Fund firms begin announcing year-end capital gains distributions, manager Lawrence Kemp leaves UBS, and former Fairholme manager Charlie Fernandez resurfaces.
U.S.-based financial-services arm and mutual fund issuer ING U.S. finally appears headed for a public offering, according to registration documents filed late last week with the SEC.
The firm's Dutch parent, ING Groep NV ING, is gearing up to unload its U.S. operations. ING U.S., which is known for its large U.S. life-insurance business and its retirement-solutions offerings, had $445 billion in assets under management and assets under administration as of June 2012. The firm has had what it calls an "operational separation" from its parent since the end of 2011.
Now, ING U.S. is one step closer to complete independence. The filing did not provide a per-share price for the proposed offering, which would be underwritten by Goldman Sachs GS and Morgan Stanley MS. The documents indicate that the firm will go public sometime next year.
'Tis the Season for Capital Gains
It's time for fund companies to begin announcing year-end capital gains distributions. Taxes on these distributions can eat into returns, and investors should consult their fund companies' websites to check where they may be affected.
Several prominent fund companies recently announced capital gains distributions, and while many are in line with earlier years' amounts, there are a couple hefty estimated payouts on the way. While the small-cap and international funds from Longleaf Partners Funds will distribute amounts consistent in size with years past, Longleaf Partners Fund LLPFX will deliver a gain of $4.245, or roughly 16% of its $25.77 NAV. The firm sold or trimmed some of its largest contributors this year, consistent with their investment process, capturing sizable gains.
Vanguard also announced preliminary distributions, and Vanguard Capital Opportunity VHCAX, Vanguard Explorer VEXRX, and Vanguard Health Care VGHCX are set to deliver ample distributions. Vanguard Extended Duration Treasury Index VEDTX (both fund and its sibling, Vanguard Extended Duration Treasury Index ETF EDV) will also make rather large distributions.
Kemp Departs UBS
After 20 years with UBS, portfolio manager Lawrence Kemp has resigned from the bank, effective Nov. 12. UBS had subadvised the Bronze-rated Laudus Growth Investor US Large Cap Growth LGILX, and Kemp had led the team managing that fund. Now, UBS is replacing Kemp with three managers. One, Paul Graham, is head of investments at UBS Growth Investors. Kemp had worked directly under Graham. The other two managers are Sam Console and Peter Bye, both of whom had been analysts on the fund since 2002. With this change, Morningstar's Analyst Rating for the fund now is under review.