Fund Times: Changes at the Top for Fidelity

Stephen Jonas will retire as executive director of Fidelity Management and Research at the end of January. Jonas served in the role for nearly two years as part of his 20-year career at FMR. As executive director, he was responsible for restructuring FMR's investment management operation. In Jonas' place, Walter Donovan becomes president of FMR's Equity Division, Boyce Greer becomes president of FMR's Fixed-Income Division, and Dwight Churchill becomes president of Investment Services. All three are Fidelity veterans.

The large shop also announced a number of manager changes to its funds. Steven Buller replaced Matthew Lentz as manager of Fidelity International Real Estate FIREX, but Buller will also remain in his current role as manager of domestic-oriented Fidelity Real Estate Investment FRESX.

Among FMR's Select funds lineup, Charlie Chai became portfolio manager of Fidelity Select Technology FSPTX, replacing Jim Morrow. Morrow also leaves Fidelity Select IT Services FBSOX, leaving Benjamin Hesse as the fund's sole skipper. Other Select family funds getting the management shuffle include Fidelity Select Industrials FCYIX, Fidelity Select Software and Computer Services FSCSX, Fidelity Select Paper and Forest Products FSPFX, and Fidelity Select Transportation FSRFX.

Shareholders of Select funds should be aware that FMR has historically made frequent changes to the managers of this lineup, despite the management and strategy instability that sometimes results. Those who succeed in their roles at these niche offerings, however, sometimes advance to become managers of the firm's more widely diversified offerings.

Vanguard Shuffles a Few Subadvisors at Two Large-Cap Funds
Vanguard Windsor II VWNFX and Vanguard Morgan Growth VMRGX are undergoing minor changes. The company added Jennison Associates to a group of subadvisors at Morgan Growth. Kathleen McCarragher will manage Jennison's sleeve of assets. McCarragher is part of the experienced management team that leads Jennison Growth PJFAX, a fund on which she's worked as manager since 1999.

The company's second lineup shuffle was its replacement of two subadvisors--Equinox Capital and Tukman Capital--on Windsor II. Newcomer Lazard Asset Management replaces them and will manage most of the assets Equinox and Tukman ran. Andrew Lacey and Christopher Blake lead the Lazard team. While Lacey and Blake's tenure at Lazard U.S. Equity Value LEVOX--another large-value offering--is quite short, they've established a longer record at Lazard Mid Cap Open LZMOX.

PIMCO Plans Another Diversified Bond Fund
PIMCO recently announced its newest offering, PIMCO Income Fund. The fund isn't available yet, nor has PIMCO named its manager. When that person takes charge here, however, he or she will have a high level of flexibility. The new offering will invest in junk- and investment-grade corporate bonds, government-issued securities, currencies, and mortgage-backed issues from across the globe, including emerging markets.PAGEBREAK

Longtime Manager of Heritage Fund Steps Down
Jim Awad is stepping down from duties at Heritage Small Cap Stock HRSCX. Awad was the fund's longest-tenured manager, serving since 1993. John McPherson and David Adams, both newcomers to Awad Asset Management, will take over. Heritage Small Cap Stock's other subadvisor, Bert Boksen, remains with the fund.