Plus, new long/short funds, distributions, and more.
Janus' co-CIO and manager of Janus Enterprise
Corkins' departure is a big blow to Janus. Corkins has been a champion for the analysts as well as a strong stock-picker and talented investor himself. His even-keeled nature helped him avoid the awful bear market showing that weighed heavily on most of Janus' other funds. This development follows soon after the August announcement that Janus Twenty's
Matthews Names New CIO
Matthews International Capital has named co-CEO and one of its most experienced managers, Mark Headley, as its new chief investment officer. Headley, who will remain lead manager of Matthews Pacific Tiger
RiverSource Launches Three New Hedge-Fund-Like Funds
RiverSource Investments has launched a series of funds that use some hedge-fund-like strategies called Advanced Alpha Strategies: RiverSource 120/20 Contrarian Equity, 130/30 U.S. Equity, and Absolute Return Currency and Income. Each is managed by a different team that already manages long-only mutual funds. Warren Spitz's value team--which has an above-average record at RiverSource Equity Value
Two Delaware Funds Lose Comanagers
Liu-Er Chen and Steven Catricks have left the team at Delaware Growth Opportunities
The Taxman Cometh
It's shaping up to be another big year for mutual fund capital gains distributions. Stock returns in 2007 are decidedly positive thus far. Through Sept. 28, international stocks gained an average of 17.3% year to date while domestic stocks gained 9.6%. This rally follows several years of strong stock market performance, driving significant embedded capital gains in equity funds. Managers are now having a difficult time keeping those gains from the taxman. Indeed, fund companies such as Pioneer and Masters' Select recently announced 2007 distribution estimates. As this early-2007 article mentions (along with a nice refresher on capital gains distributions), fund managers are having a tougher time avoiding distributions because they're running out of offsetting capital losses from the last bear market, which ended nearly five years ago.
PowerShares, State Street Launch Slew of Cheap ETFs
PowerShares and State Street Global Advisors continue to expand their massive ETF lineups. Their latest ETFs come in the fixed-income arena, where demand for ETFs is still in its infancy. On Oct. 11, PowerShares launched five new funds, including 1-30 Year Laddered Treasury
State Street launched on Oct. 16 its own competing muni ETFs. They include SPDR Lehman NY Muni
Aston Plans Absolute-Return, Fund of ETF Fund
In a twist on fund of funds, Aston Funds has announced plan for a similar asset-allocation fund with ETFs as the underlying securities. Its name: Aston/New Century Absolute Return ETF Fund. Aston will use quantitative algorithms to determine the underlying composition of ETFs in the fund, which it will continuously adjust to achieve the fund's absolute-return strategy. At any given time, the fund must keep at least 80% of assets in ETFs. Aston estimates a steep expense ratio of 1.67% for the offering, provided it can hold the average fee on underlying ETFs to about 0.17%.