Money Management Executive Latest News

The new millennium has not been kind to investors. After a long run in the 1990s, the bull market finally ran its course, and for the past two years, stock portfolios have been declining. In fact, by the end of 2001, economic data confirmed a recession had begun in March of last year. As we head into the fourth quarter of 2002, optimists think the bottom has been reached and a recovery is on the way. But only time will tell.

Many fund companies are at a crossroads, according to Charles O'Neill, president, Diversified Management Resources. In order to keep costs down, many complexes that built out during the boom years of the 1990s are going to have to drop part of their business and concentrate more on specific areas, O'Neill said. "Fund companies are going to have to decide essentially whether they are product distributors or product manufacturers. That's what it comes down to," O'Neill said.

Where Was the Board?

Minneapolis-based U.S. Bancorp Asset Management said Dale Kurtz has been named the firm's new key accounts manager for U.S. Bancorp Asset Management and First American Funds. Kurtz will focus on establishing strategic asset-management relationships to increase distribution of the firm's investment products and services through third-party channels.

Amid worries and uncertainty surrounding retirement advice, Merrill Lynch is offering an alternative solution with the launch of AdviceAccess, a personalized investment advice product for individuals who invest in retirement plans. Mark Feuer, a first VP with Merrill Lynch Retirement Group, told reporters on a conference call yesterday that this service will "finally answer the question, ‘How should I invest?’"

Orbitex Group of Funds plans to sell all of its assets to Saratoga Capital Management in return for a 50% interest in a new company known as Orbitex-Saratoga Asset Management, according to a statement filed with the Securities and Exchange Commission on Oct. 3.

Standard & Poor's has launched a product called Real Estate Equity Fund Manager Assessments, which offers investors and managers insight into the operational capabilities, performance statistics, and investment management style of real estate fund managers.

Fidelity announced last week that it is cutting 1,695 employees, or more than 5% of its workforce, in a widely expected cost-reduction measure at the nation's largest mutual fund company.

PALM DESERT, Calif. - There's no question that the Securities and Exchange Commission has left the mutual fund industry a little confused lately.

PALM DESERT, Calif. - Just over a year after the terrorist attacks of Sept. 11, which forced many financial services companies to relocate their staffs and their computer systems, a Securities and Exchange Commission official said that the disaster-recovery plans of many small-fund companies are inadequate.