Money Management Executive Latest News

The mutual fund business is likely to undergo tremendous change in the years ahead, according to Don Putnam, co-founder of investment bank Putnam Lovell NBF Securities. In an interview with MarketWatch, Putnam said that in light of the changing regulatory environment and mounting conflict-of-interest concerns, the mutual fund industry is ripe for mergers and acquisitions.

Morningstar Inc. saw a per-share profit in 2004 for the first time in five years, according to updated initial public offering documents the investment research firm filed Wednesday with the Securities and Exchange Commission, Dow Jones reports.

The NASD has brought its first market-timing case involving variable universal life (VUL) policies. The organization has charged Jefferson Pilot Variable Corp. (JPVC) for "failing to have an adequate supervisory system in place to prevent market timing and excessive trading in the sub-accounts of its Ensemble series of VUL insurance policies."

At a press conference on Wednesday, President Bush acknowledged that his idea to privatize Social Security was a tough sell but added that there were other, related ideas out there that merited consideration.

Mutual funds and the rest of corporate America are suffering the repercussions from an overly zealous SEC, lobbyists charge. Although SEC Chairman William Donaldson has signaled that the SEC has no plans to let up in its lawsuits, the person at the center of the lobbyists' fury is chief enforcer Steven Cutler.

After being burned by the bear market and an ugly mutual fund scandal uncovered at some of its funds, Putnam Investments is trying to resurrect its damaged reputation.

The Money Management Institute, the national organization for the separately managed account industry, will host its Annual Meeting March 29 and 30th in Philadelphia. Titled: Opportunities & Obligations: Ensuring America's Retirement Security, the conference addresses the hot political, social and financial topic of how to deal with the pending retirement of Baby Boomers. The conference brings together sponsors, managers and technology providers to discuss the issues and solutions.

Even as the Securities and Exchange Commission conducts a federal investigation into conflicts of interest and rebating practices of 401(k) plan administrators nationwide, industry sources say that employers could help themselves by being more careful when setting up plans with administrators, according to the Spokane Journal of Business.

Fidelity Investments is starting up a new entity to serve institutional clients and other non-mutual fund business. The company has not yet announced a name or management team for the new business, however.

Alliance Capital Management Holding L.P. and Alliance Capital Management L.P. have entered into settlement discussions with the National Association of Securities Dealers about previous sales practices and disclosures concerning directed brokerage commissions in Alliance Capital's mutual fund distribution unit.