Money Management Executive Latest News

Mutual fund companies providing 401(k)'s or other types of defined contribution plans may be in for a rash of lawsuits foiled by unhappy 401(k) investors, say industry executives and consultants.

NEW YORK - Mutual fund companies will have until March 31 to comment on a privacy provision in the Financial Services Modernization Act that will prevent fund companies from sharing customer information with third-party non-affiliates.

The challenge Alliance Capital of New York faces is not to move into, but to expand its foreign presence, said Kurt Schoknecht, recently named director of Alliance's $25 billion offshore business. The challenge is maintaining the company's international momentum and forging additional new international partnerships, including in emerging markets, he said.

Growth funds tend to be more socially-responsible than value funds, according to a study released Feb. 24 by Morningstar of Chicago.

MIAMI - Telecommuting may not be for everyone, especially registered representatives at NASD member firms.

The Dreyfus Corporation of New York has begun offering separate account management services to institutional investors and high-net worth investors. Account minimums are $100,000.

A new website that tracks funds that just started or are too small for a ticker symbol, was launched early last week by MAXfunds.com of Ann Arbor, Mich., according to Jonas Max Ferris, the company's president and co-founder.

First Financial Fund, the closed-end fund administered by Prudential Investments of Newark, N.J. and advised by Wellington Management of Boston, is apparently shoring up its defenses to ward off advances by Stewart Horejsi, a shareholder activist. Horejsi has been purchasing fund shares with an eye toward possibly taking a more active role in the management of the fund. (See related story page 8)

Kinetics Asset Management of New York is spending approximately $4 million on an advertising campaign that will include three television ads to be introduced this week, according to Steve Samson, president and CEO of the company.

MIAMI - Regulators will soon be keeping careful watch on mutual fund companies' privacy policies in light of the recently-passed Financial Modernization Act and ensuing mergers and acquisitions, said Paul M. Connolly, first vice president and chief executive officer of Federal Reserve Bank of Boston.