Money Management Executive Latest News

E*Trade’s decision to rebate back to customers half of the 12b-1 fees it receives from funds could very well boost its account base, TheStreet.com reports. It could also inspire other online discount brokers to cut their fees.

Biotechnology, a specialty sector that lost favor along with technology funds, appears to be making a comeback, judging from a very strong offering by two private-equity biotechnology funds, Reuters reports.

Most fund managers believe equities are fairly valued and 85% think the economy will improve over the next 12 months, Merrill Lynch’s monthly survey of fund managers shows. Their cash positions this month remain at the same levels from the month before, 4% of assets, and many are moving into general industrial and energy stocks.

401kExchange has ranked Standard Insurance Co. of Portland, Ore., the No. 1 fund manager nationally for companies with $1 million to $10 million of 401(k) plan assets. In the same asset range, 401kExchange also ranked Standard the top plan administrator.

OFI Private Investments, a subsidiary of OppenheimerFunds, has selected CheckFree Corp.’s separately managed accounts Web application, M-Pact. The open-architecture software handles proposals, sales and investment management and is compatible with the numerous platforms that broker/dealers and registered investment advisors use to sell separately managed accounts. In addition, clients can private label services through M-Pact. Oppenheimer had already been using CheckFree’s APL, its trading and portfolio management tool.

The Northeast blackout caused cooling problems in the computer systems at the American Stock Exchange that prevented it from reopening until 3:45 p.m. Friday, Dow Jones Reports. As a result, Barclays Global Investors – which with 78 exchange-traded funds on the exchange is one of the biggest sponsors of ETFs – saw its trading volume at only one-quarter capacity. With the delay giving the exchange less than one-half hour for trading Friday (the exchange closes at 4:10 p.m.) Barclays was able to achieve even one-quarter its usual trading volume by using alternative trading systems, like electronic crossing networks (ECNs). Forty-eight of Barclays’ ETFs trade on ECNs.

The three-year bear market and unemployment have caused investors to be less concerned with growing their portfolio than merely protecting their assets, a John Hancock Financial survey shows. And this focus is likely to continue for some time to come.

The hedge fund industry is reaching new heights, as assets shot to a record level of $665 billion, driven primarily by broad-based performance, according to Hedge Fund Research, Inc.

Fee-Only Planners, Reps Stick With Mutual Funds

Courtside seats and free bottles of vino may be a thing of the past once regulators are through retooling broker compensation.