Money Management Executive Latest News

Pioneer Investment Management will venture into new territory with two new funds, the Boston-based company announced.

PowerShares Capital Management is really on roll this year, as it has just announced the launch of yet another exchange traded fund, and this time it challenges the conventional concepts on index investing, according to MarketWatch.com.

A group of investors has filed a class action lawsuit against Wells Fargo Investments, claiming that investment advisors there steered investors to purchase certain shelf space funds to line their own pockets.

Former Prudential Securities broker and branch manager John S. Peffer has settled with the Securities and Exchange Commission, which claimed that he created false clients and shadow brokers to defraud dozens of mutual funds out of hundreds of thousands of dollars.The SEC case, settled in U.S. District Court in Massachusettes, accused Peffer of bilking funds companies and investors of more than $408,900. He agreed to pay $50,000 in restitution, and admitted no guilt, as part of his settlement. The agreement prohibits Peffer, of Newburyport, Mass., of engaging in business with any brokers, dealers or advisors, although he can apply anew for a licence. In November, 2003, the SEC filed a federal lawsuit claiming that Peffer led a group of five brokers in his scheme. The following year, in a revised complaint, the SEC claimed Peffer was part of a two-man operation. Together, the two brokers created false broker identification credentials. Between January 2001 and September of 2003, Peffer made used these false identities to execute thousands of trades worth more than $300 million. Peffer further circumvented scrutiny by creating multiple shadow accounts. In reality "The Peffer Group" had only two customers, according to the SEC. In all, "The Peffer Group" is liable for $408,904 in losses to funds and $39,384 in interest; however, Peffer produced evidence that he lacked the personal assets to cover those costs, and instead will pay $50,000 in fines and $1,734 in interest, according to the settlement finalized Dec.

Morningstar, a Chicago-based investment research firm, has announced its list of finalists for Fixed-Income Manager of the Year.

Energy funds surged ahead in 2005, outperforming virtually every other domestic category, according to Barron's.

For perspective on the amazing growth that the mutual fund industry has enjoyed in recent years, consider that when James S. Riepe joined T. Rowe Price in 1981 the firm had a modest $13 billion under management. Today, as the 62-year-old Riepe retires, the Baltimore money manager has about $260 billion under management.

For all the headline grabbing that hedge funds and exchange-traded funds have done over the last few years, their pace of growth remains surprisingly far behind that of everyday mutual funds.

Brokerage industry regulator NASD has fined Merrill Lynch, its clearing house unit Pierce, Fenner & Smith, Wells Fargo and Linsco/Private Ledger a total of $19.4 million for improper sales of Class B and Class C mutual fund shares.

Target retirement mutual funds are rapidly gaining popularity because of their convenience, but they may not be the set-it-and-forget-it option that investors think, according to a report from MarketWatch.