Special Program Root Tag

While mutual fund companies and investment banks have had meteorologists on their trading desks for almost 30 years, the practice apparently is increasing-affecting portfolio managers' trading decisions not only of commodities, power, utilities, agriculture and energy securities, but also consumer goods, transportation, construction, infrastructure, shipping and leisure. In addition, in the past 10 years, the insight of meteorologists on the trading floor has led to the development of weather risk management tools-futures, derivatives and insurance.

GAO Suggests Incentives To Keep Workers Working

McColgan Leaving Fidelity To Pursue Opportunities'

While sell-side research struggles to keep up its allure with the buy-side, many mutual fund companies are turning to alternative research, as it can offer unique and innovative ideas.

Citigroup's acquisition of BISYS for $1.47 billion last May, with a subsequent spin off of two units to private equity firm J.C. Flowers appeared to be a done deal. But one last under-the-radar acquisition took place two weeks ago.

The market’s recent turmoil is prompting some fund managers, particularly bond fund managers, to adjust their holdings, The Wall Street Journal reports.

A large hedge fund or investment bank trading portfolio is liquidating and causing chaos in some areas of the hedge fund business, according to MarketWatch.

Roel C. Campos, a commissioner with the Securities and Exchange Commission since 2002 and the first Hispanic to work in such a role, will be leaving the SEC in a month’s time to return to the private sector.

While the departure of Ellyn McColgan from Fidelity as the company’s president of distribution and operations this week took investors off guard, analysts who closely follow the company note that it’s merely the latest in a series of departures by high-profile executives at the company, the International Herald Tribune reports.

Presidential hopeful Sen. Hillary Clinton (D-N.Y.) and Oregon Republican Sen. Gordon H. Smith introduced this week the New Savers Bill, a multi-faceted proposal including provisions to create IRAs for children and encourage 539 college savings plans.

General American Life Insurance, a division of MetLife, has settled with the Securities and Exchange Commission for $3.3 million, on charges it failed to prevent late trading of mutual funds in one of its variable insurance products.

State Street Corp. has acquired Palmeri Fund Administrators, strengthening its private equity fund administration offerings. The deal comes on the heels of State Street’s acquisition of Investors Financial Services in 2002.

401(k) Advisors, a consultant to 401(k) plans, has expanded its Scorecard System to accommodate asset allocation funds, which include target-date funds.

Mergers and acquisitions among asset management firms will remain high in the second half of the year, according to Putnam Lovell. While the market turbulence won’t deter most buyers, however, it, along with a curtailed leveraged finance industry, could curtail some private equity firms.

Due to China’s entry into the World Trade Organization six years ago, its financial system will continue to undergo changes. And that will boost its mutual fund industry, as more investors participate in the market and the government seeks to cultivate institutional investors, according to Research and Markets.

David Tice, manager of the $897 million Prudent Bear Fund and also known as “Dr. Death,” believes the U.S. economy is on the verge of the most severe recession since World War II, The Australian reports.

The NestEgg Dow Jones Target Date Funds sold by American Independence have added international stocks and fixed income to each of the five funds’ portfolios, reduced the fees by as much as 53% and renamed the funds the NestEgg Dow Jones Target Date Funds. With target dates of 2010, 2015, 2020, 2030 and 2040, the funds were previously called the NestEgg Dow Jones U.S. Target Date Funds.

With the market so volatile, many investors have embraced long-short mutual funds, The Wall Street Journal reports.

Following Congress’s decision last year to authorize the Department of the Treasury to create regulations for 529 college savings plans, an association representing the plans, as well as groups representing brokers and mutual funds, have written to the Treasury, outlining potential 529 abuses, Defined Contribution and Savings Alert reports.

Fidelity Investments not only ranks second in the 403(b) market, but it trails TIAA-CREF significantly, Pensions & Investments reports.