Money Management Executive Latest News

An overhaul of the nation's Social Security plan, one of the big-ticket items of newly reelected President Bush's second-term agenda, could create a windfall for mutual fund firms specializing in index funds, according to industry insiders.

Market-timing and late-trading abuses are rare in the European fund industry, according to a recently published report from a group of regulators in Europe.

Assets under management in separately managed accounts (SMAs) jumped 1.2% in the third quarter, according to figures the industry's top trade association released last week.

ORLANDO, Fla. -- Speaking at the 2004 Operations Conference and Service Provider Exhibition here, Investment Company Institute President Paul Schott Stevens stressed the importance of funds and their operations support working together with regulators and the media to redefine the culture of the mutual fund business in the wake of the largest scandal in its history.

Gabelli Asset Management has named Howard F. Ward director of growth products, a position in which he will oversee domestic and foreign growth equity products for both mutual funds and separately managed accounts.

Vanguard has elected long-time Harvard Business School Professor Andre F. Perold as an independent member of its board of directors. Perold will begin serving at the end of December and also serve on the board of trustees of each of Vanguard's mutual funds.

Brian C. Lee is joining AIM Investments as director of sales strategy and planning for its AIM Distributors retail marketing wing. Most recently a director of retail managed accounts for Harris Investment Management, Lee is a 20-year investment industry veteran with experience in many different tiers of some high-profile businesses.

American Century Investments has hired Michael Perelstein as a vice president and senior portfolio manager of its international equity group. That group manages the American Century International Growth Fund.

NEW YORK -- While corporate governance in the financial services industry has improved markedly over the past year, unsettled problems such as high executive compensation and continued conflicts of interest must be rectified, a top Ernst & Young executive said last Tuesday. The resulting tightened regulation combined with heightened competition from separately managed accounts and alternative investments for high-net-worth investors, is going to mean an especially competitive landscape in the year ahead, he said.

Although the Securities and Exchange Commission had indicated it would have solutions to eradicate market timing and late trading before the year is up, the Commission is still looking at alternatives to the hard 4 p.m. close and 2% redemption fees on shares redeemed within five days. The SEC is also still looking at how to improve point-of-sale disclosure on commissions and other fees on broker-sold funds, as well as curbing soft-dollar arrangements. SEC Chairman William Donaldson made these revelations at a Securities Industry Association meeting in Boca Raton, Fla., earlier this month.