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PIMCO to Launch Second Actively Managed Equity Fund

Plus, Third Avenue Value celebrates its 20th anniversary, and more.

Morningstar Analysts, 11/08/2010

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PIMCO recently filed a preliminary prospectus for its second actively managed equity fund.

PIMCO EqS Emerging Markets Fund will invest at least 80% of its assets in emerging-markets equities. The fund also has the latitude to invest in fixed-income securities, commodity related instruments, exchange-traded funds, futures, and other investment companies.

The filing comes three months after PIMCO announced it had hired Goldman Sachs GS manager Maria Gordon to run the firm's emerging equity group out of London. Gordon will be the only manager of the new fund.

This fund follows the successful launch of PIMCO's first actively managed equity fund, PIMCO EqS Pathfinder PATHX, earlier this year. That fund has attracted more than $780 million in assets since launching in May.

The fee structure of the fund was not disclosed.

PIMCO also plans to launch an emerging-markets-oriented allocation fund. The PIMCO Emerging Multi-Asset Fund will be able to invest in stocks, bonds, derivatives, and other funds. Curtis Mewbourne and Guillermo Osses will join Gordon as comanagers on the fund.

Third Avenue Value Celebrates 20th Anniversary
Marty Whitman's Third Avenue Value TAVFX, the flagship mutual fund of Third Avenue Management, recently celebrated its 20th anniversary. The fund launched Nov. 1, 1990.

Since the fund's inception through its anniversary this year, it has gained an average of 12.84% annually. The S&P 500 Index and the MSCI World Index rose 9.23% and 7.28%, respectively, during the same period. This result makes it the top-performing fund in the world-stock category over the past two decades.

The fund wasn't always in that category, because it used to have a much greater percentage of its assets in small and midsize companies. But its returns also easily surpass the Russell 2000 Index's 10.8% average return over the past two decades.

Whitman won Morningstar's Fund Manager of the Year Award in 1990 as the manager of the Equity Strategies Fund, a closed-end mutual fund. Because of the significant appreciation of one of the positions, the fund lost its diversification status and was liquidated in compliance with securities regulations. Third Avenue Value was launched to act as the successor fund.

Whitman originally wanted to name his fund the "Main Street Fund." Upon learning that the Main Street name was already taken, Whitman and his team decided on the fund's current name because the firm's offices were located on Third Avenue in New York City.PAGEBREAK

Whitman is also the author of multiple investing books, including The Aggressive Conservative Investor, which he penned in 1979.

Ian Lapey has comanaged the fund with Whitman since 2009.

Former Baron Veterans Launch New Funds
RiverPark Advisors LLC, a New York-based investment advisory company, launched five new no-load open-end mutual funds. The firm is made up of former members of Baron Capital, the investment advisor to the Baron Funds.

RiverPark co-founder Marty Schaja worked at Baron for more than 30 years, having served as its president and chief operating officer. Mitch Rubin, RiverPark's chief investment officer, managed several funds at Baron. Conrad van Tienhoven, who worked as a senior analyst with Rubin, will be a co-portfolio manager on two of the funds.

The five initial RiverPark funds will be RiverPark Large Growth FundRiverPark Small Cap Growth Fund, RiverPark/Wedgewood Fund, RiverPark Short Term High Yield Fund, and RiverPark/Gravity Long-Biased Fund.

Vanguard announced the launch of a new international real estate index fund. The Vanguard Global ex-U.S. Real Estate Index Fund, which will track the S&P Global ex-U.S. Property Index, will invest in real estate investment trusts and real estate operating companies in emerging markets and developed markets outside the United States. The Investor share class of the fund has an estimated expense ratio of 0.50%, and the exchange-traded fund share class (VNQI) will charge 0.35%.

Howard Gleicher is no longer with Metropolitan West Capital Management. Gleicher, who co-founded the Newport Beach, Calif., investment company with Gary W. Lisenbee and Steve Borowski in 1997, was the firm's CEO and CIO. His departure means he is no longer a portfolio manager of American Beacon Large Cap Value ALVAX, Wells Fargo Advantage Intrinsic Value EIVAX and Wells Fargo Advantage Intrns World Equity EWEAX.

TCW launched TCW SMID Cap Growth Fund (TGSDX/TGMDX) this week. The fund invests in stocks of small- and mid-cap growth companies that generally fall within the market-capitalization range of the Russell 2500 Growth Index. The fund is managed by Husam Nazer, who, along with Brendt Stallings, co-heads TCW's small- and mid-cap growth equities team.

Helen Potter is no longer a portfolio manager for Vanguard Asset Allocation VAAPX or Dreyfus Dynamic Alternatives DDYAX.

Warren Chiang and Langton Garvin have been added as comanagers to Vanguard Growth & Income VQNPX. The fund's current manager, Oliver Buckley, announced he will be retiring at the end of the year.

Ankur Crawford and Michael Young were added as co-portfolio managers to Alger Mid Cap Growth AMGAX.

On Nov. 30, 2010, Perkins Small Cap Value JDSAX will close to new investors through wrap programs or new retirement plans.

On Jan. 3, 2011, BlackRock Municipal Insured MAMIX is changing its name to BlackRock Municipal and eliminating the part of its mandate that requires the fund to be at least 80% invested in insured municipal bonds.

Matthews introduced institutional class shares for nine of the 11 Matthews Asia Funds.

American Century announced American Century Capital Growth ACCGX will merge into American Century Growth TCRAX and American Century International Stock will merge into American Century International Growth TWGAX.

Abbett & Co. LLC announced the launch of the Lord Abbett AMT Free Municipal Bond LATAX.

The board of trustees of the American Independence Funds approved a subadvisory agreement between American Independence Financial Services and American Yellowstone Advisors with respect to the growth allocation of the NestEgg Target Date Funds (American Independence NestEgg 2010 NECPX). Subject to shareholder approval, Robert Natale will manage Yellowstone Advisors' portion of the portfolio.

Coralie Witter is now comanager of Marsico Focus MFOCX, Columbia Marsico Focused Equities NFEAX and Columbia Marsico Growth NMGIX. Munish Malhotra was named comanager of Columbia Marsico International Opportunities MAIOX and Columbia Multi-Advisor International Equity APIAX.

Eaton Vance Structured Emerging Markets EAEMX changed its name to Eaton Vance Parametric Structured Emerging Markets.

Arieh Coll is no longer manager of Eaton Vance Tax-Managed Multi-Cap Growth EACPX. The fund is now managed by Kwang Kim, G.R. Nelson, and Gerald Moore.

On Jan. 22, 2010, Nathan Strik was added a comanager to ING Fidelity VIP Contrafund VPCAX.

The boards of trustees of Munder Healthcare MFHAX and Munder Energy MPFAX approved the mergers of the funds into Munder Growth Opportunities MNNAX, subject to shareholder approval.

As of Aug. 30, 2010, Peter Stournaras is no longer a manager on Northern Enhanced Large Cap NOLCX. The fund is now overseen by existing manager Joseph Wolfe and new manager Alex Ryer.

On Nov. 1, 2010, Bradley Camden was added as a co-portfolio manager for Northern Institutional Short Bond BSBAX.

Nancy Crouse was added as a portfolio manager to Nuveen Santa Barbara Growth NSAGX.

Deborah Velez Medenica is longer portfolio manager to SunAmerica International Equity SIEAX.

Catherine Crain, Jeff Jacobe, Gentry Lee, Christopher Sarofim, and Charles Sheedy have been added as comanagers to Dreyfus Appreciation DGAGX, Dreyfus Worldwide Growth PGROX, and Dreyfus Tax-Managed Growth DTMGX. The fund is subadvised by Sarofim & Co., and the new managers join existing manager Fayez Sarofim.

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