Money Management Executive Latest News

In a survey of 3,129 financial intermediaries on their opinions of leading mutual fund companies, the top three rated brands are American Funds, Barclays iShares and Ivy Funds, kasina and Horsesmouth found.

It could take as long as five years for asset managers around the world to recoup the $10 trillion they lost in 2008, according to a report by Cerulli, which calls the global meltdown “of near-biblical proportions.”

With faith restored in the global asset management industry, due to a four-month stock market rally and more voices saying the economy is on the mend, mergers and acquisitions in the industry will see a brisk pace in the second half of the year, Jefferies Putnam Lovell says.

Active traders are largely optimistic about the market and the economy, Charles Schwab found in a survey of 260 investors. Eighty-one percent said they are either bullish or neutral on the market over the next six months, virtually unchanged since the last survey in February.

Investors will continue to be afraid of losing hard-earned money and gravitate to fixed-income and other safe investments, The Boston Consulting Group predicts. As a result, investment management firms need to offer new portfolios and, with fees on these offerings undoubtedly lower than aggressive, actively managed funds, they will have to cut costs even further.

U.S. and foreign equity mutual funds hit 10-year records in the second quarter, with domestic equity funds rising 17.05% and international equity funds rising 26.66%, according to Lipper. For both, it’s the best performance since the fourth quarter of 1999, when U.S. equity funds surged 19.47% and world equity funds delivered 27.42%.

Hennessy Advisors has signed a definitive agreement to acquire the assets of two Japan funds with a combined $65 million in assets, the SPARX Japan Fund and the SPARX Japan Smaller Companies Fund.

Fidelity Canada is standardizing its mutual fund administration fees, so that its fees will be more even, predictable and transparent. The fixed administration fee will be 24 basis points for balanced funds, 29 basis points for North American equity funds, 33 basis points for global equity funds and 11 basis points for fixed income funds.

One of President Obama’s proposed financial reforms would require employers that do not offer a 401(k) to automatically enroll their employees into an IRA. If implemented, it would give the biggest boost to the retirement savings industry since the creation of the 401(k) in 1980, enrolling 40 million new investors, and attract more than $100 billion within five years, The Wall Street Journal reports.

U.S. financial institutions have a lot of work to do to win back the trust of the American investor, with about half saying they don’t trust banks to put customers’ best interests ahead of corporate goals, a survey by Harris Interactive for Cake Financial found.