Mutual funds

Moody’s has downgraded Legg Mason’s senior debt from A2 to A3, on concerns over poor mutual fund performance and the $2 billion that Legg Mason has pledged to backstop money market funds, the Baltimore Business Journal reports.

For many investors, buying into and saving for the retirement American dream is no longer a reality, according to a new survey from AARP of 1,628 workers over age 45, conducted last month.

The credit crisis fueled a substantial 33% increase in asset management mergers and acquisitions in the third quarter, compared to 3Q07, Jefferies Putnam Lovell announced Tuesday. There were 69 M&A deals across the globe, up from 52 a year earlier.

The Federal Reserve announced Tuesday it will buy up to $1.3 trillion of the top-rated asset-backed and unsecured commercial paper in the markets—virtually a business loan bailout due to frozen money markets, the closest the government has come to making loans to businesses directly.

NEW YORK—In the wake of the ongoing credit crisis and illiquid money market, much of it due to the failure of a single money market mutual fund, the Securities and Exchange Commission plans to overhaul Rule 2a-7. Separately, the Department of the Treasury is looking into creating a market stability regulator with omniscient powers across the "entire financial system."

Lord Abbett Promotes 17 Executives to Partner

Treasury Opens Money Fund Guarantee Program

CHICAGO - When it comes to choosing derivative instruments, some portfolio managers still think the more complicated they are, the better.

Investors in the now-defunct Primary Fund got their first indication of when they can expect redemptions last Monday, when Reserve Management announced it would return 32% of the fund's assets as of Sept. 15, or $20 billion, on Oct. 13.

With financial pundits repeatedly talking about a return to the Great Depression, how to find a sound bank with FDIC backing and now, even, how to stretch food budgets, national news media, advertisers and entertainment programs, are coming up just short of instilling wholesale investor hysteria.

LAS VEGAS - Unified managed accounts (UMAs) are quickly becoming a popular and viable option for Baby Boomers looking for more diversification in retirement, but the plans still have a lot of work to do in order to overcome certain hang-ups.

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

Prime institutional money market fund assets rose for the first time since Sept. 9 last Thursday, by $2.96 billion to $652.6 billion, according to Crane Data.

Lazard Asset Management has launched an emerging markets fund, the Lazard Developing Markets Equity Portfolio, which will use a bottom-up stock selection process and which the company is offering to investors as an alternative to value and emerging-markets funds.

WASHINGTON—The House reversed Monday's rejection of a bill to stabilize the financial markets approving the measure on Friday with a vote of 263 to 171.

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.

Money market mutual fund assets rose $12.39 billion for the week ending Tuesday as investors regained confidence in the funds, according to the Money Fund Report, published by iMoneyNet Inc.

Total retirement assets in the U.S. fell 5.2% during the first quarter of 2008, from $18.0 trillion to $17.1 trillion, according to the Investment Company Institute.

Morningstar announced Thursday is has acquired Fundamental Data Ltd. of the UK, a closed-end fund data provider based in London, for $19 million, subject to post-closing adjustments.

More asset managers are learning, never say never.