Money Management Executive Latest News

Mutual funds are up an average 19.6% so far this year - small-cap funds up 30.7%. The market rally that began March 12 was first fueled by a quick outcome in the war in Iraq and, recently, positive economic data.

In the Sept. 8 issue, Robert Brown's title was incorrectly cited. Brown is senior vice president and director of the investment management team at GE Private Asset Management.

Fidelity Investments has announced the appointment of Chuck Black as senior vice president in charge of the company's investment and benefits outsourcing consultant relations group.

Steven A. Falci has joined Calvert as chief investment officer and senior vice president, equities. He was formerly a senior vice president and senior portfolio manager at Mellon Equity Associates, where he helped develop and manage the firm's socially responsible equity products. Before that, he was managing director, pension investments, at Nynex Corp.

PFPC, a member of The PNC Financial Services Group, has hired Rosemary A. Gallagher as director of fund accounting and administration for the alternative investment group.

David L. Babson & Co. has named James E. Masur as chief financial officer and managing director. Masur joins the firm from Deutsche Asset Management. Before that, he was with Zurich Scudder Investments. He has also worked for Mellon Financial, Dreyfus and The Boston Company.

Cherisse Crawford has been named director, institutional marketing and consulting relations, at Principal Global Investors, a division of The Principal Financial Group.

Japanese investors have historically played the role of the hometown referee, favoring the local teams and giving foreign asset management firms a slim chance of staying in the game. However, the Japanese appear tired of giving the home team a free pass. That has made selling financial services in Japan a whole new ballgame.

Since Sept. 11, 2001, governments in the U.S. and abroad have moved aggressively to combat the problem of money laundering and terrorist financing at financial institutions. To this end, Title III of the USA Patriot Act introduces many new classes of financial institutions to many of the same anti-money laundering (AML) control requirements that banks have had to comply with for many years under the Bank Secrecy Act and other laws.

The requirements of the Sarbanes-Oxley Act and subsequent SEC rules have significant implications for the responsibilities of fund audit committees, the way they do business and the qualifications of their members. Not only did the act formalize measures to safeguard the independence of outside auditors, it redefined the role of fund audit committees in assuring transparency, and thus accountability, to shareholders. No less than in years past, the quality of a fund's financial reporting depends upon close and effective coordination among management, the audit committee and the audit firm. Sarbanes-Oxley altered, however, in crucial respects, the rules of engagement.