• / Free eNewsletters & Magazine
  • / My Account
Home>Research & Insights>Fund Times>Longleaf Partners Global Closes After Just 3 1/2 Weeks

Related Content

  1. Videos
  2. Articles
  1. Bogle on Fund Industry Progress and Imperfections

    The Vanguard founder offers his thoughts on the need for money fund reform, the dilemmas with retirement planning and savings, the fiduciary duty of fund managers, and much more, in this video exclusive to Premium Members.

  2. Cream of the Crop: Our Favorite Funds in All Flavors

    Morningstar's Russ Kinnel, Sarah Bush, and Christine Benz highlight their top fund picks for domestic and foreign equity, core bond, inflation-protected securities, and much more.

  3. Top Investment Ideas for Retirement

    Retirement Readiness Bootcamp Part 5: Morningstar strategists share their top fund, ETF, and dividend stock picks to fill your retirement portfolio.

  4. Top Funds for Tax-Efficient Bucket Retirement Portfolios

    Tax-managed, index, and municipal-bond funds from Fidelity and Vanguard are among the best options for investors looking to minimize the tax drag on their portfolios, says Morningstar's Christine Benz.

Longleaf Partners Global Closes After Just 3 1/2 Weeks

A PIMCO Ginnie Mae manager departs, Fidelity to merge away two funds, and more Vanguard fund expense ratios come down.

Morningstar Fund Analysts, 01/31/2013

That didn't last long.

Longleaf Partners Global LLGLX, which launched on Jan. 2, closed to new investors on Jan. 28. It wasn't a deluge of money that caused the doors to shut so quickly. Rather, the culprit is the sharp rally in the stock market, according to a spokesman for advisor Southeastern Asset Management. The fund's managers have strict guidelines, only buying companies that feature not only appealing business models and management but which also are selling at a steep discount to their true value in the managers' view. And with the rally taking stock prices up, few such bargains have been available, in their opinion. For that reason, the new fund has 50% of its assets parked in cash, and the managers saw no reason to keep taking in money that would simply add to that cash pile.

The fund has just $30 million in assets, the spokesman said, and the majority of that amount is investments from Southeastern personnel. He said that the fund could have taken in more money but began discouraging investors recently when it became clear that investing the inflows would be difficult.

The version of the Global fund that is sold in Europe and U.S. separate accounts run in that strategy remain open because they have been around longer and thus have had a chance to become much more fully invested when prices were more attractive. In other words, the managers are willing to continue owning stocks that aren't the deepest bargains anymore, but they don't want to make initial investments for the new fund at current market levels.

The Southeastern spokesman said that Longleaf Global is likely to reopen whenever the managers feel that a suitable amount of opportunities meeting their standards becomes available. In the meantime, those shareholders who did get into the fund in the three and a half weeks that it was open can continue to add to their stakes.

More Vanguard Expense Ratios Fall
Vanguard announced a spate of expense reductions in either the Investor or Admiral shares (or both) of eight mutual funds and 11 target-date funds. Most of the fee cuts were in the range of 1 to 3 basis points, affecting funds such as Vanguard Equity-Income VEIRX and Vanguard Morgan Growth VMRAXVanguard Capital Value VCVLX saw the biggest reduction, as its expense ratio fell 11 basis points to 0.47%. The firm also reduced expenses by 1 basis point across its retirement lineup, ranging from Vanguard Target Retirement 2010 VTENX to Vanguard Target Retirement 2055 VFFVX. Two funds saw expense ratios rise 2 basis points each: Vanguard Growth Equity VGEQX and Vanguard Growth & Income VGIAX.

PIMCO GNMA Manager Steps Down
Scott Simon, the lead manager of PIMCO GNMA PAGNX and PIMCO Mortgage-Backed Securities PMRAX, is retiring and has been officially removed as the funds' manager. Simon will serve in an advisory capacity to the funds for an additional few months. Daniel Hyman, who served as Simon's comanager since July 2012, will remain a manager at both funds. PIMCO mortgage specialist Michael Cudzil will join Hyman as a comanager on both funds. A team of more than 30 mortgage- and asset-backed securities analysts will continue to support the funds.

Fidelity Merging Two Funds into Stock Selector All Cap
Fidelity will merge the $19 million Fidelity 130/30 Large Cap FOTTX and $46 million Fidelity Advisor Strategic Growth FTQAX into Fidelity Stock Selector All Cap FDSSX in June, pending shareholder approval.

Morningstar fund analysts cover more than 1,700 mutual funds and write regular commentary covering fund industry news, fund investing trends, picks, portfolio planning, international investing, and more.

©2017 Morningstar Advisor. All right reserved.