Fund performance

U.S. investment bank Lehman Brothers is considering shedding part or all of its money management division in order to raise capital and ease real estate losses, according to the International Herald Tribune.

Many alternative asset managers, who brag about their ability to make money regardless of market conditions, posted their worst figures in years last month after worldwide sentiment suddenly changed on energy prices, financial stock and the U.S. dollar.

Assets in mutual funds worldwide declined 5.1% to $24.81 trillion by the end of the first quarter, the Investment Company Institute announced Tuesday. It is the first decline in nearly four years, which the ICI attributed to the market’s decline, depreciation of the dollar and one country, Hong Kong, failing to report its figures.

New York Attorney General Andrew Cuomo is reportedly investigating Fidelity Investments and Charles Schwab over auction-rate securities, although it is unclear at this point over whether the probe is into sales or investment strategies.

Mutual fund investors appear to be biting the bullet amid market turbulence and talk of the recession, the Associated Press reports. But most of their money is pouting into money market and bond funds, $75 billion and $4.5 billion, respectively, along with renewed interest in dividend-paying instruments.

In addition to helping employees save for retirement, a solid 401(k) plan can help companies to attract, motivate and retain good workers, enhance a company's corporate reputation and contribute to the long-term financial success of the business, according to a new study by Charles Schwab.

Sharp money managers love market volatility.

As more investors begin to believe that the global economy is in a recession, fears of inflation are dropping, and money managers are turning their concerns from credit risk to leverage.

The Security and Exchange Commission’s 30-day rule temporarily banning short selling of Freddie Mac and Fannie Mae stock is set to expire Tuesday night.

It took more than a decade of negotiating to get approval from the Securities and Exchange Commission, but actively managed exchange-traded funds finally came to market this year.

Money market mutual fund assets rose by $14.14 billion to $3.575 trillion for the week ending Aug. 13, according to the Investment Company Institute.

Despite the credit crisis — or perhaps because of it — there has never been a better time to invest in fixed-income products, particularly triple-A commercial mortgage-backed securities, according to portfolio managers at Putnam Investments.

Analyzing the savings patterns of 11.5 million participants in the 16,723 defined contribution plans it serves, Fidelity found that Americans are holding steady when it comes to balancing their concerns over the economy and the declining market, and saving for their retirement.

Federated, Eaton Vance

Having gone to great, and expensive, lengths to bail investors out of auction-rate securities, which have been severely hit by the credit crunch, some closed-end funds regret this decision in light of UBS’, Citigroup’s and Merrill Lynch’s plan to buy back $40 billion in auction-rate preferreds, The Wall Street Journal reports.

Fidelity Investments is hoping to make it far easier for independent registered investment advisers to open new accounts, by equipping them with the ability to capture e-signatures on all necessary documents from new clients. DocuSign is providing the supporting software, which is encrypted so that only the intended parties can view documents and “e-sign” them by clicking on signature lines.

Curian Capital LLC of Denver, the separately managed account arm of Jackson National Life Insurance Co., is developing a managed account for investors who need their portfolio to produce regular income as they enter retirement.

With consumers nervous about their financial health, banks such as Wells Fargo and Citizens Bank see this need as an opportunity. Wells Fargo is making licensed brokers available to customers to discuss risk, assets and investment strategies. The bank's goal is to reach customers who aren't high-net-worth, but still have a mix of products across a number of institutions: deposits, loans, retirement plans, mutual funds and education financing.

As the stock market continues to stumble along, high-net-worth investors are becoming increasingly pessimistic about the economy and dissatisfied with the performance of their financial services providers.

Given the turbulence in financial markets, now may seem an inopportune time for financial advisers to make drastic changes to the way they interact with investors.