Investments

The Charles Schwab Corporation announced on Tuesday that fourth quarter revenues soared 14% year-over-year and December net new assets grew to more than $11 billion, the highest level in 23 months.

International fiscal stimuli and expectations of rising inflation tilt the balance in equities’ favor.

The issuance of U.S. Treasuries is set to fall by 16% this year, and tax receipts should jump. Demand for bonds will also increase, both among pensions and individuals and overseas buyers, and quality small cap stocks should rise above the pack. Keefe, Bruyette and Woods suggests shorting stocks that will benefit from rising short-term interest rates.

Client trading activity increased 17% from the third quarter due to stronger market conditions and an upbeat economic outlook.

A new study from Aon Hewitt claims that pension funds for companies located in the U.S., the U.K., Canada and Europe clocked out of 2010 with a 87% funded status, marking a 1% increase from previous numbers.

Mutual funds have emerged as the dominant source of selling pressure for state and local government paper in the new year as investors keep pulling out their money, forcing fund complexes to sell bonds into an already jittery market.

According to a company memo, “a big driver of [Morgan Stanley's] future success will be the continued build-out of our sales and trading platform and, in particular, our strategy and footprint in fixed income."

For equity funds, 2010 was a solid year, with the average fund rising 16.57% and 98% of all equity funds in positive territory, according to Lipper. Sector equity funds rose 19.02%, U.S. domestic equity funds rose 17.14%, world equity funds were up 13.67% and mixed asset funds delivered 12.02%.

A majority of institutional investor, 55%, expect global growth over the next six months, up considerably from the 33% who felt this way in the third quarter, a survey of 97 institutional managers by Northern Trust found.

Matt Fink, former president of the Investment Company Institute, covers this and other frequently asked questions about the industry in the new edition of his book, “The Rise of Mutual Funds: An Insider’s View.”

Matt Fink was with the Investment Company Institute from 1971 to 2004 and served as its president from 1991 to 2004. He is the author of a history of mutual funds, “The Rise of Mutual Funds: An Insider's View,” (Oxford University Press, 2008). A new edition, covering the 2008 financial crisis and its impact on mutual funds, has just been published.

ETF Securities on Friday began trading its new exchange-traded product, the ETFS Physical Asian Gold Shares, on NYSE Arca.

The company indicated in a Thursday SEC filing it is postponing its plans to offer short-, intermediate- and long-term municipal bond index funds.

Assets total $2.796 trillion for the week ended Jan. 12.

Prudential Financial, Pimco, Nuveen Investments eye robust markets

Vanguard indicated in a Thursday SEC filing it is postponing its plans to offer short-, intermediate- and long-term municipal bond index funds. Vanguard first submitted its registration statements in June.

Liberty Street Advisors has launched the Center Coast MLP Focus Fund, a mutual fund that will invest in midstream energy infrastructure master limited partnerships. It will be sub-advised by Center Coast Capital Advisors of Houston, whose founder Dan Tutcher is well known in the MLP sector.

In an effort to provide investors with greater diversification, Prudential Investments has launched the Prudential Real Assets Fund, which will invest in real estate, metals, fuel and other commodities. In addition, the fund aims to protect investors against inflation and rising interest rates.

Acadian Asset Management has launched the Acadian Emerging Markets Debt Fund, joining the $946 million Acadian Emerging Markets Equity Portfolio, which it has been managing since 1993.

According to a Vanguard study, financial planners still have a big role to play to help investors understand allocations, risks and the big picture.