Money Management Executive Latest News

Seven out of 10 money managers surveyed believe the world economy will improve within the next 12 months, and already, they are putting their money back to work in the stock market, as they are bullish on corporate profits, according to the Merrill Lynch survey of fund managers for May.

The Obama administration is considering forming a regulatory commission to protect consumers against predatory sales and practices by mutual funds, mortgage lenders and credit card companies.

The financial downturn has prompted Americans to make some improvements where their finances are concerned, namely to reduce spending and increase savings, but when it comes to revolving debt outside of their mortgages, they are doing little to improve their situations.

More actively managed funds-of-funds and mutual fund wrap programs are investing in such safe, low-cost vehicles as index funds and exchange-traded funds, The Globe and Mail reports.

After losing an average of 19% last year and charging investors management fees of 2% plus incentive fees of 20% or more, investors are beginning to protest, The Wall Street Journal reports. And with assets languishing, it’s more than likely that hedge funds will cut fees to attract assets and keep investors at least moderately happy.

With assets so vastly depleted, many hedge funds are likely to merge, an asset management executive told a recent gathering of hedge fund executives at the SkyBridge Alternatives Conference.

Even though Fidelity’s mutual funds are performing strongly, with 62% in the top half of their category, the firm is looking for a new chief investment officer, Reuters reports. By comparison, in 2008, only 36% of the firm’s funds were in the top half.

The Securities and Exchange Commission is holding a public seminar on June 10 to help companies and preparers comply with new financial reporting rules.

Archer to Head Asia Office For American Century

Few investors changed their saving or investing habits in 2008, Hewitt Associates reports, citing data from 2.7 million participants. However, equity fund allocations reached record lows.