14
Aston/Fairpointe Mid Cap to Close
Silver-rated
Aston/Fairpointe Mid Cap
CHTTX
announced it will close to new investors on Oct.
18
.
The $
4
.
8
billion fund has been a standout under
Thyra Zerhusen, Marie Lorden, and Mary Pierson. The
fund’s strong
32
.
2%
year-to-date return likely led
to accelerated inflows.
They run a focused, low-turnover mid-blend strategy
that has produced strong long-term returns. This
year, health-care and tech names have led the way for
the fund.
Calamos Reopens Convertible Fund
Calamos Convertible
CCVIX
announced its reopen-
ing as of Sept.
6
. The fund closed in October
2012
.
The fund has experienced steady outflows since
2011
.
We recently lowered our rating on the fund to Neutral.
American Century Vista Merging Away
American Century announced that it will close the
long-struggling
American Century Vista
TWVAX
,
merging the fund’s assets into another mid-cap
growth fund,
American Century Heritage
TWHIX
.
The merger will take place Dec.
6
,
2013
. We rate
Vista Neutral and Heritage Bronze.
A $
1
.
5
billion fund, Vista has experienced both under-
performance and manager turnover since
2008
. And
since previous lead manager Glenn Fogle left the firm
in
2009
, the new management team has not been
able to right the ship.
Are SRI Investors Better Timers?
I was looking at
TIAA-CREF Social Choice Equity
TISCX
, and I noticed something interesting. The
fund’s Morningstar Investor Returns were significantly
better than its stated total returns.
For the trailing five years, the fund’s investor returns
are
11%
versus
7
.
6%
for total returns, and for
10
years
Fund Manager Changes
Fund News
Columbia Dividend Income LBSAX
Impact: Negative 12-31-13
Comanager Dick Dahlberg is set to retire at the end of 2013. Scott Davis will lead the fund with help from
Mike Barclay, who was named comanager in 2011.
|
Our Take: Losing an experienced manager like Dahlberg
is a blow, but Davis has equal claim to the fund’s strong record, so we are maintaining our Silver rating
of the fund. Davis has been a comanager on the fund since 2001 and was an analyst serving the fund for
three years before that.
FPA Paramount FPARX
Impact: Negative 09-01-13
FPA Paramount is changing both managers and strategies. The fund will adopt a more value-driven strat-
egy. In addition, longtime managers Eric Ende and Steve Geist will step aside, and recently named
comanagers Greg Herr and Pierre Py will take over.
|
Our Take: It’s an odd move considering that just two
years ago FPA announced the fund would switch from a domestic mandate to a global one even
though Ende and Geist had long been domestic-stock investors. Given the limited track records on the
new managers, we have lowered our rating to Neutral from Silver.
Laudus Growth Investors LGILX
Impact: Negative 09-09-13
UBS has brought in Dan Neuger from Pinebridge Investments to comanage the fund, and UBS will continue
to subadvise the fund. Neuger replaces Sam Console, who was part of the team that replaced Lawrence
Kemp when Kemp left in November 2012 but left UBS in April. Peter Bye, who came on board in 2012, remains
as comanager. Unfortunately, the fund has now lost Paul Graham to retirement. Graham had had oversight
of the fund since 2003 and was named comanager when Kemp left.
|
Our Take: We had hoped that Schwab
would follow former manager Lawrence Kemp to BlackRock and change subadvisors. Instead, UBS has
brought in Dan Neuger from Pinebridge Investments to run the fund, and the firm will continue to subadvise
the fund. So, I’m disappointed.
Matthews Asia Dividend MAPIX
Impact: Negative 10-31-13
Jesper Madsen stepped back from being lead manager and will leave the firm in October. Yu Zhang and
Robert Horrocks have taken over.
|
Our Take: Madsen’s departure is a loss. However, Horrocks is a seasoned
investor with a strong record. We are maintaining our Silver rating on this fund, whereas we’ve lowered
the rating on Matthews China Dividend because Zhang is the only manager scheduled to be on the fund
after Madsen retires.
Matthews China Dividend MCDFX
Impact: Negative 10-31-13
Jesper Madsen moved from lead manager to comanager in April, and he will retire in October. Yu Zhang
was comanager for a year before becoming lead manager in April. Matthews said it will decide in
the coming months whether it will add a comanager to the fund when Madsen departs.
|
Our Take: Zhang
served as an analyst at Matthews starting in 2007 until he became a manager. In addition, he has
served as comanager for two years at Matthews Asia Dividend
MAPIX
. We lowered the fund’s rating to
Neutral from Bronze because of Zhang’s limited experience as a lead manager, the key role Madsen
has played, and the uncertainty surrounding the comanager position. Because it’s a collaborative effort
at Matthews, we expect that the strategy will not change significantly.
Meridian Growth MERDX
Impact: Positive 09-05-13
Former Janus managers Chad Meade and Brian Schaub were named to run this fund once Arrowpoint’s
acquisition of Meridian funds was completed. They replace interim managers Larry Cordisco and James
England, who had filled in for a year in the wake of Rick Aster’s death.
|
Our Take: This is a big upgrade and
brings welcome stability as the fund has been in limbo since Aster’s death. The pair did a brilliant job at
Janus Venture
JAVTX
and Janus Triton
JATTX
. I anticipate this fund to look a fair amount like Triton with
a concentrated portfolio of small- and mid-cap growth stocks. The fund has a modest $2.1 billion asset
base, but that will likely grow with the new managers on board.
