Portfolio

The outlook for exchange-traded products (both funds and notes) is strong, according to a new report from SEI called “Exchange-Traded Products: A Look Ahead.” Over the past 10 years, assets in such products have grown from $16 billion to $487 billion, for an annual compound growth rate of 41%.

For all of the reports on dismal negative 20% declines in hedge funds this year, PerTrac Financial Solutions found that if the net is cast wider, sound performers can, indeed, be found.

The Office of Compliance Inspections and Examinations at the Securities and Exchange Commission reminded fund companies that with all of the staffing and operational cutbacks taking place, compliance is an area where shortcuts cannot be tolerated.

Now, more than ever, automation of back-office functions at mutual fund companies is critical, according to a new whitepaper from Confluence.

Fortress Investment Group became the latest hedge fund Wednesday to tell investors it will temporarily suspend redemptions. In its case, Fortress did not say when they would be honored.

Reserve Funds announced it is returning all of the assets of six of its funds, at a $1 NAV, including the key Primary II and U.S. Government II funds.

WASHINGTON — With no end in sight for the financial crisis, the Federal Reserve Board said Tuesday it will extend three of its liquidity programs through April 30.

Besides supporting four money market funds with exposure to structured investment vehicles with $420 million in capital of its own, Legg Mason has signed a one-year renewal with a bank to support $355 million in SIV securities. As of Nov. 30, the par value of SIV exposure in the funds was $2.8 billion, down from $10 billion as of Oct. 31, 2007.

The “perfect storm” of high volatility, withdrawals and liquidity problems that has hit hedge funds will soon subside, Man Group CEO Peter Clarke told the Hedge Fund World Zurich conference, Dow Jones reports. In fact, hedge funds could turn the corner as early as the second quarter of next year, Clarke said.

Fidelity Investments announced Tuesday it is reopening two of its largest funds, Contrafund and Low-Priced Stock Fund, to new investments, effective Dec. 16.