Money Management Executive Latest News

The Bank of New York announced Monday it has been selected by ABN Amro Investment Fund Services of Chicago to provide outsourcing services for its new separately managed account product.

Alliance Suspends Two in Fund Timing Investigation

Hedge funds have long been dampened by the perpetual rain cloud of suspicion looming overhead, but several in the industry see regulators' proposals last week requiring advisors to register as investment advisors with the Securities and Exchange Commission as a welcome ray of sunshine. Some even likened the proposals to a symbolic "Good Housekeeping Seal of Approval."

New legislation aimed at providing greater balance in advertisements containing fund performance may open the door for firms to create even more misleading ads, industry critics claim.

Mutual fund companies trying to make a name for themselves in separately managed accounts are finding out that it is not for the feint of heart.

Not surprisingly in the asset management business these days, companies that once thought they could do it all are now returning to their core businesses and product lines.

Strong Financial took home the "Star Award," for overall communications effort, considered the event's most prestigious prize, even as the firm is mired in the heart of the worst scandal in the history of the fund industry. Strong also won first place among large companies in five other categories. TIAA-CREF was the most frequent winner out of the small companies, while Ariel Fidelity Investments won the inaugural Mutual Fund Education Alliance Community Investment Award, given to the organization with the most outstanding civic contributions. American Express Funds won the Overall Communications Effort Award for small companies, while Ariel grabbed the honor among medium companies.

On the heels of its re-categorization of U.S. funds, Morningstar this month is launching a new foreign funds classification system that the company hopes will aid fund-owners in investment decisions. The move follows a similar move by Lipper in late July to retool its own international classifications.

Financial service companies can expect a $25 million annual savings if they shift 1,000 jobs overseas, according to Cutting Edge Information. With call centers in places like India, where employees reportedly have greater enthusiasm and the turnover rate hovers around 5%, large firms can find gold mines that help cut costs. "India is an excellent place to outsource because they hold customer service jobs in high esteem and workers tend to care much more about their jobs," said Cutting Edge Senior Analyst Elio Evangelista.

State Street Research & Management has named Kevin N. Wilkins head of distribution for all of the firm's institutional and retail businesses. He reports to Richard S. Davis, president and chief executive officer, who said in a statement that Wilkins will spearhead the sale of the firm's equity and fixed-income products across all markets. Wilkins is also being tasked with growing State Street's retail and institutional client base.