Special Program Root Tag

With the rate of breakaway brokers continuing to rise, Fidelity Investments enhanced its Transition Solutions program so that brokers considering such a move can analyze how three independent business models would impact their business: becoming an independent RIA, partnering with a third-party roll-up or acquiring a firm, or joining an independent B/D.

Among the nominees for Morningstar’s Fund Manager of the Decade, a new award program that recognizes performance, perseverance and shareholder dedication, are managers from Fidelity, PIMCO, Oakmark and American Funds.

Continued contributions to 401(k)s and a 34% rally in the S&P 500 in the second and third quarters have propped up average balances quite strongly, Fidelity found in an analysis of the 11 million individual 401(k) accounts it serves.

The Department of Defense is now making Morningstar investment research available to all 6.5 million military personnel and their families. Previously, only members of the U.S. Navy had this access, beginning in 2002.

Seventy-five percent of fund managers do not expect the Federal Reserve to increase the Fed funds rate until the second half of 2010 or later, according to the November BoA Merrill Lynch survey of 218 fund managers with $534 billion in assets under management. Twenty percent think this might not happen until 2011.

Robert Arnott, chairman of Research Affiliates, has won a U.S. patent for his fundamental indexing methodology, based on the size of a company rather than its market capitalization.

Harness Investment Management Group, founded by two former PIMCO executives Andre Mallegol and Don Yocham, have launched the Harness Absolute Return Fund. Using a top-down global macro context combined with nimble attention to secular trends and near-term opportunities, the fund aims to return absolute returns above inflation, as measured by the Consumer-Price Index.

Only 6% of wealthy investors with $500,000 or more in investable assets characterize themselves as enthusiastic about investing, while a full 49% are either reluctant or tentative about returning to the market, PNC Wealth Management found in its sixth annual Wealth and Values Investors’ Outlook survey of 1,046 investors.

Although investors have continued to overwhelmingly favor bond funds over equity funds—taxable bond funds have netted $200 billion in inflows so far this year compared with a scant $4.3 billion to equity funds—their risk tolerance has remarkably changed.

Asset managers evidently are optimistic about renewed growth in assets under management, with 47% saying they plan to expand their full-time product management staff over the next 12 months, FUSE Research Network found in surveys conducted over the past two months. However, since 80% said they laid off staff over the past year, employment levels are not likely to return to pre-crisis levels anytime soon.

ING Investment Management executives are more optimistic about the prospects of the U.S. economy and equities than many other financial forecasters.

Phoenix has introduced two fixed annuities, the Phoenix Index Select and Phoenix Index Select Bonus annuities. Both are single-premium annuities designed to be simpler than other products on the market, carrying a 10-year surrender charge, guaranteed principal protection and three optional guaranteed minimum withdrawal benefit riders investors can use to meet their individual income requirements. The bonus annuity offers an upfront 5% premium.

In an unusual move for a large corporation regarding lawsuits claiming excessive 401(k) fees, construction equipment manufacturer Caterpillar decided to repay $16.5 million to 80,000 former and current plan participants. The company also agreed to replace retail mutual funds in the plan with lower-cost institutional funds and hire an independent consultant to review the plan for the next two years.

IndexIQ has introduced the first merger arbitrage exchange-traded fund, the IQ ARB Merger Arbitrage ETF. The fund will invest in global companies that an acquirer has announced it will acquire through a “merger arbitrage.” Thus, the fund will try to take advantage of any price differentials between the current price of a stock and the expected value when the deal is completed.

The PowerShares Build America Bond exchange-traded fund, the only ETF tied to the Build America Bonds program, began trading Tuesday on NYSE Arca. Also Tuesday, Eaton Vance announced the launch of the Eaton Vance Build America Bond Fund, the first actively managed mutual fund to invest in municipal obligations issued under the American Recovery & Reinvestment Act of 2009.

Sensing that the recession is nearing an end but that the recovery will be a long road ahead, Americans are planning drastic changes to the way they approach money, saving and investing, with 18% planning to save more, Country Financial found in a survey of 3,000 people.

ING’s U.S. retirement services division has formed a new business development team dedicated to serving college and university 403(b) funds.

The Securities and Exchange Commission has charged four individuals and two companies with operating a $30 million Ponzi scheme that asked elderly investors to cash out of their 401(k)s and IRAs or use home equity lines of credit to invest in so-called “green” securities.

PIMCO has launched an actively managed exchange-traded fund, the Enhanced Short Maturity Strategy Fund, to help cash investors earn better yields than the near zero percent money market funds now offer. Jerome Schneider, deputy head of PIMCO’s money market desk, will manage the fund.

Institutional investors and financial advisers are still enthusiastic about alternative investments, despite their weak performance in 2008, not to mention their correlation to stocks and liquidity issues, Morningstar found in a survey.