Money Management Executive Latest News

With redemptions reaching exceptionally high levels, mutual funds are hoarding cash like never before, BusinessWeek reports. Funds lost $68 billion in October and appear to be on track to top those losses this month. By comparison, in October 2007, mutual funds lost $11.3 billion and $9.94 billion the following month.

Reserve Funds will distribute $14 billion to investors in the Primary Fund on or around Dec. 5.

Even as equity values continue to fall and economic woes mount, certain financial services firms will emerge as leaders, and the ones that do will be those that focus on long-term success, according to a report released Monday by management consulting firm Casey, Quirk & Associates and asset management compensation consulting firm McLagan, titled “Crisis in Asset Management: Industry Profitability Under Siege.”

Massachusetts lost another 7,000 in October, the worst month for the state’s labor market since March 2005, the Patriot Ledger reports.

The Securities and Exchange Commission’s proposed two- to four-page mutual fund prospectus profiles will only provide investors with the “quick-and-dirty lowdown,” charges Dow Jones columnist Chuck Jaffe. “It seems a bit inappropriate to have investment decisions based on information that can accurately be called ‘quick and dirty,’ rather than ‘thorough and complete,’” Jaffe said.

Monagle to Assist Reserve As Liquidation Adviser

EU to Propose Hedge Fund, Private Equity Regs

Stressing that the reorganization is not motivated by the financial crisis but a strong desire to improve accountability and, with that, performance, Putnam Investments Chief Executive Officer Robert Reynolds announced the firm is doing away with team-managed equity mutual funds. Instead, those funds will be run by single portfolio managers.

Talk about market capitulation.

If investors have learned one thing from the financial crisis, it is that, eventually, level heads and long-term investing will prevail. In that spirit, sister publication Investment Dealers' Digest recently spoke with a man known for having one of the most level heads in the industry, John Bogle, founder of Vanguard Investments, about what he sees for mutual funds and other investment firms in the years ahead.