Money Management Executive Latest News

The Securities and Exchange Commission has filed charges against three registered representatives and an advisory firm, alleging they defrauded their customers by withholding vital information about class B shares of mutual funds.

According to Boston Consulting Group, wealth managers’ assets under management have dropped by 14% and their revenues have fallen 25% in the past four years. Boston Consulting revealed these findings in a report entitled Winning in a Challenging Market: Global Wealth 2003, based on interviews with 80 of the world’s leading wealth managers, with $5 trillion in assets under management.

Some fund watchers are calling for fund managers to put their money where their mouth is, so to speak. Although fund managers stake their reputation and bonus on the funds they manage, critics are asserting that they should be putting their own money on the line, just like the shareholders, Reuters reports.

State securities regulators are turning up the heat on Morgan Stanley after discovering it provided false and misleading information about its mutual fund sales practices.

Banks are positioned to corner the mass-affluent market, as separately managed account firms and other wealth managers choose to ignore investors with less than $500,000 of assets in order to pursue the ultra-wealthy, according to PricewaterhouseCoopers (PwC).

A three-year bear market has left wealthy investors groping in the dark, but with plenty of cash still sitting on the sidelines separately managed accounts may serve as a beacon of hope for recovery.

The AIP Alpha Strategies I Fund has dared to go where no other open-end mutual fund has tread before: into the hedge fund realm. The fund is the first to offer a variety of hedge fund investment techniques packaged as an open-end mutual fund sporting continuous sales of shares, daily liquidity and transparency of all securities, both long and short.

People flock to the movies during the summer blockbuster frenzy to flee the stresses of their everyday lives, but in actuality, many mutual fund investors have some portion of their finances staked on the success of the films they are using as an escape.

In response to the Securities and Exchange Commission's charge that one of its representatives improperly sold mutual fund B shares and that it failed to monitor its sale of various classes of mutual funds, Prudential Securities has agreed to pay $382,000. However, Prudential neither confirmed nor denied the allegations. The settlement broke down to $300,000 in civil penalties, and $82,000 in reparations to investors reportedly hurt by the companies' conduct.

SEI Investments has made Electronic Trading Services capable of straight-through-processing. Eligible equity trades can now be handled entirely automatically, without any manual intervention - from the order, to the marketplace and back to the system of record. Trades are executed, processed, settled and accounted for without the need for any human intervention.