Net outflows were down 63% across the mutual fund industry in November, but most money managers still bled billions in assets, according to research released last week by Morningstar Inc.
A select group of mutual funds that can invest beyond stocks, bonds and cash are being heralded as the next great innovation, but some industry observers question whether the funds are merely repackaging an existing concept.
The Reserve Management Co. Inc. of New York has announced that it has begun distributions for 12 of its money market mutual funds and gave a distribution schedule for a host of others.
Money market mutual funds that invest in Treasuries could cost investors money if the Federal Reserve Bank cuts interest rates further, according to Peter Crane, president of the Westborough, Mass.-based research firm Crane Data LLC.
The next Congress will scrutinize a Department of Labor proposal that permits advisers affiliated with an in-house money management unit to recommend whatever products they want, including mutual funds with high management fees, to 401(k) participants.
A popular argument for using exchange traded funds is that investors receive more bang for their buck because ETFs are generally cheaper than mutual funds. In some cases, however, the bang is being muted because of the way ETF returns are reported.
Money managers said they have laid off or plan to lay off nearly 3,600 staff members as a result of financial market swoons.
To offset numerous redemptions this year, Fidelity Investments announced yesterday it will be reopening two of its mutual funds to new investors and accounts, starting Dec. 16.
After a three-year run in the mutual funds sector, Utopia Funds in Traverse City, Mich. is throwing in the towel by liquidating all four of its funds as of Dec. 22.
Legg Mason Inc. will take new charges to provide support for its struggling money market funds, a move that will force the company to take a loss in the fourth quarter.
Actively managed exchange traded funds, which were introduced this year, haven't caught fire, but that didn't stop Invesco PowerShares Capital Management LLC from launching its fifth such ETF last month.
The Vanguard Group has added Frontier Capital Management and Kalmar Investment Advisers to manage its Vanguard Morgan Growth Fund. The two replace Franklin Portfolio Associates in managing about 20% of the $6.4 billion fund.
They are the first ETFs in the United States to provide short exposure or leveraged exposure to commodities or to the euro and the yen, according to a statement from ProFunds.
Nuveen Investments Inc. will acquire Winslow Capital Management Inc., an investment manager that specializes in managing large-cap-growth-stock portfolios for institutions and high-net-worth investors.
Disclosures for managed-payout mutual funds — launched in the last year to help retirees manage income — must make it clear that unlike annuities, such funds do not guarantee income.
Fidelity Investments' decision last week to replace the head of its adviser unit with an executive from Morgan Stanley is another sign that the former is serious about recruiting more breakaway brokers.
Mutual funds fees will be going up next year, with market turmoil likely to be the main culprit.
In the current economic maelstrom, exchange traded funds are beating mutual funds in the fight for investor dollars — a battle that will have long-term implications for the asset management industry.
Reserve Management Co. Inc. has announced that its U.S. Government Fund is now covered by Treasury’s temporary guarantee program for money market funds.
