101 / 708
3
Morningstar FundInvestor
March
2016
where a performance slump and big redemptions
in a bloated portfolio led us to downgrade the fund to
an Analyst Rating of Neutral. Since then, though,
Columbia Acorn has shaken up management to try to
turn things around.
Finally, an entire fund complex can be affected by
redemptions at a number of funds. I’ll tackle this issue
in The Contrarian on Page
10
.
Manning & Napier Equity
’s
EXEYX
85%
outflow is
remarkable even for a slumping fund. The total dollar
value of outflows was a modest
$800
million, however,
which shouldn’t be a problem for a large-cap fund like
this one, but I do have worries about the firm.
Manning & Napier World Opportunities
’
EXWAX
67%
outflow is a little more worrisome given
that it had to sell
$3
.
2
billion, but even here I’m more
worried about the firm-level impact. The firm
made a bad call on energy that has hurt returns
across a number of its funds. It has overhauled
its management structure, but the rebound had
better come soon. We have maintained our
Bronze rating on the fund.
I’m worried about the
$1
.
8
billion in outflows that’s
cut
Buffalo Small Cap
BUFSX
down to just
$917
million. A performance slump, big outflows, and a
manager change amount to some big challenges
here. We lowered the fund to Neutral in September.
PIMCO All Asset All Authority
PAUDX
should be
able handle its
56%
(
$8
billion) outflow quite well
because it invests in other
PIMCO
funds. However,
I mention it here because it is responsible for much
of the outflows at some smaller
PIMCO
funds. Even
there it will likely be manageable, as
PIMCO
has
greater advance warning of redemptions and works
with manager Rob Arnott to ensure a smooth
withdrawal process.
Artisan Value
ARTLX
,
Artisan Mid Cap Value
ARTQX
,
and
Artisan Small Cap Value
ARTVX
have endured
redemptions of
71%
,
54%
, and
53%
, respectively and
just before we published this issue, Artisan announced
that Small Cap Value was going to merge into Mid
Cap Value. The team chose Small Cap Value to merge
away because it was the smallest of the three. In
a different time, a fund with a strong long track record
would have been kept alive. All three are good funds
that are in a slump. Artisan Value has a small asset
base and focuses on large caps, so no issues there.
Artisan Mid Cap Value is a little more concerning, given
that it had
$3
.
8
billion in outflows, but the fund is
closed to new investors, and I would have expected
Artisan to reopen to new investors if the disruptions
were significant. To be sure, though, we’re watching
closely, given that we have a Silver rating on the fund.
Greenspring
GRSPX
has suffered outflows of
49%
,
and that worries me. Normally, allocation funds are
built to handle quite a lot of money—and outflows—
because they own large-cap stocks and high-quality
bonds. But Greenspring favors small-value stocks
and high yield, which makes for a bit of headwind
when flows are strongly against the fund.
K
Fleeing in Droves: Funds With Most Outflows in Percentage Terms
Fund Name/Ticker
One-Year
Growth
Rate (%)
Jan 2016
Flow
($Mil)
One-Year
Flow
($Mil)
Current
Fund Size
($Mil)
Morningstar
Analyst
Rating
Total Ret
% Rank
Cat 5-Yr
Manning & Napier Equity EXEYX
-85
-40
-804
120
´
90
Artisan Value ARTLX
-71
12
-303
882
´
86
PIMCO RAE Fundamental Adv PLUS PFSDX -67
-261
-1,541
685
62
Manning & Napier World Opp EXWAX
-67
-108
-3,207
1,391
´
90
Buffalo Small Cap BUFSX
-63
-83
-1,852
917
ˇ
71
PIMCO All Asset All Authority PAUDX
-56
-471
-8,511
8,630
´
88
Artisan Mid Cap Value ARTQX
-54
-175
-3,818
4,894
•
69
Columbia Acorn ACRNX
-53
-225
-7,691
6,069
ˇ
78
ASTON/River Road Sm Cap Value ARSVX -53
-5
-34
234
49
Artisan Small Cap Value ARTVX
-52
-15
-602
367
´
99
Dreyfus Appreciation DGAGX
-50
-68
-2,637
2,374
´
81
PIMCO Unconstrained Bond PUBDX
-50
-238
-5,134
5,468
ˇ
75
Greenspring GRSPX
-49
-12
-303
285
95
RiverPark/Wedgewood RWGFX
-48
-53
-58
1,690
•
58
Columbia Acorn USA AUSAX
-46
-189
-563
640
65
PIMCO All Asset PASDX
-45
-634
-8,356 19,868
Œ
65
Royce Premier RYPRX
-45 -1,548
-2,281
2,274
´
92
AMG Yacktman Focused Service YAFFX
-45
-187
-5,229
5,033
•
61
Royce Pennsylvania Mutual PENNX
-44
-175
-2,222
2,625
ˇ
85
Berwyn BERWX
-44
-13
-140
142
•
88
Performance data as of Feb. 29, 2016. Flow and size data as of Jan. 31, 2016.