Money Management Executive Latest News

ProFunds Advisors has hired Steve Cohen as managing director of its institutional group. Cohen was most recently with FOLIOfn where he served as VP of marketing, a position he left shortly after the Vienna, Va.-based firm hired Jim Vitalie as president of FOLIOfn Institutional.

Montgomery Asset Management has hired former Alliance Capital Management sales executive Christopher White as a director of institutional and retail sales. Bill Santos, head of mutual fund distribution, will assume a broader marketing role with his promotion to the position of chief marketing officer.

Getting high fund rankings from independent firms like Morningstar is always important for fund marketers. But with equity performance down virtually across the board, fund companies have shied away from promoting individual products. As a result, portfolio manager ranking has taken on a greater focus.

The troubles at Big Five accounting firm Arthur Andersen of Chicago over its auditing of the financial statements of Enron Corp. may be raising issues for the mutual fund industry.

In joining the state of Pennsylvania's 529 plan last week, Calvert Group has become the second fund complex to offer a socially responsible mutual fund through the college savings programs. But, while some say 529s are a good fit for the so-called SRI funds, the products are expected to attract few assets through the state programs.

Employing a strategy that some say has fallen by the wayside for the fund industry, TIAA-CREF is trying out a unique ad campaign in Detroit and Boston. If it is pleased with the results, the firm plans to expand the campaign to broader markets.

Lindner Asset Management has undergone a nearly complete turnover in both management and strategy over the last year and is looking to reposition itself with a revamped product line, a fresh investment story, and new executive team in place.

For fund companies breaking into the managed account marketplace, there is one crucial question: Can you get your products on the platforms of the major wirehouses? Big wirehouses control more than 70% of managed account assets, according to Cerulli Associates, a Boston-based consulting firm. While other channels may be growing, it's the wirehouses that can make or break a company's entry into the business, according to industry executives.

Domini Social Investments has been selected to manage a socially responsible account within the City of New York Deferred Compensation Plan, which contains more than $190 million in assets.

Salt Lake City-based Wasatch Advisors, which closed its Small Cap Value and Core Growth funds to new investors in July 2001 and January 2002, respectively, is now closing them to existing shareholders as well. The firm filed prospectus supplements with the Securities and Exchange Commission last week. Both closings will go into effect on March 28.