Money Management Executive Latest News

The SEC, in part of its ongoing crackdown on scandals tied to the mutual fund industry, moved ahead with a lawsuit against Daniel G. Calugar, who in the past two years netted more than $175 million by actively trading investments offered by Alliance Capital and MFS, The New York Times reports.

The rampant market-timing at Pilgrim Baxter & Associates that spurred regulatory action from New York Attorney General Eliot Spitzer and the SEC was motivated by a drive to raise assets and attract a buyer, according to next week’s edition of Fortune.

The Investment Company Institute’s board of governors has elected Paul Schott Stevens to succeed Matthew Fink as president, the ICI announced this morning. Stevens, a partner with Dechert LLP in Washington, will assume his new duties on June 1.

In an open meeting today, the SEC is expected to call for fund manager compensation and holdings to be included in fund prospectus so-called "statements of additional information," The Wall Street Journal reports.

Along with a recent trend among fund companies implicated in the fund scandal to tell their side of the story, Putnam Investments yesterday and today has begun running full-page ads in prominent newspapers, including The New York Times and The Wall Street Journal.

Citigroup has named Ali Hackett the head of prime brokerage and global finance sales at the firm, a newly created position, according to published reports.

State Street yesterday said that federal regulators had subpoenaed additional trading information from some of its units, Reuters reports.

Vanguard Group has scrapped a longstanding prohibition on mutual fund orders after 2:30 p.m., moving it to the standard 4 p.m. deadline, even though the industry has begun debating rolling that deadline up, according to The Wall Street Journal.

Municipal authorities in Iowa, Ohio and Massachusetts have reacted to a management shakeup at Wilshire Associates by considering steps to reallocate pension accounts collectively valued $58 billion, according to Bloomberg.

Janus Capital Group Inc. appointed two independent directors to its board yesterday. To make room on the board, Helen Young Hayes, whose term expires in May, will step down, the company said. She was a managing director of investments and managed Janus' international stock funds before she resigned last April.