Money Management Executive Latest News

SunAmerica Asset Management has launched the SunAmerica Global Trends Fund, a fund sub-advised by Wellington Management and that combines 10 global asset classes with a rules-based asset allocation strategy that seeks to move in and out of changing markets. The fund will invest primarily in futures contracts and also use technical analysis. It will have between 0% and 10% exposure to each of the global asset classes.

Half of all companies say they are likely to take such defensive actions as cutting capital spending and laying people off if the U.S. government defaults on its obligations, a survey of 305 finance and treasury executives by the Association for Financial Professionals found.

Emerging Global has launched a suite of 11 emerging markets exchange-traded funds under the brand of GEMS (Global Emerging Market Sector) Funds. Three of the funds are rebranded and eight are brand new.

Hutchens Investment Management has merged with New Leaf Asset Management, with New Leaf executives Fletcher Cole and Carrie Bossi joining the Hutchens team.

While hedge funds-of-funds tout their diversification as a limit on risk, this is not the case, according to research by NYU Stern Finance Professor Stephen Brown and co-authors Greg Gregoriou and Razvan Pascalau of SUNY College at Plattsburgh School of Business and Economics. In extreme market conditions, the professors attest, a broadly diversified hedge fund-of-fund is actually more sensitive to risk than an average hedge fund.

BlackRock plans to get active in active ETFs, its chairman and chief executive said Wednesday.

Broker Suspended for Excessive Trading in Mutual FundsBy Tom Steinert-ThrelkeldAn Arizona broker has been suspended for excessive trading in mutual funds.William Bailey, formerly a broker with the NEXT Financial Group in Mesa, Ariz., has been put on the sidelines for two years by the Financial Industry Regulatory Authority for switching customers in and out of mutual funds, for average of two months per investment.Bailey also engaged in discretionary trading without receiving prior written approval from his customers, the independent regulator of brokers said.Bailey recommended 484 short-term switch transactions in seven customer accounts, in 2006 and 2007, FINRA said. He “repeatdly sold mutual funds less than one year after purchasing them, and purchased new mutual funds with the proceeds,’’ the regulator said.With the frequent switches, his customers held their mutual funds for only 60 days, on average. The seven customers ranged in age from 66 to 93 and “were all unsophisticated investors,’’ FINRA said.Bailey could not be immediately reached for comment.FINRA said the customers paid more than $147,000 in sales charges and trading fees. Bailey received more than $120,000 in commissions, from those payments.Bailey, the regulator said, frequently traded in his customers' accounts without first obtaining their permission and improperly completed customer account forms to make it appear the customers approved of the trading. “Bailey rapidly switched his elderly and unsophisticated customers in and out of mutual funds with high costs, providing a benefit to Bailey instead of to his customers,’’ said Brad Bennett, FINRA Executive Vice President and Chief of Enforcement, In settling the case, Bailey neither admitted nor denied the charges, but consented to its findings, FINRA said.An Arizona broker has been suspended for excessive trading in mutual funds.

Americans are showing resilience in the aftermath of the financial crisis, but their advisers report that they are not doing a good enough job of saving or living within their means, Principal Financial found in a survey of 632 advisers. Only 10% of the advisers surveyed said their clients are able to easily visualize their financial dreams.

The 30 companies in the Dow Jones Industrial Average are expected to increase their annual dividend payout by 12.66% from a year ago and 2.93% from the first quarter, according to a survey by Dow Jones Indexes.

DST Systems has signed a definitive agreement to acquire ALPS for $250 million in cash. Once the deal closes, which is expected in the fourth quarter, ALPS will be marketed as “ALPS, a DST Company.”