Investment News back issues from April 2008:
Housing sector may soon bottom out; But prices expected to stay low for a few years.(News)
Apr 07, 2008 ... Byline: Janet Morrissey Speculation is growing among analysts and home-building executives that the battered housing industry finally may be approaching a bottom, at least in terms of inventory of both new and existing homes. It could be the first sign that the hemorrhaging in ...
Separate broker/adviser oversight, brokerage exec urges; Planners paid a fee should be considered investment advisers.(News)
Apr 07, 2008 ... Byline: Sara Hansard Brokerage firms and investment advisory firms perform very different functions, and the regulation of them should be kept separate, a Morgan Stanley executive said at a conference last week. "There are very big differences ... between what you can ...
States blast Treasury plan; 'Blueprint' diminishes their authority in some cases.(News)
Apr 07, 2008 ... Byline: Dan Jamieson State regulators reacted negatively to the Department of the Treasury's "blueprint'' for financial restructuring. It appears to eliminate much of state enforcers' ability to pursue violations of federal securities laws and state conduct rules. ...
How fees can trigger stealth taxes; Tax rules treat investment fees in a variety of ways, which might affect portfolios.(The Tax-Conscious Adviser)
Apr 07, 2008 ... Byline: Robert N. Gordon Since the tax laws are so complex, and often inconsistent, it's no wonder that the tax treatment of investment management fees varies widely. Consider investment management fees paid by a trust. The Supreme Court recently ruled that these ...
Wells Fargo, Sanctuary target wealthy in Bay Area; Growing families necessitate more complex planning, the firms contend.(News)
Apr 07, 2008 ... Byline: Charles Paikert New approaches to serving the increasingly complex needs of wealthy families were unveiled last week by two San Francisco-based companies, Wells Fargo & Co. and Sanctuary Wealth LLC. Wells Fargo & Co., which began as a San Francisco bank in ...
At the bell.
Apr 07, 2008 ... Dodd: Housing bill will target economic crisis A new compromise Senate housing bill will "deal directly with the epicenter of the economic crisis, which is the housing crisis,'' Senate Banking Committee Chairman Christopher Dodd, D-Conn., said Friday. UBS unveils its ...
IN events.(Short Interests)
Apr 07, 2008 ... April 22 Webcast: Transitioning to Retirement Income - How to Successfully Bridge the Gap from Accumulation to Income This program has been accepted by the CFP Board for one continuing-education credit. Panelists: John Ameriks, Brant M. Keller and Phil Lubinski ...
LETTERS.(Viewpoint)
Apr 07, 2008 ... Reverse-mortgage warning is incomplete, inaccurate Regarding the story in the March 17 issue, "More to reverse mortgage warning?'' there are at least three aspects of this warning that are incomplete or inaccurate. First, the Financial Industry Regulatory Authority ...
A poke from a piggy.(Short Interests)
Apr 07, 2008 ... Byline: Janet Morrissey This little piggy went to market. This little piggy went to a rally last Thursday in Los Angeles to protest tax breaks for home builders. The "piggies'' - a group of costumed protesters - demonstrated outside home builder KB Home's annual ...
Weak U.S. dollar boosts prospects for lodging industry; Battered currency seen luring tourists, enticing investors.(News)
Apr 07, 2008 ... Byline: Janet Morrissey The weak American dollar - an object of hate and fear in the broader U.S. market - is being hailed as a godsend within the lodging industry during these tough economic times. Indeed, the battered currency is expected to help lure foreign ...
The week ahead.(Short Interests)(Calendar)
Apr 07, 2008 ... April 7 The Asian Development Bank will hold its 2008 Asian development teleconference from 2 p.m. to 2:40 p.m. ET. Consumer credit data for February will be released at 3 p.m. ET. April 8 The National Association of Realtors will release its ...
Study urges adult children to talk with their parents about finances; The 40-70 Rule campaign seeks to educate public, involve advisers.(News)
Apr 07, 2008 ... Byline: Andrew Coen Discussing finances with a parent can be challenging for adult children, but financial advisers can help start the difficult but necessary dialogue, according to a new survey. Nearly a quarter of the 1,000 respondents to the survey said that they ...
States lift restrictions on spending by endowments; Michigan, Vermont, Kentucky among those weighing looser restrictions.(News)
Apr 07, 2008 ... Byline: Sue Asci With the stock market in turmoil, a growing number of states are loosening restrictions that prohibit charities and other non-profit groups from spending money from endowment funds that have dropped in value. Most states limit or prohibit non-profits ...
Henderson fund aims for concentration; International portfolio's assets double, reflecting strong interest from U.S. investors.(Street Wise)
Apr 07, 2008 ... Byline: Jeff Benjamin Having watched the as- sets under management in the Henderson International Opportunities Fund (HFOAX) double to $3.9 billion over the past year, manager Iain Clark is satisfied that the portfolio was positioned in advance to handle the flood of inflows. ...
... and a winning piggy bank.(Short Interests)
Apr 07, 2008 ... Byline: Andrew Coen If he has learned anything from the contest he won, Harrison Noh of Bloomfield Hills, Mich., probably socked away his prize: a $500 savings bond. The eighth-grader is the 2008 winner of the annual financial literacy poster contest sponsored by the ...
Regulatory reorganization won't fix incompetence issue; 'Blueprint' doesn't take action to challenge the major industry players.(News Analysis)
Apr 07, 2008 ... Byline: Dan Jamieson The Department of the Treasury's "blueprint'' for a new regulatory structure isn't a fix for the credit crisis. The problem isn't lack of coordination among multiple regulators, observers say, but an unwillingness by the regulatory establishment ...
Reform should focus on country's needs; Editorial.(Viewpoint)(Editorial)
Apr 07, 2008 ... Judging by the heated reaction of members of Congress, Wall Street, the insurance industry, the savings-and-loan and regional-bank industries, etc., Treasury Secretary Henry Paulson's plan to revamp the nation's financial regulation is pretty good. According to The New York ...
'New-product czar' needed, SEC commissioner says; But it could turn out to be just another silo, critics counter.(News)
Apr 07, 2008 ... Byline: David Hoffman SEC commissioner Paul S. Atkins is continuing his campaign for a "new-product czar'' to shepherd products through the agency's Byzantine approval process. That czar would be responsible for overseeing the new-product-approval process within the ...
Prime numbers.
Apr 07, 2008 ... Go figure 56%: The percentage of paper consumed in the United States during 2007 that was recovered for recycling. More than 54 million tons were recovered in all. Source: American Forest and Paper Association 108,287: The number of reverse mortgages ...
Niche campaign begins.(Short Interests)
Apr 07, 2008 ... Byline: Lisa Shidler The Human Rights Campaign is launching a national campaign to address the unique financial issues that same-sex couples face. The campaign, titled "7 Days to a Better Financial You,'' which starts today and goes through April 15, seeks to educate ...
Hedge funds grew 14.5% in 2007; But the quality of the information is questionable, some say.(News)
Apr 07, 2008 ... Byline: Jeff Benjamin Despite the recent turmoil throughout the financial markets, the hedge fund industry appears to be alive and well, according to the latest calculations showing that the number of funds grew by 14.5% last year, but some say the data may be suspect. ...
Small life settlements trouble regulators; Customers could end up worse off after a transaction, some fear.(News)
Apr 07, 2008 ... Byline: Darla Mercado Regulators and attorneys are worried that the expansion of the life settlement business into the world of small life insurance policies could harm some policyholders. Life settlement customers could end up both cash-poor and coverage-poor if ...
Ad spending by fund firms drops - again; 2007 marks second year of declines, with a 10% cut.(News)
Apr 07, 2008 ... Byline: Sue Asci Mutual fund companies, smarting from a dismal stock market environment, cut their fund advertising spending by nearly 10% last year, marking a second consecutive year of shrinking ad budgets. Overall, fund companies spent $253.8 million to tout their ...
Advisers gear up to battle Treasury; They oppose its plan for Finra to regulate firms.(News)
Apr 07, 2008 ... Byline: Sara Hansard The financial advice industry's leading trade groups are preparing a counterattack on the Treasury Department's proposal to have investment advisers regulated by the Financial Industry Regulatory Authority Inc. "We certainly are going to fight ...
CASH FLOW IS KING IN EVALUATING A PRACTICE; Slower economy, market may dampen demand for advisory firms.(Round Table: Succession)
Apr 07, 2008 ... Byline: Charles Paikert he traditional rule of thumb for valuating financial advisory firms may be about as useful as a butcher's thumb on a scale, panelists at an InvestmentNews round table on succession planning contended last month. "I want to make emphatically ...
ICI pushes for a global mutual fund model; Tax structure overhaul needed if U.S. funds are to compete, group says.(News)
Apr 07, 2008 ... Byline: David Hoffman If U.S. mutual funds are going to compete effectively in the international marketplace, a new global fund model needs to be created, according to the fund industry's leading trade group. U.S.-registered funds based on that model should be taxed ...
Grooming a successor, with or without help; B-Ds ramp up assistance; some advisers take college route.(Round Table: Succession)
Apr 07, 2008 ... Byline: Andrew Coen With the oldest baby boomers eligible for Social Security benefits this year, retirement planning is at full force at advisory firms, leading many to pursue succession planning through a broker-dealer in order to pass on the practice to a capable leader. ...
Insite 2008 Pre-Conference Guide.(Advertising Supplement)
Apr 07, 2008 ... Welcome - 3 Agenda - 4 Keynote speakers - 10 Practice management trends - 12 ...
B-D execs take wait-and-see approach on Bear Stearns clearing unit; All eyes are on JPMorgan's level of commitment to business.(News)
Apr 07, 2008 ... Byline: Bruce Kelly ***** Correction: An article in the April 7 issue, "B-D execs take wait-and-see-approach on Bear Stearns clearing unit,'' incorrectly reported that First Allied Securities Inc. of San Diego clears through Bear Stearns Securities Corp., Pershing ...
Round-Table panelists.(Round Table: Succession)(Discussion)
Apr 07, 2008 ... From left to right: Vern Hayden, president of Hayden Wealth Management Group, Westport, Conn. Diane MacPhee, owner and president of DMac Consulting Services LLC, Manahawkin, N.J. Kristofor Behn, president and founder of Fieldstone Financial Management ...
Ways to value a practice have changed; To ensure the growth of the value of their firms, advisers require a well-thought-out plan.(Practice Management)
Apr 07, 2008 ... Byline: David Goad Too many financial advisers mistakenly rely on past notions of growth to measure the value of their businesses. The explosive equity market of the 1990s, which was interrupted by the technology bubble meltdown, was followed by a five-year bull ...
Latest version of eMoney 360 adds five modules; Release includes a new annuity income analysis tool.(Tech Update)
Apr 07, 2008 ... Byline: Davis D. Janowski The software vendor eMoney Advisor Inc. added five new modules to the latest version of eMoney 360, its suite of online financial planning tools. The vendor launched the new release, version 5.2, late last month. Previous versions ...
Corrections.(Correction notice)
Apr 07, 2008 ... In the March 24 article "Advisers focus more on health of insurance carriers,'' the ratings for Scottish Re Group Ltd. and Security Benefit Life Insurance Co. were incorrect. Standard & Poor's of New York had downgraded Scottish Re of Hamilton, Bermuda, to BB, from BB+, and cut ...
Round table transcript.(Round Table: Succession)(Company overview)
Apr 07, 2008 ... The following is an edited transcript of the round-table discussion. Mr. Paikert: Let's start with an overview of the succession market. Mr. Tibergien: It's important to distinguish between succession and sale. Succession planning really relates to the orderly ...
Closing quote.(Short Interests)
Apr 07, 2008 ... "When I had my stint with an advisory firm, my boss said, "There are two things you need: gray hair and hemorrhoids. The gray hair is to ...
Estate planning for elderly pays off; Strategy can help a firm retain a family's asset.(News)
Apr 14, 2008 ... Byline: Darla Mercado Providing estate planning for elderly clients can be a profitable venture for financial advisers as long as they are willing to play the role of family mediator, some advisers say. Although baby boomers overshadow their elderly parents on ...
Value-at-risk models can be misunderstood; At large.(Viewpoint)
Apr 14, 2008 ... Byline: Michael Clowes I learned recently that I have an incorrect understanding of value-at-risk models, which many banks and Wall Street firms use to measure how much risk they are taking. And I suspect my misunderstanding was shared by E. Stanley O'Neal, the ...
Despite uncertainty, boomers think big for retirement; 93% plan to travel, eat out once they reach age 70, survey says.(News)
Apr 14, 2008 ... Byline: Lisa Shidler Despite being unsure about whether they have saved enough, baby boomers are planning to pursue a multitude of hobbies during their retirement years. An online survey of 1,100 people 43 to 62 found that 45% were not happy with the amount of money ...
Brokers who filed complaint face uphill fight; National Financial not to blame for issues with CMOs, some say.(News)
Apr 14, 2008 ... Byline: Bruce Kelly The five registered representatives who filed a $36 million arbitration claim against National Financial Services LLC, a giant in the clearing industry and business unit of Fidelity Investments, face a daunting task to win their claim, according to industry ...
GunnAllen and former executive claim victory in arbitration ruling; David McCoy, firm say decision vindicates 2005 dismissal.(News)
Apr 14, 2008 ... Byline: Bruce Kelly Both GunnAllen Financial Inc. and a former top executive are claiming victory after a lengthy arbitration battle that focused on whether the independent broker- dealer had the right to fire David McCoy, its former chief operating officer and national sales ...
Economic downturn is hard on small businesses; Advisers work closely with entrepreneurs to weather the storm.(News)
Apr 14, 2008 ... Byline: Darla Mercado As the economy teeters into a recession and credit tightens, advisers are allaying the fears of their small-business clients. "There are different things you do for someone who is self-employed, versus someone who gets a regular paycheck,'' said ...
Mutual fund expenses held steady in '07; Cost of investing in funds may go up, say experts.(News)
Apr 14, 2008 ... Byline: Sue Asci The era of declining mutual fund expenses is over, and in fact, the cost of investing in a fund may soon be headed back up. The average asset-weighted expense ratio for investors in mutual funds last year was 0.9%, the same as it was in 2006, ...
Training uber managers.(Short Interests)
Apr 14, 2008 ... Byline: Aaron Siegel The CFA Institute and the University of Pennsylvania's Wharton School of Business have partnered to launch "Wealth Management in Practice,'' a program to help financial advisers manage the portfolios of clients with more than $10 million in assets. ...
IN events.(Short Interests)
Apr 14, 2008 ... April 22 Webcast: Transitioning to Retirement Income - How to Successfully Bridge the Gap from Accumulation to Income This program has been accepted by the CFP Board for one continuing-education credit. Panelists: John Ameriks, Brant M. Keller and Phil Lubinski Moderators: Evan ...
The week ahead.(Short Interests)(Calendar)
Apr 14, 2008 ... April 14 Retail sales figures for March will be released at 8:30 a.m. ET. Business inventories data for February are slated for release at 10 a.m. ET. April 15 The producer price index for March is due out at 8:30 a.m. ET. The ...
At the bell.
Apr 14, 2008 ... Import prices spike in March Fueled by a drastic jump of 9.1% in petroleum import costs, the price of imports increased 2.8% last month, according to the Department of Commerce. The bump in prices follows a more modest 0.2% increase in the cost of all imports in ...
Barclays ads tout iShares - and advisers - to investors; Some wonder whether expensive campaign will 'push the needle' of awareness.(News)
Apr 14, 2008 ... Byline: Brooke Southall Responding to advisers who complain that the iShares brand means little to their clients, Barclays Global Investors is modifying its marketing. In addition to promotional efforts aimed at advisers, the San Francisco-based investment firm has ...
Firms bolster efforts to combat identity theft; Schwab, TD implement new technology plans to foil the bad guys.(News)
Apr 14, 2008 ... Byline: Brooke Southall As identity theft continues to wreak havoc on the American public, including those in the financial services industry, firms are rushing to patch up holes in their online defenses with the newest software and processes. Last year, there were ...
Sentinel launches two do-good mutual funds; Vermont firm revamping lineup after acquisition of Citizens Funds.(News)
Apr 14, 2008 ... Byline: Sue Asci Expanding into what some industry observers see as a significant growth area, Sentinel Asset Management Inc. last week launched two funds focused on socially conscious investing. The funds mark the 75-year-old Montpelier, Vt., firm's first foray into ...
Shareholders look to keep heat on executive pay.(Viewpoint)
Apr 14, 2008 ... This year's proxy season could be a pivotal one in the battle for improved corporate governance. More than 90 companies face resolutions demanding that shareholders be given a "say on pay.'' That is, shareholders aredemanding the right to speak out on the pay packages of top ...
Deadline on taxes a greater menace for many advisers; Number of investors seeking extensions could be a record.(News)
Apr 14, 2008 ... Byline: Brooke Southall The April 15 tax deadline is looming with greater menace this year for financial advisers, accountants and their clients. Mutual fund investors are expected to owe a record-breaking $33.8 billion in taxes on capital gains distributions in 2007, ...
Wealthy embrace online donations; More than half of donors prefer to give online, survey finds.(News)
Apr 14, 2008 ... Byline: Sue Asci Wealthy donors are more likely than ever to make a charitable donation of $1,000 or more online. In fact, in a recent survey of 3,443 affluent donors, 51% said they preferred to give online and 46% said they would increase the amount of money they ...
LETTERS.(Viewpoint)
Apr 14, 2008 ... Plan sponsors have a fiduciary responsibility Well done on "Plan producers shy away from fiduciary insurance,'' an excellent, timely article in the March 24 issue. Plan sponsors had better get the message that they have a distinct fiduciary responsibility. Yes, they ...
BofA stresses philanthropy in managing wealth; Charitable giving is designed to support high-end clients.(News)
Apr 14, 2008 ... Byline: Charles Paikert Helping wealthy clients do good, as Bank of America Corp. sees it, is also a good way to do business with wealthy clients. "Philanthropy has become an integral part of the wealth experience,'' said Claire Costello, who joined the bank late ...
Consumers increasingly take loans from retirement plans; Fidelity Great-West, Merrill and T. Rowe report the same trend.(News)
Apr 14, 2008 ... Byline: Sue Asci With the economy deteriorating and prices for gas and heating fuel skyrocketing, consumers who are seeking new sources of cash are increasingly jeopardizing their retirement income by taking out loans from their retirement plans. The number of such ...
With candidates behind estate tax, chance of repeal seen as unlikely; McCain would would cut rates; Clinton, Obama would freeze them.(News)
Apr 14, 2008 ... Byline: Sara Hansard Estate tax reform is within reach, but efforts to repeal it appear dead. All three presidential candidates support the estate tax, but the changes they are proposing divide them along party lines. Currently, the exemption is $2 million ...
Mutual fund seeks diversification through ETFs; Young fund aims to be alternative to traditional asset allocation models.(Street Wise)
Apr 14, 2008 ... Byline: Jeff Benjamin The original thinking behind the development of the SmartGrowth ETF Lipper Optimal Growth Index Fund (LPGAX) was to create a viable alternative to traditional asset allocation models. In practice, however, the fund has emerged as a viable ...
Tax-managed funds pique investor interest; Despite lure of stiffing IRS, election keeps them in limbo.(News)
Apr 14, 2008 ... Byline: Sue Asci Tomorrow is the deadline for filing income taxes, but investors are already thinking about ways to pay less next year - driving more to consider tax-managed mutual funds. If it looks as if taxes are going up, the advantage of tax-managed funds will ...
Real estate moguls see opportunity in distressed debt; But purchasing private real estate is not attractive to them.(News)
Apr 14, 2008 ... Byline: Janet Morrissey Several of the country's biggest real estate moguls see opportunity in distressed debt, not bricks and mortar, in the current economic crisis and credit turmoil. They expressed those views during the New York University Real Estate Institute's ...
Paulson's plan forgot the investors; Amid all the talk of regulatory reform, there is scant mention of fiduciary duty.(Fiduciary Corner)
Apr 14, 2008 ... Byline: Blaine F. Aikin On March 31, Treasury Secretary Henry Paulson released the Treasury's "Blueprint for a Modernized Financial Regulatory Structure.'' The report was prepared over the course of the past year and isn't some hastily drafted response to the credit ...
ETNs are enjoying steady growth; Exchange traded notes pose threat to ETFs, mutual funds.(News)
Apr 14, 2008 ... Byline: David Hoffman As more companies begin to offer exchange traded notes, it's beginning to look like the small but growing ETN universe could one day be a competitor to mutual funds and exchange traded funds. "ETNs are definitely a threat,'' said Jeff Ptak, ...
Bush regulatory proposal a milestone; Other voices.(Viewpoint)
Apr 14, 2008 ... Byline: Christopher L. Davis The release of the Bush administration's comprehensive streamlining plans for regulation of our nation's financial services industry is a milestone event in almost 100 years of gradual but crucially important regulatory reform. As someone ...
Seeking new blood.(Short Interests)
Apr 14, 2008 ... Byline: Darla Mercado If you are looking for a new career as a MassMutual insurance agent, the opportunity could just be a few mouse clicks away. Massachusetts Mutual Life Insurance Co. of Springfield, Mass., has unveiled a new website to recruit fresh talent. ...
It's not just keeping up with inflation; For retirees, the chief concern is maintaining their standard of living.(Retirement Watch)
Apr 14, 2008 ... Byline: David Kelly For those heading toward retirement, the latest inflation numbers should be mildly reassuring. Consumer prices were flat in February. And while they rose 4.1% year-over-year overall, they were up only 2.3% if food and energy are excluded. Since ...
Advisers skeptical about screening companies for terrorist links; New indexes, ETFs will move concept into the retail sphere.(News)
Apr 14, 2008 ... Byline: Andrew Coen Screening companies for their ties to countries deemed sponsors of terror is a concept that seems to intrigue investors. But whether a company's ranking on a "terror-free'' scale will influence an individual investor's portfolio decision-making is another ...