Neuberger plans to go public
From The Wall Street Journal
Neuberger Berman LLC plans to launch its initial public offering during the second half of the year. But the announcement of the IPO comes as one of Neuberger's core businesses, mutual funds, is experiencing slower growth and fierce competition for assets. As Neuberger's bargain-hunting investing style has fallen out of favor during the past two years, the company's mutual funds have seen more money flow out than in. Other analysts say that despite slowing net cash to the fund industry, Neuberger benefits from its growing business with high net-worth clients and private institutions.
E*Trade puts its pens down
From The Wall Street Journal
E*Trade Group Inc. plans to change its customer-account methods in response to a new California law it says will allow its customers to open accounts via the Web with "electronic signatures" instead of signed paper forms sent in the mail, as reported yesterday by MFWire.com. The issue is a hot one for Internet brokers, who don't understand why their customers can't simply click "I agree" to a customer agreement on a Web site, instead of printing out the contracts, signing them and putting them in the mail, as is the practice now. Customers would still send a check through the traditional mail system if they weren't wiring or electronically transferring money to fund their accounts.
Sorting through the hype of industry focused funds
From The Boston Herald
Medical funds are the next best thing to Internet funds, touts Alexander Cheung, who runs Monument Funds Group's Internet fund. Only a few months ago Cheung was suggesting on-line stocks were the only game in town. Now he's talking about medical stocks as an offshoot of his high-tech philosophy. As funds become more focused there seems to be more hype which may confuse investors. What's next? A retail fund made up of only e-tailers? A financial services fund that focuses on Internet brokers?
Funds bleed assets
From The Los Angeles Times
Nearly half of all funds and fund groups are bleeding assets. Net new investments into stock funds are down despite broad gains this year in global stock markets. In fact, virtually all categories of funds are attracting far less new money than they did in the first half of 1998. The outpour is being credited to the Internet. The allure of Internet stocks and competition from cut-rate online brokerages have Americans investing directly in individual stocks instead of mutual funds. Another credit to the Internet is the speed and efficiency with which it dispenses information in real time.
