Money Management Executive Latest News

With the average China-focused fund rising 36% over the past 12 months, it is no wonder that assets continue to flow to the 16 funds based in North America that focus exclusively on China, currently with more than $14 billion in assets, Morningstar Analyst Samuel Rocco notes.

Warren Buffet intends for the chief investment officers who succeeds him at Berkshire Hathaway to continue his firm’s success. He’s going to pay them a low salary but give them generous incentives to beat the S&P 500, probably on a five-year basis, Reuters reports.

Some industry watchers believe the question about hedge fund regulation shouldn’t be if but when, Mondaq reports.

Speaking at the Investment Company Institute’s General Membership Meeting in Washington, ICI Chairman Martin Flanagan said the industry is committed to improving disclosure in 401(k) plans but that the disclosure should apply to all investments in the plans, not just mutual funds.

Speaking at his company’s annual shareholder meeting, Berkshire Hathaway Chairman Warren Buffet said he far prefers index funds to exchange-traded funds because the latter encourages investors to trade frequently, Dow Jones reports.

Mark Coffelt, manager of the Empiric Core Equity Fund, predicts stocks of homebuilding companies will fall steeply further—and warns those who believe these stocks are currently cheaply priced to remain on the sidelines, Dow Jones reports.

Mark Coffelt, manager of the Empiric Core Equity Fund, predicts stocks of homebuilding companies will fall steeply further—and warns those who believe these stocks are currently cheaply priced to remain on the sidelines, Dow Jones reports.

Russell Investment Group is expanding the use of limited long/short strategies in its Quantitative Equity and Equity Q mutual funds. The firm said the change will provide upside return potential without significantly increasing risk.

The Mutual Fund Directors Forum, a group of independent directors, issued guidelines Tuesday on what boards of directors should consider when reviewing 12b-1 fees. The group agreed with the Securities and Exchange Commission, which recently vowed to review the fees, that the industry has changed considerably since the time when the fees were first instituted.

NASD announced Tuesday that it has fined two Fidelity Investments broker/dealers—Fidelity Investments Institutional Services Co. and Fidelity Distributors Corp.—$400,000 for distributing misleading sales performance information about investment plans sold primarily to military personnel. The money will go to the NASD investor education program for the benefit of the military community.