Money Management Executive Latest News

Although many mutual fund companies pursue wealthy customers, they are likely to have a hard time winning them over, as the very wealthy in the U.S. prefer to invest in hedge funds, private equity and start-up companies, The Wall Street Journal reports.

The Securities and Exchange Commission announced Wednesday that a second group out of a total of three groups of Pilgrim Baxter investors will soon receive $73 million. The remuneration is part of a total of $267 million in the Pilgrim Baxter fair fund, set aside to repay 384,000 investors harmed by market timing in the PBHG Funds, for which Pilgrim Baxter was the investment advisor, between June 1998 and December 2001.

A survey of 1,000 investors by Corporate Insight found that eight out of 10 expect the stock market to rise within the next 12 months, reporting an average rise of 7.2%.

With the major indexes performing so well, enhanced exchange-traded funds are having a hard time making a case for themselves, the Associated Press reports.Portfolio managers of enhanced ETFs are going to have to make some smart calls if they hope to compete against regular ETFs and index funds, which are not only offering strong performance right now but are well known for their lower fees and tax efficiencies.

Charles Schwab announced Tuesday that it is offering new, low and simplified pricing on online bond trades, charging a mere $1 per bond. In addition, the company is lowering the expenses on its tax-free bond funds from between 60 and 65 basis points to 45 and 49 basis points.

Two mutual funds that came to market on Monday raised $3.3 billion in a single day, Reuters reports. They are offerings from GF Fund Management and Fortune SGAM, a division of Societe Generale, which took in 15 billion yuan and 10 billion yuan, respectively.

Chief Executive Officer Edward “Ned” Johnson has told the firm’s adviser services division to reduce its profit margin targets

The chief executive officers of the companies listed in the S&P 500 Index earned a combined $4.16 billion in 2006, with half raking in more than $8.3 million, the Associated Press reports. Leading the pack is Yahoo CEO Terry Semel, who earned $71.7 million.

Morgan Stanley is planning to expand beyond institutional and alternative investments in Asia to offer retail mutual funds, the Financial Times reports. Specifically, the firm is looking to open offices in China, South Korea and Taiwan.

Japan issued disciplinary action against Mitsubishi UFJ Monday, ordering the firm to improve mutual fund sales compliance and money laundering controls, the Associated Press reports. The Japan Financial Services Agency also ordered the firm to submit an operations improvement plan by July 11.