Money Management Executive Latest News

A headache for the mutual fund industry has developed into a migraine as Putnam Investments and two of its portfolio managers have been accused of market timing their own funds.

By integrating Lockwood Financial Services and its Pershing unit into one separately managed account platform, Bank of New York claims that it will be able to increase distribution and launch the next generation of these products.

The fund industry's most prominent shareholder advocate is urging Congress to create an oversight board to protect mutual fund shareholders from fraud.

Fund managers continue to remain optimistic about stocks, even though potential volatility in the currency markets gives them some pause and a majority of them foresee single-digit returns for the foreseeable future, the most recent Merrill Lynch global fund manager survey shows.

A union boilermaker reportedly smashed a brick into the head of a Putnam Investments phone operator earlier this year, worried that the man was about to report the union's questionable stock-trading practices to the Securities and Exchange Commission. The alleged assailant entered the office with his Boilermakers Union Local 5 sweatshirt and a New York Yankees cap, and promptly knocked the man unconscious with the brick while yelling, "Shut the f--- up!"

Half of the companies that the Securities and Exchange Commission has contacted with regards to improper trading have reportedly admitted wrongdoing. Forty-four of the 88 companies who've received letters from the SEC have allowed some form of market timing - including firms whose own policies clearly disallow the practice. Not as many companies have admitted to late trading, however.

If the Securities and Exchange Commission approves a filing by DTCC, the not-for-profit clearing and settlement giant, best known for its work for the mutual fund industry, it will be able to do the same for separately managed accounts.

Mutual fund company Franklin Resources has named Martin L. Flanagan and Gregory E. Johnson co-chief executive officers, effective Jan. 1, 2004. Current CEO Charles Johnson will continue in his role as chairman.

State Street Research has named Kevin N. Wilkins head of distribution for both institutional and retail products. He reports to Richard S. Davis, president and chief executive officer.

The Managed Funds Association has elected Adam Cooper, the senior managing director and general counsel of Citadel Investment Group, to be its chairman.