Money Management Executive Latest News

In an effort to strengthen its relationships with fee-based advisors, Pershing, a subsidiary of Credit Suisse First Boston, is allowing investment professionals to access the Pioneer mutual fund family through a no-transaction-fee program, the company said today.

Charles Schwab Corp. said today that its operating income for this year’s third quarter fell more than 50% from the same period last year. The firm says economic uncertainty that has sparked the markets’ turbulence since last months’ terrorist attacks played a significant role in the declines.

Fidelity Investments said this month that the Web and access to a smattering of brokerage houses prompted the firm to nix plans for a call center near Tokyo, according to Reuters reports.

Merrill Lynch introduced a new retirement planning network today, which combines the firm’s proprietary offerings with those of multiple partners. The new program, MLConnect, is designed for small- to mid-size retirement plans and is being sold to Merrill Lynch clients through the firm’s network of financial advisors.

John Hancock Financial Services of Boston is getting serious about developing new growth opportunities and is seeking acquisition targets outside of its existing line of businesses.

Sage Life Assurance of America, Inc. has expanded its variable annuity investment options with the addition of five new portfolios from First American Funds and Van Kampen Asset Management, Inc.

In a move that is more the exception than the rule, the $2.3 billion Fremont Funds of San Francisco has terminated the 12b-1 plan on three of its 11 no-load funds. The change is reflective of Fremont's evolving distribution strategy.

Fremont had not always intended to peddle its funds through fee-only investment consultants and financial planners. Fremont's roots actually trace back to its serving as the investment manager for the pension plan of engineering firm Bechtel Corp.

Earlier this year, The AmSouth Funds, the proprietary fund family of AmSouth Bank of Birmingham, Ala., erased the 12b-1 plan on several of the funds it inherited when it purchased First American Bancorp. in October, 1999, said Jim Underwood, a senior VP with AmSouth. Several of the First American Funds, with a collective $3 billion in assets, had 12b-1 plans, but AmSouth's own fund group lacked such fees. The decision was made to end the 12b-1 program when the funds were brought into the AmSouth family, Underwood said.

Mutual fund firms may look at variable annuities as an opportunity to sub-advise, not as competition. But variable annuity providers don't necessarily share that sentiment.