Portfolio

The Financial Industry Regulatory Authority has censured and fined Merrill Lynch, Pierce, Fenner & Smith Inc. $500,000 for failing to establish and maintain written supervisory procedures to ensure that its representatives considered customers’ state income-tax benefits in their suitability analyses of 529 college saving plans.

Low interest rates and a market skepticism keep annuities down in 2010, but 2011 looks brighter.

Estate tax reform in 2010 was marked by significant disagreement from both the House and Senate on whether any changes should be temporary or permanent.

Asset managers can use the online resource when preparing a fund launch or moving a fund to a new service provider.

Global equities are benefiting from an increasingly positive outlook by investors, according to the latest BoA Merrill Lynch Survey of Fund Managers.Just over half of fund managers, 55%, say they’re overweight in global equities, the largest proportion since July 2007. Just last month, only 40% of fund managers said they were overweight in international stocks. The additional assets appear to have come from bonds—54% of fund managers are now underweight in bonds, from 47% in December.

The Charles Schwab Corporation announced on Tuesday that fourth quarter revenues soared 14% year-over-year and December net new assets grew to more than $11 billion, the highest level in 23 months.

International fiscal stimuli and expectations of rising inflation tilt the balance in equities’ favor.

The issuance of U.S. Treasuries is set to fall by 16% this year, and tax receipts should jump. Demand for bonds will also increase, both among pensions and individuals and overseas buyers, and quality small cap stocks should rise above the pack. Keefe, Bruyette and Woods suggests shorting stocks that will benefit from rising short-term interest rates.

Client trading activity increased 17% from the third quarter due to stronger market conditions and an upbeat economic outlook.

A new study from Aon Hewitt claims that pension funds for companies located in the U.S., the U.K., Canada and Europe clocked out of 2010 with a 87% funded status, marking a 1% increase from previous numbers.