The bull market for U.S. money management firms surged in the first half of 1996. According to data from Investment Counseling Inc. and Berkshire Capital Corp.:
- The number of U.S. domestic start-ups surpassed that for all of 1995.
- The number of acquisitions, joint ventures and start-ups among U.S.-based firms in the first half was almost 20% higher than in the first half of 1995.
- There were 18 cross-border deals involving U.S. and non-U.S. firms through June, compared with 27 for all of 1995.
- The value of the deals in the first half of the year was almost 80% of the value of the deals for all of 1995.
Fidelity Management & Research has boosted the research support for Robert Stansky, the new portfolio manager of its flagship, $55 billion Magellan Fund. Mr. Stansky ``will have the services of three senior analysts, three of our strongest analysts, working directly with him on the fund, spending a very significant part of their time working ... on Magellan,'' said J. Gary Burkhead, president and CEO. Mr. Burkhead said Mr. Stansky selected the trio because he worked very closely with them in the past.
Jeffrey N. Vinik, Magellan's previous portfolio manager, primarily had only one person - Dave Feldman - working closely with him. Mr. Feldman now will be managing another portfolio.
Mutual fund growth helped State Street Boston increase its revenue by 20% in the second quarter over the same period last year. The company posted $466 million in revenue for the quarter, compared with $388 million for the same period in 1995. Fiduciary compensation, which includes custody and investment management fees, was up 28%, to $256 million. The growth was aided by new mutual funds and increased cash flows into mutual funds, as well as by record new custody business overseas. Assets under custody for non-U.S. customers rose to $188 billion by the end of the quarter, up 62% from the same time last year.
Real estate investment trusts dominated the North American real estate market in the first quarter of this year, posting almost $1 billion in acquisitions, according to CCIM/Landauer Investment Trends Quarterly. There were $3.2 billion in real estate transactions between Jan. 1 and March 31, according to CCIM/Landauer, which polls 4,700 real estate appraisers. Almost half of the money spent by REITs - $473 million - went to buy office buildings, according to the study.
Pension funds and limited partnerships were other key first-quarter investors in office buildings, according to CCIM/Landauer.
Corporate and financial services professionals led by Patrick McVeigh, senior vice president of Franklin Research & Development, testified today in favor of a House bill banning employment discrimination against lesbians and gay men.
Mr. McVeigh's testified before the House Committee on Small Business' Subcommittee on Government Programs. He cited a study by the California Public Employees' Retirement System that found companies widely recognized for superior workplace practices had higher stock valuations.
``Companies that fail to offer real protection from discrimination or harassment are not just hurting their employees, but they are also hurting themselves and, ultimately, their shareholders as well. Discrimination can be a subtle but not insignificant hidden labor cost,'' Mr. McVeigh said.
Franklin runs nearly $500 million in socially responsible portfolios.
