Plus: More manager changes, new funds, a new Fidelity CIO, and more.
Morningstar's fund analysts cover 2,000 mutual funds. Their full analyst reports, including Stewardship Grades, are available in Morningstar Principia Mutual Funds Advanced and Morningstar Advisor Workstation Office Edition.
Private wealth management firm International Value Advisors welcomed former First Eagle Global
De Vaulx's move to join IVA is not surprising. IVA launched in late 2007 after several veteran managers left Arnhold and S. Bleichroeder to start their own business. This group of managers employs a value-oriented go-anywhere approach. They seek strong companies throughout the world whose stocks look under-priced and seek to preserve capital in tougher markets. Indeed, funds such as First Eagle Global boasted positive returns during the 2000 to 2002 bear market when this group of managers worked at Arnhold and S. Bleichroeder.
USAA Plans New Global Fund, Target-Retirement Fund Lineup
USAA will launch a lineup of target-date retirement funds soon. In a recent filing it laid the groundwork for a target-retirement income fund, as well as funds with target dates of 2020, 2030, 2040, and 2050. The retirement-income fund will invest 30% in equities and 70% in bonds and cash. Funds with target dates further out will have more-aggressive allocations. The 2050 fund, for example, will start with all of its money in equities. Each fund will hold a mix of about a dozen underlying USAA funds, whose subadvisors include MFS and Marsico Capital. These funds of funds will not charge management fees on top of those of the underlying funds. So, taking into account USAA's plan to waive operating expenses for at least two years, the funds' expense ratios are projected to fall between 0.53% and 0.85%.
USAA also will launch a Global Opportunities fund this summer. Designed as a go-anywhere, absolute return strategy similar to that of a hedge fund with an emphasis on curbing downside risk, the fund will have at least five subadvisors. USAA will oversee asset allocation among global and domestic equities, bonds, and index-option strategies. It also will manage the fund's allocation to global real estate, bonds, and cash. Some of the fund's investments may be in equity-index ETFs alongside individual stocks. USAA projects a 0.99% expense ratio, which may vary slightly based on actual expenses of underlying ETFs.
Fidelity Creates New CIO Position
Fidelity appointed Fidelity Small Cap Value
Fidelity Small Cap Retirement
Wasatch Loses Two Managers
Wasatch Advisors will lose two portfolio managers next week when John Mazanec and Noor Kamruddin leave to pursue opportunities in Houston and San Francisco, respectively. Mazanec has been one of two lead comanagers of Wasatch Small Cap Value
Third Avenue Fund Reopens Next Week
Third Avenue Small-Cap Value
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