Industry

Envestnet’s platform services agreement with FundQuest 18 months ago has gone well, apparently.

DST Systems Reviews Strategic OptionsAugust 5, 2011Chris KentourisAfter insisting it wants to stay independent, DST Systems on Friday came close to confirming it was on the block.Like what you see? Click here to sign up for Securities Technology Monitor's weekly newsletter to get the latest news and analysis that matters to the effective operation of capital markets.Last month, DST said it was not entertaining discussions with any party regarding a sale of the company and didn’t think its stock price was representative of its long-term intrinsic value. Therefore, it couldn’t entertain a takeover.But on Friday, the Kansas City, Mo. based firm which provides recordkeeping and other services to mutual funds and broker-dealers, said that it hired Bank of America Merrill Lynch and law firm Skadden, Arps, Slate, Meagher & Flom LLP to advise its board. Stinson Morrison Hecker LLP is providing legal advice.“The board of directors of DST Systems, Inc continuing its long standing practice of engaging in an ongoing review of the Company’s business plan, assets and investment portfolio,” said DST in a statement on Friday.In that same statement, DST also confirmed that it rejected a bid from Russell Glass, the founder of RDG Capital LLC, that he and two other people be added to its board. Glass said in June he made a bid to buy DST.DST’s stock dropped $2.92 a share or six percent to $45.91a share on Thursday giving the firm a market value of $2.1 billion.DST’s news on Friday followed a dismal second quarter earnings report; second quarter earnings fell 41 percent to $55.2 million from the year earlier period due to a large payment the firm received when a customer dropped its contract last year.The 2010 figure included a $58 percent termination payment. Eliminating the payment from earnings, DST’s earnings declined 14 percent to $49.4 million from $57.6 million the year earlier in large part due to a decline in the number of registered accounts it handles. Revenues declined 9 percent in the 2011 second quarter to $424.1 million.After insisting it wants to stay independent, DST Systems on Friday came close to confirming it was on the block.

The Financial Industry Regulatory Authority has filled two slots on its Board of Governors with Bank of America President of Global Wealth & Investment Management Sallie Krawcheck and Tritaurian Capital Inc. Chief Operating Officer Ken Norensberg.

Former Special Agent Daniel D. Roberts will lead investigations into various forms of insurance fraud, including arson schemes for Rehmann’s governmental investigations and compliance for the firm’s corporate investigative services.

Wells Fargo Advisors has hired four new financial advisors overseeing about $568 million in customer assets in Michigan.

HighTower Advisors has hired two Washington, D.C.-based Bank of America Merrill Lynch financial advisors who previously oversaw more than $1 billion in client assets.

Bank of America Merrill Lynch has tapped its rival wirehouse firms with the hiring of seven new financial advisors representing $813.14 million in client assets under management.

Credit Suisse this week added Barbara Reinhard as the new managing director and chief investment strategist of its Private Banking Americas group.

Fidelity Investments has promoted Derek L. Young from chief investment officer to president of the asset allocation division. He succeeds Boyce L. Greer, who recently became head of institutional investments for Fidelity Asset Management and vice chairman of Pyramis Global Advisors. Young now reports to Greer.

Private equity firm Warburg Pincus has acquired a majority stake in The Mutual Fund Store as well as a minority stake in Summit Partners, which invested in The Mutual Fund Store in 2006.