Fund performance

With vastly lowered expectations for retirement, investors appear more amenable to annuities and other income-generating investments whose scaled-down returns they might not have considered before, NAVA found in a survey of 1,500 financial advisers.

Morningstar reported third-quarter earnings of $19.3 million, or 39 cents a share, down 3.7% from $20 million, or 41 cents a share, in the third quarter of 2007.

Morningstar has developed a series of 18 asset allocation indexes for investors and advisers to use as benchmarks for target-date and target-risk funds.

MIAMI - In their frantic efforts to cut costs, many financial services companies have been jettisoning everything that isn't absolutely necessary to stay afloat. This may work in the short term, but senior leadership is starting to realize the continued need for expertise in regulation and compliance and customer service to provide seamless risk management, transparency and communication.

Benefits consulting firms Mercer and Callan Associates are creating a mega investment consulting shop, as the two have announced plans to merge their operations.

MIAMI - With the average equity mutual fund portfolio down more than 38% in 2008, money market mutual funds are quickly becoming one of the only safe havens for risk-averse investors. Money market fund assets recently topped $4 trillion for the first time, making money funds the single largest mutual fund group, according to the Investment Company Institute.

Morningstar has developed a series of 18 asset allocation indexes for investors and advisers to use as benchmarks for target-date and target-risk funds.

Of all of the possible defensive investment choices available, healthcare funds are doing the best, up 2.8% year-to-date, The Wall Street Journal reports. Strong earnings, healthy balance sheets, steady demand and industry consolidation are fortifying the sector, which is even beating telecommunications and consumer staples.

The mutual fund industry has seen significant changes in the traditional third-party distribution model, especially this past year with the collapse of several major wirehouses and a spate of merger and acquisition activity. Alongside these changes, more broker/dealers are taking on the responsibility for recordkeeping mutual fund subaccounts.

The 17 exchange-traded funds Northern Trust Corp. has decided to close will have plenty of company in the exchange-traded fund graveyard before the year is out, experts predict.

BOSTON - For decades, annuities were shunned by money managers for their high cost and lack of liquidity.

BOSTON - Like gambling addicts who just need one more big win before they cash out, millions of Baby Boomers on the verge of retirement took extremely risky bets with their life savings, hoping to score that big jackpot that would make up for all their past mistakes.

Hedge funds were dogged by steep, albeit somewhat smaller, redemptions in January, HedgeFund.net reported. At positive 0.2%, performance also improved somewhat. Meanwhile, the Standard & Poor’s 500 Index dropped 8% in January.

Fidelity Investments continues to do a smart job of marketing in this tough economy with the recommendations in the February edition of its Investor’s Quarterly magazine.

Putnam Investments announced Wednesday it will lay off 260 people, or about 10% of its staff, on Thursday, Dow Jones reports. Most of the people being let go work in distribution or operations, but a few are in sales.

More states are offering conservative options in their 529 plans, some, such as Utah, even now including FDIC-insured savings accounts. Unlike other states’ bank-deposit products, Utah doesn’t require a minimum contribution.

Tiger 21, a networking group for high-net-worth and ultra-high-net-worth investors, reports that these investors reduced hedge fund weightings in their portfolios from 11% in 2007 to 2.8% in 2008.

Fidelity Investments is shaking up its stable of portfolio managers who delivered disappointing returns in 2008, The Wall Street Journal reports. In recent weeks, one manager has left the company, two were demoted to analyst and Fidelity is currently trying to reassign two others.

Mutual fund prospectus provider NewRiver is suing Morningstar for using Internet espionage to steal information from its patent-protected system.

Financial planners are spending a lot of time these days trying to allay their clients' fears. Anyone who works with a financial adviser most likely has money in the stock market and, therefore, has experienced steep losses in the past year.