Portfolio

The past few years have provided a stark illustration of the ability of markets to surprise. It may be that inflation is the next big economic challenge to make an unwelcome return. The limitations of the most popular inflation fighting vehicles are becoming too pronounced, and the risks from inflation are too real, for the status quo to continue to reign in portfolio construction.

“I’ve been guessing we’re in the foothills of a long 20-year rise with cyclical interruptions,” said Dan Fuss, who runs the Loomis Sayles Bond Fund.

A New York judge has dismissed a class action lawsuit against State Street as the sponsor of a mutual fund, saying that even though the mutual fund misrepresented its risks, investors were not harmed. That's because the fund correctly calculated its net asset value.

Lawmakers on Tuesday moved forward with two legislative efforts to overhaul the U.S. tax code, which would either halt, or threaten, tax-exemption for new muni bonds.

The Conference Board Employment Trends Index rose in March, its sixth straight monthly gain. Now at 100.9, it is up from 100.3 in February and has gained 8% from a year ago.

Moody’s Investors Service has lowered its outlook on Fidelity Investments from “stable” to “negative.”

Fidelity Investments has increased the size and capabilities of its London fixed income office, enhancing its ability to service institutional clients through Pyramis Global Advisors as well as Fidelity’s mutual fund clients in the U.S.

Goldman Sachs Asset Management has launched the Goldman Sachs High Yield Floating Rate Fund. It invests in below investment-grade, floating-rate loans and other variable-rate securities issued by U.S. and foreign companies. The fund’s investment objective is to generate a high level of current income.

Columbia Management has launched two absolute-return funds, the Columbia Absolute Return Multi-Strategy Fund and the Columbia Absolute Return Enhanced Multi-Strategy Fund. Both funds use multiple strategies to reduce portfolio volatility.