July is a scorching hot month for funds
From The Wall Street Journal
Fund companies say July has been one of the best months yet in 1999 for new fund sales. The increase of interest continues the trend of more robust new fund sales from June, according to figures released Thursday by the ICI. Investors deposited a net $19.2 billion into stock funds in June, up from $14.96 billion in May. Investors also put $1.94 billion into bond funds in June, after withdrawing a net $1.87 billion from the sector in May, according to the ICI. Meanwhile balanced funds had net withdrawals of $422.1 million in June, following outflows of $398.3 million in May.
The skew in micro-cap funds' performance
From The Wall Street Journal
Micro-cap funds are up an average 22.6% this year through Wednesday, according to Lipper Inc. -- making micro-cap portfolios by far the best performers among broad-based U.S.-stock funds. But there is less to the big micro-cap move than meets the eye. Investors buying these funds haven't reaped returns anywhere near the "average." A Lipper index of the 10-largest micro-cap funds shows an 11.6% advance this year. The average micro-cap figure is skewed by outsized gains at two relatively small funds -- the $82 million-asset Van Wagoner Micro-Cap Fund, up 87.9% through Wednesday, and the $74 million BlackRock Micro-Cap Equity Fund, up 65.4%
First Union to replace president
From The Charlotte Observer
Following a series of costly stumbles, Charlotte-based First Union shook up its top management ranks, ending First Union president John Georgius' 24-year career at the bank. Ken Thompson, 48, the head of the bank's investment banking division, will take the president's job when Georgius, 54, retires Dec. 31. Thompson's appointment introduces a clear successor to chairman and chief executive Ed Crutchfield, 58, said people close to the bank. First Union announced the changes after a board meeting called Thursday to discuss management issues.
Vanguard looks to expand the shipyard
From The Philadelphia Inquirer
Vanguard is riding high on the crest of a strong market and continued growth in investor interest in indexing -- its flagship S&P 500 Index Fund and its newly re-opened Windsor fund both attract a large share of new money and lack the outflows of most other funds. With the growth in these funds and other, Vanguard has been growing by leaps and bounds, hiring 50-75 people a week, according to the Inquirer
. Now the company is looking to expand its facilities to house these new hires, and is in the market for two, possibly three, new buildings totaling nearly 350,000 square feet. The buildings, which are a part of the campus' master plan, could accommodate an additional 1,600 workers, a spokesman for the company said. The company currently has more than 10,000 employees and manages $500 billion in assets. That is up from 3,400 employees and $121 billion in assets when the Malvern campus opened in 1993.
Stay ahead of the news ... Sign up for our email alerts now