Money Management Executive Latest News

The Securities and Exchange Commission’s next huge settlement could come from British/U.S.-based Amvescap, London’s Financial Times reports. People privy to discussions between the two parties postulate that a settlement could take place just after Sept. 6, Labor Day in the United States.

American Funds continued its high-paced belting of the competition by placing five of its funds in Financial Research Corp.’s top 10 list for July, a month that saw the mutual fund industry as a whole rake in inflows of $12 billion.

U.S. hedge funds, which were all but eradicated from many Asian regions after they were blamed for the continent’s financial crisis of the 1990s, are returning in places like Hong Kong and Singapore, adding another chapter to what has been a sometimes tumultuous, sometimes spectacular, but never dull relationship, The Wall Street Journal reports.

Affiliated Managers Group last week announced it will create a new subsidiary to create, distribute and service separately managed accounts and mutual funds. To be called Managers Investment Group, the new unit amounts to a minor sea change in AMG's business tactics, which mainly focus on bringing distribution muscle to boutique investment firms in exchange for a stake in their operations. AMG intends for Managers Investment Group to act as a servicing hub for at least 75 mutual funds and separately managed accounts now sold through banks, brokerage firms and independent distributors. The soon-to-be launched platform will utilize the operational and distribution expertise of the company's fund family (Managers Funds), institutional investment subsidiary (Portfolio Services Group) and back-office unit (Advantage Outsourcing Solutions) and partner with the marketing division of Rorer Asset Management.

It's time for fund companies to show their hands.

Although only two asset management firms have come to market with initial public offerings (IPOs) this year, the fact that there have been any at all has triggered speculation that investment management IPOs may slowly be coming back into vogue.

By definition, intangibles cannot be measured, but that's exactly what Morningstar's recently launched Fiduciary Grade system is attempting. Last week, the Chicago-based fund research and ratings firm unveiled its newest offering, which assigns a letter grade to more than 600 funds assessing how well a fund company's, and its manager's, interests are aligned with those of shareholders. Morningstar plans to extend this rating to an additional 1,500 funds.

A former Canadian Imperial Bank of Commerce employee currently serving a two-year conditional sentence for committing a $20 million fraud involving mutual fund clients has been sentenced to one year in jail by a Canadian court.

In a new study, Financial Research Corp. predicts new SEC regulations will lead to a major shakeup for the mutual fund industry. FRC indicates that some mutual fund companies could pass on the costs of new regulations prompted by the far-reaching investment scandals by increasing shareholder expenses up to $125 per year.

Fornelli Leaves SEC For Bank of America