Money Management Executive Latest News

The trading desk at Fidelity Investments witnessed yet another departure this week when David K. Donovan Jr., who headed the group that trades technology stocks, left the company on Tuesday, according to the Boston Globe.

Expanding on its "New School of Investing" theme, iShares is launching an ad campaign entitled "New You." The campaign reaches advisers through television, print and online ads, as well as direct marketing, sales materials and a revamped Web site.

More and more retirement plan providers are including a variation of lifecycle funds in 401(k) retirement plans, according to Dow Jones. These so-called custom-designed mutual funds are targeted to an employee's expected retirement date and gradually shift to more conservative asset allocations when that date approaches. But in the latest iteration, 401(k) plan sponsors are using their existing fund lineup for plan administrators to fashion into lifecycle funds-of-funds.

Capital Analysts Inc., a Radnor, Pa.-based brokerage firm agreed to pay $450,000 on Wednesday to settle charges brought against it by the Securities and Exchange Commission for not adequately disclosing that it received payments from certain mutual fund companies for promoting their funds.

Some of the biggest mutual fund companies in the country disclosed personal information about their shareholders on the Securities and Exchange Commission Web site, the Wall Street Journal discovered.

The Securities and Exchange Commission has reached a $20 million settlement with broker/dealer CitiGroup Global Markets due to the firm failing to provide customers with adequate investment information and for not disclosing revenue-sharing agreements with mutual fund complexes.

Putnam Investment Management is in hot water with the Securities and Exchange Commission again, this time paying a $40 million fine because of revenue-sharing arrangements.

Money Management Executive and Source Media are accepting nominations for the third annual Fund Operations Awards. (Details: http://mfmarketnews.com/awards2005.cfm/.)

Stock and balanced funds took in $85 billion in the first quarter of 2005, according to Strategic Insight. The results reflect confidence among mutual fund investors in the face of stock market uncertainties, as well as a preference to offerings outside the U.S., said S.I. Director of Research Avi Nachmany.

NASD is considering tightening the noose on sales contests, since current rules may not adequately protect investors, according to Dow Jones Newswire.