Plus, a new Vanguard fund, changes at Fidelity, and more.
The probable demise of Legg Mason Value
However, few similarities exist between these two funds beyond their streaks. Daftary often delves into mid- and small-cap fare, and he trades frequently. In addition, the fund levies a 1.99% expense ratio. That's a hefty price to pay for a large-growth fund. The fund's streak is likely coming to an end, however, because Daftary was bearish on the market in 2006 and held a sizable cash stake as well as a small position in shorts. As a result, the fund is almost as far behind the index as Miller is this year.
If 2006 were to end tomorrow, the longest-running streak among large-blend funds would belong to two category members: Goldman Sachs Growth Strategy
A handful of other funds also started streaks against the S&P 500 in 1999 that have a good chance of continuing through the end of 2006. Among them are Schneider Small Cap Value
Vanguard Introduces a New Value Fund
Vanguard plans to launch Vanguard Structured Large-Cap Value as part of its structured equity lineup. The fund will only be offered to institutional investors who can make a $5 million minimum initial investment. The expense ratio on institutional shares will start at 0.25%. According to Vanguard, the company's Quantitative Equity Group will manage the fund and use analytical tools to identify the most attractive stocks from its benchmark, the Russell 1000 Value Index.
Benchmark and Manager Changes Likely at Two Fidelity Offerings
Fidelity Funds recently announced plans to change the benchmarks of two of its funds, Fidelity Trend
Fidelity usually gains approval for changes at its own funds with relative ease, and it has indicated that each of these offerings will get new managers in 2007. Also worth noting is that Fidelity adjusts management fees up or down for some funds based on performance against their benchmarks.
Barclays Files to Introduce Several New Funds
Last week, Barclays announced plans to extend its iPath ETN lineup. ETNs trade similarly to exchange-traded funds but are actually debtlike instruments that promise to deliver the returns of an index after 30 years. Among the proposed new ETNs are several that track commodities indexes--such as AIG's Energy Total Return and Industrial Metals Total Return subindexes--as well as one that tracks the MSCI India Total Return Index.