Money Management Executive Latest News

AIM has filed with the SEC to become the investment advisor to the Invesco funds that AIM distributes. Additionally, an Invesco entity, Invesco Gloabl Asset Management, will serve as sub-advisor for all the Invesco funds.

The New York attorney general’s office has broadened the scope of its investigation into illegal trading activities between mutual fund firms and hedge funds as it has subpoenaed the Vanguard Group, Invesco Funds and Millennium Management, The Wall Street Journal reports.

While New York Attorney General Eliot Spitzer said the practice of late-trading and market timing that he discovered in the Canary Capital Partners case is widespread throughout the mutual fund industry, some of the biggest names in the industry have yet to be contacted by his office, Dow Jones reports.

When Wall Street consultant Peter Davis left a voice mail message last Oct. 31 for a colleague of Goldman Sachs economist John Youngdahl that 30-year Treasurys were about to be discontinued, it sparked a frantic, eight-minute, $317 million buying spree at the firm that netted it a $3.8 million profit, the New York Post reports. Calling the incident "extremely embarrassing," Goldman has agreed to a $9.3 million settlement with the Securities and Exchange Commission. Davis made a similar call to MFS Investment Management, which has agreed to pay $1 million to the SEC.

Rockwater Capital Corp. has announced a long-term agreement with Northern Trust Global Advisors and IA Sciences to create a managed account platform.

Investors who were burned by the technology bubble can take heart, The New York Post reports. Amerindo Investment Advisors President and Metropolitan Opera philanthropist Alberto Vilar, who was once worth $900 million largely due to his technology funds, is having to auction off his duplex at 860 UN Plaza to offset $5 million in debt.

Massachusetts’ top securities regulator, Secretary of the Commonwealth Bill Galvin, is investigating Prudential Securities’ Boston office for illegal mutual fund trading, Reuters reports. A spokesman for Galvin’s office would not say whether the investigation involves other fund companies or provide any further details.

The Securities and Exchange Commission is considering subjecting hedge funds to routine inspections, sources told Reuters. The SEC is particularly interested in reviewing hedge funds’ trading strategies, although the sources said the SEC does not want to publicly disclose these trading strategies. The SEC is expected to release the findings of its investigation of the $600 billion hedge fund industry by the end of this month or early next month.

Standard & Poors announced Thursday that it would continue to monitor the impact of New York State Attorney General Eliot Spitzer’s investigation into the trading practices of Bank One Corp., Bank of America’s Nations Funds, Janus Capital, Strong Capital and other fund companies which Spitzer declined to name. The investigation could have an effect on S&P’s ratings of fund companies, S&P said.

Capital Fulfillment Group and College Savings Consultants have partnered to create 529Insight.com, a clearinghouse of 529 information for investors.