Money Management Executive Latest News

Waddell & Reed Financial, the Overland Park, Kan.-based mutual fund manager, announced today that its third quarter profits were down over 40% from last year. Profits from the third quarter of this year were $20.4 million, down from $34.5 million in 2000.

It seems that MetLife is not done restructuring itself yet.

Hartford Life Insurance Company, a provider of mutual funds and other investment vehicles, announced this week that it will launch a new group annuity products aimed at 401(k) investors who work for small businesses.

Net sales of exchange-traded funds increased $1.7 billion, according to the monthly report from the Investment Company Institute.

For years, Fred Alger Management has been adept at drawing the attention of the media and the industry. There was the proficiency of Fred Alger, who founded the firm in 1964. There were the eccentricities of younger brother, David Alger, who took over the firm in 1989. There was also the relationship between the pair, Fred, the planner, and David, the inspirer who carried out the plans--and then some.

In a typical month, before Sept. 11, Connelly said the firm would handle a couple of press stories a month -- not bad for an outfit that manages $16 billion in assets. Since the attacks, Connelly said there have been nearly three dozen stories about the firm. "Obviously there is no comparison," he said.

Since, Connelly hasn't slept much. You can hear the strain in his voice, a deep voice that crackles and is scratchy with fatigue. Under Connelly's direction, the firm has taken steps to keep the pressure of the media away from its workers, some 235 people who occupy offices in the Morristown building and another facility in Jersey City. Employees are not allowed to speak to the press unless they talk with a public relations executive first. That has always been the policy, but it has taken on new meaning during the last month. There is little strain on the staff, he said, because "we've been careful not to let that happen. It helps keep people concentrating on their jobs."

But Connelly's job has been to deal with some difficult questions. With 38 staff gone, including some of the firm's most senior pros, he has to discuss the process of rebuilding as well as address the human-interest angles that reporters seek. "At times it does become a strain," he said, his voice trailing off a little. Talking with the press is especially difficult when he is discussing "specific individuals that I've known for many years," he said.

Rydex Funds has always looked to leverage the Internet for its business. So it should come as no surprise that the latest overhaul of its site for financial planners also paves the way for a focus on the independent broker-dealer.

Rydex by no means plans to abandon its RIA clients. In fact, Farragher said the firm is aiming to significantly bolster its RIA ranks, which account for approximately 6.5% of the RIA population.