Mutual funds

NEW YORK — J.P. Morgan Investor Services, PNC and Principal Financial have been honored with first-place for Leadership, Innovation and Efficiencies/Streamlining, respectively, in Money Management Executive’s 2008 Fund Operations Awards.

Following its $50 billion acquisition of Merrill Lynch, Bank of America plans to move the major part of its wealth management from Boston to New York, The Boston Globe reports. That means that BoA’s U.S. Trust private banking unit and Columbia Management mutual funds groups will also make the move.

After several false starts, Reserve Funds announced it is planning to honor $25 billion of redemptions in its Primary Fund by the end of the month, plus cash accumulated, as well as $3 billion for its Government Fund seven to 10 days thereafter. Reserve has been trying to reimburse investors $20 billion, initially scheduled for Oct. 13, and has now increased that initial figure to $25 billion.

XBRL US is asking mutual fund companies, investors and users of prospectus filing information for feedback through Nov. 24 on how well their suggested data tags will work for mutual fund summaries on risk/returns and schedules of investments.

With the markets tumbling, a recession on the horizon and people growing increasingly fearful of losing their jobs, more parents are delaying saving for their children’s college education, Investment News reports. Sales of 529 plans fell 33% in the first six months of the year to $6.3 billion, down from $9.8 billion a year earlier.

“The market will recover. It always does. Just no one knows when,” Alan F. Skrainka, chief market strategist for Edward Jones told the Associated Press. “The important thing is to focus on the things that you can control, like the amount you’re investing and the quality of the investments that you’re buying.”

The Depository Trust and Clearing Corporation (DTCC), the largest financial clearinghouse in the U.S., is in talks to merge with its European rival LCH.Clearnet in a deal worth approximately $950 million.

With losses mounting—the average hedge fund is down 10% this year—hedge fund investors are increasingly looking to head for the exits, and hedge funds are putting up barriers, Dow Jones reports.

Ameriprise Financial is expanding its discretionary mutual fund wrap program through its new Active Diversified Portfolio series, by adding to its line-up of investment managers.

Mutual of Omaha is now offering retirement advice in its 401(k) Toolbox, a service called Manage It For Me.

Morningstar Investment Services is offering three managed account services to provide investors with retirement income at three levels of risk and time ranges.

WASHINGTON – Despite signs of renewed strength in the credit markets, the Federal Reserve Board on Tuesday unveiled a new program to provide more liquidity to money market mutual funds.

State Street Corp.’s Investor Confidence Index declined by about a quarter from 75.7 in September to 58.2 in October. Compared to the sentiment in other regions of the globe, North Americans’ confidence is markedly lower. In Europe, it stands at 79.6, and in Asia, at 86.5.

Ameriprise Financial, which has sued Reserve Funds on charges that the fund company tipped off large institutional investors its Primary Fund had broken the buck, has asked a judge to release taped phone calls to customers on the day before the fund’s NAV fell below $1, Reuters reports.

Eighty-percent of board members at financial services firms believe they need better tools to evaluate investments, PricewaterhouseCoopers’ financial services practice found in a recent survey of financial services audit committee members. They believe that by being better equipped, they could reduce the chance of future industry instability.

Ninety-percent of closed-end funds are trading at discounts, some as high as 15% to 35% of their net asset values, a marked spread from their 4.4% average since 1997, The Wall Street Journal reports. And the spreads appear not only to be lasting longer, but to be growing larger.

Following recent talk of 401(k) debit cards and tighter credit, it was bound to happen that homebuyers would turn to their 401(k) to help finance a home purchase, despite warnings against doing so from most financial advisers.

Eighty-seven percent of stock mutual funds were in the red in the third quarter, with the average diversified stock fund falling 10% in the quarter and the average stock mutual fund declining 11% in September alone, according to Lipper data, Gannett News Services reports. September was the biggest one month tumble for U.S. equity funds since 1998.

WASHINGTON — Treasury Secretary Henry Paulson on Monday outlined the process for banks and thrifts to request capital from the government.

Despite the tremendous turbulence in the stock market, few investors are planning to sell their stocks and mutual funds or to curtail or entirely cease contributions to their 401(k), according to a poll from Ipsos/McClatchy. That said, more are paying closer attention to federally insured bank deposits, now that the guarantee has been expanded from $100,000 to $250,000.