Money Management Executive Latest News

Daiwa Securities, Japan’s second-largest brokerage firm, will offer separately managed accounts beginning in July with the aim of capturing another 30 billion to 50 billion yen, or $270 to $450 million, from high-net worth clients, Reuters reports.

Mutual fund directors, and the question of whether they should be independent, have become one of the most examined aspects of the mutual fund scandal. But some even question whether fund directors, or even the entire board, are necessary entities in the first place, The Wall Street Journal reports.

Financial services industry scandals have led to new pledges of better governance by companies, but for most, those promises have not led to salary reductions for executives, TheStreet.com reports.

Davenport & Co., a Richmond, Va.-based brokerage firm, market timed variable annuity sub-accounts on behalf of two of its hedge fund clients, the National Association of Securities Dealers charged last week, ordering Davenport to pay $450,000 for improper trading.

Score one for the fund managers.

Former vice presidential candidate Sen. Joseph Lieberman (D-CT) is asking lawmakers to create a new SEC division dedicated to representing investors in the agency's policymaking process, as well as require fund firms to provide easy-to-understand disclosure of fund characteristics.

Despite the pall that has fallen over the mutual fund industry amid discoveries of market timing, late trading, disclosure of non-public fund information and inflated commissions to brokers, the industry actually has something to celebrate. The anniversary of the birth of the very first mutual fund will take place next month.

The Securities and Exchange Commission recently voted to require mutual funds to disclose breakpoint discounts in their prospectuses and to adopt codes of ethics. On each measure, the vote was 4-0.

The Securities and Exchange Commission is reportedly planning to launch an enforcement action against Empire Financial Holding Co. and its Chairman and Chief Executive Officer Kevin Gagne. Empire, which confirmed receiving a Wells notice of forthcoming regulatory enforcement, has a small window of time to construct a response before the SEC commits to a course of action. Gagne has recently taken an unpaid leave of absence until the matter is resolved.

Oppenheimer Asset Management has added the Dividend Performers investment strategy to its separate account consulting program. The strategy is managed by Sovereign Asset Management, a subsidiary of John Hancock Advisers, recently bought by Manulife Financial. Dividend Performers invests in a group of approximately 350 companies known for growth and stability. All have increased dividends over the past five years and seek investments that point to future growth and earnings.