Investment News back issues from June 2009:
DWS slashes charges on a slate of funds, lowers break points; Move is intended to lure jittery investors back into the market.
Jun 01, 2009 ... Byline: Mark Bruno DWS Investments is lowering sales charges and break points on some of its mutual funds, a move that could foreshadow industrywide price cutting to attract disillusioned investors, according to observers. "Loads could easily go the way of the dodo,'' ...
Hope is not a business strategy; Instead, financial advisers should look to trim costs and switch to variable compensation.
Jun 01, 2009 ... Byline: M. Rush Benton I hope that the market goes up this year. In fact, I hope it goes up a lot, and quickly too, because the sooner it goes up, the higher our revenue will be for the year. But even if the market were to rise 50% in the fourth quarter it wouldn't ...
Russell indexes to get a face-lift this month; Many financials are expected to move to growth from value.
Jun 01, 2009 ... Byline: David Hoffman Thanks to unprecedented market volatility, widely followed style indexes published by Russell Investments are expected to look substantially different at the end of the month when the firm's stock indexes are re-balanced. For example, many ...
Advisers tap into HSAs to fund long term care; Strategy offers certain tax benefits to older affluent clients.
Jun 01, 2009 ... Byline: Darla Mercado As retirement looms for baby boomers, financial advisers are finding additional uses for their clients' health savings accounts, including covering the cost of long term care insurance. HSAs, which allow users to stow away dollars and use them ...
Raymond James buys investment bank; Lane Berry could be "a nice fit' for the firm, one observer says.
Jun 01, 2009 ... Byline: Bruce Kelly Raymond James Financial Inc. has acquired a boutique investment bank to expand its reach in that business, following through on plans to scoop up acquisitions in the troubled market. The St. Petersburg, Fla.-based brokerage firm last Tuesday ...
Wealthier women sit in driver's seat; Financial advisers need to work with this client base, surveys suggest.
Jun 01, 2009 ... Byline: Charles Paikert Household financial decisions are being made increasingly by affluent women, creating opportunities for financial advisers, according to two industry surveys. "We are in the midst of a significant shift in the wealth paradigm,'' said Mindy ...
Insurance industry needs systemic-risk check.
Jun 01, 2009 ... Congress should pass, as quickly as possible, a bill to establish an Office of Insurance Information. Under the Insurance Information Act of 2009 sponsored by Rep. Paul Kanjorski, D.-Pa., and co-sponsored by seven other members of the House Financial Services Committee the ...
At the Bell.
Jun 01, 2009 ... Rodriguez slams government on crisis The U.S. government's response to the economic crisis has been "financially imprudent and irresponsible,'' Robert L. Rodriguez, chief executive of First Pacific Advisors LLC of Los Angeles, said Friday. The government's moves to ...
Active ETFs need time to catch on, some say; Transparency, structural limitations are roadblocks.
Jun 01, 2009 ... Byline: David Hoffman Actively managed exchange traded funds are finally starting to trickle into the market. But for the trickle to become a flood, active ETFs will have to overcome a number of obstacles, not the least of which is the establishment of desirable ...
IRS seeks business hardship changes to 401(k) rules; Agency would allow employers to suspend plan contributions.
Jun 01, 2009 ... Byline: Jerry Geisel Proposed IRS rules would allow employers that made automatic 401(k) plan contributions under a safe-harbor provision to suspend or reduce those contributions if they incurred a substantial business hardship. The proposal, which the Internal ...
AIG replacing CEO Liddy, to revamp board; New chief will face many challenges, observers say.
Jun 01, 2009 ... Byline: Judy Greenwald American International Group Inc. faces yet another challenge as it seeks someone to succeed Edward M. Liddy as chief executive of the embattled company. Finding the ideal candidate for that job may not be easy, analysts said. The new chief ...
SEC to propose major overhaul of money funds; Commission considers stricter disclosure, and control of institutional investors.
Jun 01, 2009 ... Byline: Sara Hansard The Securities and Exchange Commission is considering a list of regulations for money market funds that goes far beyond proposed reforms issued in March by the Investment Company Institute. The SEC, which is expected to issue its proposed rules ...
Mutual fund managers to advisers: Don't abandon underperforming funds; It isn't prudent to drop a fund based on just one or two bad years, they contend.
Jun 01, 2009 ... Byline: David Hoffman Fund managers, urging financial advisers not to pull client assets out of underperforming funds, painted 2008 as an anomaly at the Morningstar Investment Conference 2009 in Chicago last week. Last year was one of the most "extreme'' bear markets ...
OUTREACH PAYING OFF FOR INDEPENDENT FIRMS; Efforts result in new accounts, even though assets may be down.
Jun 01, 2009 ... Byline: Sue Asci Independent advisory firms have stepped up their outreach efforts, and the largest firms continue to open accounts even though their assets under management have dropped In fact 37 firms on InvestmentNews' list of the top 50 fee-only RIAs ranked by ...
Smith Barney charges broker breached a contract; Firm claims ex-rep improperly pursued clients he picked up.
Jun 01, 2009 ... Byline: Mark Bruno Smith Barney is not letting at least one of its brokers break away without a fight. The Citigroup Inc.-owned brokerage behemoth has hit a former adviser with litigation claiming that he improperly pursued clients and used confidential information ...
Festival of hearts.
Jun 01, 2009 ... Byline: Charles Paikert Baron Financial Group LLC has turned a family affair into an annual fundraiser to help disabled adults. This Saturday, the Fair Lawn, N.J.-based financial advisory firm is sponsoring the third annual Rock the Mountain Music and Arts Festival ...
College search net widens.
Jun 01, 2009 ... Byline: Charles Paikert The recession may have put a crimp in college savings plans, but it has actually heightened interest among parents and students in a greater variety of colleges, according to one industry observer. "Typically, we get requests for about four ...
Webcast panelists.(Discussion)
Jun 01, 2009 ... Kevin J. Hermening, CFP Principal Hermening Financial Group LLC Wausau, Wis. Glenn G. Kautt, CFP Chairman ...
M&A ACTIVITY FUELS ASSET GROWTH; Both small and large firms share benefits of teaming up.
Jun 01, 2009 ... Byline: Lisa Shidler For many big firms, the key to increasing discretionary assets has been mergers and acquisitions. Indeed, many of the firms on InvestmentNews' list of the 50 fee-only registered investment advisers whose discretionary assets have grown the most since the end ...
529 plans seen benefiting from expected fee cuts; Sales could get boost if fund firms lower upfront sales charges.
Jun 01, 2009 ... Byline: Charles Paikert The expected reduction in front-end sales charges by large mutual fund companies may help stimulate sagging sales for Section 529 college savings plans. "If they change the pricing for existing mutual funds, it would directly translate to ...
Will value stocks lead market out of recession? They have outperformed growth in early periods of economic expansion.
Jun 01, 2009 ... Byline: Dan Jamieson If past recessions are any guide, value stocks could emerge as the front-runners as the economy starts heading to a recovery. During the past four recessions, value clearly outperformed growth in the early periods of economic expansion, according ...
More advisers turn to technical analysis; Fundamental managers flounder amid downturn.
Jun 01, 2009 ... Byline: Dan Jamieson In the wake of the stock market downturn, more financial advisers are turning to technical analysis. "Every time a bear comes around, it's common for people to start focusing attention on technical analysis, because it's the only field of study ...
Two insurance bills face uphill battle in Senate; Insurance Information Act of 2009, NARAB II, would revamp the way agents are licensed and regulated.
Jun 01, 2009 ... Byline: Sara Hansard Two bills that would transform the way insurance agents are licensed and regulated are likely to face a difficult time in the Senate, according to insurance industry officials. One bill, the Insurance Information Act of 2009, would set up a ...
New balanced fund focuses on risk allocation; Invesco's creation challenges the thinking on balanced portfolios.
Jun 01, 2009 ... Byline: Jeff Benjamin As might have been expected, the extreme nature of the economic downturn continues to spawn ways for investors to navigate the financial markets. The latest iteration, which should draw considerable attention when it officially hits the street ...
Managers seek best bets amid dividend cuts; Pharmaceuticals, energy, some utilities look promising.
Jun 01, 2009 ... Byline: Jeff Benjamin In an era of unprecedented dividend cuts, money managers and financial advisers are stepping up their due diligence when searching for income. "You have to be careful about looking for unusually high dividends, because the higher the yield, the ...
Schapiro may retreat on push for third-party compliance audits; Custodian investment advisers still face surprise asset verification checkups.
Jun 01, 2009 ... Byline: Sue Asci In what may be a reprieve for advisory firms, Securities and Exchange Commission Chairman Mary Schapiro seems to have backed off from an idea that would require some advisory firms to face third-party compliance procedure audits. The concept wasn't ...
Under the microscope.
Jun 01, 2009 ... Byline: Davis D. Janowski Clients and potential clients now have a way to check up on you. AdvisorCheck (advisorbackgroundcheck.com), launched last month, is a free online service that allows consumers to investigate the professional background of financial advisers ....
Upcoming Events.(Calendar)
Jun 01, 2009 ... June 9 Webcast series: 50 cost-saving and money- making ideas in 50 minutes Leading experts on marketing, compliance, technology and practice management share their best suggestions for saving money and making money in today's challenging environment. No hype, no sales pitches ...
Broker-dealers' costs likely to rise if arbitration legislation passes; Senate's revised bill would end the mandate imposed by securities firms.
Jun 01, 2009 ... Byline: Bruce Kelly Broker-dealers may face higher costs connected with customer disputes if revised legislation that would do away with mandatory securities arbitration passes both houses of Congress and is signed into law. Litigating customer and broker complaints ...
Advisers opting for outsourced portfolio reporting; Cost savings, flexibility are becoming more attractive, they say.
Jun 01, 2009 ... Byline: Davis D. Janowski Sheila M. Chesney likes it when clients look at reports detailing how their portfolios have performed, and tell her that they really understand what they are looking at. "We want to be able to tell the story of how a client's portfolio has ...
ADVISERS GIVE SUGGESTIONS FOR THE POST-MADOFF ERA; Diligently following specific steps can provide relief.
Jun 01, 2009 ... The following edited transcript is from "Surviving an SEC audit after Madoff,'' an InvestmentNews webcast held May 19. Editor Jim Pavia and deputy editor Evan Cooper were the moderators. InvestmentNews: They say that there are three things that are givens in the investment ...
Affluent's economic fears lessening; Younger high-income individuals don't want to miss market turnaround.
Jun 01, 2009 ... Byline: Lisa Shidler While still worried about the economy, affluent individuals are becoming less anxious, according to a study by New York-based research firm Ipsos Mendelsohn. Conducted at the end of April, the online survey of 1,000 adults with at least $100,000 ...
Blackstone president sees an economic depression; But firm spots opportunities amid gloomy backdrop.
Jun 01, 2009 ... Byline: Jed Horowitz Several economic gurus have seized on the recent rebound in equities to offer a generally upbeat view on a broader recovery, waxing poetic about the emergence of "green shoots'' and their general feeling that a bottom in the U.S. economy may have been ...
Correction.(Correction notice)
Jun 01, 2009 ... In the May 24 article "Small advisory practices decline 20% in value,'' the assets under management reported for United Advisors didn't include two other subsidiary registered ...
FUNDING LTC INSURANCE ABSENT FROM CLIENTS' TO-DO LIST; Diminished portfolios, immediate cash needs come first, advisers say.(NEWS)
Jun 08, 2009 ... Byline: Darla Mercado ADVISERS ARE STRUGGLING to get clients especially baby boomers to think about funding long term care in the face of depleted investment portfolios. Planning to pay for health care needs in retirement has taken a back seat to replenishing ...
Junk bond funds' run is expected to hit wall soon; An expected jump in defaults worries some advisers.(NEWS)
Jun 08, 2009 ... Byline: David Hoffman The stellar returns that junk bond funds are generating are unsustainable and will come to an end, fund managers and financial advisers agree, but they disagree on when that will be. Year-to-date through last Monday, junk bond funds had risen ...
At the Bell.(NEWS)
Jun 08, 2009 ... BlackRock deal for BGI said near BlackRock Inc. may announce an agreement in the next few days to buy Barclays Global Investors, according to sources who asked not to be identified, sister publication Pensions & Investments reported Friday. Bob Diamond, BGI's ...
Carbon emissions likely to play big part in stock analysis; Proposed legislation would have widely varying effect on corporate earnings.(NEWS)
Jun 08, 2009 ... Byline: Jeff Benjamin With everything that is going on in Washington these days from efforts to appoint a Supreme Court justice to the perils of nukes in North Korea it is easy to overlook the potential economic impact of legislation aimed at saving the environment. ...
ADVISERS WEIGH THE VIABILITY OF PROVIDERS; Some express concern that products are improperly priced.(NEWS)
Jun 08, 2009 ... Byline: Darla Mercado MINDFUL OF PAST disasters with long term care insurers, financial advisers have found ways to balance financial viability with quality benefits. But they continue to be skeptical of whether carriers are indeed ready to face the onslaught of ...
Pershing's NetX360 promises integration; New platform consolidates firm's offerings for commission-based, fee-based advisory firms.(NEWS)
Jun 08, 2009 ... Byline: Davis D. Janowski All eyes are on Pershing LLC's new technology platform to see whether it will fulfill its promise to offer advisers full integration with third-party technology vendors. Called NetX360, the platform consolidates into a unified offering ...
Market-linked CDs bolster structured-products industry; FDIC insurance element is luring conservative investors.(NEWS)
Jun 08, 2009 ... Byline: Jeff Benjamin Certificates of deposit that link investment returns to stock market indexes are helping prop up the sagging structured-products industry. These bank-issued products sometimes called indexed CDs or market-linked CDs are gaining appeal among ...
Time for government to get out of the way of a recovery.(NEWS)
Jun 08, 2009 ... NOW THAT THE STOCK MARKET seems to be signaling that the recession has bottomed, perhaps the demagogic bashing of bankers, insurance executives, hedge fund managers, auto executives and even ordinary businesspeople will cease. Yes, the auto companies, some big banks and ...
Muni bills might help liquefy ARS market; Fiduciary duty for municipal advisers is also being debated.(NEWS)
Jun 08, 2009 ... Byline: Dan Jamieson The House Financial Services Committee is considering a package of legislation to tighten regulation of the municipal bond market. One bill, which would empower the Federal Reserve to act as the ultimate liquidity provider for variable-rate muni ...
Estate tax critics gird for fight over business valuations; American Family Business Institute to battle efforts to limit discounts on minority shares.(NEWS)
Jun 08, 2009 ... Byline: Sara Hansard Opponents of the estate tax are preparing to fight a push in Congress to require that minority-held interests in private companies be valued the same as majority-held interests for estate tax purposes. A proposal to limit discounts on minority ...
Fear's a factor as General Motors files; Advisers rush to prepare customers for the worst, including layoffs and reduced benefits.(NEWS)
Jun 08, 2009 ... Byline: Lisa Shidler Financial advisers who cater to workers in the automotive industry are scrambling to prepare their clients for the onslaught of job losses that will follow General Motors Corp.'s filing for bankruptcy protection last week. "All my clients who are ...
Rolling returns gather no moss, some fund managers contend; But looking at performance that way can hide many flaws, skeptics say.(NEWS)
Jun 08, 2009 ... Byline: David Hoffman Mutual fund managers weary of trying to spin negative trailing returns are suggesting that investors look at rolling returns, but those are often difficult to obtain and can be misleading, some say. One such manager is Christopher Davis of the ...
529s eye low-risk options for market-shy parents; Slew of plans mull adding bank products as assets decrease.(NEWS)
Jun 08, 2009 ... Byline: Charles Paikert Risk-averse parents saving for their children's college education are flocking to conservative, low-risk financial products, and Section 529 college savings plans are taking action as their assets decline. More than a dozen state 529 plans are ...
Incoming NAPFA head looks to keep advisers from growing up, out of group; William Baldwin will seek member input to improve service.(NEWS)
Jun 08, 2009 ... Byline: Sara Hansard Incoming NAPFA chairman William Baldwin is looking to find ways to keep firms involved in the 2,150-member organization once they get larger. "People have been growing up and out of the National Association of Personal Financial Advisors since it ...
PAN-ning for philanthropists' gold; New adviser groups eye networking with donors, like-minded peers.(NEWS)
Jun 08, 2009 ... Byline: Lisa Shidler Financial advisers across the country are creating networking organizations dubbed philanthropic advisers networks, or PANs, with the mission of helping advisers collaborate locally and also interact with philanthropists. The first organization, ...
Life settlement firms that hit skids could hurt policy sellers; JGW Holdco's bankruptcy filing points to problem for consumers and investors.(NEWS)
Jun 08, 2009 ... Byline: Darla Mercado A recent bankruptcy protection filing by a provider of life settlements raises concerns that consumers in the midst of selling a policy, as well as investors, may get a raw deal in this and similar situations. Last Monday, a Delaware bankruptcy ...
A planner's recipe for success.(NEWS)
Jun 08, 2009 ... Byline: Sue Asci Many financial decisions are made around the dinner table rather than a conference table, according to one financial planner and foodie who believes in presenting financial planning concepts in a more digestible way. That is why Methuen, Mass.-based ...
Administration explores "R bond' as option for retirement accounts; Automatic IRAs could rely on government bonds as default investments for employees.(NEWS)
Jun 08, 2009 ... Byline: Mark Bruno Officials in the Obama administration are moving quickly to develop the investment infrastructure behind the president's proposal for mandatory automatic enrollment in individual retirement accounts, which could be supported by the creation of Treasury-issued ...
Upcoming events.(NEWS)(Calendar)
Jun 08, 2009 ... June 9 Webcast series: 50 cost-saving and moneymaking ideas in 50 minutes Leading experts on marketing, compliance, technology and practice management share their best suggestions for saving money and making money in today's challenging environment. No hype, no sales pitches ...
Bye-bye buyouts; hello; Private-equity industry heavyweights shift their focus to the "rapidly evolving' asset class.(NEWS)
Jun 08, 2009 ... Byline: Arleen Jacobius Private-equity firms are turning to infrastructure investing now that the credit crisis and deepening recession have put their traditional leveraged-buyout businesses into suspended animation. Some of the biggest names in the private-equity ...
Move over, Nigerian scam.(NEWS)
Jun 08, 2009 ... Byline: Bruce Kelly Investment advisers are among the targets of a continuing "advance fee scam that involves bogus promises of work from the Dubai International Finance Center in exchange for a fee. "This is undoubtedly the latest iteration of the Nigerian scam, a ...
SEC hits rock bottom.(NEWS)
Jun 08, 2009 ... Byline: Sara Hansard Among six large government agencies, the Securities and Exchange Commission ranked dead last on the likability scale with the public, with even the Internal Revenue Service coming in ahead. Those were the findings of a recent survey of 500 ...
Woodbury to pry into the finances of reps, spouses; The broker-dealer's move is seen as unprecedented.(NEWS)
Jun 08, 2009 ... Byline: Bruce Kelly Independent registered representatives and their spouses soon could face unprecedented scrutiny into their personal finances. Following revelations of numerous Ponzi schemes and investment frauds in the financial services industry, Woodbury (Minn.) ...
Finra may boost enforcement actions in 2009; Regulator took it easy on firms last year in wake of the crisis.(NEWS)
Jun 08, 2009 ... Byline: Bruce Kelly Finra may have given broker-dealers and registered representatives a reprieve of sorts last year as the amount in fines and enforcement actions it levied against firms plummeted. But on the heels of the historic collapse of Wall Street and the stock market, ...
Ex-soldier eyes surge in Iraq's prospects; Leaves wealth manager for private-equity firm that he co-founded.(NEWS)
Jun 08, 2009 ... Byline: Charles Paikert Dan Rice's decision to leave his job as managing director at Convergent Wealth Advisors last month to work full time as a partner for Marshall Fund Capital Advisors LLC may seem like a conventional enough career move. That is, until you ...
People.(NEWS)
Jun 08, 2009 ... Keefe Bruyette & Woods Inc., a New York-based full-service investment bank that specializes in the financial services sector, has promoted executive vice presidents Joseph Spalluto, 50, and Don Ullmann, 51, to key leadership positions within its fixed-income group. The firm ...
Brokerage luminaries to lead Madoff trading venture; Castor Pollux names Mazzarella, Petrilli to top posts.(NEWS)
Jun 08, 2009 ... Byline: Jed Horowitz Discount-brokerage veterans Robert Mazzarella and Frank Petrilli are joining with venture capitalists to revive Bernard L. Madoff's securities-trading business. Castor Pollux Securities Inc., a new broker-dealer that is buying the convicted ...
Investors grab for growth in emerging markets; But strong economies don't translate into profits, some observers warn.(NEWS)
Jun 08, 2009 ... Byline: Dan Jamieson After being written off as an asset class just a few short months ago, emerging-markets equities are back. And what a turnaround it's been. The Morgan Stanley Capital International Emerging Markets Index fell a whopping 53.2% last ...
Affluent households ignore 529 plans, study says; Despite tax breaks, report says the market is under-penetrated.(NEWS)
Jun 15, 2009 ... Byline: Charles Paikert Two-thirds of affluent parents with children under 18 aren't using Section 529 college savings plans, according to a report by The Phoenix Cos. Inc. "Clearly, the high-net-worth market is under-penetrated when it comes to 529 plans, according ...
BlackRock poised to grab No. 1 spot; Deal to buy BGI catapults firm to top with $2.7T in assets.(NEWS)
Jun 15, 2009 ... Byline: Mark Bruno Make way for the 1,600-pound gorilla in the money management industry. BlackRock Global Investors scheduled to emerge in the fourth quarter from the mega-marriage of BlackRock Inc. and Barclays Global Investors will be the world's largest money ...
At the Bell.(NEWS)
Jun 15, 2009 ... The Hartford says yes to TARP funds The Hartford (Conn.) Financial Services Group Inc. said Friday that it will participate in the Department of the Treasury's Capital Purchase Program, which is part of the Troubled Asset Relief Program. The insurer received ...