Money Management Executive Latest News

Before President Bush could even fire the first official volleys of his campaign to reform Social Security during last week's State of the Union, AARP, the nation's leading defender of the fund, was mobilizing its troops in vigorous opposition. Other groups with deep campaign pockets, like the Republican National Committee and the liberal group MoveOn.org, were also lining up in formation.

The Securities and Exchange Commission released monetary distribution details for the sweeping $1.4 billion research settlement last week, indicating how mutual fund advisors can recoup losses in companies that Wall Street analysts unabashedly touted, including AT&T, Global Crossing and WorldCom.

Europe's mutual fund industry grew 14.5% in 2004 as continued improvement in equity markets boosted assets under management to 3.54 million euros, according to a Reuters report citing Lipper.

Industry experts expect that if the government goes ahead with its plan to privatize Social Security, only the very largest index fund managers are likely to get a piece of the action, The Wall Street Journal reports.

Further escalating an ongoing price war among brokers, San Francisco-based Charles Schwab will slash online stock-trading commissions by 35% for small investors.

Federated Investors reported an increase in fourth-quarter earnings but said the results were preliminary because of ongoing settlements with regulators that are likely to hurt profits.

The hedge fund industry saw billions of dollars of new money last year, but more than 350 hedge funds shut down primarily because of poor performances by managers, according to data released by the Hennessee Group.

State Street has beefed up its Web-based program to find tax-lot stock transactions in order to avoid short-term taxes and capitalize on losing portfolio holdings. The company initially developed its Tax-Efficient Lot Selector (iTELS) to help customers determine when to make wash sales of individual investments.

Barclays Global Investors' first Chinese exchange-traded fund is designed for U.S. customers, but the investment's success is raising Asian market officials' expectations for future index-based funds.

Fidelity Investments is the undisputed king of 401(k) plans, but its lineup of retirement-orientated mutual funds conspicuously lags lifestyle funds offered by competitors like T. R. Price and Vanguard, according to a new Morningstar "Fund Spy" column. Lifestyle funds gradually dial down aggressive portfolio components as the years draw closer to retirement dates like 2040.