Schwab Imposes Freeze
From San Francisco Chronicla
Schwab is hinting that its profits for the quarter will fall short as trading volumes dipped in November. The report on its trades did not include mutual fund transactions. Schwab has imposed a hiring freeze and reduced discretionary spending, reports the article. The broker is reportedly taking steps short of layoffs, including reductions in travel and use of outside consultants. It also canceled its annual meeting of branch managers scheduled for Las Vegas. Schwab's assets fell nine percent to $861.6 billion at the end of November, despite taking in $9.4 billion.

Vanguard's Sauter Objects to Nasdaq Plan
From New York Times
Vanguard index fund manager Gus Sauter is one of those who has written the Nasdaq objecting to the exchange's proposed new Supermontage stock trading system. Also writing opposition is Craig S. Tyle, general counsel at the Investment Company Institute. Critics are concerned that Supermontage will favor large orders over smaller orders and that it could institutionalize paying for order flow. Tyle expressed concern that letting market participants designate where their orders are sent whether or not the recipient is offering the best price would "damage the integrity of the Nasdaq market."

Europeans Use Beauty to Sell Funds
From New York Times
European funds are using beauty, not the numbers, to sell funds in ads, claims the article. It zeros in on new ads being run by BNP Paribas for its Parvest umbrella fund (its agency is Euro RSCG Worldwide, a unit of Havas Advertising) and Schroders Asset Management in a campaign for new global funds. BNP is using Italian supermodel Carla Bruni in the spots. Schroders' ads feature the tag line, "The most beautiful investment in the world." BNP Paribas' Antoine Sire told the paper that the firm found that most asset managers focused on sports themes so the firm "tried something new."

Fidelity Cuts Tech Again
From New York Times
Fidelity is cutting its tech stocks for the second month running. At Magellan, tech stocks dropped to 25.1 percent of the fund on October 31 from 29.2 percent on September 30. Cash in the fund rose to 6.9 percent of assets from 3.7 percent over the same period.

Dreyfus Likes Bonds
From Wall Street Journal
Dreyfus managers are enthusiastic about bonds. "2001 will be a good solid year for municipals," Richard Moynihan, leader of the municipal-bond team at Dreyfus, is quoted as saying. Favorable winds are being driven by government budget surpluses.

Asians Still Warming to Value
From Wall Street Journal
M Asian investors have been slower than those in the U.S. to pick up on the trend to value investing. The articles points out that Templeton Franklin and Value Partners are "about the only game in town" for Asian fund buyers. Highlighted in the article is also MSCI's Far East Free Value Index, Investec Asset Management Asia, Chase Fleming Asset Management and Jupiter Asset Management and Janus Capital's Strategic Value Fund. It adds that the Bank of Bermuda is considering adding some value managers to its All Points fund family, though they will not be for the Asian selections.

Expert Panel Gives Fund Picks
From USA Today
M How should investors deal with mutual funds' poor 2000 performance? The paper gathered a panel of experts including: Morningstar's John Rekenthaler, Schwab's Jeff Mortimer, Standard & Poor's Mutual Fund Services' Rosanne Pane, Bob Markman of Markman Capital Management., Steve Savage, editor of the No-Load Fund Analyst and Eric Kobren of Kobren Insight Management. Funds firms getting plugs in the piece include: Marsico, Fidelity, Oakmark, Brandywine, TIAA-CREF, Thornburg, John Hancock, Artisan, Tweedy Browne, Rydex , Strong, Dresdner, Invesco,Wasatch, Ariel, Third Avenue and TCW.

Evergreen Capital Growth
From Detroit News
The article sings the praises of John Davenport, the portfolio manager of the GARP-focused Evergreen Capital Growth Fund.

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