Money Management Executive Latest News

A former Fidelity trader was sentenced to 30 months in prison for conspiracy and wire fraud that led to a $2.39 million loss of the No. 1 U.S. mutual fund firm, as well as obstructing a Securities and Exchange Commission investigation, Reuters reports.

Nationwide Financial will introduce Plan Advisory Service, a fee-based payment option to be available to Registered Investment Advisors and Certified Public Accountants who provide qualified retirement plans to clients through a fee arrangement rather a commissioned basis.

Big insurer Nationwide Financial, which will begin selling separately managed accounts through banks this Thursday, is jumping aboard a product juggernaut that a research firm says should reach $1 trillion of sales by 2007.

Funds are desperately seeking new ways of marketing funds to customers in this bear market, The Wall Street Journal reports.

PowerShares Capital Management has introduced two new exchange traded funds to the market: Dynamic Market Portfolio and Dynamic OTC Portfolio. Both are based on new quantitatively managed indexes from the American Stock Exchange.

JP Morgan Fleming, the asset management arm of JP Morgan Chase, said yesterday it will buy a 33% stake in a fund management joint venture in China for 49.5 million yuan ($5.98 million), Reuters reports.

Mutual fund giant Franklin Resources said late last week second-quarter earnings dropped nearly 9% as a continued slowdown in equity markets pared the value of assets under management.

Mutual fund complexes are beginning to realize that implementing anti-money laundering programs requires more than just flag-waving. In fact, the rules are complicated, expensive and, because they are being set in stages, confusing.

Investment adviser Doug Fabian warned investors of load funds in his most recent installment of his Lemon List, saying they could be hit with a double whammy if they buy into these funds. Things were so sour among these products that 75% of the 601 funds on the list not only severely lag their benchmarks, but also charge a commission and high management fees.

The deadly SARS outbreak is having a serious effect on the fund industry in Asia. According to a report by Reuters, the business, typically dependant on face-to-face contact in the region, has slowed significantly.