Money Management Executive Latest News

The House of Representatives last week passed a pension reform bill that could significantly impact the money management industry.

As hedge funds face new regulations and increased scrutiny, the American International Group plans to offer managers and directors liability insurance, according to Reuters.

After years of wrangling with one of its former top producers, money manager Waddell & Reed has agreed to pay the ex-employee $7.9 million in punitive damages, according to the Wall Street Journal.

Ben Bernanke is yet to take the helm of the Federal Reserve from outgoing Chairman Alan Greenspan, but money managers are already scrutinizing the course he might chart for 2006.

The NASD last week fined Chase Investment Services $150,00 and ordered it to repay $140,262 to investors for allowing one of its hedge fund clients to market time 19 mutual funds between at least February 2002 and August 2003.

The Investment Company Institute of Washington has released a paper that serves as a road map of sorts for chief compliance officers who might be wrestling with their mutual fund's annual review, which is due to fund boards this spring.

Previously home to more rudimentary back-office functions like customer call centers and payroll services, emerging market countries like India and China are playing a greater role on the research side of the money management business.

Since the 1980's, the number of American households that owns equities has almost tripled. Today, nearly 57 million, half of all U.S. households, own stocks directly or through mutual funds. This is according to the third joint study on "Equity Ownership in America," by the Investment Company Institute of Washington and the Securities Industry Association of New York.

Morningstar is buying Ibbotson Associates for $83 million in cash. Morningstar expects to get $10 million in cash tax benefits as a result of the cancellation of Ibbotson stock options, so in reality, the fund tracker is buying Ibbotson for $73 million.

John Hancock Funds, a unit of Manulife Financial, is transferring 29 internally managed mutual funds to its sister company, Sovereign Asset Management, the Boston Business Journal reports.