Money Management Executive Latest News

SEC Names Osterman Associate Director of Investment Management

SEC Permits Companies to Bar Ballot Nominations

More than half of mutual fund investors don't know the difference between a mutual fund and an exchange-traded fund, but a recent survey found that many investors are interested in learning more about them and would consider buying ETFs if their financial adviser suggested it.

Citadel Investment Group gave a lifeline to troubled discount broker E-Trade Financial on Thursday with a $2.5 billion capital infusion, according to the Associated Press.

Investment bank Bear Stearns will lay off 4% of its staff due to continuing fallout from the summer subprime mortgage crisis, the Associated Press reports.

The Securities and Exchange Commission has announced that Deputy Enforcement Director Peter Bresnan will leave his post Dec. 5 to become a partner with Simpson Thacher & Bartlett.

Bill Gross, chief investment officer at Pimco, said the effects of the subprime crisis have yet to be felt—and they will be devastating, the Financial Times reports.

The Financial Industry Regulatory Authority has fined brokerage Rafferty Capital Markets more than $400,000 for failing to prevent its hedge fund clients from late trading and market timing mutual funds between January 2001 and August 2003. The fine is $350,000, along with $59,605 that Rafferty must repay to two mutual fund families. In addition, FINRA said, Rafferty helped the hedge fund clients escape detection by opening multiple customer accounts and different brokerage branch codes.

On Thursday, the Securities and Exchange Commission issued a sample format for the mutual fund prospectus profile it has proposed requiring fund companies to send to investors. The three- or four-page document would be in the front of every prospectus. In addition, fund companies would have the option of sending the shorter form to investors and making the longer version available on their website or in hard copy, upon an investor’s request.

In spite of the belief that very wealthy investors are most interested in preserving their wealth, 41% of those worth $25 million or more describe themselves as “aggressive” or “most aggressive” investors, according to a report from Spectrem Group, “The $25 Million Plus Investor.” Two-thirds of their assets are in stocks, alternatives, mutual funds, separately managed accounts, hedge funds, private equity, venture capital or other investable assets.