(PUB) Morningstar FundInvestor

January 2 014

Morningstar FundInvestor

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reduce cash flow, with the aim of preserving the advisors’ ability to implement their investment strategy and produce competitive long-term returns,” said Vanguard CEO Bill McNabb. “Cash flow to the fund has subsided, which, along with a change in market conditions, has enabled us to reopen the fund.”

tially reduce a broad portfolio’s volatility over the long haul. The managers will hedge most of the portfolio’s currency exposure; doing so can have a meaningful impact on a fund’s volatility (and performance relative to actively managed global-equity peers). Although the fund will be actively managed, Vanguard’s active equity group typically aims for returns that are highly correlated with designated benchmarks. American Century Appoints Co-CIOs At American Century, two chief investment officers will take the place of one. The fund shop had been looking for a new CIO since the April 2013 departure of Enrique Chang, who went to Janus. The search ended on Tuesday, Dec. 10 , when American Century announced the appointment of co- CIO s Victor Zhang and David MacEwen. While Zhang will focus on the equity side and MacEwen the fixed-income investments, they have joint oversight over firmwide investment-manage- ment decisions such as how to allocate resources across the firm, and both will serve on the management committee. MacEwen, who has worked at American Century since 1991 , assumes his new role immediately. Zhang, who is moving over from Wilshire Funds Management, begins on Feb. 17 , 2014 . $ 4 . 65 per share in capital gains in early January. The unusual January payout is a result of the strategy and management change at the fund. New managers Greg Herr and Pier Py took the helm in September 2013 . They remade the fund into a global value strat- egy and have obviously cleared out most of the old portfolio. œ FPA Paramount Payout on the Way FPA Paramount FPRAX said it would pay out

Vanguard also reopened Vanguard Intermediate- Term Tax-Exempt VWITX to new investors.

Vanguard Rolls Out Global Minimum Volatility Fund

On Thursday, Dec. 12 , Vanguard launched a new actively managed fund, Vanguard Global Mini- mum Volatility VMVFX , which will invest in stocks around the globe. The fund has two share classes, Investor and Admiral, with expense ratios of 0 . 30% and 0 . 20% , respectively. Vanguard had been considering low-volatility options for at least three years. Unlike existing offerings in the low-volatility exchange-traded fund space, however, Vanguard’s fund is actively managed as opposed to passively managed—somewhat sur- prising considering Vanguard’s dominance and exper- tise in index funds. The fund isn’t subadvised, either, as many of the firm’s actively managed funds are. Instead, it will be run by the firm’s quantitative team, the active equity group, which is now under fairly new leadership in John Ameriks. Ameriks, who assumed his current post in early 2013 , is a Vanguard veteran and was instrumental in designing Vanguard’s target-date funds and endowmentlike managed- payout funds. The new fund’s managers are James Troyer, James Stetler, and Michael Roach. This fund will look to invest in names that have exhibited lower volatility relative to other stocks in the FTSE Global All-Cap Index ( USD Hedged). It also will consider correlations among stocks when constructing the portfolio. The FTSE Global All-Cap Index includes emerging markets, which can be volatile in and of themselves but which also can provide diversification benefits and poten-