Special Program Root Tag

Calling the need for more money "critical to the agency as it continues its reform efforts," Securities and Exchange Commission Chairman William Donaldson asked the U.S. House of Representatives yesterday for $913 million for fiscal year 2005, the most the Commission has ever asked for.

To streamline its SMA business, Smith Barney has named Paul Hatch director of managed accounts, a newly created position overseeing the company's Consulting Group and Portfolio Management Group.

The Securities and Exchange Commission has tapped Walter Ricciardi to succeed Peter Bresnan, who served as district administrator of regulator's Boston office for a brief five-month period on an interim basis.

Massachusetts Financial Services will pay a $50 million fine to the SEC for not disclosing directed-brokerage agreements, The Wall Street Journal, reports, citing a person who has been briefed on the case and who thinks the settlement could be announced as early as today.

Brokerage firm Edward D. Jones said it could face regulatory action and fines for recommending some funds over others without revealing to customers the financial incentives it received to give such advice, Reuters reports.

RS Investments, founded in the 1980s as a subsidiary of investment banking firm Robertson Stephens, is close to reaching a deal with the New York Attorney General for market timing, New York Post reports, citing sources familiar with the case.

Prudential Financial Inc. and China-based Everbright Securities announced Sunday they had received a license to launch a fund product in mainland China under the name of a newly formed company, Everbright Prumerica Fund Management Company.

Money Management Executive is hosting Thomson Media’s 2nd Annual, 2004 Fund Operations Awards, honoring excellence in: Leadership, Innovations and Efficiencies.

In a scandal that has turned many in the mutual fund industry into seekers of transparency, some firms are now saying that duct tape, and not scotch tape, should be used to cover up the figures representing portfolio managers’ salaries. In short, they think that there should still be some limit to disclosure, Reuters reports.

Arthur Cherry, a president and director at Federated Investors resigned Friday, the company said. No replacement will be named.

Janus Capital has launched a U.S. large-cap value fund in Hong Kong, the company announced Monday.

Institutional SMA Services To Reach Northern Masses

PALM DESERT, Calif. - A culture of compliance and dedication to long-time shareholders has to be priority No. 1 for mutual funds. That was the consensus of a number of high-profile industry professionals at the annual Investment Company Institute Mutual Funds and Investment Conference last week.

Tripping over Federal securities regulations can bring a mutual fund advisor to its knees. But running afoul of state securities divisions can also be painful.

After near-record highs set by equity funds in January, not unexpectedly, February couldn't live up to the same expectations, according to a monthly report from Lipper. But it was a brave attempt.

AIM Investments has stepped up efforts to publicly disclose its directed-brokerage activities and allocation of marketing fees. Newly drafted prospectus supplements filed with the SEC clearly outline the fund provider's intent to reveal non-binding sales goals with third-party brokerage firms and other potential investment distributors, a move lauded by shareholder advocates but implemented by very few asset managers.

Putnam Investments is cracking down on the perks brokers use to entice fund managers and other executives to give them their business.

Hedge fund firm HFR Asset Management has created the position of chief marketing officer and filled it with Wilson "Bill" Santos, a 20-year industry veteran who has held management positions at such high-profile firms as Montgomery Asset Management, Fidelity Investments and Bear Stearns.

Saying it is still not even close to being finished in its national sales force expansion, Lord Abbett & Co. hired S. Chris Fiacco to its sales group.

Scott C. Evans, executive vice president of CREF Investments since 1997, has been named chief investment officer of parent company TIAA-CREF, the No. 1 higher education and research employee retirement system in the United States.