Investment News back issues from September 2007:
Legacy Financial closes shop; Indie broker-dealer sells most reps to Multi-Financial Securities.(News)
Sep 03, 2007 ... Byline: Bruce Kelly NEW YORK - Another independent broker-dealer has shut its doors, months after one of its brokers got in trouble with regulators. Legacy Financial Services Inc. of Petaluma, Calif., in July quietly sold the majority of its affiliated registered ...
Industry supports NEXT in fight with SEC; But FSI says that it won't step in on behalf of firm.(News)
Sep 03, 2007 ... Byline: Bruce Kelly NEW YORK - NEXT Financial Group Inc., which is in the middle of a scrap with the Securities and Exchange Commission over its use of confidential client information when recruiting representatives, is getting strong support in some corners of the ...
UBS makes beautiful music.(Short Interests)
Sep 03, 2007 ... Byline: Aaron Siegel NEW YORK - UBS AG is a leading global private bank with a soft spot for arts and culture. The Zurich, Switzerland-based company said that its seven-year-old UBS Verbier Festival Orchestra in November will visit the United States for a second ...
Revenue-sharing disclosure sought for bundled providers; Consultants cheer moves on transparency.(News)
Sep 03, 2007 ... Byline: Doug Halonen CHICAGO - Pension consultants and third-party administrators want bundled providers, including industry giants such as Vanguard and Fidelity, to disclose their revenue-sharing arrangements with affiliated service providers, but the bundled providers are ...
Sector bets - regular re-balancing can help.(The Markets)
Sep 03, 2007 ... Byline: Tom Roseen Disappointing earnings announcements from companies such as Google Inc. and Caterpillar Inc., fresh credit concerns surrounding leveraged loans for corporate buyouts, and continued subprime-lending problems plagued the month of July. These factors ...
'Client-centric' planning pays off; Study stirs debate over planning business models.(News)
Sep 03, 2007 ... Byline: Jeff Benjamin DETROIT - Financial advisory firms that concentrate on holistic planning and leave the investment management to outside professionals are seeing the benefits in real dollar terms, according to a recent study. Details of the comprehensive ...
With Michael Latham of Barclays Global Investors.(One on One)
Sep 03, 2007 ... Byline: Brooke Southall When Michael Latham took over the reins as the managing director and head of iShares, Americas, for Barclays Global Investors last year, he faced the challenge of making a successful business into an even better one. In one sense, Mr. Latham, ...
PGA Tour's strategy: Win now, retire rich; Fed Ex Cup top finishers will receive money as deferred compensation.(News)
Sep 03, 2007 ... Byline: Adam Schupak PONTE VEDRA BEACH, Fla. - These guys are good - and rich. And at the end of the PGA Tour's first playoff series, someone will be $10 million richer. That first-place prize to the FedEx Cup champion is billed as the largest single bonus ...
How the PGA jumped into a huge retirement pool; Size of fund has grown ninefold in 11 years.(News)
Sep 03, 2007 ... Byline: Adam Schupak PONTE VEDRA BEACH, Fla. - Thanks to the largesse of the FedEx Cup, the best retirement plan in sports just got better. This year, the PGA Tour's contribution to the players' retirement fund is expected to reach $47 million, up from $28.5 million ...
A debt-free graduate? It's possible.(Short Interests)
Sep 03, 2007 ... Byline: Sara Hottman NEW YORK - College costs are rising about 5% a year, with no relief in sight, causing parents and students to wonder how they can remain debt-free when loans and credit cards are seemingly the only way to survive. The Washington-based College ...
Subprime bailout is not the answer.(Editorial)
Sep 03, 2007 ... The federal government should step in to bail out homeowners who are in danger of losing their homes because of the subprime-mortgage fiasco through a program such as the Reconstruction Finance Corp., according to Bill Gross, the bond guru at Pimco. That program was started by President ...
Former manager sues Janus for $3.8 million; Suit alleges that pay cuts violated agreement.(News)
Sep 03, 2007 ... Byline: David Hoffman PHILADELPHIA - Even though he was aware that it would violate their contracts, Gary Black, chief executive of Janus Capital Group Inc., told the company's portfolio managers last October that they would receive pay cuts, according to a lawsuit filed last ...
People.
Sep 03, 2007 ... First Mercantile Trust Co., a Cordova, Tenn., retirement- planning firm, has added Susan Conrad as national sales director and first vice president in its Memphis, Tenn., headquarters. Ms. Conrad, 41, brings to First Mercantile more than 17 years' experience in the ...
Webcast set for Oct. 10.(News)
Sep 03, 2007 ... InvestmentNews will conduct a webcast, "Adviser to Adviser: Succession Planning Strategies,'' Oct. 10. InvestmentNews reporter Charles Paikert will serve as moderator of the webcast, which will run 3-4 p.m. Eastern Time. The panelists are E. Kim Dignum, executive vice president ...
Increase seen in use of collective trusts in DC plans; Despite low costs, transparency is an issue.(News)
Sep 03, 2007 ... Byline: Lisa Shidler CHICAGO - The seemingly endless quest for cost-effective alternative investments has increased the interest in collective trusts among employee benefit plan sponsors and financial advisers, though concern about transparency remains a hurdle. ...
Credibility of financial blogs is questionable; Line fuzzy between authoritative content and just chatter.(News)
Sep 03, 2007 ... Byline: Aaron Siegel NEW YORK - Investors surveyed by Spectrem Group admitted to reading at least one Internet blog to obtain financial information. According to an article in the August edition of Chicago-based Spectrem Group's monthly High Net Worth Advisor Insights ...
National Financial stengthens several alliances.(Product Watch)
Sep 03, 2007 ... National Financial Services LLC, along with parent company Fidelity Investments, both of Boston, has strengthened their alliance program with eight firms. They are Beacon Research, BenefitProtect, EverBank Advisor Services, Fixed Income Securities LP, Forefield Inc., NetWorth ...
Financial planners can recommend year-end tax plays.(Practice Management)
Sep 03, 2007 ... Byline: Paul McClatchy Labor Day is an adviser's equivalent to football's two-minute warning. It cues a final chance to execute year-end strategies. The fourth quarter presents an opportunity to recommend tactical moves that better position the client at tax time and for the ...
Fund firms beef up alternative offerings; Meanwhile, advisers remain skeptical of funds that employ hedgelike strategies.(News)
Sep 03, 2007 ... Byline: David Hoffman PHILADELPHIA - Despite concerns from financial advisers, more mainstream mutual fund companies are spicing up their fund lineups with products that employ strategies long used by hedge funds. The Vanguard Group Inc. of Malvern, Pa., last month ...
Calendar.
Sep 03, 2007 ... September 5 - Mortgage-Backed Securities: An Introduction to Securitization and Processing, Global Investment Operations. Bayard's New York. (866)326-6788 or gioperations.com. 5-7 - Advanced Pension Conference, SunGard Corbel Inc. Marriott Chicago Downtown ...
Cycling for a cancer cure.(Short Interests)
Sep 03, 2007 ... Byline: Aaron Siegel NEW YORK - A huge financial advisory firm in New Jersey is asking clients and associates to crank their pedals in support of two cancer foundations. RegentAtlantic Capital LLC in Chatham, N.J., is sponsoring riders for the second annual Carpe ...
Advisers key in IRA rollovers; 67% of individuals who moved assets had help from a pro, study shows.(News)
Sep 03, 2007 ... Byline: Lisa Shidler CHICAGO - Financial advisers play a big role in directing individual retirement account rollovers. Fully 67% of individuals who completed a rollover during the two-year period through April did so with the help of a professional adviser, ...
FINRA urged to cut industry ties for arbitrators; Critics are calling for `zero tolerance' on public panelists.(News)
Sep 03, 2007 ... Byline: Dan Jamieson IRVINE, Calif. - Critics of the industry arbitration system want the Financial Industry Regulatory Authority to require that "public'' arbitrators have no ties to the industry. In a rule awaiting approval at the Securities and Exchange ...
Opinion poll.
Sep 03, 2007 ... Previously, we asked you: Would investors ultimately benefit from a merger between TD Ameritrade Holding Corp. and E*Trade Financial Corp.? Yes: 36.9% No: 63.1% Respondents: 149 This week's question is: Do you support ...
Appetite for CDOs, other risky debt, up; Despite jittery markets, investor interest remains.(News)
Sep 03, 2007 ... Byline: Charles Paikert NEW YORK - Recent market volatility is unlikely to curb investors' appetite for collateralized debt obligations and other complex securitized-debt products despite the risks, wealth management executives said. In fact, demand from ...
Credit crisis sours securities industry outlook; Retail business expected to weather the storm, however.(Broker-Dealers)
Sep 03, 2007 ... Byline: Dan Jamieson IRVINE, Calif. - Credit market turmoil has soured the outlook for the securities industry through next year. The fallout from the subprime-mortgage mess continues to roil much of Wall Street's product origination and trading side. Late ...
Financial adviser gets a shot at wealth - on a game show.(Short Interests)
Sep 03, 2007 ... Byline: Davis D. Janowski NEW YORK - One financial adviser is about to enjoy his 15 minutes of television fame. Richard J. Krasney of Krasney Financial LLC will appear as a contestant on the CBS game show "Power of 10'' this week with his wife, Robin, who is a ...
Mad rush for the door seen as unlikely.(Reverse Spin)
Sep 03, 2007 ... Byline: Bruce Kelly Perhaps brokers and branch managers at wirehouse offices should have taken a good look around the office last Friday before leaving for the Labor Day weekend. Such long weekends traditionally give brokers a precious extra day to prepare to move ...
New fund eyes India's infrastructure, demographics; But caution urged with investments in single countries.(News)
Sep 03, 2007 ... Byline: Liz Skinner WASHINGTON - Investment opportunities in India are on the rise, as experts predict that the country's potential lies well beyond customer call centers. Greenwich (Conn.) Advisors LLC recently created an open-end fund that will invest in 25 to 40 ...
CEOs enthusiastic about emerging markets; But asset managers remain cautious.(News)
Sep 03, 2007 ... Byline: Darla Mercado NEW YORK - Chief executives are feeling more confident about expanding their companies' reach into emerging markets, but portfolio managers are still wary of investing in the sector. Some 61% of CEOs around the world view emerging markets as ripe ...
Workers want planning help from employers; 80% said they would use advice if it were offered as a benefit, survey says.(News)
Sep 03, 2007 ... Byline: Darla Mercado NEW YORK - Workers know they need financial planning, and they are looking at their employers to guide them to sound decisions, according to a study from Ameriprise Financial Inc. in Minneapolis. More than 80% of employees said that they would ...
Rich boomers banking on homes to fund retirement; Nearly 70% count homes as retirement asset, survey discovers.(News)
Sep 03, 2007 ... Byline: Aaron Siegel NEW YORK - Affluent baby boomers may be relying too heavily on their homes to fund their retirements, according to the results of a new survey. The survey, released last Monday by Bell Investment Advisors Inc. in Oakland, Calif., found that 68% ...
Evaluating leasing's strengths and weaknesses.(Practice Management)
Sep 03, 2007 ... Byline: Lewis J. Altfest Leasing often represents the alternative to making an investment in a non-financial asset. In many cases when the asset is essential, such as with a car or home, we can perform a buy-versus-lease analysis to determine which approach to take ....
Congress should cap fat-cat deferred-comp plans.(Monday Morning)
Sep 03, 2007 ... Byline: Jim Pavia A double standard exists in this country, and it needs to be addressed by members of Congress. It's called deferred compensation, and it's a term that actually means a highly paid corporate executive's retirement benefit plan. As ...
Big firms discover reverse mortgages; Long-simmering product catches on amid market chaos.(News)
Sep 03, 2007 ... Byline: Brooke Southall SAN FRANCISCO - After years of being heralded as the next big thing in banking, reverse mortgages have come into their own, morphing from a mom-and-pop industry to big business in just the last six months. Genworth Financial Inc. of Richmond, ...
Companies bowing to green pressure.(Short Interests)
Sep 03, 2007 ... Byline: Darla Mercado NEW YORK -Investors who want public corporations to act with greater environmental sensitivity should be pleased by the results of a survey from outsourcing consultant Brown & Wilson Group,. The Clearwater, Fla.-based group found that more than ...
Wachovia looks to calm skittish A.G. Edwards reps; Management impresses, but talent drain still expected.(News)
Sep 03, 2007 ... Byline: Dan Jamieson IRVINE, Calif. - Wachovia Securities LLC's whirlwind tour of brokers at A.G. Edwards & Sons Inc. has helped calm anxieties about the merger of the two firms, but it hasn't kept some representatives from abandoning ship. A 40-city tour by six Wachovia ...
Fund's strict limit poses challenge to subadvisers.(Street Wise)
Sep 03, 2007 ... Byline: Jeff Benjamin On the surface, a mutual fund such as SunAmerica Focused Value Portfolio (SAFVX) might seem rather concentrated with its strict limit of just 30 underlying stocks. However, dig down another layer to the three subadvisers each charged with ...
Closing quote.(Reverse Spin)
Sep 03, 2007 ... "Our strategy is to keep an eye on these managers like hawks, and if they screw up, fire them and replace them.'' -Harry ...
At the bell.
Sep 03, 2007 ... Bush offers subprime help President Bush pledged to help people with subprime mortgages keep their homes, while rejecting a federal bailout of lenders. He said Friday that he will "modernize and improve'' the Federal Housing Administration "by lowering down-payment ...
Lack of continuity plan may put advisers at risk.(Conference Call)
Sep 03, 2007 ... Byline: Davis D. Janowski NEW YORK - Business continuity management and planning were central themes of a presentation delivered at the third annual Gartner Financial Services Technology Summit here last week. Richard Hunter's presentation, "IT Risk: Turning Business ...
When to include a home as an investment.(Practice Management)
Sep 03, 2007 ... Byline: Lewis J. Altfest Including the house as an investment can be more involved than it looks. You can't receive its full cash value without selling it. Selling it involves moving out and perhaps renting another residence. A partial solution can be to ...
SEC appeals case against former Amex chief; Says judge's ban on sanction would lead to 'absurd' results.(News)
Sep 10, 2007 ... Byline: Dan Jamieson The Securities and Exchange Commission is appealing a ruling that prevents it from sanctioning former officials of self-regulatory organizations. In a case decided last month, an administrative law judge at the SEC said that the agency's ...
Large-cap, growth stocks pulling ahead of value; This time, the market shift feels like it is real.(Investment Insight)
Sep 10, 2007 ... Byline: Dan Jamieson Market strategists and advisers are closely watching the equity markets for what may be a fundamental shift in favor of large-cap and growth stocks. Year-to-date through Aug. 31, the Russell 1000 Growth Index had climbed 8.15%, trouncing the ...
Forget Leona Helmsley - farfetched wills abound; Advisers help clients rule from the afterlife.(News)
Sep 10, 2007 ... Byline: Lisa Shidler Despite widespread incred-ulity from the public about the weird details of hotel empress Leona Helmsley's will, some advisers know that bizarre bequests are not uncommon, having watched their own clients seek to rule their families from beyond the grave. ...
NFL veteran's financial strategy relies on rock band, real estate; Chiefs' Turley and his financial adviser aim to secure assets and generate income.(News)
Sep 10, 2007 ... Byline: Charles Paikert It's only nine in the morning on this late-July day, but Tom Ensign's white dress shirt is already blotted with dark circles of perspiration. Mr. Ensign, president and chief executive of Provest Management Group, is standing on a football field under a ...
Morningstar's stars shine after overhaul; Top-ranked funds outperform their peers over three years.(News)
Sep 10, 2007 ... Byline: Ilana Polyak For years, critics have slammed the Morningstar rating system for elevating faddish offerings while ignoring out-of-favor funds toiling away in difficult environments. But since Morningstar Inc., a Chicago investment research firm, overhauled its ...
Advocacy is not a spectator sport.(Viewpoint)
Sep 10, 2007 ... Byline: Dale E. Brown In recent years, much has been written about the importance of brands. Financial advisers, many of whom are independent contractors with broker-dealers, have been heavily targeted for marketing programs and strategies on how to build "the brand of you.'' If ...
Investing in Africa: Is now the time to jump in? Opportunities look enticing, but there are difficulties.(News)
Sep 10, 2007 ... Byline: Deborah Nason China's involvement with Africa has skyrocketed in recent years, and it is forcing U.S. investors to re-examine their views on the continent as an investment destination. China plans to build its trade with Africa to $100 billion by 2010, almost ...
The money trail; Advisers' average compensation 2003 to 2007.(Prime Numbers)
Sep 10, 2007 ... Although doling out financial advice may be a labor of love, the pay ain't bad. The average registered investment adviser will earn $132,834 this year in salary and bonus, up nearly 18% from ...
Volatile market sends many investors to ProShare ETFs; Trading volume on Aug. 15 exceeded 150 million shares.(News)
Sep 10, 2007 ... Byline: David Hoffman Recent market volatility has been good for ProShare Advisors LLC. The gyrations have drawn attention to its 52 exchange traded funds, all of which use leverage to provide short or magnified exposure to various indexes. One ETF that ...
Succession plan features a liquidity option.(Short Interests)
Sep 10, 2007 ... Byline: Jeff Benjamin Fiduciary Network LLC, which specializes in helping financial advisers transition their businesses to the next generation, has inked a deal with Brightworth LLC. The latest deal, Fiduciary Network's third since debuting in March, will give ...
IN Events.(Short Interests)
Sep 10, 2007 ... Sept. 18 Meet the Portfolio Manager Webcast Register to listen to our editors talk to leading portfolio managers about their outlook for the economy, stock selection criteria, favorite stocks and more. 4 p.m. to 4:45 p.m. ET Guest: Alex Motola, Thornburg Core Growth Fund ...
The week ahead.(Short Interests)(Calendar)
Sep 10, 2007 ... sept. 10 The Financial Planning Association's 2007 conference in Seattle continues today and tomorrow. The National Association of Insurance and Financial Advisors annual conference in Washington continues through Wednesday. sept. 11 Federal ...
Award finalists selected.(News)
Sep 10, 2007 ... The finalists for the InvestmentNews and Invest in Others Community Leadership Awards have been selected. They are as follows: * Community Leadership Award: JoLynn Free, SafePlace; Barry Glassman, The Brain Tumor Society; Michael J. Heck, St. Patrick Center; and ...
The pursuit of minority advisers; Diversity challenge doesn't have a black-and-white solution, some say.(News)
Sep 10, 2007 ... Byline: Charles Paikert On Saturday, all eyes at the Financial Planning Association's annual conference in Seattle were on keynote speaker Christopher Gardner, the financial adviser whose rags-to-riches story was celebrated in the 2006 hit movie "The Pursuit of Happyness,'' ...
Pending standards should streamline annuity processing; Advisers not sure that ease of use will increase sales.(Special Report: Insurance Products in Financial Pl)
Sep 10, 2007 ... Byline: Davis D. Janowski straight-through-processing initiative for variable annuities, which should streamline the process of selling a contract by creating an industrywide standard, is moving closer to reality. The project, spearheaded by Reston, Va.-based NAVA ...
To spur charitable giving, offer tax credits.(Short Interests)
Sep 10, 2007 ... Byline: Sara Hansard "Are the Rich Necessary?'' That is the title of a soon-to-be-published book by Hunter Lewis, co-founder and senior managing director of Cambridge Associates LLC of Boston. "There are lots of arguments on both sides I wanted to ...
The computer-driven advice model; The Pension Protection Act provides a good outline of the major components required.(Fiduciary Corner)
Sep 10, 2007 ... Byline: Donald B. Trone Over the past year, I have written extensively on provisions of the 2006 Pension Protection Act. Let's now focus on components of the PPA's computer-driven advice model. When Congress debated the various ways to provide investment advice to ...
Go Figure.(Prime Numbers)
Sep 10, 2007 ... $53.3T: Aggregate household net wealth as of 2006, of which $21.6 trillion was in relatively liquid or investible assets. Source: Moss Adams LLP $12,204: The annual discretionary spending available, if Social Security benefits were eliminated, to a 65-year-old couple ...
SAT scores predict manager performance.(Short Interests)
Sep 10, 2007 ... Byline: Darla Mercado Hedge fund investors may want to research a fund manager's alma mater before committing, according to a recently released study. Haitao Li, assistant professor of finance at the University of Michigan's Stephen M. Ross School of Business in Ann ...
Employers eye more palatable 401(k) proposal; New bill could give plans more flexibility in fee disclosure.(News)
Sep 10, 2007 ... Byline: Doug Halonen An industry-friendly 401(k) fee bill could be drafted soon in the House Ways and Means Committee to avoid some of the more-onerous provisions of an earlier bill. Lobbyists for employers allege that the first bill, introduced July 26 by Rep ....
High-octane INTECH quant strategy dinged by volatility; Despite some struggles, long-term track record has remained strong.(News)
Sep 10, 2007 ... Byline: Douglas Appell INTECH's large-cap quantitative growth equity strategy, long a high-performance engine for the firm, has been stumbling just as a spike in capital market volatility is raising broader questions about the robustness of quantitative strategies. A ...
NYSE Euronext turns on to tech; Starts creating, selling systems as trading biz flags.(News)
Sep 10, 2007 ... Byline: Aaron Elstein As floor traders clad in jackets and ties vanish from the New York Stock Exchange, they are being replaced by people like Sam Johnson, a technology whiz kid who goes about his business wearing jeans and cowboy boots. He is helping to lead NYSE ...
Rival cash manager may gain from Sentinel's woes; Horizon poised to gain customers from collapsed firm.(News)
Sep 10, 2007 ... Byline: Steven R. Strahler Diane Mix Birnberg, president of Chicago-based Horizon Cash Management LLC, didn't plan it this way. Starting out in 1971 as a brokerage firm secretary who couldn't type, the New Orleans native built a 36-year career that now has her ...