SEC talks tough on ads
From Wall Street Journal
The paper reports that both the SEC and the NASD are taking another look at mutual fund ads. "It's important that funds not respond to this new competitive environment with overly aggressive advertising," Paul Roye, director of the investment-management division of the Securities and Exchange Commission, told attendees at the ICI's annual General Membership meeting Friday. "We've tried to send a message in this area with our recent enforcement actions," he added. Cases include: a settlement between the SEC and Dreyfus Corp and the NASD settlement last week with Kemper Distributors Inc.
Funds have heads in the sand
From The New York Post
"WHILE the rest of corporate America embraces the opportunities of the Internet, the mutual fund industry still has its head stuck firmly in the sand," writes Beth Piskora. She goes on to claim that the fund industry has watched helplessly as funds have been turned into psuedo stock stubs to be traded quickly in and out of.
Fidelity collects 70% raise
From The Wall Street Journal
Robert Stansky, portfolio manager of the Fidelity Magellan fund, was not beyond buying tech stocks at the end of last year, according to filings. Three of the stocks highlighted by the Journal are Sycamore Networks, Juniper Networks and Redback Networks. More importantly for Fidelity, Magellan topped the S&P 500 leading to increased fees (the companies fees are tied to the performance of the fund against the S&P 500). The management fee for Magellan was $554 million in the year ended March 31 -- up 70% from $325.8 million in the year-earlier period.
Also of interest
Montgomery's new "open" fund draws interest at the Boston Herald.
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