Portfolio

For the 10th straight week in a row, mutual funds took in inflows, the Investment Company Institute revealed. However, the flows tapered off to $9.69 billion for the week ended May 20.

European Union Internal Market Commissioner Charlie McCreevy is expected to propose uniform new rules regarding depositories for undertakings in collective investments in transferable securities (UCITs), the European Commission’s version of mutual funds.

Citing in-house investment expertise, New York’s pension plan appears to be trailblazing the way for other pensions to feel confident investing directly in hedge funds, not through funds-of-funds, Dow Jones reports. A year ago, New York’s state pension fund had $5 billion invested in hedge funds-of-funds. Today, at $500 million, that’s a mere shadow of its former self.

The Connecticut state Senate passed a bill to require more disclosure and transparency of hedge funds, private equity firms and venture capitalists. It would also require the investment firms to disclose conflicts of interest to investors.

The seven largest fund houses in Boston saw assets under management surge 8% in April, boosted by a revival in the stock and bond markets and renewed faith by investors, who poured $42.1 billion into the funds during the month, the Boston Business Journal reports. The previous month, investors withdrew $6.3 billion.

The Internal Revenue Service has proposed new rules that would grant safe harbor for employers experiencing substantial business hardship that want to suspend or reduce their 401(k) matches.

Quantitative modeling took a tremendous hit during the credit crisis, and investors who favored such systematic investment strategies are, once again, favoring active stock pickers, The Wall Street Journal reports.

Separately managed accounts were the hardest hit of all types of brokerage accounts, The Wall Street Journal reports. Assets fell 39%, from $750 billion at the end of 2007 to $460 billion at the end of last year, according to Cerulli Associates.

Dow Jones Indexes has launched the Dow Jones U.S. Economic Stimulus Index, which will list 50 companies that are expected to receive stimulus money from the American Recovery and Reinvestment Act of 2009. The six key areas the index will focus on are: alternative energy, construction and materials, the energy grid, the environment, technology and telecommunications and the Internet.

BlackRock is beefing up its sales team and website to reach independent advisers serving retail investors, particularly those at LPL, Raymond James, ING and AIG.“We’re trying to expand our coverage of independent advisers because we recognize that is one of the fastest-growing areas of U.S. retail, and we’d like to have better coverage,” Frank Porcelli, managing director and head of U.S. retail sales at BlackRock, told Fund Action.The sales team currently numbers 85; Porcelli would like to expand that to 100 by the end of the third quarter.In addition, the firm is heavily marketing its 529 college savings program, offered through the Ohio Tuition Trust Authority, and its separately managed Multi-Asset Portfolio Strategies platform.