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Executive Briefings


SEC Can Do Better, Gallagher, Paredes Say

The two Republican members of the Securities and Exchange Commission said they are not opposed to further reform of the money fund industry, but that changes advocated by Chairman Mary Schapiro "were not supported by the requisite data and analysis.''

"Further action must be advanced on the basis of data and rigorous analysis showing that any such changes to our existing rules would be workable, would be effective in achieving their purpose, and would not unwisely disrupt the functioning of money market funds and short-term credit markets,'' Commissioners Daniel Gallagher and Troy Paredes said, in a statement released last month.

U.S. Equity Funds Lose Another $4.48 Billion

For the week ended August 22, investors pulled an estimated $4.48 billion from U.S. mutual funds, substantially more than the $2.72 billion they withdrew the week before.

Outflows from U.S. stock funds accelerated mid-August after hopeful signs that they might be slowing down, according to the latest statistics from the Investment Company Institute.

Forward Preps Marketing Campaign

On the heels of hiring a new chief marketer, Forward is embarking on a marketing campaign this fall to spread the word about its alternative mutual fund products, according to Paul Schaeffer, managing director, Strategy & Thought Leadership at Forward.

Schaeffer told Money Management Executive that his firm is looking to start its marketing efforts next month with online, trade pubs and non-traditional pubs.

"We've been expanding our marketing efforts over the past year with rebranding and redesigning our site," he said.


Loomis Closes Small Cap Offering

Loomis, Sayles & Company is closing its Loomis Sayles Small Cap Growth Fund (LCGRX) to new investors on September 14. The fund, co-managed by John Slavik and Mark Burns, was launched on December 31, 1996 and has $760 million in assets as of August 29.

According to the firm, the close was initiated "to preserve the investment team's flexibility in executing the strategy."

Van Eck Preps Short HY ETF

Van Eck Global is prepping to launch the Market Vectors Short High-Yield Municipal Index ETF, which will replicate the Short High Yield Index, according to a Securities and Exchange Commission filing. The index is comprised of publicly traded municipal bonds that cover the U.S. dollar denominated high yield short-term tax-exempt bond market.


Rydex Adds Wrinkle to Futures Fund

The Board of Trustees of Rydex Series Funds has approved a revision of the principal investment strategies for the Trust's Managed Futures Strategy Fund, according to a Securities and Exchange Commission filing.

Specifically, the fund will now use about 20% of its portfolio assets to bet on price movements in the commodity, currency, equity, and fixed income markets, starting September 27.

Program Picks Out Alleged 'Cherry Picking' By Advisor

A computer application deployed by the Charles Schwab Corporation that supported day trading online has flagged "cherry picking" of profitable trades by a Connecticut financial advisor, according to a court filing by the Securities and Exchange Commission.

The SEC is focusing the case on Noah Myers, a 40-year-old financial advisor who resides in Old Lyme, Connecticut. Myers is the principal, chief investment officer, and sole owner of MiddleCove Capital, according to the filing.


Abby Johnson Gets Promoted

Fidelity Investments has named Abigail Johnson president of Fidelity Financial Services, consolidating all of the company's core businesses under her leadership.

Johnson will oversee a broad organization comprising the company's financial services businesses: asset management, retail and institutional brokerage, retirement and benefits services, as well as corporate operations and function support groups. In her new role, Johnson will continue to report to her father, Edward "Ned" Johnson, Fidelity's chairman and chief executive officer.

Black Takes Calamos Deeper Into the Dark Side

Calamos Investments last month welcomed an old foe into its fold. Gary Black, former chief executive officer of Janus Capital Group, will join the firm as Global Co-Chief Investment Officer and a member of the firm's Investment Committee.

He will team up with John Calamos, Sr., the firm's founder, to lead the investment team and oversee portfolio management, research, trading and risk management.

Lipper Builds Out Reaearch, Analytics

With a new head of research on board, Lipper announced a new set of initiatives for the second half of 2012 that involves building out research and analytical tools.

"The industry dynamics are changing rapidly across the globe and whether it is within areas of product innovation, distribution, or how portfolios are assembled we want to be positioned with our offering to help differentiate and provide valuable insights," said Lars Asplund, managing director and head of Lipper, who joined the firm in January 2012.

Federated Plans Asia Expansion