Fidelity and Lehman makes no sense
From New York Post
Beth Piskora reports that not only is a rumored merger between Lehman Brothers and Fidelity being denied by both firms -- it also makes no sense. When reports that Lehman was wooing Fidelity for an adoption first surfaced last week in the Wall Street Journal's Heard on the Street column, Fidelity denied that it was involved in talks that day. Piskora reports that Fidelity, despite the supply of IPOs from Lehman it is losing market share online. Meanwhile, the partnership has done little to raise Lehman's profile among retail investors. A Fidelity spokesperson claims the firm is happy with the partnership though: "We are delighted with the Lehman relationship from all angles," she said. "They have been referring 401(k) customers to us, and we have been offering videotaped commentaries from their experts on our site. Those are getting thousands of hits each day."

Fund managers see soft landing
From Wall Street Journal
Fund managers are reporting a stronger preference for financial services and growth stocks and are less inclined to favor cyclicals, says this month's worldwide survey of fund managers by Merrill Lynch & Co. The survey also found that fewer managers feel that tech, media, and telecom stocks are overvalued. The headline news is that managers also believe we are in for a soft landing. Merrill commissioned Gallup which surveyed 249 fund managers with $8.9 trillion in funds under management from June 2 through June 8.

Bauer to retire from AIM
From Wall Street Journal
Charles T. Bauer, co-founder of AIM Management Group Inc. said that he will resign as chairman at the end of the year. Co-founder and CEO Robert H. Graham will succeed Bauer. The two founded the firm in 1976 with bond and money market funds. Over the past 24 years they have added 2,300 employees, $176 billion in assets under management and 7.4 million shareholders to the funds. Bauer is 81 years old.

Domini gets positive
From New York Times
The Associated Press reports that Domini will practice "positive" investing with its new bond fund. The Domini Social Bond Fund will initially invest up to 10 percent of its assets in debt securities, such as mortgages and loans, issued to prospective homeowners and small business owners in economically depressed areas, according to the report. It plans to increase this allocation if the plan is successful. The subadvisor for the fund is Chicago-based South Shore Bank, a specialist in making development loans.

Of Interest
• Smart Money examines funds that charge shareholders performanced-based fees.

 

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