Archive for September, 2012

Stakeholders Count Gains of Sovereign Wealth Fund

Minister of Finance, Ngozi Okonjo Iweala

The take-off of the Sovereign Wealth has provided a veritable opportunity for the country not only to save for the raining day, but essentially to meet the rising challenges to nationhood, Festus Akanbi examines the groundwork for the all important policy as Nigeria marks its 52nd independence anniversary


The inauguration of the Board and Management of Nigeria’s Sovereign Wealth Fund by the Federal Government, last month, has, no doubt, ushered in a new dawn towards a deliberate, planned and sustainable management of Nigeria’s earnings from crude oil. Although this is coming 52 years after the country’s independence, analysts, believe that it couldn’t have come at a better time given the rising level of uncertainty in the global economy occasioned by the global economic meltdown and the volatility of crude oil prices at the international market.

Indeed, the journey towards the establishment of the country’s SWF was not a smooth one, going by media reports on the Fund ever since it was initiated by the former Minister of Finance, and now Minister of Trade and Investment, Mr. Olusegun Aganga. There were various issues, ranging from complexities of the Nigerian to the interplay of various political and economic interests which have always shaped, and ultimately determined the implementation of every policy initiative in Nigeria.
The first sovereign wealth fund in the world was established in Kuwait in 1953, as a means of helping to stabilise the economy from fluctuating oil prices. In 1956, the Gilbert Islands (now Kiribati), established the revenue equalisation reserve fund to manage profits from phosphate mining. However, after Kuwait and Kiribati, the next major SWFs were created in the 1970s, in the wake of the oil stock. But the most recent wave of SWFs’ establishment started in the 1990s with the Norwegian government’s pension fund-global in 1990, after which the trend has continued till today. And within the last five years, some countries such as China, Iran, Russia, Qatar, and United Arab Emirates, have established their own SWFs.

Nigeria’s journey towards the establishment of its SWF began in 2011, when the former Minister of Finance and current Minister of Trade and Investment, Mr. Olusegun Aganga, initiated the idea that has since become almost synonymous with his name. Convinced that the country urgently needed a “special buffer” to jump-start its economic regeneration, Aganga initiated a research, making use of international consultants, into the workability of a Sovereign Wealth Fund in the Nigerian environment. Under Aganga’s watch, the framework for the establishment of the SWF was designed and major hurdles, including the initial protests by state governors, cleared, until it was signed into law via the Nigerian Sovereign Investment Authority Bill on Thursday, May 26, 2011, by President Goodluck Jonathan.

Aganga’s concept of the Nigerian SWF, which was based on the Santiago Principle, comprised three investment baskets, namely: the Nigeria Infrastructure Fund; the Future Generations Fund and the Stabilisation Fund.

Bridging Infrastructural Gap
Specifically, Aganga, at the time noted that, “The Infrastructure Fund is expected to be used in bridging the nation’s infrastructure gap by investing in the development of critical infrastructure across the country. Notably, 10 per cent of this fund will be devoted to agriculture and regional government-sponsored development projects that will promote economic development in under-served sectors or regions in Nigeria.

“On the other hand, the Future Generations Fund will be used to build an inter-generational savings base by investing in longer term assets that generate returns to accumulate wealth for future generations of Nigerians, the Stabilisation Fund will be used to protect the country’s budget by providing a stable, last-resort source of finance during periods of fiscal deficit. However, the Stabilisation Fund will ensure the smooth functioning of government and delivery of key services during periods where revenues from petroleum sales are less than the level anticipated and approved by the National Assembly.

He added, “With the establishment of the SWF, Nigeria will join other OPEC states and more than 50 other natural-resource-rich countries, which together manage over $3trillion in sovereign assets, in having a national savings plan for managing natural resource wealth. Up until now, Nigeria was one of the few OPEC members without a Sovereign Wealth Fund. In fact, Ghana and Uganda have moved forward with establishing their own Sovereign Wealth Funds, even when their oil production was not yet fully on stream. Algeria established its Sovereign Wealth Fund in 2000, to save the difference between the actual and projected revenue generated from petroleum resources. In 2011, the Algerian fund was estimated to worth $57billion. Globally, Sovereign Wealth Funds now form a fundamental component of strategic management of fiscal surpluses.”

He said, “If you recall that last year, we actually took our time to make sure that we did everything that we needed to do. I actually made representations to the governors at the National Economic Council at least four times. Each time we discussed it, we looked at areas where we needed to be flexible; we looked at their concerns and we structured it in a way to accommodate all the concerns. They had input into it.

“For example, the idea was to have three sub-structures: a Future Generation Fund for our children, grandchildren and great grandchildren; Stabilisation Fund and Infrastructure Fund, which will help develop our infrastructure in the country; serve as a catalyst for bringing in other investors to invest in infrastructure, including Sovereign Wealth Fund globally.

Aganga added in a recent interview that “the issue of whether it was constitutional or not was raised. We all agreed at NEC that we should invite the Attorneys-General of the 36 states for consultations. I invited the AGs to Abuja with some lawyers. We went through the rationale. We went through the section of the constitution we were relying on and the consensus was to go ahead. We consulted widely; I did not just do this. And when we decided to set up the fund and set aside $1 billion, we went round every Governor for a yes or no answer, and the consensus was ‘set up the fund, set aside $1 billion.’

“We would not have set aside $1 billion if it was not decided. And at the end of that meeting, we would always have a press conference. The governors announced to Nigerians that we have now approved the SWF and we have asked the Finance Minister to set aside $1 billion and immediately that $1 billion was set aside. And I took it to the National Assembly and it was the fastest economic bill to be passed within a five-month period. I did everything to make sure it was out and it was signed into law by the President on the 27th of May at 4.23pm.”

Experts, however, have said that Aganga deserved special commendation for initiating the idea of SWF for the country and then following it through by pushing for a legislative framework to back its establishment, describing the framework/concept as very good for the country.

In an interview with our correspondent, the National President, Manufacturers Association of Nigeria, Chief Kola Jamodu, said, “The idea of establishing the Sovereign Wealth Fund for Nigeria is a good initiative and Aganga deserves commendation for spearheading that good initiative. As a country, we should not be spending every revenue we earn from crude oil without setting something aside for infrastructural development, economic stablisation and future generation as provided by the SWF.”
Similarly, the Registrar, Institute of Finance and Control, Nigeria, Mr.Eohoi Godwin, said the former finance minister must be commended for pulling the country, in spite of stiff opposition, from the era of squandering its exhaustible crude oil resources to a new dawn of saving for the future generation.

“We, at the Institute of Finance and Control are commending Aganga for initiating the establishment of the Sovereign Wealth Fund when he was the Minister of Finance. Every policy he has ever introduced as a minister is usually well-researched and has the improvement of the lives of ordinary Nigerians as its cardinal objective,” he said.
Reports had quoted the Chairman, Northern Governor’s Forum and Niger State Governor, Dr. Aliyu Babangida Muazu, to have said during the National Council on Trade and Investment in Minna, that the credit for the establishment of the SWF should be given to Aganga for his vision, courage and uncommon determination which resulted in the establishment of the SWF.

He said, “Aganga is the founder and father of Sovereign Wealth Fund in Nigeria. He is one of those few patriotic and visionary Nigerians who is very passionate about the economic transformation of this country. His appointment by President Jonathan, first as the Minister of Finance, and now as Minister of Trade and investment, has resulted in the introduction of policies and reforms that have helped to put Nigeria on a sound footing to attract local and Foreign Direct Investment across all sectors of the economy. Had it been that we established the Sovereign Wealth 50 years ago, we would have gone very far from where we are today”

The Minister of Finance, Dr. Ngozi Okonjo-Iweala, last month, announced the management team for the $1 billion Sovereign Wealth Fund, which will be led by Alhaji Mahey Rasheed, a board member in First Bank Plc, and Uche Orji of UBS Securities, who will serve as the fund’s Managing Director and Chief Executive Officer.
But the question on the lips of many Nigerians is, “Will this Fund benefit all Nigerians or a few priviledged?”

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Sunday, September 30th, 2012 EN No Comments

UTC to provide advisory services for Keshorn

GUARDIAN MEDIA is not responsible for the content of external sites. Copyright © 2012 GUARDIAN MEDIA LIMITED

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Sunday, September 30th, 2012 EN No Comments

Digitalis Reputation’s Dr. Laura Toogood speaks at the CISI forum

Dr Laura Toogood from Digitalis Reputation was recently a key speaker at “Luddites or Leaders? How can Wealth Managers approach the use of social media,” an event hosted by the Chartered Institute for Securities and Investment (CISI).

London (PRWEB) September 29, 2012

Dr Laura Toogood from Digitalis Reputation was recently a key speaker at an event hosted by the Chartered Institute for Securities and Investment (CISI). The conference was positioned as a forum for leading Wealth Management companies and was hosted at the offices of top law firm, Travers Smith, in London.

The forum tackled the topic of digital media and specifically approached the use of Social Media. Presented under the headline of, “Luddites or Leaders? How can Wealth Managers approach the use of social media”, the informative session was hosted by Christopher Warner-Jones, who was joined by a panel of three digital experts. The event was filmed and the audience comprised over 100 of the country’s top Wealth Management professionals.

After the event Dr. Toogood summarised that “Social media and digital platforms have become an integral part of society and it is important that Wealth Managers are not only aware, but also embrace the dynamic change in communication that we have witnessed in recent years. Online media must be given precedence in both communication and reputation strategies”.

Dr. Laura Toogood, who holds a PhD in Social and Community Informatics from University College Dublin and regularly lectures on a number of digital topics, spoke in detail about the use of social media and how it can be applied to the Wealth Management sphere. She also highlighted the importance of online positioning and, in particular, the progressive field of Online Reputation Management. A wide range of digital topics were discussed, including Information Security and Communication Strategy.

Dr. Laura Toogood is currently Private Client Director at Digitalis Reputation. Digitalis Reputation forms a part of the Digitalis Media Group. Dave King is the CEO and has held this role in a number of other highly successful rapid-growth technology companies.

Digitalis Reputation has an international client base and has been established as the leading company in Online Reputation Management for several years. The combination of developing a powerful proprietary technology, along with a strong team of technical experts that devise receptive strategies, helps to position Digitalis at the forefront of this field.

Digitalis Media operates in conjunction with Digitalis Reputation and offers consultancy services that are relevant to a wide range of digital topics.

For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2012/9/prweb9955977.htm

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Saturday, September 29th, 2012 EN No Comments

RMB Capital Management Earns Industry Accolades

CHICAGO–(BUSINESS WIRE)–The co-founders of RMB
Capital Management
, an independent investment advisory firm
dedicated to serving the best interests of both individual and
institutional clients, were ranked among the “Top 100 Independent Wealth
Advisors” for the fourth consecutive year by Barron’s, a leading
financial publication.

“We have an entrepreneurial and collaborative culture, so this
recognition really reflects the firm as a whole”

In its August 27, 2012 issue, Barron’s recognized
the year’s top independent advisors
, based in part on the volume of
assets they oversee along with their teams, the overall quality of the
advisors’ practices, and the revenues generated by the team. Selected
from nominees across the United States, RMB’s co-founders were named two
of the best independent advisors in the nation:

  • Richard M. Burridge, Jr., chief executive officer (CEO), chief
    investment officer of RMB Capital Management, was named 24 out of 100.
  • Frederick Paulman, president of RMB Capital Management, was
    named 25 out of 100.

“We have an entrepreneurial and collaborative culture, so this
recognition really reflects the firm as a whole,” said Richard Burridge,
RMB’s CEO and chief investment officer. “The entire team does an
excellent job of remaining focused on each client’s best interests while
putting our holistic wealth management approach and our disciplined
investment philosophy into practice on a daily basis. I truly believe
our model positions clients for long-term success, and we look forward
to serving our clients for many generations to come.”

RMB Capital Management was also recognized as a “Premier Advisor” by the National
Association of Board Certified Advisory Practices
(NABCAP), a
nationally-registered 501(c)(3) nonprofit organization, established to
serve the needs of the investing public by helping identify top wealth
managers.

The selection process was based on NABCAP’s proprietary system with the
ultimate goal of providing investors and advisors with a trusted
standard of excellence to help guide them within the financial services
industry. The evaluation process assessed 20 categories of practice
management, which include areas such as customer service,
risk/investment planning philosophy, credentials, team dynamics,
fee/cost structure, and average assets under management (AUM) per client.

RMB Capital Management opened its Chicago headquarters in 2005. In
August, the firm celebrated the first anniversary of its Colorado
office
, which is located in the Cherry Creek area of Denver,
Colorado.

About RMB Wealth Management

RMB’s wealth management philosophy is rooted in a dedication to knowing
its clients personally, so that RMB can thoroughly understand client
goals, interests, concerns, and risk tolerances. RMB collaborates with
clients’ other trusted advisors (estate attorneys, tax advisors, and
corporate benefits managers), making certain the firm is completely
aware of all aspects of clients’ finances. By taking each client’s
entire situation into consideration, RMB is able to create a customized
and comprehensive wealth management plan, including asset allocation and
investment recommendations based on a client’s individual goals for
wealth preservation and growth.

About RMB Capital Management

RMB
Capital Management
is an investment advisory firm that provides
affluent individuals and institutional clients with a high standard of
care and is dedicated to serving their best interests. In the wealth
management practice, RMB serves as the central advisor, overseeing all
financial matters for individual and family clients and connecting them
to the products and services that best fit their needs and goals. In the
asset management practice, RMB subscribes to an investment philosophy
based on several key principles – taking a long-term view, conducting
fundamental analysis, being opportunistic yet disciplined, and avoiding
unnecessary risk. With an open architecture, RMB offers clients a broad
spectrum of both internally and externally managed investment programs.
Headquartered in Chicago with offices in Denver and Jackson Hole,
Wyoming, RMB is recognized as a
leading independent advisory firm
. To learn more about RMB Capital
Management, visit www.rmbcap.com.

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Saturday, September 29th, 2012 EN No Comments

The secret of being wealthy

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I’VE been an independent financial advisor for more than a decade and one of the questions that I am periodically asked is, “What is the secret of being wealthy?” The answer, and you may be taken aback by what I am about to reveal, is not about getting richer.

Growing up in a typical middle-income family, I often wondered how wealthy people managed and grew their wealth. In particular, I wanted to know what separated the truly wealthy people from the rich. Both shared an undeniable ability to make money and could afford to lead comfortable and lavish lifestyles. Yet, those in one of these groups were clearly the front-runners because their wealth had the ability to last generations.

In 1998, I enrolled in a Chartered Financial Consultant (ChFC) course to study personal wealth management. In 2000, I started my own independent financial advisory business. In the process of growing the business, I was privileged to learn from some of the best wealth managers and professionals from the United States, Australia and Europe.

I also discovered a unique approach used by the likes of John Rockefeller, Andrew Carnegie, Li Ka-shing and Bill Gates to become not only rich but also tremendously wealthy. Armed with all this knowledge, until 2008, I focused my business on serving clients with a high net-worth, which included a niche group of multi-millionaires and owners of listed companies. In time, I identified a common pattern in the characteristics, behaviour and habits of all these wealthy people.

The wealthy know not to keep or hold on to too much cash in the bank. They are aware that interest rates offered by the banks will not be enough to offset actual inflation. Therefore, one of the most logical steps to take is to keep a minimum amount of cash in bank deposits while investing the rest.

The wealthy constantly review the performance of their investments. They have no reservations in getting rid of underperforming investments that do not meet their expectations. They will not hesitate to take on investments that will generate a handsome profit.

The wealthy are never lulled into a false sense of security over the assets they own. They demand to be made aware of any risks that might reduce or deplete the assets, and will explore methods to safeguard, protect and preserve their wealth.

The wealthy are also very conscious of unnecessary living expenses. For example, they don’t like the idea of over-purchasing life insurance policies and paying expensive premiums. They regularly review all their insurance policies and will take action to cease or surrender irrelevant ones .

The wealthy demand more

The fact of the matter is that wealthy people demand more for their money. They are never satisfied with just having money sitting in the bank or having it invested in one or two investment vehicles. If anything, they want their money to work even harder for them. With such a high regard for their money, the wealthy place enormous emphasis on optimising their money. In fact, I’d say it’s bordering on obsessive and rightly so!

By contrast, these characteristics and habits of wealthy people tend to be absent in the rich and middle-class. Certainly, the rich generate a high income. They may put their money into fixed deposits, buy one or two properties and invest in unit trusts or shares. However, they are too busy to spend more time optimising what they have. They hope that by earning more money, they will one day become wealthy. The same can be said of the middle class. When their income increases, they fail to optimise their hard-earned money.

Other than the lack of time and discipline, one of the main reasons they failed to optimise their money is that they feel lost and do not know where to place their investments. As a result, they assume that if they make more money, they will become wealthy.

In short, those who are not wealthy focus on one thing and one thing alone how to make even more money.

Moneymaking capability is the ability to generate an active income. Therefore, anyone who works as an employee or business owners has this capability. What most people underestimate or fail to appreciate is the power of money optimisation, defined as the activity of optimising the income and assets that you already have. Money optimisation is about making your accumulated assets work for you to support your lifestyle

Without money optimisation, your hard-earned income may not be translated into meaningful savings. Furthermore, your hard-earned assets will not be able to grow at an optimal rate or be properly preserved and protected against various risk factors. Without money optimisation, chances are you’re probably not going to be in a position to support your various needs and wants in life, especially if you stop earning an active income. Most disastrous of all is that you will never be on the fast track to becoming wealthy or get out of the rat race.

Think of it this way: to succeed in any sport, one must not only focus on playing on the offensive all the time. Champions and their coaches will tell you that to win a championship, it is necessary to strike a balance between good offence and having a tactical defence.

So, to come back to the question: “What is the secret of being wealthy?” The secret of being wealthy is not about getting richer; it’s about optimising what you have and striking the balance between focusing on both your moneymaking and money optimisation capabilities in equal measure.

Yap Ming Hui (yap@yapminghui.com) observes that far too many people have become lost or confused in their pursuit of wealth. In his new book, Set Yourself Free he shares the secret about how the wealthiest people optimise their money.

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Saturday, September 29th, 2012 EN No Comments

Indian corn likely to be steady on supplies below expectations


RECORDER REPORT



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–> Indian corn futures are likely to remain steady next week, after falling on Friday, as arrivals below expectations in spot markets could support prices, traders and analysts said. “Corn in major spot markets across the country is being sold at around 1,350 rupees per 100 kg, much higher than the futures prices, as supplies from the new season crop are lower than expectations,” said Chowda Reddy, a senior analyst with JRG Wealth Management.

Corn futures fell sharply due to a steep drop in the overseas market and traded below spot prices since the last week of August as restricted supplies kept spot prices firm. India’s corn output during the summer-sown or kharif season of 2012 is likely to fall by nearly 9 percent to 15 million tonnes, farm ministry data showed. Traders were expecting supplies from the new season crop to rise this week but that did not happen. Lower-than-expected supplies are k e eping prices in both futures and spot markets steady, despite a lack of demand from exporters, said Shankarji, a trader based in Karimnagar in Andhra Pradesh.

In Chicago, the December corn contract on the CBOT was 4.16 percent up at $7.45 per bushel at 1336 GMT as a USDA report showed a steep fall in stocks. The contract fell to $7.05 per bushel, the lowest level in three months, earlier in the day. The November contract on the National Commodity and Derivatives Exchange (NCDEX) was down 0.79 percent at 1,249 Indian rupees per 100 kg (around $6.1 per bushel).

In the Nizamabad spot market in Andhra Pradesh, corn fell 6 rupees to 1,441 rupees per 100 kg (around $6.9 per bushel). Indian cottonseed oilcake, or kapashkhali, futures are likely to extend losses next week, on weak demand and higher availability of seeds for crushing, traders said. Rising cotton supplies from the new season crop as farmers start harvesting in northern India could also depress prices, traders said. India’s cotton crop is likely to be down 5.4 percent in 2012/13, farm minister Sharad Pawar said. The previous year’s was a record 35.3 million bales and though output will be lower, it will still be enough to meet local demand.

Copyright Reuters, 2012

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Friday, September 28th, 2012 EN No Comments

SunGard launches Asset Arena™ 360 for boutique asset managers

Products and Services

28 Sep 2012

  

Contact The Asset
© Asset Publishing and Research Limited

All rights reserved. No unauthorized reproduction by any means.

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Friday, September 28th, 2012 EN No Comments

Jim Burgess, Purk Advisors, LLC, Earns Certified Financial Planner (CFP …

September
27, 2012 (St. Louis)
 –  Jim Burgess, a financial planner with Purk
Advisors, LLC, the wealth management subsidiary of Purk Associates, P.C.,  the leading, independently owned St.
Louis-based accounting and management advisory firm, earned the Certified
Financial Planner (CFP) designation, which is awarded by the Certified
Financial Planner Board.

 

Burgess, who joined Purk
Advisors in 2008, works with the firm’s wealth management clients. He earned a
Bachelor of Science in Organizational Behavior from Washington University in St
.Louis. Burgess has also earned his FINRA Series 7 and Series 66 license exams.
He is a Registered Representative of 1st Global Advisors, Inc.

 

In
addition to his work with the firm, Burgess is an Iraq war veteran and is
currently a Sergeant First Class in the Missouri National Guard.

 

The CFP designation is a
prestigious designation in the wealth management and financial services industries.
Professionals who earn the designation must pass a rigorous test and complete a
comprehensive curriculum covering topics such as the financial planning
process, risk management, investments, tax planning and management, retirement
and employee benefits, and estate planning. 
CFP Board currently authorizes more than 61,000 individuals to use these
marks in the United States.

 

CFP Board is a nonprofit certification
organization with a mission to benefit the public by granting the CFP®
certification and upholding it as the recognized standard of excellence for
personal financial planning. For more about CFP Board,
visit www.CFP.net.

 

Founded in 2009, Purk
Associates, P.C., headquartered in St. Louis, is a leading, independently
owned accounting and management advisory firm that delivers a full range of
tax, accounting, audit and consulting services by providing high-touch
attention to clients’ needs. The firm’s mission – We get it. It’s all about you—allows Purk Associates to focus
on helping their clients’ achieve their goals. To learn more, please visit the
web site at www.purkpc.com.

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Friday, September 28th, 2012 EN No Comments

Spain’s reform plans help ease Wall St’s pain

THE SP 500 snapped a five-day string of declines in a broad-based rally yesterday, as Spain’s plans for economic reform eased some worries about one of the Eurozone’s most troubled countries.

The benchmark SP 500 rose one per cent, its biggest percentage gain since the Federal Reserve announced its plan for a third round of stimulus on 13 September.

Spain announced a detailed timetable for economic reforms for the fiscally troubled nation and a tough 2013 budget based mostly on spending cuts.

“Any information that gives some understanding about what’s going to happen is good for the market. It’s small news, but more certainty is good,” said Giri Cherukuri, head trader at OakBrook Investments.

The EU’s Economic and Monetary Affairs Commissioner, Olli Rehn, said Spain’s detailed timetable for economic reforms goes beyond what the European Commission has asked of Spain. Rehn said it is an ambitious step forward.

Gold stocks ranked among the day’s bigger gainers in the wake of Spain’s news; the PHLX gold/silver index jumped 3 per cent.

Adding to the rally was a last-minute push by investors to reposition portfolios ahead of the quarter’s end, with the SP 500 on track for a gain of 6.2 per cent in the third quarter. Friday will be the quarter’s last trading day.

“What we’ve seen is broadly a consolidation, but also an attempt by fund managers to position properly for the rest of the year, to be in the best sectors,” said Bruce Zaro, chief technical strategist at Delta Global Asset Management in Boston.

The Dow Jones industrial average shot up 72.46 points, or 0.54 per cent, to 13,485.97 at the close. The Standard Poor’s 500 Index rose 13.83 points, or 0.96 per cent, to finish at 1,447.15. The Nasdaq Composite Index gained 42.90 points, or 1.39 per cent, to close at 3,136.60.

While the Nasdaq led Thursday’s gains, it also led the market’s declines earlier this week – its volatility possibly reflecting investors’ nervousness about the US economic outlook, analysts said.

Apple, up 2.4 per cent at $681.32, gave the biggest lift to the Nasdaq. The semiconductor index gained 2.3 percent, bolstering the Nasdaq 100. Intel was up 1.9 per cent at $23.09.

After the bell, US-listed shares of Research In Motion (RIM) surged 15 per cent to $8.21 after the Canadian maker of the BlackBerry reported a smaller-than-expected quarterly loss. In the regular session, the stock closed at $7.14 – up two per cent.

On the deal-making front, Tempur-Pedic International agreed to buy rival mattress maker Sealy for about $242m and assume about $750m in debt. Tempur-Pedic shares jumped 14.4 per cent to $30.64.

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Friday, September 28th, 2012 EN No Comments

State issues securities complaint against Westboro wealth management firm


WESTBORO — 

A local wealth management company has been charged with making false statements about what assets it managed in its application for registration as an investment adviser and making false claims on its website, according to a complaint issued by Secretary of State William F. Galvin this week.

The administrative complaint has been lodged against CCR Wealth Management by the Securities Division of the secretary of state’s office. The complaint seeks to deny CCR Wealth Management registration as an investment adviser.

Meanwhile, CCR officials said in a statement today that the firm is working with securities officials to resolve the matter.

“CCR Wealth Management is a leading independent financial management and advisory firm. We take our reporting and registration requirements very seriously, and will work closely with the Massachusetts Securities Division to clarify any misunderstanding that may exist,” according to a statement released by the company. “We look forward to resolving this matter in a constructive way.”

CCR is among an estimated 3,200 investment adviser firms nationally whose managed assets ranged between $25 million and $100 million that a were “switched” from federal to state regulation under the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, according to Mr. Galvin.

CCR has been registered with the U.S. Securities and Exchange Commission since Oct. 31, 2001. The company applied for registration in Massachusetts as an investment adviser June 20, 2012, triggering an extensive review of its prior federal filings, according to Mr. Galvin’s office.

“As these investment adviser firms come under Massachusetts regulation for the first time, the Securities Division will be thorough in checking their applications to make sure the information they supply regulators, and their prospective clients is factual,” Mr. Galvin said.

“This examination revealed an illogical and inconsistent pattern in reporting assets under management … that existed throughout CCR’s nearly 11-year period of registration with the SEC,” the complaint states. “CCR would report both its (Assets Under Management) and the number of accounts containing those assets as large, even denomination, static values over long durations and multiple amendments (to the SEC form).”

CCR told the Securities Division that it had included accounts managed as broker-dealer agents into its total assets under management number for its advisory accounts between 2007 and 2012.

CCR was not required to include those assets into its advisory accounts in federal filings.
However, by doing so, the Securities Division said, it gave the appearance that CCR was managing more assets than they were, and allowed them to circumvent state registration.

The complaint also alleges CCR’s website claimed it managed more than $650 million. CCR told the Securities Division that amount was stated because it “covers our business as a whole.” CCR, in reality, had very little business under RIA, or Registered Investment Advisers, according to the complaint.

“State registered investment advisers should view today’s filing as a harbinger of the risks associated with filing false information with the Division or including misleading statements on their website” Mr. Galvin stated.

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Thursday, September 27th, 2012 EN No Comments