Special Program Root Tag

Three U.S. Senators have introduced new legislation aimed at reforming the $7.4 trillion mutual fund industry, a bill that not only would stamp out abusive trading practices but also overhaul the hidden fee structure imposed on shareholders.

Phillip Peterson, Strong Mutual Funds’ newly appointed president, said the firm’s employees need to have an easier, less intimidating way to blow the whistle on wrongdoing at Strong, a subject he will address with the company’s board, Reuters reports.

Managed account assets have eclipsed the half-trillion dollar mark, as a robust rally in stocks and strong account growth bolstered the largely fee-based business.

Diving into a booming market, Principal Financial Group Inc. announced Monday that it has acquired Hong Kong-based Dao Heng Fund Management Limited from the Guoco Group. Official terms of the deal were not disclosed.

The Securities and Exchange Commission’s settlement with Massachusetts Financial Services did not punish the company’s two top executives harshly enough, according to a dissenting opinion by one of the commissioners, Cynthia Glassman.

MFS Investment Management said on Monday that Chairman Jeffrey Shames has resigned and will be replaced by former Fidelity Investments Vice-chair Robert Pozen.

Investment management giant Federated Investors said Monday its quarterly profits dropped 12% after taking a $20 million charge to cope with improper mutual fund trading.

Franklin Resources on Monday said that improper trading of its mutual fund shares were isolated incidents that do not reflect widespread company abuses and did harm long-term shareholders.

The biggest fear among almost 48% the nation’s employees is "outliving their savings," according to a recent MetLife study about employee trends.

Recognizing the mutual fund industry’s need to combine technology and compliance solutions in order to curb trading abuses, IBM and Mantas, Inc. have joined to preemptively cure the industry of the transgressions that have dominated the headlines since early September.

Putnam Investment’s long uphill battle officially began last November, when industry icon Larry Lasser was asked to leave the firm and Charles "Ed" Haldeman, Jr., stepped in and was charged with turning around the embattled fund giant.

It’s electric!

The hostile bidding on two Japanese companies by a U.S.-based hedge fund may trigger other investors to try and do the same, according to hedge fund managers speaking at a New York press conference Thursday, Reuters reports.

President Bush proposed last Monday a $913 million budget for the Securities and Exchange Commission, one that would represent a 13% increase in available funds for the regulatory agency.

The harsh reality for Putnam Investments is that the firm has bled assets at an alarming rate, had sub-par portfolio performance the last few years, and upset the trust of investors and business partners due to developments of unchecked market timing activity at the firm.

Another casualty was added to the growing list of mutual fund criminals last Tuesday as a New York bank executive was hauled off in handcuffs for allegedly arranging $1 billion in financing for illegal mutual fund trades.

The SEC's Dec. 11, 2003 proposal to end forward-pricing end runs around the 4 p.m. hard NAV close, has raised criticism from 401(k) plan sponsors, investors and administrators.

Fidelity Investments might soon lose $475 million in assets that it runs for the Massachusetts state pension fund, Fidelity confirmed last week.

Six financial services companies, including UBS AG and Wachovia Corp., have reportedly agreed to settle SEC allegations that their brokers failed to give promised mutual fund discounts.

U.S. Bancorp Asset Management last week indicated in an SEC filing it is cooperating with the SEC on an informal inquiry into trading activity in the First American Small Cap Growth Opportunities fund. Spokespeople for the company did not return phone calls seeking comment.