Portfolio

Standard & Poor’s has downgraded Fidelity Investments’ parent FMR Corp. one level from AA-/A-+ to A+/A-1, citing a 22% decline in assets in 2008 to $1.25 trillion and trailing performance of some of its equity funds.

Nationwide Mutual Funds has selected Federated Investors to sub-advise three of its money market funds with $5.6 billion in combined assets. They are the Nationwide Money Market Fund, the NVIT Money Market Fund and the NVIT Money Market Fund II.

The mutual fund industry will bounce back to historic inflow levels on the low to medium side, according to Financial Research Corp., attracting between $130 billion and $180 billion a year.

The Conference Board Consumer Confidence Index rose 12 points in April to 39.2 (1985=100), up from 26.9 in March., and the Expectations Index rose considerably to 49.5 from 30.2 the previous month.

Morningstar estimates that the top 25 mutual fund companies took in $12.4 billion in net inflows in the first quarter, with the research firm’s Director of Personal Finance Christine Benz telling Reuters, “I would imagine that the worst is over for a lot of these firms. It’s hard to imagine a scenario that’s worse than the fourth quarter was.”

Waddell & Reed reported first quarter profits of $15.5 million, down 45.2% from $28.3 million in the first quarter of 2008.

Thirty-six percent of financial advisers are less confident than they were a year about in their ability to manage reitrees’ assets—with most blaming the complexity of retirement income portfolios needing to both generate growth while guaranteeing income, GDC Research and Practical Perspectives found through a survey.

The Securities and Exchange Commission is currently investigating 50 cases of credit-default swaps and 150 hedge funds, Chairman Mary Schapiro told the Society of American Business Editors and Writers. The investigations are in line with objectives of the Obama Administration to overhaul financial regulations.

ProFunds Group has hired Richard Kendrick as managing director, marketing, in charge of all marketing for the company’s exchange-traded funds and mutual funds. He comes to the firm from RiverSource Investments, where he was vice president, asset management marketing.

According to a survey by the IBM Institute for Business Value, 90% of financial markets executives and government officials believe the returns of the past are over, primarily due to radical restructuring of the financial markets.