Plus, Delaware Funds president resigns, Masters' Smaller Companies reopens and more.
American Funds has filed to launch its first new mutual fund of the decade. The firm plans to launch Short-Term Bond Fund of America on Oct. 1, 2006, according to a filing with the SEC. The fund fills the gap between the firm's Intermediate Bond Fund of America
The firm's last mutual fund launch was American Funds New World
Short-Term Bond Fund of America looks to be a pretty straightforward high-quality short-term fund that will likely own a diversified portfolio of Treasuries, mortgages, and corporate bonds: The filing states, "The fund seeks to provide you with current income while preserving your investment by maintaining a portfolio having an average effective maturity no greater than three years and consisting of debt securities primarily with quality ratings of AA or Aa or better." No managers have been named, but it will likely be similar to the group that runs American's other taxable-bond funds.
Oakmark Plans Global Select Fund
Oakmark is taking its focused approach on the road. Harris Associates has filed with the SEC for a new world-stock fund that will typically invest in just 20 stocks. The fund will be run by the firm's best-known managers. Bill Nygren will run the domestic half of the portfolio while David Herro will select foreign stocks. Expenses are expected to begin at 1.75%. According to the filing, the earliest possible launch date would be at the end of September 2006.
Masters' Reopens Small-Cap Fund
Masters' Select said it has reopened Masters' Select Smaller Companies
Copper Capital began running Old Mutual Copper Rock Emerging Growth
Delaware Funds CEO Resigns
Jude Driscoll--president and CEO of Lincoln Financial's asset management arm, Delaware Investments--resigned his post today. Driscoll joined Delaware as head of fixed income in 2000. He then took the posts of president and CEO in 2002. Under his watch, Delaware successfully attracted two talented management teams from other firms: A crew from Merrill Lynch, led by Tysen Nutt, that runs Delaware Large Cap Value
New Focused Masters' Fund
At the end of June, Masters' Funds launched Masters' Select Focused Opportunities--an even more focused version of its typical funds. Three pairs of managers pick just five to seven stocks each, making for an overall portfolio of just 15 to 21 stocks. The pairs are Craig Blum and Stephen Burlingame of TCW, Christopher Davis and Kenneth Feinberg of Davis Selected, and Michael Embler and Peter Langerman of Mutual Series. The fund charges an expense ratio of 1.5%.