Mutual funds

Coleman Joins Delaware as Head of Distribution

The Financial Industry Regulatory Authority has fined Banorte Securities International $1.1 million for improper sales of B shares of offshore mutual funds, as well as inadequate supervisory systems to monitor the sales.

Equity mutual funds have lost $43.3 billion in outflows already through Oct. 8, while money market mutual funds have reaped $60 billion, according to TrimTabs Investment Research. Figures from the Investment Company Institute seemed to confirm that; in the week ended Oct. 8, ICI said, money market mutual fund assets increased by $58.54 billion to $3.458 trillion.

Reserve Shuts Down Funds, Delays Primary Payout

WASHINGTON - Though the Federal Reserve Board's reputation is built on its management of monetary policy, Chairman Ben Bernanke said Wednesday that the role of banking supervision at the central bank needs to be revisited.

HUNTINGTON BEACH, Calif. - As omnibus accounts continue to grow in size and scope, it remains crucial for investment managers to keep oversight high and costs low.

HUNTINGTON BEACH, Calif. - Mutual fund industry leaders admit that years of deregulation allowed the current economic crisis to unfold, and many are anticipating a backlash of new and excessive regulations to result.

The Financial Industry Regulatory Authority has fined Banorte Securities International $1.1 million for improper sales of B shares of offshore mutual funds, as well as inadequate supervisory systems to monitor the sales.

Due to a sharp rise in the cost of living adjustment this year, the Social Security Administration is increasing benefits for Americans by 5.8%, the biggest increase since 1982. On average, that will mean an increase of $63 a month.

Whereas other leading industrialized nations have savings rates of more than 10%, notably Germany and Japan, the savings rate in the U.S. has been less than 1% for the past four years.

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 $25,000.

The Securities and Exchange Commission and the Financial Industry Regulatory Authority announced the second annual CCOutreach BD National Seminar will be held on March 10, 2009.

Reserve Funds said that due to difficulties in determining investor shares held in its flagship Primary Fund on Sept. 15, it would have to postpone its planned $20 billion distribution of redemptions on Oct. 13.

Nine former and current traders with Fidelity Investments have reached preliminary settlements with the Securities and Exchange Commission for allegedly receiving more than $1.6 million worth of lavish gifts from brokerages seeking business from Fidelity between 2002 and 2004.

Fed to Buy up to $1.3 Trillion of Commercial Paper

The mutual fund industry has a long tradition of innovation and creative problem solving in times of challenge. These past months have been sobering, and the uncertainty around the financial services sector is not yet waning.

As the mutual fund industry approaches the first anniversary of the compliance date for SEC Rule 22c-2, it's an ideal time for a retrospective on the services, systems and processes in place to comply with the data-sharing components of the rule.

Reserve Management has shut down its U.S. Government Fund, the second fund it has liquidated, and has given no indication yet of when investors can expect their money to be returned.

ICI Re-Elects Murphy as Chairman of the Institute

Fidelity Investments' institutional wealth management arm is ratcheting up its pursuit of financial advisers and wealth managers who want to run their own shops.