Portfolio

Mutual Funds Have Bled $2.5 Trillion Since May

Putnam Selects Farrell as Head of Equity Trading

Don't believe the retirement income hype.

The signs are clear, but few firms are making decisions that will benefit them in the long term. The financial crisis is prompting firms to feel forced to react and make changes to their short-term and long-term strategies.

The $600 million in new assets that Horizon Cash Management captured in the third quarter could be a sign of things to come for the Chicago company and other cash managers.

Fund Fees Expected to Tumble By $38 Billion by 2012

Slowly but steadily, the Securities and Exchange Commission continues on the long journey toward adopting international tax and accounting standards, with the recent release of its long-anticipated roadmap.

Mutual funds had $9.5 trillion in assets as of Oct. 31, a full $2.5 trillion, or 21% less, than their year-to-date $12 trillion under management peak at the end of May, Lipper data shows. Since the beginning of the year, when mutual funds had $11.7 trillion under management, assets have fallen 19%.

The $600 million in new assets that Horizon Cash Management captured in the third quarter could be a sign of things to come for the Chicago company and other cash managers.

First the good news. The average 401(k) plan balance is down only 14% this year to $68,000 from $79,000 in 2007, according to Hewitt Associates. And since the precipitous decline in the stock market of the past few months, only 4% of participants have decided to stop contributing.