Money Management Executive Latest News

A report that Janus Capital Group hemorrhaged an additional $900 million in net outflows during October has reinforced fears that the mutual fund giant is on a very slow road to recovery from recent problems with securities regulators.

Although the Securities and Exchange Commission has 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.

ORLAND, Fla. – Speaking at the 2004 Operations Conference and Service Provider Exhibition here, Investment Company Institute President Paul Schott Stevens stressed the importance of working together to redefine the culture of the mutual fund business in the wake of the largest scandal in its history.

Assets under management in separately managed accounts jumped 1.2% in the third quarter, according to figures released Monday by the industry’s top lobbyist association.

Al Gore, who served for eight years as Bill Clinton’s vice president and narrowly lost the disputed presidential election of 2000, is launching a new type of socially responsible mutual fund, Financial Times reports.

Legg Mason Inc. charged itself $1.2 million in the third quarter in anticipation of settlement costs stemming from negotiations with the Securities and Exchange Commission over improper mutual fund trades, a company filing with the Commission shows.

The Securities and Exchange Commission is reportedly considering shifting some of its responsibilities to the states, as the agency expects a surge of up to 15% in the number of investment advisors it oversees once the new hedge fund registration requirements become effective in February 2006.

Hedge fund Beacon Hill Asset Management and four of its top executives have settled with the Securities and Exchange Commission for $4.4 million stemming from fraud charges. In addition, the four executives have been barred from the investment advisory business. The principals -- President John Barry, CIO Thomas Daniels, Senior Portfolio Manager John Irwin and Chief Financial Officer Mark Miszkiewicz -- will pay, respectively, $1.2 million, $1.5 million, $750,000 and $400,000. Only Miszkiewicz will have the opportunity to ever be reinstated into the business, but he will not be allowed to reapply for four years.

Securities and Exchange Commission examiners are reportedly finding instances of fund managers intentionally mispricing junk bond and small-cap stock mutual fund holdings and may soon take action.

The wait is over. The presidential election is complete, and with fears of a repeat of the Gore-Bush 2000 fiasco quashed, the market rallied with the definitive outcome.