Portfolio

Americans plan to continue cutting back on their spending, a survey by financial consulting firm AlixPartners found. Once the recession is over, they plan to spend only 86% of what they did before the crisis began. And their No. 1 goal is replenishing their 401(k) and other retirement savings.

A significant number of 401(k) assets held by workers who leave their jobs has been left behind in the old plans, Charles Schwab found in an analysis of the activity of workers since the first quarter of 2008.

Mary Schapiro, chairman of the Securities and Exchange Commission, bridled against the proposal that the government create a consumer financial protection agency. Evidently, the SEC wants to maintain its regulatory control over mutual funds.

People investing for retirement in mutual funds should not pay capital gains taxes until those shares are sold, according to Senators Mike Crapo (R-Idaho) and Tim Johnson (D-South Dakota). To keep retirement savings earning more money for a longer period of time, the senators have introduced the GROWTH (Generating Retirement Ownership Through Long-Term Holding) Act, which the Investment Company Institute supports.

Seven out of 10 money managers surveyed believe the world economy will improve within the next 12 months, and already, they are putting their money back to work in the stock market, as they are bullish on corporate profits, according to the Merrill Lynch survey of fund managers for May.

The Obama administration is considering forming a regulatory commission to protect consumers against predatory sales and practices by mutual funds, mortgage lenders and credit card companies.

More actively managed funds-of-funds and mutual fund wrap programs are investing in such safe, low-cost vehicles as index funds and exchange-traded funds, The Globe and Mail reports.

After losing an average of 19% last year and charging investors management fees of 2% plus incentive fees of 20% or more, investors are beginning to protest, The Wall Street Journal reports. And with assets languishing, it’s more than likely that hedge funds will cut fees to attract assets and keep investors at least moderately happy.

With assets so vastly depleted, many hedge funds are likely to merge, an asset management executive told a recent gathering of hedge fund executives at the SkyBridge Alternatives Conference.

Even though Fidelity’s mutual funds are performing strongly, with 62% in the top half of their category, the firm is looking for a new chief investment officer, Reuters reports. By comparison, in 2008, only 36% of the firm’s funds were in the top half.