Aristotle Capital Management is to buy Pacific Asset Management, the specialist credit manager with about $20 billion AUM from Pacific Life. Afterward completion, Aristotle will be renamed Aristotle Pacific Capital.
Lazard US Convertibles Portfolio is in registration. The principal investment strategy is to invest in convertible securities economically tied to the United States. The portfolio managers/analysts will be Arnaud Brillois, Andrew Raab, Emmanuel Naar, and Zoe Chen. Open share total annual portfolio operating expenses after reimbursement will be 1%.
Natixis Investment Managers is selling its liquid alternatives manager, AlphaSimplex, to Virtus Investment Partners.
Matthews Emerging Markets ex China Active ETF is in registration. The principal investment strategy is to invest in emerging market countries, excluding China. The lead manager will be John Paul Lech; the co-manager will be Alex Zarechnak. Expenses have not been stated at this time.
Neuberger Berman has converted its $196 million Neuberger Berman Commodity Strategy Fund into the Neuberger Berman Commodity Strategy ETF.
Parnassus Growth Equity Fund is in registration. The principal investment strategy is to invest in large-sized growth companies. Andrew S. Choi will be the lead portfolio manager, Shivani Vohra will be the portfolio manager. Total Annual Operating after Expense Reimbursement will be .84% for investor share class; institutional share class will be .63%.
Vanguard International Explorer Fund has eliminated TimesSquare Capital Management, LCC, as one of its investment advisors. Following a transition period, the current investment advisors will be Wellington Management Company LLP, Schroder Investment Management North America Inc., and Baillie Gifford Overseas Ltd. The benchmark utilized by the fund is being changed in an effort to improve investors’ ability to assess performance relative to peer funds.
Small Wins For Investors
The JPMorgan Small Cap Equity Fund will re-open to investors effective October 26. The fund is rated four stars by Morningstar. The fund has been closed to most new investors since December 30, 2016. The fund is managed by Don San Jose and Daniel J, Percella. Mr. San Jose has been with the fund since 2007, with Mr. Percella joining the fund in 2014.
Closings (and related inconveniences)
On October 25, 2022, Eaton Vance Emerging Markets Debt Fund closed to new investors.
RiverPark Short Term High Yield Fund closed again to new investors on October 12, 2022. That was pretty much inevitable since it’s a limited capacity strategy with a remarkably appealing risk-return profile. It’s repeatedly posted the highest long-term Sharpe ratios of any fund in existence, and we spent time in both September and October urging folks to check it out.
Old Wine, New Bottles
Transamerica High Quality Bond Fund is being reorganized into the Transamerica Short-Term Bond Fund. The reorganization is expected to occur in the fourth quarter of 2022.
The Dustbin of History
Catalyst Pivotal Growth Fund will liquidate on or about November 3,
Catalyst Interest Rate Opportunity Fund will liquidate on or about November 3,
Ken Heebner, 82 and the manager of Capital Growth Management LP, which oversees and manages three mutual funds, has decided to close up shop and liquidate the three mutual funds he managed. CGM Focus Fund, CGM Mutual Fund, and CGM Realty Fund will cease operating on November 30, 2022.
Mr. Heebner began managing the CGM Mutual Fund in 1981. During the mid-1990s, he managed the CGM Realty Fund, CGM Focus Fund, CGM Mutual Fund, CGM Development Fund, CGM American Tax Free Fund, and CGM Fixed Income Fund. The CGM Development Fund was eventually reorganized in 2008 into the CGM Focus Fund. Both the CGM American Tax Free Fund and CGM Fixed Income Fund were liquidated by June 14, 2002.
The $24 million Inspire Faithward Large Cap Momentum ETF loses faith on November 28, 2022.
Victory NewBridge Large Cap Growth Fund will liquidate on or about December 28.
Sometime in Q4 2022, Transamerica High Quality Bond will be absorbed by Transamerica Short-Term Bond . The date is not final because of the need for shareholder approval.
Valkyrie Balance Sheet Opportunities ETF was snatched away on Halloween Day, 2022.
VECTORSHARES Min Vol ETF will become even less volatile on November 20, 2022, the date of its liquidation.
Walthausen Focused Small Cap Value Fund will close to investors on or about November 21.
Manager changes
| Which fund? | What changes, when? |
| BlackRock Fixed Income Global Opportunities (77 flavors of the fund, counting all of the domestic and international share classes!) BlackRock Strategic Income BlackRock Sustainable Total Bond (and 18 other funds) | Bob Miller, head of America’s fundamental fixed income, leaves in early 2023. Mr. Miller is responsible for $107 billion in fixed income assets, and so a half dozen other people are being shuffled or promoted in anticipation of his departure. |
| Columbia Small Cap Growth | Dana Kelly joins Wayne Collette and Daniel Cole. Since taking the reins of the fund in 2006, Mr. Collette has had nine co-managers. |
| Engine No. 1 Transform Climate ETF | Portfolio Managers: Christopher James, Eli Horton, and Molly Landes will be jointly and primarily responsible for the day-to-day management of the Fund’s portfolio. |
| Fidelity Advisor Strategic Income Fund | Daniel Ushakov has joined as a co-manager. |
| Fidelity Mid-Cap Stock | John Roth, who has been with Fidelity for a quarter century, intends to retire on December 21. He’ll be succeeded by Nicola Sherwood. |
| Fidelity New Millennium Fund Fidelity New Millennium ETF | John Roth, who has been with Fidelity for a quarter century, intends to retire on December 21. Daniel Sherwood will take over |
| Janus Henderson International Opportunities | Co-manager Dean Cheeseman is out after about 3.5 years on the fund, replaced by George P Maris. The move is interesting primarily because it reflects company-wide layoffs that will eventually eliminate about 100 professionals. |
| MFS Research International Portfolio | Effective December 31, 2022, Victoria Higley will no longer serve as a portfolio manager. On that same date, Nicholas Paul becomes the manager. |
| PIMCO Total Return Bond (and about 10 others) | Scott Maher is taking a personal leave of absence. PIMCO has declined to elaborate on what that means. During said absence, CIO Dan Ivascyn fills in on the team. |
| Vanguard International Explorer Fund | The Board of Trustees booted TimesSquare Capital Management, LLC as an investment advisor to the Fund and reallocated the assets they’d managed to two existing advisers, Wellington Management and Baillie Gifford Overseas. |
| Vaughan Nelson Small Cap Value Fund | Effective March 31, 2023, Stephen A. Davis has elected to retire and will no longer serve as a portfolio manager. Chris D. Wallis will continue as the lead portfolio manager of the Fund, and James Eisenman will remain co-manager. |
| Virtus Stone Harbor Emerging Markets Corporate Debt Fund, Virtus Stone Harbor Emerging Markets Debt Fund, Virtus Stone Harbor Emerging Markets Debt Allocation Fund, Virtus Stone Harbor High Yield Bond Fund, Virtus Stone Harbor Local Markets Fund | William Perry is stepping down from all of the funds on March 30, 2023 |
| Virtus Zevenbergen Innovative Growth Stock Fund | Effective December 31, 2022, Leslie Tubbs, CFA will retire. Succession plans have not yet been announced. |