Money Management Executive Latest News

Ideally, here's how some consultants say developing and distributing a new mutual fund is supposed to work: Product development teams and top leadership at mutual fund companies come up with a set of goals for investors and the company. Development teams then put together a new fund based on those goals. A portfolio manager, who understands those goals, oversees the product. Wholesalers communicate the goals to brokers. Brokers, in turn, communicate the fund's goals clearly to investors who buy into it. Everybody understands the plan.

MFMarketnews.com is keeping abreast of the industry's latest developments with postings twice a day. If you didn't log on last week here are some Web exclusives you missed:

The executive roster at the Charles Schwab Corp. has undergone some recent changes affecting its mutual fund division and corporate management.

John Graf has been named vice chairman of SunAmerica, a member of American International Group (AIG), responsible for the firm's fixed annuity business, group retirement products, and broker-dealer operations. He was also named to SunAmerica's board of directors.

After a quarter of a century, Peter Cummins, SVP for investment products sales and marketing at Hartford Life, will retire from the firm. During his career at the Simsbury, Conn.-based firm, Cummins introduced the Director, Hartford's flagship product, as well as two additional top-selling products, Putnam Hartford Capital Manager and Hartford Leaders.

James Cusick has joined Conseco Capital Management (CCM) as director of consultant relations. The previous director resigned a year ago, but the firm did not name a new one until now. The reason for that is simply that the firm was waiting until it found the right person, according to Susan Ruhl, national sales director, institutional sales for Conseco. Cusick will report to Ruhl.

In one case, a manager passed a worker in the hallway and said, "By the way, this is your last day. Go down to personnel." In another, a disgruntled employee pointed a gun at a manager's head. And in yet another, employees were all contained for hours in a giant room to feed off each other's anxiety until all had been told whether their jobs would be terminated.

The launch of the Calvert Social Investment Foundation was propitious from a charity-giving perspective. With the events of Sept. 11 and the various charities that were created in the aftermath of the attacks, investors are decidedly in a giving mood. "We are finding people are a little bit more reflective now," Freundlich said.

Kim King is managing director, global investor services, for NewRiver, which provides e-fulfillment services for the financial industry. NewRiver's clients include INVESCO, Merrill Lynch, Nvest, UBS PaineWebber, SalomonSmithBarney and T. Rowe Price.

Not long ago, while the markets were soaring, mutual fund investment restrictions were a pain in the neck for portfolio managers. And firms sought to lift restrictions on some of their funds in an attempt to avoid missing out on optimal returns. The current downturn, however, has shown why certain restrictions were in place from the beginning and consequently, firms have slowed efforts to change guidelines.