Investment funds

IndexIQ has launched a mutual fund-of-fund that will mimic hedging strategies, invest in exchange-traded funds and leverage up to 100% of its assets.

Jitters over market turmoil appears to be good business for financial advisers and brokers or individuals placing individual trades, and that, in turn, is good new for companies such as Fidelity Investments, whose brokerage division saw assets rise in the second quarter by 2% to $1.92 trillion.

Treasury Secretary Henry M. Paulson, Jr. urged Congress to finish legislation that would create a regulator for government-sponsored enterprises, Fannie Mae and Freddie Mac, and financially shore up the two mortgage financing giants.

Volatile financial markets forced hedge fund net inflows to their lowest level last quarter since the fourth quarter of 2005. Inflows fell 78.7%, to $12.5 billion, in the second quarter from a year earlier, according to data released Friday by Hedge Fund Research.

Barclays is planning to launch a family of target-date and target-risk exchange-traded funds, drawing from its existing iShares, Dow Jones reports. The percentage of equity holdings will range from 91% to 58%.

President and CEO of Federated Investors, J. Christopher Donahue, recently announced Federated's acquisition of the Prudent Bear and Prudent Global Income Funds from David W. Tice & Associates at an initial price of $43 million with future contingent payments over the next four years of up to $100 million. These funds have an estimated net worth of $1.2 billion and $502 million, respectively. Federated has begun formulating contracts with current managers of the two funds, including Doug Noland and Patrick Ryan Bend. David W. Tice, will follow these funds to Federated, where he will become the chief portfolio strategist.

Ameriprise Financial finalized a $440 million deal to purchase J&W Seligman in the fourth quarter. The addition of Seligman will provide Ameriprise with additional outlets to sell its mutual funds and further improve its hedge fund business. "This transaction reinforces our growth strategy, and in particular our efforts to grow our higher-margin businesses," Chief Executive Officer James Cracchiolo said in a statement.

State Street Corp. believes market conditions will make it difficult for his Boston company to maintain its strong second-quarter growth, but he hopes to weather the second half by focusing on core businesses, cutting expenses and attracting new customers.

The European Union proposed a new set of rules Thursday to make Undertakings for Collective Investment in Transferable Securities (UCITS) even more efficient by eliminating additional regulatory hurdles. Most notably, the rules- which will replace 10 directives with just one and go into effect in 2011-will allow cross-border mergers of funds, making Europe's mutual fund industry more efficient. They will also permit master-feeder structures and eliminate much of the administrative paperwork currently required to market funds to other markets in the European Union of 27 member states.

Callan Joins Credit Suisse As Head of Hedge Funds

The small group of money mangers who possess the ability to outperform the market has virtually disappeared, according to a new study, "False Discoveries in Mutual Fund Performance: Measuring Luck in Estimating Alphas," in which the researchers used a statistical test called the "False Discovery Rate" to measure money managers' capabilities in reading the market.

The growing popularity of fee-based advice is prompting mutual fund companies and other investment platform providers to upgrade the capabilities they offer advisers. Fidelity Investments is rolling out a product that allows registered investment advisors and broker/dealers to gain access to account information through a single entry point. National Planning Holdings, a broker/dealer network affiliated with Jackson National Life Insurance, is overhauling its fee-based platform as well.

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The Depository Trust & Clearing Corp. (DTCC) and the Society for Worldwide Interbank Financial Telecommunication (Swift) are working together to introduce 12 interoperable XML-based message formats to the alternative investment community.

Bad news for the mutual fund industry. The volatile market has stymied the "long haul" game; an increasing number of financial advisers are moving larger portions of their clients' assets into cash positions.

Federal regulators are cracking down on the potential spread of false and misleading rumors that could potentially affect market conditions.

The deadline for entries to Money Management Executive’s Sixth Annual Fund Operations Awards has been extended through Thursday, July 31, so you still have plenty of time to enter.

After a sharp fall in the market, assets under management (AUM) within the French mutual fund industry fell 6% last month.

Prudential Financial recently honored five plan sponsors that redesigned their defined contribution retirement programs, helping members to better attain their retirement goals.

Supporters of pension funds argued before Congress that the plans play a critical role in ensuring retirement security and stimulating the economy.