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Wall Street banks pin hopes on mutual funds

But most of the funds run by each of the four largest banks have underperformed their basic benchmarks over the past 10 years

For Goldman's bottom line, the business has indeed been doing well. During 2014, the company's funds drew US$73 billion of new money from investors, increasing revenues in the investment management division 11 per cent over the previous year.

FACING challenges on all fronts, Wall Street banks are pinning some of their hopes on a relatively simple business opportunity: creating mutual funds for ordinary savers.

Over the past few years, an expanding line of mutual funds created by the likes of Goldman Sachs and JPMorgan Chase