House committee strengthens privacy rights of financial services customers
From The Washington Post
A bill overhauling Glass-Steagal that would allow banks, brokerages and insurers to operate under one umbrella was passed out of the House Commerce Committee on a voice vote. The version passed included broader-than-expected privacy provisions. The financial services industry has fought the inclusion of these privacy measures which would let veto their sharing or sale of their data, including their names, addresses, account balances and transaction history. If enacted, the privacy provision would hamper institutions cross-marketing since they will not be able to share this information across business lines.
Not all tax-efficient funds are equally efficient
From The Wall Street Journal -- Registration Required
Tax-managed funds are hot -- but are they consistent? Fund companies have started at least 50 of these funds, 21 since 1997. Altogether they account for $17.4 billion in assets, according to Morningstar. Today's WSJ
shows that the tax-advantage in these funds is not always equal. Index funds and those with lower turnover are more tax-efficient. Turnover rates in this group range from more than 10% to 40%.
The paper contrasts Glenmede Tax Managed Equity Fund's with a three-year pretax annualized return of 22.55% and an after-tax return of 19.63% to Vanguard Tax-Managed Growth & Income Fund, which sports a 26.99% pretax basis, and 26.26% after-tax return.
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