Mutual funds

Total assets of money market mutual funds rose by $2.33 billion to $3.79 trillion for the week ending May 13, according to the Investment Company Institute.

As the financial crisis continues, employers are beginning to take action with regards to their pension or 401(k) plans, according to the International Foundation of Employee Benefit Plans.

Investors have begun to embrace developed markets, Reuters reports.

Following the ponzi scheme of Bernard Madoff, the Securities and Exchange Commission is considering tougher investment advisor rules. One measure the SEC approved Thursday, by a 5-0 vote, is surprise exams, to ensure that investors’ money is intact at a broker/dealer, custodian or bank. The plan is open for public comment.“We are taking this action in response to major investment scams, such as Madoff and many other potential Ponzi schemes,” said SEC Chairman Mary Schapiro. “A surprise exam would provide another set of eyes on clients’ assets and provide additional protection against theft or misuse.”For those advisors, like Madoff, who hold custody of clients’ assets directly, the SEC would require a written review by a certified public accountant.

Long-term mutual funds netted $13.51 billion in the week ended May 6, according to the Investment Company Institute, marking the eighth straight week that the funds have taken in money, for a total of $78 billion.Stock funds took in $8.17 billion, up markedly from $465 billion in the previous week, prompting some traders to believe the end of the bear market might be near.U.S. equity funds took in $9.85 billion, while international equity funds lost $1.68 billion.Bond funds netted $3.83 billion, down from the $5.61 billion they took in for the week ended April 29.Separately, money market funds lost $2.17 billion in the week ended May 6, following four straight weeks of outflows.

Advisers are showing signs of optimism after months of market doldrums, according to a new survey by broker/dealer Securities America of 180 of its top producers.

Few investors changed their saving or investing habits in 2008, Hewitt Associates reports, citing data from 2.7 million participants. However, equity fund allocations reached record lows.

The overwhelming majority of investors continued to fund their 401(k)s in the first quarter, Fidelity reports, citing an analysis of the 11.3 million participants it serves through 17,500 defined contribution plans.

Bank of America is selling a 5.8% stake worth about $7 billion in China Construction Bank to help raise a $34 billion capital gap found by the stress test, the Charlotte Observer reports. This amounts to roughly one-third of its current 17% stake in the Chinese lender.

The Securities and Exchange Commission and the Department of Labor will hold a joint hearing on June 18 at DOL headquarters examining target-date funds.

With more millionaires loading up on cash and fixed income, financial advisers are revisiting their fee structure, Investment News reports.

WisdomTree and Dreyfus have joined together to launch the WisdomTree Dreyfus Emerging Currency Fund, an exchange-traded fund listed on the NYSE Arca.

For the first time, the majority, 55%, of Fortune 100 companies now offer new salaried employees only a defined contribution plan, according to Watson Wyatt. This is up from 46% at the end of 2007.

An article in The Dallas Morning News warns investors against the wide discrepancies in the glide paths, or asset allocations, of target-date funds. As a result of too much risk, it says, some target-date funds are “missing the bull’s-eye.”

Education and longevity solutions are two of the biggest opportunities available to 401(k) providers, according to a study by String Financial.

WASHINGTON--Across the board, executives from leading mutual fund companies reported during the Investment Company Institute's General Membership Meeting that investors have held steady during market turbulence, with only 1% to 3% redeeming equity fund shares in the face of huge market drops.

UMB Fund Services, a subsidiary of UMB Financial Co., the listed, Missouri-based multi-bank holding company, added to its holdings JD Clark & Co., an alternative investment firm, in an all-cash deal.

At its annual meeting before registered investment advisers and brokers, Fidelity admitted it fell short of its own expectations in working with them during this turbulent time, Investment News reports. Yet, executives vowed that they will increase contact, and, in turn, asked advisers to increase their contact with investors, to restore their confidence in the markets.

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