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Massachusetts Secretary of the Commonwealth William Francis Galvin filed an administrative proceeding Tuesday against Reserve Funds and its founder Bruce Bent, accusing them of lying to investors about the dire straights of their investments in Lehman Brothers.

Long-only commodities mutual funds, exchange-traded funds and exchange-traded notes are, once again, attracting billions of assets, after losing money throughout 2008, The Wall Street Journal reports.

The average U.S. stock fund plummeted 37.9% in 2008, slightly worse than the Dow Jones Industrial Average's 33.8% loss. It was the Dow's worst year since 1931, when it declined by more than 50%. Meanwhile, the Standard & Poor's 500 Index fell 37%, its worst performance since 1937.

Fidelity Hires Cieszko as Institutional Services Chief

Best-Performing Managers Played it Safe in 2008

Advisers Plan to Expand Client Base, Assets in 2009

Variable annuity sales sank in 2008 as the stock market's swoon scared investors off.

NEW YORK - Millions of aging Baby Boomers heeded the reassuring words of their financial advisers and remained heavily invested in equities throughout 2008, only to watch in shocked disbelief as 40% of their life savings disappeared.

Risk management will take on an increasingly important role this year as financial firms struggle to survive the fallout from last year's market mess.

Hedge fund managers have been beating mutual fund managers at scooping up initial public offerings in recent years, but given the weak performance of and loss of assets at hedge funds, their competitive advantage may be waning, The Wall Street Journal reports.

Large asset management mergers and acquisitions deals will likely occur this year, according to a report from Jefferies Putnam Lovell, as firms take advantage of distressed sales and divestitures.

The Federal Reserve has allowed more companies to take part in its program to add more liquidity to money market mutual funds.

Total assets of money market mutual funds increased by $54.67 billion to reach $3.895 trillion for the week ending January 7, according to the Investment Company Institute.

Assets held by American millionaires have declined 30% during the economic crisis, according to a November survey by Spectrem Group.

Fidelity Investments Canada has unveiled nine Fidelity Private Investment Pools aimed at the high-net-worth market. The offerings cover a wide array of asset classes and are said to be institutional-grade.

Hedge funds lost an average of 18.4% in 2008, according to early projections by the Hennessee Group. However, given that the Standard & Poor’s 500 Index declined 37% in 2008, hedge funds “significantly outperformed equity benchmarks on a relative basis,” said Hennessee Managing Principal Lee Hennessee.

The Investment Company Institute, along with the UK's Investment Management Association and Australia's Investment and Financial Services Association, has released a combined statement in support of prudent regulatory oversight of short selling.

After a surprisingly bad year, international funds—which sank an average of 45% in 2008—could be ripe for big gains later this year, some managers say.

Managers of funds at Royce, Artisan and First Pacific Advisors took the three highest honors in Morningstar’s annual Fund Manager of the Year Award, for domestic stock, international stock and fixed income, respectively.

T. Rowe Price has launched the Strategic Income Fund, a new offering that will invest in 12 asset classes to achieve high income and some asset growth, with 80% or more of its assets invested in income-producing securities.