Special Program Root Tag

Although the fund industry continues to reel from 19 months of Fundgate, a few industry executives believe that neither the SEC's $20 million settlement with Citigroup nor the $6.25 million fine NASD imposed on the company over improper sales disclosure went far enough.

The companies that manage and distribute American Funds sued California's attorney general, claiming he does not have the jurisdiction to regulate the disclosure of deals with brokers who market its products.

Expanding on its "New School of Investing" theme, iShares is launching an ad campaign entitled "New You." The campaign reaches advisers through television, print and online ads, as well as direct marketing, sales materials and a revamped Web site.

Eggers Returns to Dreyfus

Fair value pricing continues to be a red-hot topic for mutual fund advisors as well as for Securities and Exchange Commission examiners.

The Securities and Exchange Commission announced Friday that Meyer Eisenberg, the SEC's deputy general counsel since 1998, will serve as acting director of the division of investment management, replacing Paul Roye.

Certain clients can delay their required IRA distributions a little longer and pay them out with less onerous tax consequences according to a March 11th IRS Private Letter Ruling. The ruling clarified how required minimum distribution rules apply at retirement to profit-sharing plan participants who made grandfathered "242(b)(2) elections."

JPMorgan Asset Management is developing share in sales of managed accounts even as bank distribution lags, according to a distribution executive at the company.

The NASD plans to release a report today calling for a Web-based "Profile Plus," which the Securities Industry Association will endorse in a letter to the SEC, also today, The Wall Street Journal reports.

Investors are reaping the benefits of lower fees as more and more mutual fund complexes slash prices, The Wall Street Journal reports.

Spurred by a buoyant stock market, stock funds in February raked in $22.43 billion compared to $9.97 billion in January. It was the second-best February in five years, slightly down from February 2004's inflow of $26.1 billion, according to the Investment Company Institute.

Putnam Investments announced Thursday that Sandra C. Whiston has been named head of institutional sales and relationship management, effective April 12. After an eight-month stint at Fidelity Management and Research, Whiston returns to Putnam where she previously worked for 18 years in the company's institutional business.

AGF Management Ltd. announced Wednesday that fourth-quarter profit dropped slightly and it would acquire 14 funds from a unit of ING Canada Inc.

Although the number of mutual fund share classes or funds themselves that were merged or eliminated in 2004 dropped sharply from the two years earlier, fund mergers remained at historically high levels, Standard & Poor's reported Thursday. Last year, there were 479 such mergers. In 2003, there were 781, and in 2002, 714.

The SEC's investigation into revenue-sharing and directed-brokerage violations at American Funds is now honing in on best execution, sources familiar with the probe told the Los Angeles Times.

The Securities and Exchange Commission announced Friday that Meyer Eisenberg, the SEC's deputy general counsel since 1998, will serve as acting director of the division of investment management, replacing Paul Roye.

Spectrum Asset Management, an affiliate of Principal Global Investors, announced Wednesday it will manage a new tax-advantaged floating rate fund for Nuveen Investments. The Nuveen Tax-Advantaged Floating Rate Fund, a closed-end, exchange-traded fund, raised more than $300 million in the initial common share public offering and began trading on the New York Stock Exchange March 29 under the ticker JFP.

Hartford Financial Services Group has its sights set on growing its mutual fund business. The company, primarily known for its insurance products and annuities, aims to beef up its fund complex through organic growth, although the company will likely add new funds and considers acquisitions, Reuters reports.

President Bush's Social Security plan has become the focus of lobbying efforts of AARP, with the organization willing to commit the lion's share of its resources to the cause, The Washington Post reports.

A St. Louis County judge on Tuesday overturned state orders that had temporarily forced Waddell & Reed to close its 17 offices in Missouri, according to the Kansas City Star.