Fund performance

Specialist fund groups and niche advisers will trump larger asset managers and consultants in the institutional marketplace of the future, according to the Financial Times.

Fidelity Investments announced that it plans to lay off about 250 employees as part of a restructuring of some of its units.

Weekly reporting municipal bond mutual funds had a net inflow of $468 million during the period ending Jan. 30, AMG Data Services reported. The results were down slightly from a $513 million inflow the previous week, but represent the fourth week of inflows following eight straight weeks of outflows, according to the Arcata, Calif.-based fund tracker. The category represents about 73% of all muni bond funds because it excludes those that report monthly.

Bonds are beginning to replace equities in pension funds in the United Kingdom, according to The Financial Times.

Hit hard by mortgage-related losses, Wall Street is returning to less risky transactions and focusing on tried-and-true practices like selling stocks and bonds to investors, according to the Wall Street Journal.

DALLAS – As the subprime mortgage crisis unfolded in the latter part of 2007 and took its toll on the municipal market – specifically the bond insurance industry – one sector of tax-exempt mutual funds was quietly outperforming all other categories.

Some financial pros say there is a possibility of a panic in the markets as the ongoing selling blitz hammers many sectors of the market.

Shakeouts at State Street Global Advisors and Bank of America's Columbia Management unit may be just the tip of the iceberg, as repercussions from the credit crunch hit mutual fund staffing levels.

Amid the sobering talk of a possible recession, there were two pieces of news last week that are cause for additional consternation. First, bond guru Bill Gross of Pimco warned that the subprime crisis could linger for another two years, wiping out another $250 billion in loan defaults through the end of next year on top of the $900 billion worth of current questionable collateralized debt obligations and subprime loans.

Amid the sobering talk of a possible recession, there were two pieces of news last week that are cause for additional consternation. First, bond guru Bill Gross of Pimco warned that the subprime crisis could linger for another two years, wiping out another $250 billion in loan defaults through the end of next year on top of the $900 billion worth of current questionable collateralized debt obligations and subprime loans.