Money Management Executive Latest News

Managed accounts, a cornerstone product for big brokerages, are now also becoming increasingly popular at community banks, industry experts say. These accounts, also called separate or individually managed accounts, are portfolios created for wealthy customers. Such accounts, typically having assets of a few hundred thousand to a few million dollars, provide more flexibility and tax benefits than mutual funds, because they allow investors to own stocks directly. One indication of how popular the accounts have become is that Morningstar started rating them for the first time last year.

Thomson Media, publisher of this newsletter, has promoted Harry Nikpour from advertising sales director to associate publisher of the investment management newsletters. In this role, Nikpour's advertising responsibilities will be broadened to include circulation and marketing for Money Management Executive, Annuity Market News, Investment Management Weekly and the Mutual Fund Service Guide. Nikpour joined Thomson in 1998 as advertising manager for Buyouts, Mergers and Acquisitions Journal and a number of directories.

For the fiscal year ended March 31, Legg Mason generated $297.8 million in net earnings, a 56% increase over last year. Total revenue for the year was $1.941 billion, a 29% uptick from last year, helped mark it the second straight year that Legg Mason set company records.

State and federal regulators told mutual fund firms Wednesday that the investigations and enforcement actions are not finished yet, The Wall Street Journal reports.

PIMCO Thursday became the latest mutual fund company to be slapped with civil fraud charges for allegedly defrauding investors by secretly allowing hedge fund Canary Capital Partners to trade rapidly in and out of its funds.

Research firm Morningstar announced Thursday that it has filed an initial public offering statement with the Securities and Exchange Commission to sell shares of common stock in the company.

Great-West Lifeco, a Canadian insurance giant, has ended its relationship with Putnam Investments because of the Boston firm’s involvement in the mutual fund scandal, Canadian Press reports.

Among Americans over age 50, 83% say that outside pressures have reduced their ability to generate adequate retirement income, according to a survey commissioned by Golden Retirement Resources. Unsurprisingly, the Retirement Flexibility Study found that those with lower incomes have the least flexibility to adapt to economic and life events.

Most financial advisers share their clients’ level of concern about the mutual fund scandal, according to a survey of 124 financial advisers conducted by Select Sector SPDRs, for which State Street Global Advisors serves as the investment advisor. A quarter of advisers expressed little concern about the scandal, mostly because they feel the problems are limited to certain companies.

Jefferson National Life Insurance Co., a former unit of Conseco, may soon be charged by state and federal regulators for improper trades within annuity funds, The Wall Street Journal reports.