Investment funds

Bruce R. Bent, founder and chairman of Reserve Management Corp., defended his company’s debit cards linked to 401(k) plans Thursday by saying that they encourage employees to sign up for the retirement accounts and that they reduce the dollar amount of loans taken out against them.

Hedge funds topped mutual funds in equity trading volume last year and are now second only to asset management shops, according to a new study by Greenwich Associates.

Money market mutual funds added $13.90 billion in assets for the week ending July 15, bringing total net assets to $3.468 trillion, according to iMoneyNet Inc.’s Money Fund Report.

If elected, Democratic presidential candidate Barack Obama plans to increase the capital gains tax between five and 10 percentage points, from its current rate of 15%. The effect of Obama’s possible candidacy, along with his tax program, has already sent concern throughout the financial world, the Newark Star-Ledger reports. Some financial planners are advising investors to take advantage of the current lower rates and to drop some mutual funds and stocks.

The honeymoon between Chinese mutual fund investors and the surging market appears to be over. Investors are attributing large financial loses to what many are characterizing as “unprofessional” management, China Daily reports. Beginning in the third quarter last years, a surge in the Chinese market prompted 23 mutual funds to split their funds, which decreased the price, to try to expand scale quickly.

Hard times, unemployment and medical emergencies are leading more and more workers to take loans from their 401(k) retirement plans.

London-based hedge fund The Children’s Investment Fund Management LLP (TCI) posted its largest monthly loss ever – over $1 billion – for June 2008.

Prudential Financial recently announced an insurance program targeted at the Lesbian, Gay, Bi-Sexual and Transgender (LGBT) community.

U.S. Bancorp has named William Benjamin as CEO of U.S. Bancorp Investments Inc. and U.S. Bancorp Insurance Services LLC.

The Philadelphia wealth management firm Janney Montgomery Scott LLC has hired Francis J. McAleer Jr. as director of wealth management sales and marketing in its wealth management department.

WASHINGTON — Given another day to consider the Treasury Department’s plan to backstop Fannie Mae and Freddie Mac, lawmakers were considerably less enthusiastic and seemed likely to make significant changes. Some Senate Banking Committee members were downright skeptical, arguing that the plan’s costs must be pinpointed.

State Street Corp.'s top executive said 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.

Erin Callan, who was recently ousted from her position as Lehman Brothers’ chief financial officer, will begin a new role as head of Credit Suisse’s global hedge fund business on Sept. 2.

President and CEO of Federated Investors, Inc., J. Christopher Donahue, recently announced Federated’s acquisition of assets associated with the Prudent Bear and Prudent Global Income Funds. Federated is set to purchase these assets 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.

AARP has appointed Richard Hisey as the new president of AARP Financial Inc. and AARP Funds. Formerly, Hisey served as the CIO of AARP Financial and treasurer of AARP Funds.

Turning the collection of market data into a competitive business is a fatally flawed idea, said the Securities Industry and Financial Markets Association last week in response to a Securities and Exchange Commission proposal that seeks to do so.

The biggest mutual funds in the nation have lost more than an estimated $4 billion in the past week alone on their investments in Fannie Mae and Freddie Mac and related mortgage stocks, Reuters reports, based on analysts’ assessment of fund companies’ latest reports. In the past week, Fannie and Freddie declined 45.4% and 46.5%, respectively.

The small group of money mangers who possessed the ability to outperform the market has virtually disappeared, according to a new study.

Firms that focus on value stocks have been slammed recently, as financial stocks like Freddie Mac and Fannie Mae continue to struggle, reports The Wall Street Journal.

Financial experts seem to be in agreement that we are now in a bear market, but will that bad news shake investors’ traditional buy-and-hold strategy with 401(k)s – particularly older investors?