AT THE BELL

Planners organize for clout

A handful of financial planners who’ve formed an alliance to seek more clout with mutual fund supermarkets and other vendors is starting a membership drive. The Council of Independent Financial Advisors wants a national membership of 50 firms overseeing $20 billion within three years, says president Kenneth Schapiro, also president of Condor Capital Investment Management in Martinsville, N.J. The alliance, formed last winter, has six member firms managing a total $1.1 billion and has had discussions with Charles Schwab Corp. about forming a special service unit. Its recruiting effort, headed by California strategic planning firm Tiburon Group, is focusing on firms that oversee at least $100 million. The group plans to hire a public relations firm and launch a website. It may seek referrals from insurers, trust companies and retirement plans.

Eat own cooking, directors urged

Mutual fund directors should invest in at least one of the funds they are paid to oversee, an advisory group for the Investment Company Institute recommended last week. The group, formed in response to moves by the Securities and Exchange Commission to beef up fund governance, called the recommendation one of several “best practices” that fund companies could voluntarily accept to strengthen the independence of directors. The group also recommended that at least two-thirds of a fund board be controlled by independent directors, raising the ante from SEC Chairman Arthur Levitt’s call for a simple majority. (The current requirement is 40%.) Mr. Levitt issued a statement calling the latest proposals “an important step forward in enhancing the effectiveness of fund directors.” At least one company will be changing its policies: Los Angeles-based Capital Research and Management Co. will soon require directors to invest in their own product, according to an executive who was part of the ICI group.

Boston broker spins consultant

Old-line Boston brokerage H.C. Wainwright & Co. is spinning off its five-year-old investment consulting business, primarily to give employees a stake in it. Ownership of the $2.5 billion institutional division will be divided among unit’s 16 employees, Wainwright and a group of about a dozen private investors.

Lord Abbett buys Indy fund

Lord Abbett & Co. of New York has acquired Real Silk Investments Inc., a $160 million closed-end fund in Indianapolis, and will fold it into its $10 billion Affiliated Fund. The move will help members of the Efroymsen family, who own the majority of Real Silk, avoid tax penalties associated with liquidation, says Affiliated’s portfolio manager, Thomas Hudson.

It’s a jungle on the web

It’s the company that listens, or so StockJungle.com, a Culver City, Calif.-based runner of stock information on the Internet, would have its visitors believe. Friday the company filed with the Securities and Exchange Commission to establish four funds, one of which would allow visitors to its website chatrooms to help pick its holdings. Industry watchers are skeptical. “Our collective reaction around here was are they kidding?” says Jim Folwell, a consultant at Boston researcher Cerulli Associates. StockJungle.com president Michael Weitz couldn’t comment, citing SEC regulations.

Rushmore gets Vann

Rushmore Financial Group of Dallas agreed to buy the $500 million Texas asset management and advisory firm run by John Vann, 51. A veteran of E.F. Hutton & Co.’s pioneering wrap account program 25 years ago and son of Vietnam War figure Lt. Col. John Paul Vann, Mr. Vann has been involved in a number of lawsuits filed by former employees. Following the stock-swap merger, Mr. Vann will become Rushmore’s chief investment officer and chief exec of its advisory firm.

Countrywide commissions up

Countrywide Investments Inc. is hiking commissions on its 16 funds. The A share payout rises to 5.75% from 4%, and C shares will add a 1.25% charge plus a 2% upfront payout to brokers and a 1% annual trail fee after the 13th month. The $1 billion Cincinnati outfit is owned by Countrywide Credit Industries Inc.

Correction

The June 14 Stats page misstated the assets of SSgA Emerging Markets fund. The correct figure is $310 million.