Portfolio

Fewer wealthy Americans are using mutual funds, and among those investors who continue to use these investment products, allocations are down significantly.

The fund combines hedge and private equity approaches.

Volatility and speculation about defaults and bankruptcies in the municipal market continue to spook issuers and investors, affecting volume in the primary market.

Investors established a new record for withdrawals from municipal bond mutual funds last week as headline risk continued to chase people from state and local government debt funds.

“High-risk” allocations fell to 15% from 24% in 2006.

The Conference Board Leading Economic Index for the U.S. rose 1% in December to 112.4, following a 1.1% gain in November and a 0.4% rise in October.

Frost Investment Advisors has launched the Frost Diversified Strategies Fund, a mutual fund that combines hedge and private equity approaches. The fund seeks to reduce downside volatility while providing upside investment opportunities.

The latest report from LoanPerformance, released this week, showed another notable decline in November, with prices down 5% from the recent peak in May.

Tax-exempt money market funds posted their first decline since mid-December as outflows of $4.35 billion trimmed total net assets to $329.91 billion for the week ended Jan. 17, according to the Money Fund Report, a service of iMoneyNet.com.

The sophisticated investor in retail municipal bonds has ­remained calm the past few months even as mutual funds have dumped state and local ­government debt by the truckload.