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Brokers Settle With NASD Over Improper Fund Sales

A retirement guide for women that the Heinz Family Philanthropies and the Women's Institute for a Secure Retirement issued last week brought to light some startling facts.

Morningstar Taps Cooley As Chief Financial Officer

U.S. retail investors have had a growing appetite for hedge funds, and now European investors will get the chance to test the waters in these high-return, sometimes risky investments, as Spain is the first European country to introduce retail investors to hedge funds, according to Boston-based consultancy firm Aite Group.

A new, unconventional mutual fund debuted last week that will invest in the scorching-hot private equity market.

James S. Gandolfo, the senior director and vice president in charge of the health savings accounts business at PFPC, a unit of PNC Financial Services Group, has been elected chairman of the American Bankers Association HSA Council.

If the Vice Fund is any indication, sin is in. Since the beginning of the year, the fund, which invests in the gaming industry, alcoholic beverage makers, tobacco companies and defense contracts, has posted a 23% gain, the Las Vegas Review-Journal reports.

Domestic growth funds outpaced value in all categories in the second quarter, Investor’s Business Daily reports.

The Australian financial services industry would be wise to look to expand in Japan, Richard Gilbert, head of Australia’s Investment and Financial Services Association, told Kyodo News.

The European mutual funds industry could save $340 million a year, or 250 million Euros, if it were to streamline its trading, settlement and cross-border custody systems, according to a report by Deloitte & Touche.

Rhode Island has fined Morgan Stanley $250,000 for not supervising two Providence brokers who, regulators said, engaged in unethical and dishonest practices when selling mutual funds and variable annuities, Reuters reports.

The subprime mortgage woes are now affecting hedge funds, with one closing up shop and the other halting investors from withdrawing their money, according to The Wall Street Journal.

Because of the bull run over the past five years, it has become harder for portfolio managers to find stocks with good value, and as a result, mutual fund returns are likely to decline, fund managers said at the Morningstar conference, according to Reuters.

Nasdaq will create a division that will focus solely on exchange-traded funds, The Wall Street Journal reports. One of the key functions of the unit will be to provide liquidity for ETFs with the help of a market makers.

Fund companies have been so busy focusing on the Baby Boomers that they have been overlooking Generation Y, those in their 20’s, the Financial Times reports, citing a report from KPMG. And that is going to have a profound effect on their bottom lines, particularly as the population of those between the ages of 40 and 59 is set to decline sharply in the next decade.

The Heinz Family Philanthropies, in partnership with the Women’s Institute for a Secure Retirement, has issued a free online book called What Women Need to Understand About Retirement.

According to a poll sponsored by AIG Sun America and conducted by Harris Interactive, 97% of Baby Boomers believe guaranteed income for life is their top retirement goal, followed by protection against investment losses and enough income to meet rising healthcare costs.

The Securities and Exchange Commission announced Monday that it will distribute $37 million in fair funds to 300,000 Columbia Funds investors whose holdings were affected by market timing between 1998 and 2003. It is the first of a five fair funds distributions totaling $140 that the SEC is making to Columbia Funds investors.

Although there have been a smattering of articles about a reformation at Janus Capital appearing over the past few months, none has been as colorful or as compelling as one last week in Kiplinger's Personal Finance.

Many mutual funds and closed-end funds have tried to mimic successful hedge fund strategies. However, at the end of the day, they are still not hedge funds, according to BusinessWeek. Now, individuals who desire hedge fund-like returns and are willing to take the risk, are buying shares in companies that invest similar to hedge funds.