Portfolio

Russell Investments has introduced Russell Enhanced Asset Allocation, which using forecasting models to identify unsustainable movements in the market and map out a plan to maximize returns while limiting risk and maintaining adequate liquidity. The strategy covers 11 geographic regions and 11 asset classes and produces 114 asset class pair combinations.

Moody’s Investors Service has downgraded the long-term senior debt of FMR, the parent company of Fidelity, from A2 to A1, citing profit margins not meeting expectations.

Invesco is acquiring the retail asset management business of Morgan Stanley, including Van Kampen, for $1.5 billion in cash and stock. Invesco is paying $500 million in cash and tendering 44.1 million shares representing $1 billion in Invesco equity that will give Morgan Stanley a 9.4% minority stake. Morgan will continue to manage $267 billion in institutional assets.

83% of Fund Managers Expect Earnings To Increase Sharply in Third Quarter

Stunned by trillions of dollars of losses in the financial crisis, Americans will be investing significantly less in the future, according to a new survey by AlixPartners. Forty-nine percent of the 1,000 people the consulting firm surveyed have either stopped or reduced investing in stocks or mutual funds, 26% have no intention to return to these bedrock financial vehicles in the next three years, and another 27% were unsure whether they had the endurance to return to the markets in that timeframe.

Financial advisers generally prefer to manage a small number of high-net-worth clients rather than a large number of small accounts, but recent advances in automation technology could change this dynamic.

Though Bank of New York Mellon Corp.'s wealth management revenue has slumped, the unit's head is touting its resilience and plotting an aggressive strategy through mergers and acquisitions.

Many financial service companies were only able to survive last year's recession by slashing staff and utilizing automated technology solutions to support customers, advisers, salespeople and their remaining workers.

Minneapolis-based Allianz Life Insurance Co. of North America has beaten a class action lawsuit in court. A federal jury ruled against the plaintiffs in the case, Mooney v. Allianz Life Insurance Co.

State Street Corp. has added portfolio construction tools to its web-based hedge fund-of-fund platform, AlphaFrontier, which also includes custody, fund accounting, cash management, registration, risk services, investor services and credit.