Mutual funds

Investors showed strong confidence in long-term mutual funds in the second quarter, boosting sales in bond and stock funds by $136 billion, Strategic Insight reported. It was the strongest quarter for sales since the first quarter of 2007, when long-term mutual funds drew nearly $150 billion.

Mutual funds and other institutional money managers are using seven percent less independent research than last year, Greenwich Associates found. Providers of independent research reported that institutional managers are paying 11% of commissions this year, down from 18% in 2008.

Tocqueville Asset Management will acquire Delafield Asset Management, a provider of mutual funds, separately managed accounts and limited partnerships. Terms of the deal were not disclosed.

Tritt Promoted to EVP At DST Systems

It could take as long as five years for asset managers around the world to recoup the $10 trillion they lost in 2008, according to a report by Cerulli, which calls the global meltdown "of near-biblical proportions."

Fidelity Investments aims to double its assets under administration in the next five years, and stepped-up sales through banks will be a major contributor, company executives said.

Investors to Continue Seeking Fixed Income, Other Safe Funds

Nearly every asset class saw robust performance in the second quarter, but the initial elation at the lack of terrible news has worn off as investors brace for a tough second half, according to Lipper's review of the second quarter.

While mergers and acquisitions among asset management companies were down significantly during the first half of 2009, many M&A experts predict this decline will flatten out or reverse by the end of the year, driven by renewed faith in the profitability of asset firms and banks' continued need to raise capital.

Despite the best performing returns for mutual funds in the second quarter in the past six years, investors appear unsure that the market is actually turning around because they don’t see sustained strength in the economy or corporate earnings. In fact, some fear the recession could get worse.

After 56% of fund managers cut their equity exposure in the first five months of the year, in June, 32% said they would increase their equity investments, and 14% said they would hold them steady, according to a survey by the U.K.’s Association of Investment Companies.

iShares has introduced the iShares S&P Emerging Markets Infrastructure Index Fund. The timing is auspicious, as in May, emerging market ETFs attracted $6 billion, 40% of the $14.9 billion that investors placed in ETFs. And the trading volume of iShares emerging markets funds has increased 119% this year.

National Financial has enhanced its brokerage platform, Streetscape, with wealth management tools and Thomson ONE market data. The platform previously offered only account, trading and risk management capabilities.

Total assets of money market mutual funds climbed $4.36 billion to reach $3.668 trillion for the week ending July 8, according to the Investment Company Institute.

Despite the volatile markets of late 2008 and early 2009, investor participation remains fairly stable, according to a review of retirement markets by Dublin-based Research and Markets.

After only two years as president of Fidelity Investments, Rodger Lawson may be looking for a new job soon, The Wall Street Journal reports.

Alternative investment manager Hattaras Funds has entered into a definitive agreement to acquire a controlling interest in Alternative Investment Partners, which offers a line of open-end hedge funds-of-funds called AIP Mutual Funds.

MainStay Investments has adopted the mutual fund family of Epoch Investment Partners, which consists of four funds with $750 million under management, and will become the primary distributor of Epoch’s separately managed accounts.

The Treasury Department tapped nine fund managers, including five mutual fund companies as well as private equity and hedge funds, to help implement its Public-Private Investment Program, established to address legacy real estate assets.

Whereas in previous recessions, companies that suspended 401(k) matches always brought them back, this time around, consultants to defined contribution plans tell the Associated Press, companies are thinking about doing away with the matches forever or reducing them drastically from the typical 50 cents match for the first 6% an employee puts in.