Fund Times: AllianceBernstein CEO Subpoenaed

Merrill Lynch paid its top 10 executives a total of $209 million in cash and stock in 2008. Peter Kraus, who left Goldman Sachs to become head of strategy at Merrill Lynch in September 2008, received $29.4 million in cash and stock during his short three-month tenure, according to The Wall Street Journal. He left in December after being named CEO of AllianceBernstein, replacing the retiring Lew Sanders.

ICI Advocates Reform
The Investment Company Institute recently issued a research paper with suggestions for improving regulation of the faltering financial-services industry. The recommendations include creation of a new "Systematic Risk Regulator," or an agency designed to assess risks and promote market stability, as well as a "Capital Markets Regulator," which would broadly oversee the financial markets and set regulatory standards by melding the Securities and Exchange Commission and the Commodity Futures Trading Commission.

The ICI has also been vocal in promoting 401(k) reform to improve retirement security for Americans. ICI president and CEO Paul Schott Stevens recently testified before Congress, calling for a more stable Social Security system and increased efficiency in 401(k) plans. His suggestions included creating simpler plans, enacting automatic enrollment, improving disclosure, and encouraging workers to invest in more than just company stock.

Manager Reshufflings
Firms continue to make changes to their manager ranks as cost-cutting pressure and poor performance persist.

Bob Corman is no longer manager of  Neuberger Berman Focus , which he had run since late 2005. Corman revamped the large-blend offering after becoming director of research in 2007, making it more diversified and transitioning it into an analyst-driven fund that relies on stock picks from Neuberger Berman's analysts. The new strategy hasn't been in place long enough to make a difference, but Corman won't be around to see if it ultimately flourishes because his role--both as manager and director of research--was eliminated in cost-cutting measures. David Levine, who has been with the firm since 1995 and was named comanager of the fund in June 2008, is now sole manager.

Managers continue to move through the revolving doors at Fidelity's Select lineup. Matthew Sabel is out at  Fidelity Select Health Care after a somewhat middling two-and-a-half-year tenure. Comanager Eddie Yoon will resume full control. Yoon is an experienced health-care analyst who joined Fidelity in 2006 after several years at JP Morgan Asset Management. He will continue to run  Fidelity Select Medical Equipment/Systems . Andrew Hatem replaces Sabel at  Fidelity Select Medical Delivery after a long analyst career and stints managing Fidelity Select Air Transportation and Fidelity Select Defense & Aerospace .

Several other narrowly focused Fidelity funds have also undergone changes. Douglas Simmons is once again manager of Fidelity Select Environmental , which he ran from 2004 to 2007, succeeding Stavros Koutsantonis II. Technology analyst Brian Lempel has been promoted to manager of Fidelity Select Software and Computer Services , replacing Mayank Tandon. John Mirshekari is taking over for Anton An at Fidelity Select Transportation , and Michael Weaver replaces Alton Miles III at Fidelity Select Automotive .

RS Investments also announced changes to its lineup, including a manager departure, fund merger, and fund name changes. John Seabern, comanager of  RS MidCap Opportunities (which will be renamed RS MidCap Growth) and manager of  RS Growth since 2007, will leave the firm March 31. The impact on the MidCap fund will be minimal because comanagers Steve Bishop, Melissa Chadwick-Dunn, Allison Thacker, and Scott Tracy remain. RS Growth will be taken over by Joy Budzinski and Magnus Krantz, former health-care and technology sector managers who have contributed to the successful large-blend fund  RS Large Cap Alpha for the past two years. Meanwhile, the $82 million  RS Smaller Company Growth is merging into the $234 million  RS Emerging Growth and will be renamed RS Small Cap Growth, pending shareholder approval.

Exits
Fledgling world-stock fund Lazard Global Equity Income will liquidate March 30. The fund launched in April 2008, and although its 49% loss during that time falls in the category's top half, it has only attracted $5 million in assets.

Alger Technology is another victim of a dwindling asset base, with just $350,000. It will liquidate April 30.