Money Management Executive Latest News

Just a day after cheering the $90 million settlement with New York and federal regulators by Pilgrim Baxter for abusive mutual fund trading, the South African insurer Old Mutual told Reuters it wants to further punish the company to the tune of going after founders Gary Pilgrim and Harold Baxter for additional compensation.

Just a day after cheering the $90 million settlement with New York and federal regulators by Pilgrim Baxter for abusive mutual fund trading, the South African insurer Old Mutual told Reuters it wants to further punish the company to the tune of going after founders Gary Pilgrim and Harold Baxter for additional compensation.

Retirement assets invested in mutual funds continued their ascent last year, as a strong rally in stocks and heavy net cash flow fueled a 28% pop in 2003, according to research released Tuesday by the Investment Company Institute.

Mutual fund companies may lose the first round in fighting the new independent chairman rule Wednesday, when the Securities and Exchange Commission is expected to vote on the new measure requiring directors who are unaffiliated with management to take the helm of mutual fund boards. If so, investment powerhouses like Fidelity Investments and The Vanguard Group will have lost a major battle with the SEC, CBSMarketWatch.com reports.

Investor advocates who initially thought the mutual scandals would lead to a downward trend of mutual fund fees are now saying expenses paid by shareholders will remain steady this year and possibly rise in 2005, TheStreet.com reports.

Canadian mutual fund investors are largely unfazed by the widespread mutual fund scandals in the U.S. and similar types of abuses in their own back yards, Winnipeg Free Press reports.

One week before the Federal Reserve Board’s expected interest rate hike, an economic advisor from Putnam Investments warned that using the history lesson given by previous "tightening cycles" as a guideline might not be a smart move. Investors may not suffer as badly as they expect.

Wachovia Corp. has announced its intention to merge with SouthTrust Corp. in a deal worth $14.3 billion, creating the largest bank in the southeast and the fourth largest in the country. Together, the banks will have assets of $464 billion and market capitalization of $76 billion.

The SEC and New York State’s Attorney General Eliot Spitzer’s office have settled their cases in federal district court with Pilgrim Baxter & Co. The company has agreed to pay the SEC $40 in disgorgement and $50 million in civil penalties for allowing select clients to market time its funds. In addition, the company has agreed with Spitzer’s office to reduce management fees by 3.16% over a five-year period, a settlement valued at $10 million.

A class-action lawsuit was filed last week against Smith Barney and Salomon Brothers for alleged misleading of mutual fund investors.