MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Monday, June 19, 2000 June 19, 2000 Ex-Founders chief settles with SEC From Wall Street Journal Bjorn "Erik" Borgen, founder of Founders Asset Management, has agreed to pay $655,000 to settle civil fraud charges. The SEC pursued the case claiming that Borgen failed to inform clients of an arrangement with San Diego-based Owen-Joseph Asset Management Corp. to use brokerage commissions from about 40 customers to pay for referrals from Owen-Joseph to Founders. Borgen agreed to pay both a $150,000 fine and $505,000 in payments to clients and to be suspended from the investment-advisory business for six months but he neither admitted not denied wrongdoing. Founders Asset Management LLC, now a unit of Mellon Bank, agreed to be censured and to pay a civil penalty of $50,000, also without admitting or denying the findings. William Foster, chief executive officer of Owen-Joseph agreed to pay a civil penalty of $25,000 and a suspension lasting up to six months. Undue profits from transfers? From Wall Street Journal The paper calls Bank of America onto the carpet for its plan to allow employees to role their assets from their 401(k) to the bank's pension plan. The change is being encouraged not to benefit employees but to boost the bank's bottom line, the article implies. It also states that regulators at the SEC are watching the investment structure offered in the defined benefit program to see if the company is making proper disclosures. Finally the article raises the issue of conflict of interest since Bank of America theoretically could benefit if employees allocate the assets that they transfer conservatively. ING lowers bid, Aetna walks From Wall Street Journal ING and Aetna have hit a snag on the way to the alter, reports the paper. The two companies reportedly cannot agree on a price tag for Aetna Inc.'s financial-services and international units. ING had initially offered $8.1 billion, according to the paper, but dropped its bid to $7.5 billion after performing due diligence. Aetna is balking at the lower bid.
From Wall Street Journal Vanguard's new Value Fund, sub-advised by Grantham, Mayo, Van Otterloo & Co. LLC, is just the thing for pessimists. Grantham Mayo is telling those who will listen that it expects its fund's performance to be in-line with money market funds over the next decade. So why would you want to buy? Because, the market is headed for a negative return, according to the company. The fund has a value bent that features small-company value stocks, as well as real estate, timber and emerging markets. Is Janus headed for a fall? From Barrons The weekly paper speculates on the irony of rumored slowdowns in Janus' inclows occuring as the spin-off of the company from Kansas City Southern Industries as part of Stillwell Financial. Janus is quoted as denying that it has experienced net outflows in recent weeks. Instead it claims modest inflows equal to May levels.
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