Money Management Executive Latest News

In the week ended Tuesday, investors withdrew $11.34 billion from money market mutual funds, according to data from iMoneyNet.com.

In a new effort to fund health savings accounts, the Internal Revenue Service recently issued guidance on subsidizing HSAs with money from individual retirement accounts.

To help develop its financial system, China is going to support the launch of additional hedge funds, the South China Morning Post reports. However, Bejing is not going to give them a free hand; the government promises to police the funds and offer governing oversight.

What a difference a year makes. Just about this time last year, investors were clamoring to get into some of the best-performing hedge funds. But with some of the biggest names in the business down 7%, 25% in some cases, year to date, hedge fund managers fear that their investors are gearing up for massive withdrawals come the Sept. 30 deadline for year-end notices, The Wall Street Journal reports.

Japanese investors are increasingly flocking to mutual funds that pay out monthly incomes or dividends, with such funds now accounting for 55.7% of all of the nation’s assets in funds, or $303 billion, Nikkei newswire reports.

Scotiabank has agreed to pay $15 million to acquire a 33% interest in a new mutual fund company that is being formed under the auspices of Bank of Beijing.

Millions of retirees who are turning 70-1/2 are forced to take money out of their tax-deferred IRAs or 401(k)s each year, or pay a stiff penalty to the government.

Goldman Sachs has gained approval to launch mutual funds in India, joining AIG and JPMorgan, Reuters reports.Adam Broder will lead Goldman Sachs Asset Management Company (India) Pvt Ltd, with Prashant Khemka taking the chief investment officer post, according to a statement from Goldman."India is one of the most important countries to our Asian business and we have a long-term strategic commitment to this market," Broder said.According to data from the Association of Mutual Funds in India, the country's 35 member funds industry managed about $125 billion at the end of July.

China's mutual fund sector posted record paper losses for the first half of the year, totaling $158 billion, or 1.08 trillion yuan, yet management fees more than doubled from a year ago, according to Shanghai Securities News.Equity mutual funds posted a combined unrealized loss of $155 billion, while money market funds showed a paper profit of $190 million.The huge drop comes at the end of a two-year bull run that raised share prices six-fold. The mutual fund sector grew nearly seven-fold to more than $439 billion, or 3 trillion yuan.

England's Financial Services Authority has found no evidence of a "concerted attempt by individuals" to alter share prices in Halifax Bank of Scotland (HBOS) during the raid of its shares earlier this year, according to the Mondaq Business Briefing.HBOS' shares fell by 17% in 20 minutes on March 19 after someone spread false rumors that the bank had asked the Bank of England for an emergency loan. The panic came just days after the collapse of Bear Stearns in the U.S.Many officials suspect that hedge funds may have played a large role both incidents, though regulators have not been able to pin the blame on anyone yet.After four months of investigating, the FSA found no evidence of abuse. The agency stated that it would continue to watch for rumor-mongering "at a high level of intensity," and will take action if any evidence is found.The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.