Mutual funds

To realize better synergies between people in its personal and workplace investing divisions, Fidelity is reshuffling about 1,000 staff members in four locations.

Get ready for subdued economic growth in the years ahead, as fear and frugality will dominate the mindset of U.S. consumers for at least a generation, Pimco’s co-CIO Bill Gross says in his July investment outlook, posted on the firm’s website. He projects annual GDP growth rates in the U.S. of 2% a year, down from the historical 3.5%.“Greed will come again. But for now, the trend is the other say, and it promises to persist for a generation at a minimum,” Gross said.While American consumers have been known to have short memories, the fact is, $15 trillion of wealth has been eliminated since early 2007 and the unemployment rate is near 10%, Gross pointed out.He writes: “Our economy’s lights, if not switched off in a rehash of the 1930s Depression, have certainly been dimmed in a 21st century version likely to be labeled the Great Recession. U.S. and many global consumers gorged themselves on Big Macs of all varieties: burgers to be sure, but also McHouses, McHummers, and McFlatscreens, all financed with excessive amounts of McCredit. What a colossal McStake.”

Standard & Poor's, economy

Registered investment advisors reported a rise in new clients, according to a survey released Monday by TD Ameritrade Institutional, a unit of TD Ameritrade Holding Corp.

Adviser confidence in the economy and the stock market grew in June, according to Rydex SGI AdvisorBenchmarking.

After postponing his retirement following the sale of Putnam Investments to Power Financial two years ago, Charles "Ed" Haldeman has stepped down from his positions as chairman of Putnam Investment Management, president of the Putnam Funds and member of Putnam Funds' board of trustees, Putnam said Tuesday.

T. Rowe Price has launched the T. Rowe U.S. Large-Cap Core Fund, which will invest in a portfolio of 50 to 75 growth and value companies alike. More than 30 analysts will contribute their best investment ideas, based on a bottom-up approach that focuses on company fundamentals, earnings potential and valuation.

Calling revenue-sharing agreements between mutual funds and 401(k) administrators “controversial,” today’s “Fund Track” column in The Wall Street Journal urges investors to pay attention to these fees, since some funds levy them and others do not. Actively managed funds in large plans, rather than index funds or small plans, tend to charge higher revenue-sharing fees, the column warns.

Noting that one-quarter of employers have either already cut or plan to cut their 401(k) match, financial advisers are reminding investors of the importance of saving for retirement.

Replacing a team portfolio structure with a single top manager and doing away with quantitative strategies has created a new era of accountability at Putnam Investments that appears to be having a striking effect on performance.

While Fidelity Investments agrees with most of the Securities and Exchange Commission’s proposed changes to money market funds, it doesn’t want to see “radical changes” to the asset class, a spokesman told The Wall Street Journal.

Assets under management are down for nearly all firms due to market depreciation. And making matters worse, most funds have also been hit with steep outflows. According to Strategic Insight, only about 22% of equity mutual funds had inflows for at least four of the last five months of 2008. But a few firms have actually seen positive flows over the past year.

DST Systems Inc. this year celebrates 40 years of providing market-leading solutions to the mutual fund industry. In recognition of this milestone, Money Management Executive asked DST's senior leadership to identify ways in which investment management companies can maximize the value they deliver to their stakeholders by leveraging the strengths and resources of their service provider.

Crandall to Become CEO Of Massachusetts Mutual

More Regulation to Result in Higher Costs

Regulatory leaders are questioning whether changes need to be made to target-date funds after several 2010 funds reported huge losses last year, but mutual fund industry leaders say these concerns are overblown.

Banking companies will be hard-pressed to repeat a banner 2008 in terms of sales of fixed annuities. Fixed annuities were popular late last year and early this year, but with interest rates falling and the markets in a fingers-crossed recovery, executives and analysts expect demand for these products to start tapering off.

Regulators are searching for ways to make money market funds stronger without inadvertently crippling the $3.7 trillion industry, but reaching that delicate balance will require compromises from both sides.

Financial advisers were able to save their millionaire clients big money last year, helping to fortify the need and demand for good advice among the wealthy, Fidelity Investments found.

John Hancock Funds has developed a tool that allows financial advisers to create detailed analyses of their clients’ portfolios and prepare high-quality, customized reports.