Investment funds

Russell Investments has launched the Russell Frontier Markets Equity Fund, which will invest primarily in emerging markets at the forefront of development. However, the fund also has the license to invest some money in companies stationed in more developed nations but that have a significant proportion of operations in frontier markets.

A new website launched by a financial journalist turned investor advocate slams the mutual fund industry in an 11-part series for charging investors too much through revenue-sharing agreements and 12b-1 fees.

Financial planners’ high-net-worth clients are asking for guidance on investing and spending, as they reassess their holdings following the devastation of 2008, the American Institute of Certified Public Accountants found in a survey.

Financial Engines has launched a Retirement Checkup service for near-retirees age 50 and older that finds the outlook is not as grim as people might think. Only modest increases in savings and a slight delay in retirement can put near-retirees back on track.

One-Third of Funds Still Sitting on Cash: While there have been reports of portfolio managers easing back into stocks, one-third of them are still sitting on record amounts of cash. Until the housing market stabilizes and corporate earnings become strong, they say, they are not convinced the market will deliver consistently strong returns, even though the S&P 500 has risen some 40% since its March 9 low.

While the financial services industry largely embraced most of the Obama administration's financial services overhaul, the idea of removing money funds' $1 net asset value is causing widespread concern in the mutual fund industry.

Meade Joins AlphaMetrix In Client Relations Group

WASHINGTON - With 47% of 401(k) plans now using automatic enrollment, the programs have helped get millions of new workers enrolled to start saving early for retirement, but industry experts say the automatic nature of these plans needs to extend to helping "hands-off" investors when they change jobs.

The Financial Industry Regulatory Authority has fined seven firms a total of $184,500, including $80,000 for Tulsa-based BOSC Inc., for failing to timely or accurately report municipal securities, unfairly pricing bonds, as well as other muni and non-muni rule violations.

At the hearing on target-date funds that the Department of Labor and the Securities and Exchange Commission held in Washington last Thursday, the focus was on better disclosure of holdings.

WASHINGTON - Many investment industry leaders are worried that the proposed 401(k) fee disclosure regulations currently being pushed through Congress will actually increase the fees investors pay and increase their confusion.

UAT Inc. has developed a 401(k) tool for sponsors offering target-date funds that will allow them to scrutinize the holdings and glidepath of the funds.

There is a big disconnect between employers’ perceptions of workers’ understanding of 401(k) fees and the reality, according to a survey by the Transamerica Center for Retirement Studies and Harris Interactive.

After active managers fell in lockstep with their benchmarks and all of the major indexes in 2008, many institutional investors are paring back their investments with active managers in favor of low-cost passive alternatives, The Wall Street Journal reports.

Hedge funds were spared disclosure requirements in the financial overhauls proposed by the Obama administration, and that is definitely due to the industry’s stepped-up lobbying efforts, The Wall Street Journal reports.

Nearly one-quarter, or 23%, of employers have eliminated 401(k) matches, according to a study by CFO Research Services for Charles Schwab. And 35% don’t expect to reverse the elimination, according to a separate survey by Watson Wyatt.

The mutual fund industry is willing to cooperate with the Securities and Exchange Commission and the Financial Industry Regulatory Authority on point-of-sale disclosures to investors, as President Obama has proposed, said Investment Company Institute President Paul Schott Stevens.

The Securities and Exchange Commission will continue to focus on mutual fund oversight, Chairman Mary Schapiro told the New York Financial Writers Association.

As fund companies continue to look to streamline their operations to cut costs, even with the market recently rising, they will most likely merge additional funds, experts say. Some, particularly asset managers held by banks, will look to be sold.

The recession is over, Loomis Sayles’ Dan Fuss told Reuters.