Money Management Executive Latest News

SEC Investor Advisor Committee To Examine Fund Disclosure

The recent drop in financial markets has rekindled the demand for safer, conservative financial products like stable-value funds.

Sometimes we seek out opportunities for change. Other times change is thrust upon us. Market conditions in the past 24 months have produced seismic shifts in the mutual fund industry, and several business drivers have emerged that will shape our industry's future. As asset managers, distributors, suppliers and others evaluate their next steps, these demands will drive strategies and shape new solutions.

Financial advisers have been going independent or switching wirehouses in record numbers since the economic crisis began at the end of 2007, and brokerages are scrambling for ways to get them and their loyal clients to come back.

Perhaps as a testament to investors taking a more proactive interest in their investments rather than inertia, 39% have changed their portfolio allocations since the market began to decline, Schwab found in a survey. Backing that is the fact that 54% say they have become more knowledgeable about investing in that time.

A number of Janus funds are in the top deciles this year, proving that the company’s investment team is a better-oiled machine than it was following the dot-com downturn, The Wall Street Journal reports.

Bond funds are not as reliable as they have historically been, which his creating some headaches for investors, The Wall Street Journal reports.

Of the 132 mutual funds on the market that employ hedging strategies, nearly half have been launched in the past three years, and in light of the 39% average decline in stock funds last year, more are likely on the way, The Wall Street Journal reports.

Retail investors appear to be regaining some nerve, The Washington Times reports.

Christopher Ryan, managing director of Fidelity International, told Bloomberg he is particularly optimistic about China, citing the economy’s diversification and the government’s stimulus plan.