Deals & People August 24, 2007

Metcalfe Resigns as WMSI CEO

Automated rollover provider Wealth Management Systems Inc. (WMSI) has appointed John Geli as Chief Executive Officer (CEO).
Reported by

Geli, who most recently served as WMSI’s Chief Operating Officer and will begin his tenure as CEO effective September 1, 2007. He succeeds Jude Metcalfe as CEO of WMSI. Metcalfe has resigned his position, but will remain a shareholder in WMSI, working closely with Geli to ensure a smooth transition in executive leadership, according to a press release. Tom Loch will continue as WMSI’s President and Chairman of the Board and BJ Ralston will assume the role of Senior Vice President and Chief Administrative Officer.

Geli has over 20 years experience in the financial services industry, having held various senior level positions with Mellon Financial Corporation, Bankers Trust Company and Fidelity.

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Products August 23, 2007

Vanguard to Take Control of Long/Short Fund

The Vanguard Group has announced a proposal with Charles Schwab Investment Management to reorganize the Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short Equity Fund into a new Vanguard offering.
Reported by

A Vanguard news release said the company expects the new Market Neutral Fund to appeal primarily to institutional investors, particularly endowments and foundations. The fund will require minimum initial investments of $250,000 for Investor Shares and $5 million for Institutional Shares. The two share classes will feature estimated expense ratios of 0.75% and 0.60%, respectively.

The $21-million open-end fund, which is a member of Schwab’s Laudus family of funds, is sub-advised by AXA Rosenberg Investment Management LLC, according to the release. Vanguard Quantitative Equity Group would also manage a portion of the fund.

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Laudus Rosenberg Fund shareholders are expected to be mailed a proxy statement detailing the terms of the proposed reorganization in early October. If approved at a special shareholder meeting scheduled for mid-November, the tax-free reorganization is expected to be completed by year-end 2007, according to Vanguard.

Along with the reorganization proposal, Vanguard has filed a registration statement with the U.S. Securities and Exchange Commission (SEC) for the new Vanguard Market Neutral Fund. The new no-load fund will seek to provide long-term capital appreciation while limiting exposure to general stock market risk by using a long/short market-neutral strategy.

The new fund will assess a 1% fee on shares redeemed within one year of purchase, which is half the current charge on shares redeemed within 30 days of purchase, Vanguard said.

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