Special Program Root Tag

Managers Funds, a unit of Affiliated Managers Group, announced Friday that it has signed a definitive agreement to buy the retail mutual fund business of 40/86 Advisors, which until recently was Conseco Capital Management.

Despite acknowledging that late trading probably extended beyond just Edward J. Stern and Canary Capital, the former Securities and Exchange Commission fund regulation head said that late trading is probably not as widespread as some have recently suggested.

Because they allowed a hedge fund to rapidly trade mutual funds, Merrill Lynch fired three of its brokers Friday – one of a few pre-emptive measures by fund firms amid intense investigations in the industry.

The Bank of New York announced Monday it has been selected by ABN Amro Investment Fund Services of Chicago to provide outsourcing services for its new separately managed account product.

Alliance Suspends Two in Fund Timing Investigation

Hedge funds have long been dampened by the perpetual rain cloud of suspicion looming overhead, but several in the industry see regulators' proposals last week requiring advisors to register as investment advisors with the Securities and Exchange Commission as a welcome ray of sunshine. Some even likened the proposals to a symbolic "Good Housekeeping Seal of Approval."

New legislation aimed at providing greater balance in advertisements containing fund performance may open the door for firms to create even more misleading ads, industry critics claim.

Mutual fund companies trying to make a name for themselves in separately managed accounts are finding out that it is not for the feint of heart.

Not surprisingly in the asset management business these days, companies that once thought they could do it all are now returning to their core businesses and product lines.

Strong Financial took home the "Star Award," for overall communications effort, considered the event's most prestigious prize, even as the firm is mired in the heart of the worst scandal in the history of the fund industry. Strong also won first place among large companies in five other categories. TIAA-CREF was the most frequent winner out of the small companies, while Ariel Fidelity Investments won the inaugural Mutual Fund Education Alliance Community Investment Award, given to the organization with the most outstanding civic contributions. American Express Funds won the Overall Communications Effort Award for small companies, while Ariel grabbed the honor among medium companies.

On the heels of its re-categorization of U.S. funds, Morningstar this month is launching a new foreign funds classification system that the company hopes will aid fund-owners in investment decisions. The move follows a similar move by Lipper in late July to retool its own international classifications.

Financial service companies can expect a $25 million annual savings if they shift 1,000 jobs overseas, according to Cutting Edge Information. With call centers in places like India, where employees reportedly have greater enthusiasm and the turnover rate hovers around 5%, large firms can find gold mines that help cut costs. "India is an excellent place to outsource because they hold customer service jobs in high esteem and workers tend to care much more about their jobs," said Cutting Edge Senior Analyst Elio Evangelista.

State Street Research & Management has named Kevin N. Wilkins head of distribution for all of the firm's institutional and retail businesses. He reports to Richard S. Davis, president and chief executive officer, who said in a statement that Wilkins will spearhead the sale of the firm's equity and fixed-income products across all markets. Wilkins is also being tasked with growing State Street's retail and institutional client base.

HSBC Asset Management has promoted Steve Baker to chief executive officer of HSBC Asset Management North America. He reports both to Alain Dromer, global chief executive officer of HSBC, and to Leslie Bains, senior executive vice president and head of domestic private banking and wealth management. Baker has been with the firm for 26 years, most recently as chief operating officer.

Schwab Institutional has promoted Edie Heilman to run the Schwab Advisor Network, a nationwide referral service for affluent investors. She succeeds Rob Klapper, who was named a senior vice president of service offers in Schwab's marketing division. Heilman most recently was senior vice president of active trader services.

Integrity Mutual Funds has hired Brenda Sem as chief compliance officer of mutual fund operations. She was previously senior internal auditor of Alerus Financial and has also worked for Brady, Martz & Associates and American West Insurance Co.

Fiduciary Trust, a subsidiary of Franklin Resources, has appointed Wendy J. Mills as senior vice president for individual business development. In this role, she will advise individuals and families on investment management, trust and estate and custody. She reports to Murray Stoltz, senior vice president and director of individual business development. Prior to joining Fiduciary, Mills was a senior vice president for client acquisition at Bessemer Trust. She has also held senior positions at Morgan Guaranty Trust, Morgan Stanley and Fidelity.

Kenneth Domingues, a former senior Securities and Exchange Commission accountant, has joined the board of directors of the Forward Funds. At the SEC, Domingues was chief accountant for the division of investment management. He has also worked for Franklin Templeton, Coopers & Lybrand and the Investment Company Institute.

During the recent bear market, long/short and market-neutral funds were pitched as alternative investments or absolute return havens that could provide positive returns with dampened volatility.

A high concentration of insurance companies in the state and desire by Connecticut attorneys specializing in investment management to identify and confront industry issues, has spawned the formation of a new organization, the Investment Company Act of 1940 Attorneys’ Association of Connecticut.