The Gold-rated Matthews fund will undergo a change to protect the integrity of its investment process. Also, Goldman Sachs Asset Management's Rob Cignarella exits, Dreyfus rolls out a floating-rate fund, RiverPark launches a "strategic income" fund, Nomura to exit the U.S. fund business, and ...
Matthews International Capital Management recently announced that Gold-rated Matthews Pacific Tiger MAPTX will close to most new investors on Oct. 25. The firm is closing the fund, which has $7.6 billion in assets, in an effort to slow the pace of inflows and protect the integrity of its investment process. The firm has made similar closures in the past, and such closures serve the interests of current fundholders.
Goldman High-Yield Manager Cignarella Departs the Firm
Rob Cignarella, comanager of Neutral-rated Goldman Sachs High Yield GSHAX, left the firm on Oct. 11, 2013. He'd served in that role since 2003 and joined GSAM's fixed-income team as an analyst in 1998. Michael Goldstein, who's shared comanager responsibilities here since late 2010, remains on board and is now the fund's sole manager. Prior to joining the firm, Goldstein ran Lord Abbett High YieldLHYAX from 1998 to 2010 with good results. Longtime team member Rachel Golder, who oversees all corporate credit research at the firm, remains involved here as well. While Goldstein's experience is a plus, this fund has seen plenty of investment team turnover since 2009. That was the year longtime lead manager Andrew Jessop left, as did experienced comanagers Diana Gordon and Roberta Goss. The high-yield team lost several analysts through the following year. GSAM has made hires since then accounting for roughly half of the high-yield analyst team located in New York and an additional five analysts based in Bangalore, India.
Vanguard Announces Fee Cuts, Fund Mergers
Check out the special Fund Times from Wednesday about Vanguard's decision to implement an array of changes that will make it cheaper to invest with the firm. Vanguard also will merge away five funds.
Dreyfus Launches Floating-Rate Fund
With an eye toward interest rates rising further, Dreyfus recently rolled out a fund aimed at offering investors income by investing in floating-rate loans.
Dreyfus Floating Rate Income Fund DFLAX, which launched at the end of September, is subadvised by Alcentra NY, LLC, which like Dreyfus is a subsidiary of ank of New York Mellon BK. Manager William Lemberg is the head of Alcentra's U.S. loan platform and is primarily responsible for the fund's floating-rate loans, while manager Chris Barris is principally responsible for the fund's high-yield, fixed-rate securities. Both managers follow Alcentra's value-oriented, bottom-up research process, which incorporates a macroeconomic overlay.
The launch comes on the heels of strong inflows into the floating-rate fund category and several other fund firms recently rolling out floating-rate note funds. This year alone, Babson, Oppenheimer, Metropolitan West, and DoubleLine all have brought new floating-rate funds to market.
RiverPark Rolls Out Strategic Income Fund
As investors continue to crave income in an environment of still-ultralow interest rates, RiverPark Advisors recently launched a fund aimed at offerings investors a high level of income through a portfolio of bank loans, high-yield bonds, preferred stock, convertible bonds, stocks, and both investment-grade and non-investment-grade debt.
Subadvised by Pleasantville, N.Y.-based Cohanzick Management LLC, RiverPark Strategic Income RSIVX is the latest offering from RiverPark, which was founded by Baron Funds alumni in 2006. The firm, which now has more than $2 billion in assets across seven funds, has had several launches that have gained considerable traction with investors so far, including the subadvised RiverPark/Wedgewood RWGFX (which is Silver-rated) and RiverPark Short Term High Yield RPHIX funds. Most of the firm's funds had done well relative to their benchmarks and peer groups. However, a majority of RiverPark's funds are three years old or less, and the firm has liquidated a couple of struggling offerings.