Money Management Executive Latest News

Because retirement plans have increasingly favored no-load Class A mutual fund shares, Morningstar will begin separately rating these shares today.

Yet another key person is leaving the Securities and Exchange Commission. General Counsel Giovanni Prezioso, who has served in the position since 2002, is stepping down in January, the SEC has announced. Prezioso plans to return to the private sector, although he has not yet accepted a position. He said he had wanted to leave earlier this year, but stayed due to the arrival of the SEC's new chairman, Christopher Cox, in August.

With its $100 million market-timing and late-trading settlement officially in the books, Pittsburgh-based Federated Investors is looking forward to growing through acquisitions and adding more income-oriented products that target the nation's Baby Boomers.

An Oskaloosa, Kan., mortgage broker is accusing Fidelity Investments and ADP of conspiring to defraud small business retirement plans that the companies run.

Due to a recent flood of outflows from its U.S. stock funds, Fidelity Investments is on a mission to expand its research group, and the move is forcing rivals to safeguard their best talent for fear of being cannibalized, according to the Boston Business Journal.

Despite their persistent popularity and tendency for impressive returns, hedge funds aren't all they're cracked up to be and are riskier than the average investment management industry executive might think, a group of leading financial experts claims.

In what could mark a turning point in a 26-month-old scandal that has touched every corner of the money management industry, Federated Investors reached a $92 million settlement with state and Federal regulators last week over allegations that it allowed market timing and late trading in some of its mutual funds.

The investment management industry is in the midst of a "war for talent," according to the "2005 Recruiting Trends" report from executive search firm Russell Reynolds of New York. Those in greatest demand are chief financial officers and chief operating officers at U.S. hedge funds, as well as client relations and marketing people at investment firms across the board.

BISYS has expanded its hedge fund services into Ireland, with the opening of a new office in Waterford. The company forecasts that the new office will generate more than 250 jobs over the next few years.

Two large pension funds have put Fidelity Investments on watch for a total of $433 million, Financial News reports.