Money Management Executive Latest News

The Eighth U.S. Circuit Court of Appeals has just ruled in favor of investors in a case against Ameriprise Financial over the fees of 11 of its RiverSource mutual funds. Coming on the heels of a similar case against Harris Associates that the Supreme Court will hear this fall, it could signal a new era in favor of investors.

Fidelity’s net profits fell only 4% last year, and they may be weak again this year, despite cost-cutting measures and laying off 3,000 workers, Fidelity President Rodger Lawson warned employees in a recent memo. As a result, the company may scale back on year-end bonuses and merit pay for those in the middle and lower earnings brackets.

Charles Schwab reported that its first quarter profits declined 29% to $218 million, or 19 cents per share, compared to a year earlier, when it earned $305 million, or 26 cents per share.

FINRA has fined Fifth Third Securities $1.75 million for a series of violations related to variable annuity sales and exchanges.

Following a three-month investigation, the state of Oregon is seeking $36.2 million in damages from OppenheimerFunds due to steep losses in one of its funds included in the state’s 529 college savings plan; the Oppenheimer Core Bond Fund fell 36% in value last year, and is down another 10% year-to-date.

Although assets are still way down from their peaks, there were two encouraging signs last month that the tide may be turning for hedge funds.

Credit Suisse has launched the Global Macro Replication Index, which aims to capture the risk and return characteristics of the Credit Suisse/Tremont Global Macro Hedge Fund Index.

FINRA ruled in favor of an NFL retiree, Jerome Woods of the Kansas City Chiefs, who lost $1.7 million in Morgan Keegan mutual funds, but awarded him only $950,000. Woods is among dozens of investors who have filed lawsuits against the firm after losing 90% of their investments.

With assets continuing to fall, mutual fund companies are looking for new ways to cut costs, and outsourcing the promotional and public relations aspects of marketing is one of them, and the movement could become permanent, according to a report from Optima Group, “Surviving the Crisis in Asset Management.”

Bill Gross, managed of the PIMCO Total Return Fund, has expanded his U.S. government debt exposure from 15% in February to 28% in March.