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 |
|
Friday, December 23, 2005 Vanguard Subadvisor Plans End to Soft Dollars Wellington Management is taking a page out of the Fidelity playbook and unbundling its research purchases from its trading. The asset manager and Vanguard ally would be the fourth firm to publicly make this move along with Janus, MFS and Fidelity. Soft dollars, essentially credits with brokerage firms that can be used to pay for research and other services, have come under increasing scrutiny as outsiders scour Wall Street looking for conflicts of interest. In October, the SEC also revised its rules covering their use. Wellington's decision to cease using soft dollars comes the same week that Fidelity made an agreement with Deutsche Bank to pay separately for its trading and research (it also made a similar arrangement with Lehman Brothers. Word of the arrangement was reported on Friday by TheStreet.com. The news service based its report on "sources familiar with the company's plans" and added that Wellington will announce the decision in early 2006. Wellington subadvises 13 funds with about $150 billion in assets for Vanguard Group. Printed from: MFWire.com/story.asp?s=11044 Copyright 2005, InvestmentWires, Inc. All Rights Reserved |