Special Program Root Tag

Northern Trust Global Investments Europe has appointed Stephen Watson as portfolio manager to its active international equities team in London.

Mutual fund investors may get a better understanding of fund costs and greater insight into the relationships and possible conflicts of interests of fund management.

A prolonged bear market is resulting in the loss of millions of dollars in fees each year to mutual fund companies. Fund firms have a particular problem recouping the commissions fronted to brokers who sell funds with back-end loads. In response, some fund companies are changing the formula for calculating the contingent deferred sales charge (CDSC) paid by investors who redeem Class B shares within five years of their purchase. And tracking multiple CDSC calculations within the same fund share class is a new challenge for recordkeepers.

NEW YORK - The growth of the SMA marketplace hasn't only caused financial intermediaries and investors to adapt to a new managed account model. Investment management firms are finding they have to carve out their own path to SMA success.

Financial Research Corp. (FRC) has contracted with Ibbotson Associates to have Ibbotson analyze its advanced research reports for mutual fund wholesalers and provide five sales ideas for each one. Fund companies can customize each report with their own name and logo.

Payden & Rygel has selected UMB Investment Services Group as its transfer agent. Beginning in September, UMB will serve the investment advisor’s two mutual fund families, Paydenfunds and Metzler/Paydenfunds, which have $2.5 billion in assets. UMB will process applications, maintain records, mail shareholder statements and report investor tax information.

The bonuses that Vanguard pays its 10,000 employees each June based on "partnership units" has fallen 5% from $61.50 to $58.40, The Philadelphia Inquirer reports.

The dominant players in the rapidly growing hedge fund industry will be on opposite ends of the industry’s spectrum, Donald H. Putnam, chief executive of Putnam Lovell NBF Securities, said at the ninth Global Alternative Asset Management Forum in Geneva, Switzerland. On the one hand, large, sophisticated firms with access to capital, and on the other, small, focused, talent-driven boutiques will dominate the space, Putnam said.

INVESCO announced it would close its struggling Singapore mutual funds in an effort to sell its international funds directly to local investors, Reuters reports.

Kauser Management has launched the Technical Chart Fund, a market-neutral mutual fund that will attempt to achieve long-term capital appreciation in both bull and bear markets by holding both long and short positions of stocks with a wide range of market capitalization. The fund is a no-load mutual fund with a minimum investment requirement of $5,000.

The bonuses that Vanguard pays its 10,000 employees each June based on "partnership units" has fallen 5% from $61.50 to $58.40, The Philadelphia Inquirer reports.

Money market mutual fund companies and their investors can expect even lower yields than they are suffering now if the Federal Reserve cuts interest rates again, Reuters reports.

A new survey has indicated that more younger Americans have given up investing due to losses incurred in the stock market, Reuters reports.

Garett Van Wagoner of the VanWagoner Funds, who suffered major losses in the bear market by betting on technology and dot-com companies, will charge investors based on how his funds fare against competitors, Reuters reports.

London-based firm Gartmore, which manages approximately $3.5 billion in hedge fund assets, has announced it will start distributing third-party funds, Reuters reports. The justification comes because the firm claims that it cannot make enough products to satisfy demand.

In eight out of nine investment styles, lower-expense mutual funds beat out more expensive brethren over one-, three-, five-, and 10-year periods, according to a new study from Standard & Poor’s. The only style category where most costly funds won out was mid-cap blend.

Capital Markets Subcommittee Chairman Richard H. Baker (R-LA) introduced a bill Wednesday that would require funds to disclose operating expenses and portfolio transaction costs and have directors crack down on soft-dollar and revenue-sharing arrangements. The bill takes into account the recommendations that the Securities and Exchange Commission issued Tuesday calling for more transparency in the fund industry (see MME 6/11/03).

Lockwood Advisors, the separately managed account subsidiary of the Bank of New York, announced Wednesday that it has made a mortgage origination capability available to its adviser clients through its expanded wealth advisory platform.

Morgan Stanley Investment Management, the funds division of the U.S. investment bank, has shifted over half of its European money market assets to Dublin from Luxembourg, Reuters reports. The firm said it has found better fund conditions in the Irish capital.

Janus Capital’s total net assets rose 4.2% in May from the previous month to $147.4 billion, while Franklin Resources’ assets rose 5.4% to $281.9 billion, the two companies announced. But from a year ago, Janus’ assets fell 16% from $176 billion, while Franklin’s rose a scant 1.2% from $278.6 billion. Excluding dividends, the S&P 500 rose 5.1% in May.