Investment News back issues from July 2008:
Muni experts tell investors to hang on to their bonds; Think long-term and hold them to maturity, they say.(News)
Jul 14, 2008 ... Byline: Darla Mercado Municipal bond experts are telling investors to hold on to their bonds despite a bubble that has emerged for top rated bonds. These securities are experiencing a bubble after a rally in May and a sell off in June, said Matt Fabian, a senior ...
IN events.(Short Interests)
Jul 14, 2008 ... July 15 Retirement INsight makes its debut InvestmentNews launches a retirement e-newsblast. The topic of this first issue is retirement income. Retirement INsight brings InvestmentNews to your desktop four times a year to help you assist clients with retirement ...
The week ahead.(Short Interests)(Calendar)
Jul 14, 2008 ... July 14 The Practising Law Institute's Private Equity Forum continues through tomorrow in New York. The American Institute of Certified Public Accountants' weeklong national tax education program begins in Champaign, Ill. July 15 The June ...
LETTERS.(Viewpoint)
Jul 14, 2008 ... Advisers should live up to fiduciary responsibility An article in the June 23 issue, "Schwab faces adviser discontent,'' which focused on the Schwab Yield Plus Fund, from The Charles Schwab Corp. of San Francisco, noted that at least some retail clients have received settlement ...
Site uses social networking to match students with lenders; GreenNote Network's debut is well-timed to help students caught in credit crunch.(News)
Jul 14, 2008 ... Byline: Charles Paikert As tuition bills begin to arrive in mailboxes of college-bound students this month, borrowing alternatives are emerging for parents and students caught in the credit crunch that has stifled the student loan market. One website launched last ...
'How are we doing?'; Just Thinking.(Viewpoint)(Conference notes)
Jul 14, 2008 ... Byline: Jim Pavia When walking around town, former New York Mayor Ed Koch often would ask constituents, "How am I doing?'' Taking a page from the mayor, I use industry events, including the recent Morningstar Investment Conference in Chicago, to ask our financial ...
Expand the Fed's role carefully; Editorial.(Viewpoint)(Editorial)
Jul 14, 2008 ... Federal Reserve Board Chairman Ben Bernanke's speech last Tuesday attracted the most attention for new mortgage lending rules, to be detailed this week, and for leaving the Fed's doors open to investment banks until next year. But perhaps the most far-reaching item in the speech ...
Distressed-debt opportunities appear on investment horizon; Top money managers believe rewards will outweigh risks.(News)
Jul 14, 2008 ... Byline: David Hoffman Distressed debt is about to have its day, according to some prominent investment managers. "A lot of money has been raised in anticipation'' of a bull market in distressed debt, said Martin Fridson, chief executive of Fridson Investment Advisors ...
State insurance regulators are angry about EIA proposal; Iowa commissioner Voss is set to meet with SEC Chairman Cox tomorrow.(News)
Jul 14, 2008 ... Byline: Sara Hansard State insurance regulators are displeased with the Securities and Exchange Commission and state securities regulators about a proposal that would regulate equity index annuities as securities rather than as insurance products, and one state insurance ...
Addressing women's unique concerns; Longevity and risk management are what advisers helping women should care about most.(Retirement Watch)
Jul 14, 2008 ... Byline: Anna Rappaport When it comes to retirement, women worry more than men. In its recent survey of pre-retirees, "Risks and Processes of Retirement,'' the Schaumburg, Ill.-based Society of Actuaries found that 62% of women expressed concern about the value of their ...
Space industry expected to take off; Satellites, military could prove to be the accelerants.(News)(Conference notes)
Jul 14, 2008 ... Byline: Andrew Coen Despite a slowing economy and some potential future funding obstacles, the space industry has nowhere to go but up, participants at a recent space industry conference said. Revenue from commercial satellites could take off in the very near future, ...
INVESTORS SEEKING NEW CHOICES; Economy puts pressure on advisers to offer non-traditional strategies.(Special Report: Alternative Investments)
Jul 14, 2008 ... Byline: Jeff Benjamin The pursuit of investment performance in an increasingly uncertain market is drawing more attention to alternative investment strategies, a situation that could place more pressure on financial advisers to step outside their traditional comfort zones. ...
KEN FISHER; One of the world's most successful money managers on investment philosophy, direct mail and why he considers himself a failure.(Newsmakers)
Jul 14, 2008 ... Byline: Charles Paikert It's hard to miss Ken Fisher. You've probably seen one of the ubiquitous full-page newspaper or magazine ads touting his investment firm ("Take our global- investing quiz. The answers may surprise you!'') Or caught an infomercial for Fisher Investments, ...
On a 401(k) mission.(Short Interests)
Jul 14, 2008 ... Byline: Andrew Coen In his 20 years of managing clients' 401(k) plans, Michael T. Scarborough has seen numerous examples of mistakes made by investors who don't allocate enough of their salaries to saving for retirement. Seeing investors waste the chance to build ...
Introducing clients to hedge funds; Don't ignore these alternative investments or define them too narrowly.(Investment Strategies)
Jul 14, 2008 ... Byline: Patrick O'Connor Many financial advisers are familiar with the asset allocation strategies and diversification benefits achieved by Harvard University of Cambridge, Mass., and Yale University of New Haven, Conn., through investing in hedge funds. Typically, ...
Are best practices enough? Following fiduciary standards would align interests of investors and advisers.(Fiduciary Corner)
Jul 14, 2008 ... Byline: Blaine F. Aikin In casual conversation about the troubled financial markets, the words "risk'' and "uncertainty'' often are treated as synonyms. But for the fiduciary, there must be no confusion about their very different meanings. Risk may be defined as ...
Prime Numbers.
Jul 14, 2008 ... Go figure -0.75%: The year-to-date return reported by the $1.9 trillion hedge fund industry through June 30. Sources: Hedge Fund Research Inc., Bloomberg $4.096: The average price of a gallon of unleaded regular gasoline July 11, down from a record $4.108 ...
Brookstreet is piling up arbitration losses; The failed independent broker-dealer's founder and president says he has no money.(News)
Jul 14, 2008 ... Byline: Bruce Kelly The legal fallout for the failed independent broker-dealer Brookstreet Securities Corp. is getting costlier, with the family behind the defunct firm getting tagged for damages in its latest arbitration loss. In May and June, Irvine, Calif.-based ...
Retail demand grows for alternative strategies; Financial advisers rely on absolute-return funds to reduce volatility.(News)
Jul 14, 2008 ... Byline: Sue Asci Watching institutional investors achieve big gains in alternative investments has whet retail demand for mutual funds that incorporate alternative strategies. This desire has fueled an interest in absolute-return funds, which have gained assets in ...
Unlocking the value of your business; Higher valuations have brought changes in the ways that practices are being sold.(Practice Management)
Jul 14, 2008 ... Byline: David Goad If you have operated a financial services firm for more than 15 years, you have seen significant change. Due to the great bull markets of the last decade, the average client is far wealthier than he or she was previously. Over that period, the typical ...
SIFMA wants higher settlement-reporting threshold; Seeks reporting bar of $25,000, up from $10,000.(News)
Jul 14, 2008 ... Byline: Dan Jamieson The Securities Industry and Financial Markets Association wants the Financial Industry Regulatory Authority Inc. to raise to $25,000 the threshold for reporting legal settlements with customers. That threshold is now $10,000. The Wall ...
China's Olympic glow is already fading; Equity boost for games in Beijing undone by market bubble.(News)
Jul 14, 2008 ... Byline: John D'Antona Jr. The Beijing Olympics start next month, but for the Chinese stock market, the event is nearly over. "The Olympics have provided a mild boost historically in terms of stock prices, and China was no exception,'' said John Chisholm, executive ...
Legg Mason outlook dims after money funds bailout; Analysts ponder state of other fixed-income management firms.(News)
Jul 14, 2008 ... Byline: Douglas Appell Legg Mason Inc.'s latest round of support for its money market funds has prompted analysts to push back their predictions for when the struggling giant might regain its footing, with some seeing the move as an ill omen for other fixed-income managers as ...
People.
Jul 14, 2008 ... The Securities and Exchange Commission has named Donald M. Hoerl, 63, acting director of its Denver regional office. He replaces George Curtis, who was appointed deputy director in the SEC's enforcement division. Mr. Hoerl was the associate regional director for ...
More investors act to sell ARPS at deep discounts; Online platform is helping to match buyers and sellers.(News)
Jul 14, 2008 ... Byline: David Hoffman More investors are looking to sell illiquid auction rate preferred securities issued by closed-end mutual funds even though in many cases, they must sell at hefty discounts. The Restricted Securities Trading Network, an online trading platform ...
Financial services firm smarting in ugly market; Pounding by rating agencies, credit crisis and mortgage-related losses makes raising capital rough.(News)
Jul 14, 2008 ... Byline: Bruce Kelly Financial services companies, from banks to broker-dealers, are facing dire straits as the credit crisis and mortgage-related losses force companies to seek fresh capital amid an ugly market, analysts said last week. Last Monday, analysts released ...
'Clouds' could rain savings on advisers; New off-site computing services promise greater flexibility, wider choices.(Tech Update)
Jul 14, 2008 ... Byline: Davis D. Janowski When it comes to helping clients, adviser Daniel Grossman of Acorn Financial LLC in Nashua, N.H., has his feet planted firmly on the ground. When it comes to computing, however, his head is moving into the clouds. Mr. Grossman is ...
Missouri enacts hot-button 529 tax parity law; Controversial policy creates tax benefits for participants in out-of-state plans.(News)
Jul 14, 2008 ... Byline: Charles Paikert Proponents of tax parity for 529 college savings plans won a hard-fought victory last week when Missouri became the fifth state in the country to offer tax benefits for out-of-state plans. The "Show-Me State'' joined Arizona, Kansas, Maine and ...
No sudden moves.(Short Interests)
Jul 14, 2008 ... Byline: Sue Asci While investors may want to make changes in the face of a volatile stock market, most financial advisers don't move assets around during challenging times. In a recent survey of 250 advisers, SEI Investments Co., an Oaks, Pa.-based asset management ...
Bear market tests skills of financial advisers; Top job is calming clients and preparing for more bad times.(News)
Jul 14, 2008 ... Byline: Aaron Siegel On the heels of the stock market's worst June performance since 1930 and the official start of a bear market, financial advisers are calming clients' nerves and preparing them for more bad news. "We're setting the expectation with our clients that ...
Retirees overestimate annual retirement savings payout; Nearly half in survey deem withdrawal rate of 10% reasonable.(News)
Jul 14, 2008 ... Byline: Andrew Coen Workers think they can pull far more money annually from their retirement savings than most financial advisers would recommend, according to a recent MetLife Mature Market Institute survey. Planners typically recommend no more than a 4% withdrawal ...
More environmental risk disclosures are urged; Petition asks SEC to seek transparency on firms' financial health.(News)
Jul 14, 2008 ... Byline: Sara Hansard More than 3,000 people have signed a petition urging the Securities and Exchange Commission to tighten requirements that call for companies to disclose risks they face from environmental issues. The petition is one of several efforts designed to ...
Women less aggressive than men in retirement saving; They are less likely to qualify for maximum matching.(News)
Jul 14, 2008 ... Byline: Lisa Shidler Women are less aggressive then men when it comes to saving for retirement, according to a new study. Released by Spectrem Group, a Chicago-based research and consulting firm, the survey showed that women defer less salary to their company ...
AARP Financial to expand retirement solution offerings; New boss plans to integrate funds with other products.(News)(Company overview)
Jul 14, 2008 ... Byline: Sue Asci Under new leadership, AARP Financial Inc., the financial services subsidiary of AARP, plans to expand its offerings of retirement solutions by the end of the year. "A real key to success over the long term is providing integrated solutions,'' said ...
Investors roll out the red carpet for pink-sheet stocks; Market cap of companies, trading volume are on rise.(News)
Jul 14, 2008 ... Byline: Jeff Benjamin Pink-sheet stocks, which represent thousands of public companies not listed on any U.S. stock exchange, are gaining appeal among some investors, thanks to increased efforts to hold the companies more accountable to shareholders. In a little more ...
Global funds try go-anywhere style; New style allows managers to take wider range of risks.(News)
Jul 14, 2008 ... Byline: David Hoffman They are the ultimate go-anywhere funds - global funds that can invest virtually anywhere, regardless of geography - and they are growing in number. Fifteen new "world stock'' funds were launched this year as of June 30, bringing to 178 the ...
Baird lands nine UBS and three Wells Fargo reps; Firm also hires recruiter for California, Nevada.(News)
Jul 14, 2008 ... Byline: Dan Jamieson Like other regional firms, Robert W. Baird & Co. Inc. is benefiting from turmoil at larger competitors. Late last month, the Milwaukee-based firm grabbed nine brokers from UBS Financial Services Inc. of New York. The UBS group, ...
Advisers see new life for 403(b) market; Revamped rules could benefit current players.(News)
Jul 14, 2008 ... Byline: Lisa Shidler Financial advisers who specialize in 403(b) plans are optimistic ahead of regulations that go into effect Jan. 1 They think that the rules, which will make 403(b) plans more like 401(k) plans by requiring sponsors to maintain written plan ...
Public-sector workers are kings of the earning hill.(Short Interests)
Jul 14, 2008 ... Byline: Sara Hansard State and local government workers were paid 51.4% more in wages and benefits than private-sector employees during September 2007, the Employee Benefit Research Institute of Washington said in its June report. "Major reasons for the differences ...
Guidelines for ETF investing; For long-term success, establish a strategy and stick to it.(Adviser's Bookshelf)(Reprint)
Jul 14, 2008 ... Byline: Tom Lydon and John F. Wasik The increasing popularity of exchange traded funds has led advisers to seek new ways of incorporating ETFs in client portfolios. Adviser Tom Lydon and personal finance writer John Wasik's new book, "iMoney: Profitable ETF Strategies for Every ...
At the bell.
Jul 14, 2008 ... SIFMA blasts SEC order on data fees The Securities Industry and Financial Markets Association has filed a comment letter calling the Securities and Exchange Commission's proposed order on market data fees "fatally flawed.'' New York- and Washington-based SIFMA ...
New fund targets aggressive investors; Arrow Investment Advisors adds third portfolio to its quiver.(Street Wise)
Jul 14, 2008 ... Byline: Jeff Benjamin Halfway through its third year in business, Arrow Investment Advisors LLC has taken its most aggressive step yet with the launch of the Arrow DWA Tactical Fund (DWTFX). The fund, which was launched May 30, is the fledgling management firm's ...
ING Advisors Network bleeds registered reps; $12M in GDC walks from Multi-Financial; more exits rumored.(News)
Jul 14, 2008 ... Byline: Bruce Kelly One of the broker-dealers in the ING Advisors Network Inc. is on the brink of losing representatives and advisers who generate $21 million in fees and commissions to rival firms. Multi-Financial Securities Corp. of Denver this summer has seen the ...
LPL moves to address technology breach; Firm beefs up security in wake of latest snafu.(News)
Jul 14, 2008 ... Byline: Bruce Kelly In the wake of a security breach that affected more than 10,000 clients, LPL Financial has taken several steps to increase data protection. Last week, InvestmentNews reported that for the second time in less than a year, the Boston-based company ...
Correction.(Correction notice)
Jul 14, 2008 ... In 2008, rollover contributions to individual retirement accounts, largely from 401(k) plans, will total $301 billion, ...
To roll or not to roll; Advisers should help investors decide whether to move 401(k) money into an IRA.(Retirement Watch)
Jul 14, 2008 ... Byline: Dan McNamara and Mark Benson ***** Correction: In 2008, rollover contributions to individual retirement accounts, largely from 401(k) plans, will total $301 billion, according to Boston-based Cerulli Associates Inc. An incorrect figure was included in the ...
FDIC, community bankers urge investors not to panic.(News)
Jul 21, 2008 ... Byline: Janet Morrissey The Federal Deposit Insurance Corp. and the Independent Community Bankers of America are urging consumers not to panic following the recent collapse of IndyMac Bancorp Inc. "The banking system in this country remains on solid footing through ...
Compliance costs soar.(Short Interests)
Jul 21, 2008 ... Byline: Sara Hansard Compliance costs rose 65%from January 2007 through March 2008 for more than 400 investment advisory firms surveyed by four organizations involved in the advisory business. According to the 2008 Investment Management Compliance Testing Survey, 30% ...
Advisers blast hedge funds for poor communications; A stunning 95.7% say the funds just don't understand their business needs, report finds.(News)
Jul 21, 2008 ... Byline: Charles Paikert Although financial advisers are the key drivers in the generation of hedge fund sales, it appears the hedge fund industry and advisers aren't connecting as well as they might, according to a new study. Financial advisers were the most important ...
Some smaller plan sponsors feel neglected by providers; Large fry say they are more satisfied with the relationships.(News)
Jul 21, 2008 ... Byline: Lisa Shidler While three-quarters of plan sponsors of all sizes are satisfied with their provider's performance in terms of relationship management, smaller plan sponsors are less satisfied than are larger employers, according to a recent report from Chicago-based ...
Advisers can help plan for day-to-day special-needs expenses; Balancing care costs and retirement savings is a struggle for clients.(News)
Jul 21, 2008 ... Byline: Darla Mercado Though some advisers are familiar with establishing special-needs trusts for future expenses, they may be less familiar with ways to deal with day-to-day costs related to treatment that can take a bite out of retirement and college savings. A ...
New website offers model ETF portfolios; Critic calls it a sales vehicle for tool's creator.(News)
Jul 21, 2008 ... Byline: Aaron Siegel In addition to being a money manager, financial adviser and professor, J. Andre Weisbrod is now looking to add the title of ETF expert to his CV. Mr. Weisbrod, president of Weisbrod Financial Services Inc. and Staar Financial Advisors Inc. of ...
New Kid reaches out.(Short Interests)
Jul 21, 2008 ... Byline: Darla Mercado In September, actor and former New Kids on the Block frontman Donnie Wahlberg will add another title to his resume: national spokesman for the Life Foundation's annual Life Insurance Awareness Month. The Arlington, Va.-based Life and Health ...
Tiger 21 and IPI cultivate wealthy - for profit; Rival networking groups offer cachet and community.(News)
Jul 21, 2008 ... Byline: Charles Paikert How's this for a business model: invite really, really rich people to join an exclusive club, charge them not inconsiderable fees, and encourage them to share concerns and investment ideas. That is the concept behind the peer-to-peer networking ...
Advisers weathering bear market so far; Many have yet to react to a terrible decade for stocks.(News)
Jul 21, 2008 ... Byline: Dan Jamieson Although this decade could turn out to be the worst such period for stocks in modern history, advisers don't yet seem to be feeling the full effect. Some bearish observers think too many advisers are blissfully unaware of the dangers of the ...
What do you want them to say about you? How to create an effective brand strategy - decide what's important to clients and put it first.(Marketing Strategies)
Jul 21, 2008 ... Byline: Libby Dubick True story: About six months ago an adviser wrote and told me his firm had a "branding'' problem. The firm had the same name as a well-known mutual fund company and as long as the mutual fund company had done well, his firm was happy to coast on their ...
Agents flock to referral firm for mortgages.(News)
Jul 21, 2008 ... Byline: Darla Mercado Despite the tarnished reputation of the reverse mortgage, a mortgage referral service says that it can help independent insurance agents act as a conduit for the loans, collect a plum commission - and do so legitimately. The concept, however, is ...
Innovative companies offer ways to squeeze cash from homes; Programs allow 'house-rich' investors to generate an income.(News)
Jul 21, 2008 ... Byline: Janet Morrissey When Thomas Terrill was diagnosed with a deadly lung disease in June 2001 and was told he had less than five years to live, he was stunned. "I had been in wonderful health,'' the Kenilworth, Ill., resident said. So Mr. Terrill quit his job, ...
At the bell.
Jul 21, 2008 ... NASAA seeks comment on adviser model rules The North American Securities Administrators Association Inc. of Washington called for public comments Friday through Aug. 8 on a proposed set of investment adviser model rules. The proposal contains changes on qualification ...
Fund industry lobs proxy counterpunch; ICI says critics have their own agenda and ignore funds' votes cast against management.(News)
Jul 21, 2008 ... Byline: Sara Hansard Stung by media and union criticism that their proxy votes are in the pockets of corporate management, the mutual fund industry is fighting back. "Funds are not approaching these issues monolithically,'' Investment Company Institute president and ...
If only the boss had said something; Many boomers would stay on the job if given incentives, study shows.(News)
Jul 21, 2008 ... Byline: Andrew Coen Many baby boomers who are considering retirement might decide to work a few more years if employers offered incentives a few years prior to the boomers' departure, according to a recently released Employee Benefit Research Institute survey. Nearly ...
A cure for our ailing health care system; Just Thinking.(Viewpoint)
Jul 21, 2008 ... Byline: Jim Pavia Ask your clients what keeps them awake at night, and I bet many will say the skyrocketing cost of health care. That is why the first order of business for the next president of the United States is to fix the health care system. We are ...
SEC's rumor probe will lead nowhere.(Viewpoint)
Jul 21, 2008 ... After weeks of slumbering on the sidelines, Christopher Cox and the Securities and Exchange Commission have become engaged in the financial crisis that has swept the markets. Belatedly, the SEC has begun to investigate whether malicious rumors were deliberately used by ...
Wealth tilt helps banks.(Short Interests)
Jul 21, 2008 ... Byline: Charles Paikert It hasn't been the best year for banks, to put it mildly, but those with a wealth management orientation were profitable in the past two years, according to a new study. According to "Who's Who in Bank Wealth Management,'' which was released ...
Infrastructure is real estate's latest hot spot; Investors are parking their cash in bridges and toll roads.(News)
Jul 21, 2008 ... Byline: Janet Morrissey A growing number of investors are looking beyond conventional office buildings and shopping malls, and parking their cash in the infrastructure that surrounds them - in particular, toll roads, bridges, electrical transmission lines, communication lines ...