Portfolio

As the International Monetary Fund and The World Bank respectively predict world GDP growth of 2.5% and 2% next year and stock markets around the globe are expected to surge ahead of this growth, mutual fund analysts are beginning to weigh in on which sectors could lead the way out of the recession.

Morgan Stanley Smith Barney is examining how it sells leveraged exchange-traded funds, and Charles Schwab has posted a warning on its website that the products could exacerbate losses for investors who hold them for more than a day.

Asset International has acquired Strategic Insight for an undisclosed sum.

Mutual funds took in $11.05 billion for the week ended July 22, up sharply from the $6.6 billion they netted the previous week, the Investment Company Institute said. The inflows were the highest since the week ended June 17, when long-term mutual funds took in $11.1 billion.

A full 66% of investors do not expect the economy to improve until next year or even later, and only 34% peg improvement for this year, online brokerage TradeKing found in a survey of 3,000 of its customers.

Morgan Stanley Smith Barney has added a fixed income annuity from Nationwide to its unified managed account platform, so that investors have the option of selecting lifetime income. The brokerage is calling the option Select Retirement.

Exchange-traded funds have attracted $35 billion so far this year, far less than in previous years, but growth is likely to return at a rapid clip once the recession winds down, according to Strategic Insight. By comparison, investors have withdrawn $49 billion from mutual funds.

The web-based 401(k) software has created a Plan Management Dashboard that rates plans for sponsors and advisers and how the scores compare to similar plans.

Fidelity Investments is giving its retail and institutional brokerage clients access to the initial public offerings and follow-on equity offerings underwritten by Deutsche Bank.

Between November and March, hedging programs at variable annuity firms supported 94% of their guarantees, up from 93% in the prior period, Milliman said.