Money Management Executive Latest News

In the first of a long series of arbitrations through the National Association of Securities Dealers, a panel has awarded around $110,000 to an investor who had been sold variable annuities by John Steven Blount, a former broker for New York Life Securities. Blount has 97 customer complaints on record with the NASD, with the bulk of those pending arbitration.

Technology funds are up 36% year-to-date through last Tuesday, making them the best-performing equity category so far this year, according to Lipper. That’s great news, but it has some fund managers worrying that investors might think happy days are here again, Reuters reports. And according to Money magazine, some investors are again flocking to unprofitable technology firms.

In spite of the recent, strong upturn in the market, investors are still gun-shy and looking for guidance, The Wall Street Journal reports. Lifecycle funds that automatically shift the balance between equity, fixed income and money market holdings as people age have recently gained popularity, and, as a result, more fund companies are offering them. Fidelity, Vanguard, Charles Schwab, T. Rowe Price and Wells Fargo are among the firms offering them.

Fund managers around the world maintained their positive outlook for the global economy as they continue to hold strong levels of equity shares compared to bonds, according to a poll conducted by Reuters.

NASD Breakpoint Order Places Onus on Brokers

The seven independent trustees who serve as watchdogs over 129 retail and institutional funds sponsored by Morgan Stanley Investment Management of New York have approved a restructuring of their board compensation plan that will result in a significant double-digit increase in their pay.

As much as separately managed account managers want to comply with the Association of Investment Management Research's performance standards to strengthen their clients' trust, they are hampered by the strong controls that sponsor firms have over their retail SMA accounts.

The Patriot Act's customer identification requirements set to take effect Oct. 1 could become a splitting headache for customer service reps if firms are not proactive in informing customers, according to Charlie O'Neill, Dalbar's manager of anti-money laundering (AML) services.

Frank Campanale, recently ousted from his chief executive officer position with Smith Barney's consulting group, has agreed to stay on in an advisory role with the firm, sources tell MME. Sources did note however, that no contracts had been signed as of late last week, and a Smith Barney spokeswoman was unable to confirm the developments as of press time.

Janus plans to swap 32.3 million of the nearly 40 million shares it owns in DST Systems, its data processing subsidiary, in exchange for ownership of a commercial printing and graphics design unit of DST that Janus will rename JCG Partners.