SHORT INTERESTS: TIPS, TRENDS, OBSERVATIONS

Scenes from a marriage

Can two trade associations live on opposite coasts without driving each other crazy? The New York-based Independent-Broker Dealer Association, which has 120 members, and the California Association of Independent Broker Dealers Inc. of Agoura Hills, which has 50, have formed an alliance to try to increase membership of both and to promote the formation of other groups.

“Our primary goal is to increase public and regulatory awareness of the importance of small business broker-dealer firms,” says Alan Davidson, president of the New York association.

Clinton blow to issuers

A Clinton administration proposal in the fiscal 1999 budget could prove a boon to muni investors while hurting issuers. It would reduce tax deductions now allowed for municipal bond interest income by property and casualty insurance companies, big buyers of municipal bonds, increasing taxes for them by 5.25%. That means governments issuing the bonds would have to pay $2 million to $3 million more in interest to attract investors, argues the Bond Market Association in New York. As of Sept. 30, property and casualty insurance companies held 14% of the $1.3 trillion outstanding in tax-exempt bonds. At the end of 1991 they held 10%.

She’s a motivator

If Ellyn McColgan ever decides she’s had enough as president of Fidelity Investments Tax-Exempt Services Co., she’s got a good crack at a career as an inspirational speaker. At the Fairmont Copley Plaza Hotel in Boston where she was one of 10 recipients of the New England Council’s Leadership Awards to Women in Business, Ms. McColgan drew tears from many in the audience as she made an emotional speech about the support and encouragement she received from her grandmother on her way up the corporate ladder. This is the fifth year the council has honored women in New England for their contributions to the economy and their communities. Fidelity was one of two sponsors of this year’s event.

Strong weak overseas

Less than two years after launching it
s Style Select Series mutual fund family, SunAmerica Inc. has turned loose a subadviser that didn’t make the grade. Last week, the Los Angeles-based financial services giant replaced Strong Capital Management Inc., one of three subadvisers for its $75 million International Equity Portfolio, with Bankers Trust. The load fund returned a mere 3.87% from its start on Nov. 18, 1996, through Feb. 27, compared to an 11.72% average return for its peers, according to Morningstar Inc. “If you are going to take on risk,” says J. Steven Neamtz, executive vice president of SunAmerica Asset Management, “you need to get paid for it.” A spokesman for Strong says the company is sorry to lose the account, but continues to manage other money for SunAmerica.