Money Management Executive Latest News

Mellon Financial has agreed to purchase Safeco Trust Co. from Safeco Corp., and the deal is expected to be completed by the middle of next month.

Operational inefficiencies are nothing new for the separately managed account business. In fact, the lack of connectivity between its key players has stunted what has otherwise been rapid growth in recent years.

Separately managed account providers have been making a number of adjustments lately: bolstering and tweaking product offerings, pruning prices, expanding technology platforms and reinvigorating relationships.

First the seminar, then the pitch. The formula is probably as familiar to investment professionals as tea before haggling is to customers in a Turkish bazaar. But a few years ago, Nuveen Investments decided it didn't want to sell their managed accounts like oriental carpets anymore.

Bank of America employees will have to sign a revised code of ethics document as a result of regulators' probe of improper trading at its mutual fund unit.

The SEC voted unanimously last Tuesday to adopt measures to improve the transparency of mutual funds and variable annuities. Beginning Dec. 5, all funds must now disclose what risks, if any, market timing poses for their funds, as well as reveal in their fund prospectuses whether their board has adopted rules against market timing. Should a board have decided such rules are not necessary, it must spell out its reasons why.

Many mutual fund shareholders were pleasantly surprised in April by plentiful embedded losses in their investments. Capital gains paid by mutual funds slumped in 2003 to an estimated $14 billion, the lowest level since 1990, according to a study by the Investment Company Institute. The lengthy bear market also contributed reduced levels of capital gains payments totaling $16 billion in 2002, which dramatically trailed a record $326 billion in 2000.

Federated Stays In-House, Fills Four Executive Slots

"Bringing Hedge Funds to Main Street" (MME 4/12/04) incorrectly identified Wall Street Access' partner as HedgeFunds.net. It is HedgeFund.net. and has no affiliation with Tremont.

The stranglehold on the distribution of separately managed accounts by a handful of wirehouses has again driven down fees paid to equity investment providers. Recently, Wells Fargo reportedly cut its SMA equity management fees to 36 basis points from 38 basis points, and experts believe that other national distributors are likely to follow suit.