Closing quote.(Reverse Spin)
Aug 13, 2007 ... "If your shtick is mutual fund guru to a 401(k), that's going to fade.'' -Joe Birkofer, a principal of Legacy ...
With Szifra Birke of Lexington Wealth Management Inc.(One on One)
Aug 13, 2007 ... Byline: Charles Paikert Szifra Birke is fascinated by money. That may not be unusual for someone who works for a wealth management firm, except that she is not a wealth manager, nor is she a portfolio manager or a financial adviser. Ms. Birke is a ...
Reuters rolling out a website for advisers.(Reverse Spin)
Aug 13, 2007 ... Byline: Charles Paikert Do advisers really need another "community'' website? Reuters, the giant London-based news and information company, thinks they do. "It's our version of Web 2.0,'' said Scott Parry, White Plains, N.Y.-based general manager of Reuters ...
Gary Mogel, IN insurance reporter, dies at 49; `Consummate professional' was highly respected for his incisive coverage.(News)(Obituary)
Aug 13, 2007 ... Byline: Charles Paikert NEW YORK - Gary S. Mogel, a highly regarded insurance reporter, died of a heart attack on Aug. 5, at his home in Plainview, N.Y. He was 49. Mr. Mogel had covered life and long-term-care insurance, annuities and banking for InvestmentNews for ...
Hooters CEO's heir challenges widow's bid for elective share; Questions constitutionality of beneficial South Carolina estate law.(News)
Aug 13, 2007 ... Byline: Lisa Shidler CHICAGO - The son of the late founder and owner of the Hooters restaurant chain is in an estate battle with his father's widow, arguing that a commonly used estate law is unconstitutional. Robert Brooks, 69, died of natural causes in July 2006. He ...
Subprime exposure worries some advisers; Software tools may not spot clients' problems.(News)
Aug 13, 2007 ... Byline: Davis Janowski YORK - Client portfolios may be affected by the fallout from turmoil in the subprime mortgage market - but advisers aren't exactly sure where the problems may lie and don't believe their software tools can give them timely answers. "I have been ...
How you can keep the marketing ball rolling.(Marketing Strategies)
Aug 13, 2007 ... Byline: Libby Dubick Patrick Byrne knows how hard it is to maintain marketing momentum. "I can't let service or financial management go,'' said the president of Aspetuck Financial Management LLC in Westport, Conn. "As a result, my sales and marketing efforts ...
Advisers remain concerned about target date fund 'advice'; First anniversary of Pension Protection Act finds them worried about competition.(News)
Aug 13, 2007 ... Byline: Sara Hansard WASHINGTON - As the first anniversary of the Pension Protection Act approaches, financial advisers remain wary of target date mutual funds. A key provision of the act, which became law on Aug. 17, 2006, cleared the way for companies to begin ...
Investors duck arbitration fees; Brunt of unpaid tabs falls on industry, observers claim.(News)
Aug 13, 2007 ... Byline: Dan Jamieson IRVINE, Calif. - As the Financial Industry Regulatory Association's arbitration system faces mounting criticism for being too costly for investors, some industry observers are countering with a little-discussed fact: Investors routinely fail to pay a large ...
RIA assets expected to soar by 2012; Average SEC firm seen likely to have 256% hike to $1.6B.(News)
Aug 13, 2007 ... Byline: Brooke Southall NEW YORK - Assets under management for the average SEC-registered investment adviser are expected to leap 256% to $1.6 billion by the end of 2012, from $449.6 million at the end of 2006, according to a study that will be released tomorrow. The ...
Advisers love Rudy, hate Hillary.(Short Interests)
Aug 13, 2007 ... Byline: Aaron Siegel NEW YORK - Caroline Giuliani may not be supporting her father's presidential bid, but financial advisers say they prefer the former New York mayor over any other candidate in the presidential race. According to 205 advisers surveyed by the ...
Retirees ponder settling in exotic locations; Mexico, Costa Rica, among others, offer affordable lifestyles.(News)
Aug 13, 2007 ... Byline: Lisa Shidler CHICAGO - Baby boomers, it seems, are terrified of routine retirements, of days filled with bingo and croquet. Instead, they are lured to adult communities in Mexico, Costa Rica and other exotic locations, featuring trendy yoga centers, sushi ...
Partnership leads to portfolios that are Sudan-free.(Short Interests)
Aug 13, 2007 ... Byline: Darla Mercado NEW YORK - Independent investment research firm KLD Research and Analytics Inc. and the Sudan Divestment Task Force have created the Sudan Targeted Divestment Compliance product. Modeled for pension funds, the service helps institutional ...
Opinion poll.
Aug 13, 2007 ... Previously, we asked you: Would holding the new chartered private wealth adviser designation from the Investment Management Consultants Association impress your high-net-worth clients and be useful in marketing your ...
Key findings of Hewitt Associates study.(News)
Aug 13, 2007 ... 12% of plan sponsor respondents said they already offered Roth 401(k) accounts, and 32% of the remaining respondents said they were very likely or somewhat likely to implement such accounts in 2007. 77% said they were very or somewhat likely to review fund expenses, ...
At the bell.
Aug 13, 2007 ... SEC quiet on auditing subprime lenders The Securities and Exchange Commission declined to comment Friday on reports that it is checking top Wall Street investment banks' books for hidden subprime losses. Robert Burson, an associate regional director in the SEC's division of ...
New website highlights women-run companies.(Short Interests)(Website overview)
Aug 13, 2007 ... Byline: Aaron Siegel NEW YORK- A well-known author and financial commentator announced that she would launch an online newsletter targeting female investors next month. Jennifer Openshaw will offer "QualityStocks for Women,'' a newsletter that will profile companies ...
Past bubbles offer lessons for advisers.(Editorial)
Aug 13, 2007 ... The deflation of the housing and mortgage bubble should reinforce several lessons for investors and their advisers. First, if it looks like a bubble and if you hear the phrase, "This time it's different,'' it probably is a bubble, and will eventually burst. Second, ...
Venture capital deals rose 6.1% in the second quarter, to 977; Number is highest since '01; investment up 2.5% to $7.12B.(News)
Aug 13, 2007 ... Byline: Brooke Southall SAN FRANCISCO - With early-stage investments showing new strength during the second quarter, venture capitalists reported the largest number of deals since 2001. There were 977 deals, up 15.6% from the 856 funded in the first quarter of this ...
Remembering reporter Gary Mogel.(Monday Morning)
Aug 13, 2007 ... Byline: Jim Pavia Time heals all wounds, or so they say. But it will take a great deal of time to get over the blow suffered by the InvestmentNews family. Gary Mogel, 49, a staff reporter who covered insurance, annuities and banking, died last week. Our ...
For this manager, large-cap growth is the place to be.(Street Wise)
Aug 13, 2007 ... Byline: Jeff Benjamin There is nothing quite like the flexibility of an all-cap strategy when the equity markets turn choppy, which is why the management behind the Biondo Growth Fund (BIONX) feels it is strategically poised for the current environment. "Right now, ...
Black eye seen for Canada securities enforcement; Flaherty renews call for national regulator after Bre-X verdict.(News)
Aug 13, 2007 ... Byline: David Clarke OTTAWA - Embarrassment? Tragedy? Take your pick. Those were among the mostly furious reactions to the decision by Ontario Superior Court that cleared a former vice chairman of Bre-X Minerals Ltd. on all charges leveled at him by the Ontario ...
Index unit's planned IPO sparks concerns about conflicts; MSCI's IPO would mean new pressure from shareholders.(News)
Aug 13, 2007 ... Byline: David Hoffman PHILADELPHIA - Morgan Stanley's plans to take its MSCI Inc. index unit public is raising concerns about conflicts of interest that may arise when an index company must answer to shareholders. As a stand-alone public company, MSCI would face new ...
Indexing debate should focus on risk versus return.(Investment Strategies)
Aug 13, 2007 ... Byline: Jeffrey S. Coons The investment industry is caught up in a great indexing debate, as supporters of the 20th century's market-capitalization-weighted approach to index-based investing struggle to hold their dominant position over those supporting the 21st century's ...
Asset-manager mergers may be peaking.(Short Interests)
Aug 13, 2007 ... Byline: David Hoffman PHILADELPHIA - The urge to merge is still strong among investment managers, but it could be cooling, according to a report released last week by Putnam Lovell NBF Securities Inc. of New York. Sales of investment management companies worldwide are ...
Technology failure thwarts Linsco; Thousands of advisers unable to conduct business for days.(News)
Aug 13, 2007 ... Byline: Brooke Southall NEW YORK - An online-access snafu put a glitch in Linsco/Private Ledger Corp.'s plans to compete with the largest firms in the industry and left 7,000 financial advisers unable to place trades, view accounts or perform other routine tasks for most of last ...
Fidelity shake-up creates angst among advisers; Resignation of Ellyn McColgan leaves void at fund giant.(News)
Aug 13, 2007 ... Byline: David Hoffman PHILADELPHIA - Financial advisers are reeling from the abrupt resignation of Ellyn A. McColgan last week from Fidelity Investments. Ms. McColgan, who in April was promoted to president of Fidelity's distribution business, was widely viewed as a ...
Fate of estate tax worries planning lawyers; Some fear Congress may not act before repeal law expires.(News)
Aug 13, 2007 ... Byline: Sara Hansard WASHINGTON - Estate planning lawyers are increasingly worried that Congress may not act on estate tax reform before the estate tax repeal expires at the end of 2010. "The current state of the law is clearly unstable,'' said Ann Lesk, a partner ...
Correction/Clarification.(Correction notice)
Aug 13, 2007 ... Correction An article in the Aug. 6 issue, "New fund sees gold in water investments,'' incorrectly said that Aqua Terra Asset Management LLC of Conshohocken, Pa., launched the Kinetics Water Infrastructure Fund. The company is actually the fund's subadviser. ...
SMAs ranked by second-quarter returns; Second-quarter commentary by Gib Watson.(Separate Accounts)
Aug 13, 2007 ... Domestic equity The winner for the second quarter was the Russell 2500 Growth Index, up 6.99% for the period and 11.30% for the first half of the year. This may be the start of a typical late rally shift to large-caps, for safety, and toward companies showing ...
With Bruce R. Bent of The Reserve.(One on One)
Aug 20, 2007 ... Byline: Dan Jamieson While others worry about the stock market, Bruce R. Bent focuses on cash. The 70-year-old founder and chairman of The Reserve in New York, formerly The Reserve Fund, is well known as the inventor of the money market fund in 1970. Mr. Bent saw the ...
A look at how our irrational brains tick.(Monday Morning)
Aug 20, 2007 ... Byline: Mike Clowes The human brain is a wondrous thing - of that there is no doubt. But when it comes to investing, our brains frequently betray us. For one, they insist on finding patterns in data even where none exists. In a typical example, researchers flash two ...
Closing quote.(Reverse Spin)
Aug 20, 2007 ... "Those who understand the favors game are most likely to reach the highest ...
Dodd, Frank urge hike on loan limits.(At the Bell)
Aug 20, 2007 ... Dodd, Frank urge hike on loan limits The heads of the Senate Banking and House Financial Services committees were joined Friday by a Republican congressman in urging that loan limits be raised for Fannie Mae of Washington and Freddie Mac of McLean, Va. Sen ....
Rich depend on Social Security.(Short Interests)
Aug 20, 2007 ... Byline: Lisa Shidler CHICAGO - Even high-wage workers depend on Social Security for a portion of their income when they retire, according to a report released this month by the National Center for Policy Analysis. Social Security accounts for virtually all the ...
Calendar.
Aug 20, 2007 ... August 23 - Safe Harbor 401(k), SunGard Corbel Inc. Charlotte (N.C.) Hilton Executive Park; Crowne Plaza Dallas/Addison (Texas); Marriott Minneapolis Airport, Bloomington, Minn. webtechsem@relius.net. 29 - Cross-Tested Plans Specialty Workshop, SunGard Corbel Inc. ...
Younger workers better savers, but advisers take a pass; Some say such investors lack an appreciation for the value of advice.(News)
Aug 20, 2007 ... Byline: Lisa Shidler CHICAGO - Younger workers are ahead of other generations when it comes to saving for retirement, but advisers still tend to prefer older and wealthier clients. A study showed that 68% of workers between the ages of 25 and 34 had already started ...
First Data LBO puts Wall Street firms in vise; Investment banks could lose big - by doing deal or walking away from it.(News)
Aug 20, 2007 ... Byline: Aaron Elstein NEW YORK - A group of seven investment banks may get stuck with the tab for this year's biggest leveraged buyout. When the $29 billion deal for credit card processor First Data Corp. was announced in April, it looked like another coup for New ...
Court: Ex-employee can sue after 401(k) cash-out; More plans could face charges of mismanagement.(News)
Aug 20, 2007 ... Byline: Judy Greenwald SAN JOSE, Calif. - A former employee who has cashed out of his 401(k) plan can still sue the plan's administrator for mismanaging the plan's assets, a federal appellate court has ruled in a decision that observers said significantly increases the number of ...
Brother, can you spare a billion?(Reverse Spin)
Aug 20, 2007 ... Byline: Charles Paikert Yes, even exalted Goldman Sachs & Co. Inc. can make big mistakes. The New York-based financial powerhouse last week said that three of its hedge funds have lost nearly $5 billion in value so far this year. What's more, Goldman had to pump in ...
Will brain drain get worse at U.S. Trust? BofA terms losses `normal'; rivals assert bank is vulnerable.(News)
Aug 20, 2007 ... Byline: Charles Paikert NEW YORK - Dozens of high-powered wealth management professionals have left Bank of America Corp. to join rival firms in the month and a half since the banking behemoth acquired U.S. Trust. While executives at Charlotte, N.C.-based BofA ...
Fund manager eschews predictable herd mentality.(Street Wise)(Company overview)
Aug 20, 2007 ... Byline: Jeff Benjamin As funds of hedge funds go, the Cogo Wolf Global Strategies Fund LP is not likely to be accused of following the crowd. The $65 million fund, the flagship product of San Francisco-based Cogo Wolf Asset Management LLC, was established in March ...
Don't let the tax man eat up your estate.(Short Interests)
Aug 20, 2007 ... Byline: Lisa Shidler CHICAGO - The list of estate-planning mistakes is endless, according to one estate-planning expert. One mistake is that many people fail to make proper plans, and when they do, they often leave everything to a spouse, which can cause them to lose ...
People.
Aug 20, 2007 ... ING Groep NV of Amsterdam, Netherlands, has appointed X. Rick Niu, 35, as executive vice president and chief growth officer of its U.S. insurance group. In this newly created role, he will lead growth marketing efforts for the business, and report to Catherine Smith, chief executive of ...
State regulators call for backup; Want state lawmakers to offer policy opposing federal pre-emption.(News)
Aug 20, 2007 ... Byline: Dan Jamieson IRVINE, Calif. - State regulators are seeking reinforcements. In a speech this month at the annual meeting of the National Conference of State Legislatures, Joseph Borg, president of the North American Securities Administrators Association Inc., ...
New IRS regs would limit fee deductions; Advisers fear increased client exposure to AMT.(News)
Aug 20, 2007 ... Byline: Lisa Shidler CHICAGO - Proposed IRS regulations that affect trusts and estates would carry with them a host of ills - including more trust fees for beneficiaries, additional work for financial advisers and increased client exposure to the alternative minimum tax - ...
SEC's principal trade proposal raises new fears; Some fear that FPA-backed plan creates new exemption.(News)
Aug 20, 2007 ... Byline: Sara Hansard WASHINGTON - Some financial advisers fear that a proposal backed by the Financial Planning Association that would allow brokers to make principal trades in their fee-based accounts would result in a new loophole that brokers can use to skirt investment ...
Consumers duped into buying reports they can get for free.(Short Interests)
Aug 20, 2007 ... Byline: Kevin Shin NEW YORK - Websites that advertise free credit reports often bill unsuspecting consumers for services they don't need, according to a recent Consumer Reports study. Meanwhile, the websites divert traffic from annualcreditreport.com, the ...
Jittery investors push advisers to liquidate stocks; See sidelines as preferable to volatile market.(News)
Aug 20, 2007 ... Byline: Darla Mercado NEW YORK - In the midst of stock market volatility, affluent investors are feeling nervous and are pressuring advisers to sell their stocks. Reflecting their anxiety, the CBOE Volatility Index, a measure of Standard & Poor's 500 stock index ...
Raymond James Bank rakes in the profits; Fast growth pads its parent's revenue.(News)(Financial report)
Aug 20, 2007 ... Byline: Bruce Kelly NEW YORK - With assets increasing, the Raymond James Bank is beginning to have an effect on the results of parent company Raymond James Financial Inc. Known for its various platforms with more than 5,000 registered representatives, Raymond James ...
Financial advisers likely to increase role as fiduciaries for 401(k)s, study finds; Reduced employer risk changes the dynamic.(News)
Aug 20, 2007 ... Byline: Sara Hansard WASHINGTON - More financial advisers will specialize in becoming fiduciary advisers who work with 401(k) plans in coming years, according to a retirement executive who worked on a white paper on the issue. The Pension Protection Act of 2006 ...
Recruitment a hot button issue; Reps uneasy about fallout from recent acquisitions, panelists say.(Independent Broker-Dealer Round Table)
Aug 20, 2007 ... Byline: Bruce Kelly NEW YORK - Independent-contractor broker-dealers and their registered representatives face pressure on all fronts, from recruiting and proper practice management to compliance and the best way to build up their businesses. Those topics - and more ...
Rep's route to 'happyness' could be via RIA channel.(Practice Management)
Aug 20, 2007 ... Byline: Richard Gill In the recent film "Pursuit of Happyness,'' Will Smith's character achieves financial security (not to mention solvency) by winning a job with a brokerage firm. The message of the movie is inspiring, of course, but most brokers can attest that getting the ...
Round-table panelists at a glance.(Independent Broker-Dealer Round Table)
Aug 20, 2007 ... From left to right: John Rooney is a principal with Commonwealth Financial Network LLP of Waltham, Mass. William C. Van Law III is senior vice president and national director of business development for Raymond James Financial Services Inc. of St. Petersburg, Fla. ...
Subprime fallout breeds new kind of 'vulture' fund; Money managers find opportunity in distressed, asset-backed securities.(News)
Aug 20, 2007 ... Byline: Jay Cooper NEW YORK - Money managers are finding a bevy of opportunities in the subprime-mortgage fallout. Some are starting new funds to buy distressed securities tied to the subprime market. Others see opportunity in asset-backed securities that are not ...
'Terror free' investing doesn't affect returns.(Short Interests)
Aug 20, 2007 ... Byline: Darla Mercado NEW YORK - Since the State Department designated Iran, North Korea, Sudan and Syria as state sponsors of terrorism, public pension funds in more than 20 states require - or are about to adopt requirements - that their holdings be free of operations or ...
A paperless office can boost your ROI.(Tech Tips)
Aug 20, 2007 ... Byline: Davis Janowski Taking your firm paperless might seem as daunting a challenge as climbing Mount Everest, but it can bring significant return on investment over the long term. A recent study and white paper (available on investmentnews.com) sponsored by ...
In asset allocation strategies, the 'dividing line' is home equity; But many advisers don't factor it into financial plans.(News)
Aug 20, 2007 ... Byline: Jeff Benjamin DETROIT - As ripples from the imploding subprime-mortgage market spread across the broader home lending industry, financial advisers might have to start helping clients reposition their mortgage and home equity exposure. This has the potential ...
A how-to for beginners in options trading.(Investment Strategies)
Aug 20, 2007 ... Byline: Ron Ianieri Here are 10 steps that you - and/or your clients - need to take before taking the plunge into the options markets. 1 Get educated. Acquire an options theory education, especially about the "Greeks,'' and become well versed in core options ...
Strict conduct code needed for hedge fund managers.(Other Views)
Aug 20, 2007 ... Byline: Kurt Schacht The opportunity for a self-regulatory approach for hedge fund managers has never been greater - or the need more urgent. The matter of regulation is of particular interest, given several important trends. Daily reports about hedge fund failures ...