Money Management Executive Latest News

Garett Van Wagoner of the VanWagoner Funds, who suffered major losses in the bear market by betting on technology and dot-com companies, will charge investors based on how his funds fare against competitors, Reuters reports.

London-based firm Gartmore, which manages approximately $3.5 billion in hedge fund assets, has announced it will start distributing third-party funds, Reuters reports. The justification comes because the firm claims that it cannot make enough products to satisfy demand.

In eight out of nine investment styles, lower-expense mutual funds beat out more expensive brethren over one-, three-, five-, and 10-year periods, according to a new study from Standard & Poor’s. The only style category where most costly funds won out was mid-cap blend.

Capital Markets Subcommittee Chairman Richard H. Baker (R-LA) introduced a bill Wednesday that would require funds to disclose operating expenses and portfolio transaction costs and have directors crack down on soft-dollar and revenue-sharing arrangements. The bill takes into account the recommendations that the Securities and Exchange Commission issued Tuesday calling for more transparency in the fund industry (see MME 6/11/03).

Lockwood Advisors, the separately managed account subsidiary of the Bank of New York, announced Wednesday that it has made a mortgage origination capability available to its adviser clients through its expanded wealth advisory platform.

Morgan Stanley Investment Management, the funds division of the U.S. investment bank, has shifted over half of its European money market assets to Dublin from Luxembourg, Reuters reports. The firm said it has found better fund conditions in the Irish capital.

Janus Capital’s total net assets rose 4.2% in May from the previous month to $147.4 billion, while Franklin Resources’ assets rose 5.4% to $281.9 billion, the two companies announced. But from a year ago, Janus’ assets fell 16% from $176 billion, while Franklin’s rose a scant 1.2% from $278.6 billion. Excluding dividends, the S&P 500 rose 5.1% in May.

Investors feeling upbeat due to recent gains in previously battered sectors should keep their portfolios diversified and their investment strategies clear, The Wall Street Journal reports.

The American Stock Exchange Monday began trading options on the underlying shares of Barclay’s iShares Cohen & Steers Realty Majors Index Fund.

The Securities and Exchange Commission Tuesday issued a report indicating that increased transparency in the $6.4 trillion mutual fund industry is necessary, but hinted that large scale changes are not likely due to their impracticality.