Money Management Executive Latest News

Federal Reserve Chairman Alan Greenspan delivered an optimistic outlook on the economy Wednesday, saying that it "seems to have entered 2005 expanding at a reasonably good pace, with inflation and inflation expectations well anchored." He said there was a sense of confidence among investors as shown by a number of financial indicators.

Regulators have charged American Funds Distributors, distributor of the American Funds, with violating securities rules by directing $100 million in commissions, over a three-year period, to roughly 50 brokerage firms that were top sellers of American Funds.

Common Cause, a Washington-based nonprofit organization, is urging Fortune 500 companies to voluntarily disclose their political contributions. Teaming up with the Center for Political Accountability, Common Cause will ask corporate giants such as General Electric to make public their political contributions and to provide a reason for those contributions, according to a press statement.

A.G. Edwards' tussle with regulators is getting more intense. According to a letter submitted to the Securities and Exchange Commission by Douglas Kelly, A.G. Edwards' director of law and compliance, and released by William Galvin, Massachusetts secretary of the commonwealth, illegal mutual fund trading activities were not confined to the company's Boston branch but were rampant.

The Securities and Exchange Commission obtained an emergency court order Wednesday to freeze the assets of NorthShore Asset Management, a Chicago-based investment advisor that invests in hedge funds, accusing the firm and three of its officers of misappropriating $37 million. Named in the complaint were NorthShore executives Kevin Kelley, Robert Wildeman and Glenn Sherman.

This month, Morningstar released its review of 529 plans. Since all states offer the college funding plans, parents should look at their own state plans first to take advantage of the tax breaks for residents, said Kerry O'Boyle, fund analyst and author of the study.

Even as the Bush Administration has stayed out of the Kyoto Protocol about to take effect, under which nations have agreed to cut emissions of "greenhouse gases" generated by industry and vehicles, a leading U.S. pension fund and socially responsible mutual fund are complying with the treaty.

Two leading mutual fund companies own a sizable stake in the troubled Denver-based Janus Capital Group, according to MarketWatch.com. As of Dec. 31, 2004, Fidelity Investments owned 9.4% of Janus, or 22.1 million of 236.3 million total shares, and Ariel Capital Management owned 15% of Janus, or 35.5 million shares.

If the Independent Directors Council has its way, the transformation of mutual fund boards will go well beyond the Securities and Exchange Commission's independent chairman rule, which takes effect Jan. 16, 2006.

Bear Stearns said that the Securities and Exchange Commission is considering a civil injunctive action against it stemming from investigations into mutual fund market timing and late trading, according to MarketWatch.com. The Commission is also considering issuing a cease and desist order against the company and its Bear Stearns Securities Corp. unit.