Money Management Executive Latest News

The G8 code of conduct for the hedge fund industry might be releases “in the nest few months,” German Finance Minister Peer Steinbrueck said, according to Agence France Press. “I think that’s possible,” he said before a meeting with G8 finance ministers of Britain, Canada, France, Italy, Japan, the U.S. and Russia.

The wealthiest man in Asia, Li Ka-Shing, is skittish about China’s markets, according to Bloomberg News. Last week, Li said that China’s stocks “must be a bubble.”“As a Chinese, I’m worried about the stock market in China,” the Hong Kong entrepreneur said.

Many Wall Street experts have predicted that eventually the industry is headed for a financial meltdown, and Richard Bookstaber, who has spent his career designing derivatives, working on the street and running a hedge fund believes the same as well, according to The Wall Street Journal.“The financial markets that we have constructed are now so complex, and the speed of transactions so fast that apparently isolated actions and even minor events can have catastrophic consequences,” Bookstaber wrote in this new book, “A Demon of Our Own Design: Markets, Hedge Funds and the Perils of Financial Innovation.”

A Department of Labor proposal brought to the table last year is still in discussion about whether or not to include lower-yielding insurance products in default investment options for 401(k) plans, according to Dow Jones.Congress directed the Labor Department to make it easy for investors to be automatically enrolled in work-based retirement saving plans. The Pension Protection Act called for the rule to be made effective by February.

Researchers affiliated with the Stanford Graduate School of Business say that while mutual funds take proxy votes for boards of directors seriously, they also want to be in line with other funds they compete with.

Especially now that the news has leaked that hedge fund managers are raking in incredible salaries-some making more than $1 billion a year-Congress is undoubtedly going to be taking a serious look at increasing regulation of hedge funds, according to a number of reports. And that has many hedge fund managers stepping up their political contributions, hiring lobbyists and, in some cases, forming their own political action committees, according to The Economic Times.

WASHINGTON-Investment companies interested in capturing more market share should not worry so much about new products, such as separately managed accounts, exchange-traded funds, or even funds mimicking alternative investments.

WASHINGTON-While fund companies do a good job of focusing on investor needs and expectations, to best help clients prepare for retirement, they need to first understand investor behavior, according to panelists at the Investment Company's Institute's 49th Annual General Membership Meeting here this month.

Registered investment advisory firm Legend Advisory Corp. of Palm Beach Gardens, Fla., believes it has found the secret to successful investing through the use of predictive asset allocation. The firm's executives claim to be the first to apply so-called artificial intelligence to broad global asset classes to allow the firm to predict, four months in advance, which of seven classes will show the strongest performance.

As the $144.5 billion playing field for target-date, or lifecycle, funds continues to get more and more crowded-last year fund companies introduced 302 target-date funds and assets soared 61%-the funds are diversifying their holdings to distinguish themselves. Others are extending their equity exposure with the goal of equipping longer-living retirees with enough money to last throughout their lifetimes.