Investment funds

The overwhelming majority of investors continued to fund their 401(k)s in the first quarter, Fidelity reports, citing an analysis of the 11.3 million participants it serves through 17,500 defined contribution plans.

Bank of America is selling a 5.8% stake worth about $7 billion in China Construction Bank to help raise a $34 billion capital gap found by the stress test, the Charlotte Observer reports. This amounts to roughly one-third of its current 17% stake in the Chinese lender.

The Securities and Exchange Commission and the Department of Labor will hold a joint hearing on June 18 at DOL headquarters examining target-date funds.

With more millionaires loading up on cash and fixed income, financial advisers are revisiting their fee structure, Investment News reports.

WisdomTree and Dreyfus have joined together to launch the WisdomTree Dreyfus Emerging Currency Fund, an exchange-traded fund listed on the NYSE Arca.

For the first time, the majority, 55%, of Fortune 100 companies now offer new salaried employees only a defined contribution plan, according to Watson Wyatt. This is up from 46% at the end of 2007.

An article in The Dallas Morning News warns investors against the wide discrepancies in the glide paths, or asset allocations, of target-date funds. As a result of too much risk, it says, some target-date funds are “missing the bull’s-eye.”

Education and longevity solutions are two of the biggest opportunities available to 401(k) providers, according to a study by String Financial.

WASHINGTON--Across the board, executives from leading mutual fund companies reported during the Investment Company Institute's General Membership Meeting that investors have held steady during market turbulence, with only 1% to 3% redeeming equity fund shares in the face of huge market drops.

UMB Fund Services, a subsidiary of UMB Financial Co., the listed, Missouri-based multi-bank holding company, added to its holdings JD Clark & Co., an alternative investment firm, in an all-cash deal.

At its annual meeting before registered investment advisers and brokers, Fidelity admitted it fell short of its own expectations in working with them during this turbulent time, Investment News reports. Yet, executives vowed that they will increase contact, and, in turn, asked advisers to increase their contact with investors, to restore their confidence in the markets.

Turning 401(k) Investors Into Educated Consumers

Financial Planners Rethink Monte Carlo Simulation Tools

SEC May Propose New Money Fund Rules in June, Chairman Says

Flinn Becomes Director of Client Service at MFC

New Internal Revenue Service accounting rules aim to reconfigure the way investors report gains and losses when they sell stocks and mutual funds by putting the burden on those who handle the transactions.

For years, Americans enjoyed the "wealth effect," the sense that their assets were gaining value rapidly enough that they didn't have to save much. This perception of ever-expanding prosperity gave them freedom to spend lavishly and enjoy life. The effect was a function of feeling wealthy as well as being wealthy.

WASHINGTON - Mutual funds remain a sound investment choice, and will, once again, grow through the perseverance of American ingenuity. Investment firms must stress this to investors to restore their faith.

Fidelity Investments, Bank of America and Goldman Sachs manage wealth for the largest percentage of U.S. millionaires, according to a survey by Fidelity.

Investors are regaining their appetite for risk, particularly emerging markets funds, The Wall Street Journal reports.