• / Free eNewsletters & Magazine
  • / My Account
Home>Research & Insights>Fund Times>Broadview Bringing the FMI Focus Fund In-House

Related Content

  1. Videos
  2. Articles
  1. Fidelity Fund Looks to Benefit on Increased Foreign Activity

    Fidelity fund manager Bill Kennedy is seeing stock-picking opportunities amid better investment prospects in Europe, improving consumption in Japan, and cheap P/Es in Korea.

  2. Fidelity : Retirement Savers Need More Stocks

    Fidelity's target-date fund series shifts more into equities. Plus, the persistent gender gap in investing, and why wealthier retirees feel poorer.

  3. How Fidelity Funds Stacked Up in 2013

    Fidelity's growth-leaning equity funds and more conservative bond funds made for a strong year for the fund firm, says Morningstar analyst Katie Reichart.

  4. Checking the Scorecard on Fidelity Funds

    Morningstar senior fund analyst Christopher Davis sizes up performance and stewardship at the fund family and discusses some of his favorite Fidelity funds.

Broadview Bringing the FMI Focus Fund In-House

As part of the transition, the Silver-rated fund's expense ratio is estimated to drop by more than 10%. Also, a new manager for Fidelity Pacific Basin, GMO announces plans to begin tapping the firm's asset-allocation forecasts in its strategies, and new names for 5 Aquila funds.

Morningstar Fund Analysts, 10/24/2013

Silver-rated FMI Focus FMIOX will be getting a new moniker as part of a reorganization.

Broadview Advisors, the longtime subadvisor to FMI Focus, will be bringing the mutual fund in-house. As a result, the fund will be reorganized into the to-be-formed Broadview Opportunity Fund at the end of November 2013, pending shareholder approval. Rick Lane, lead manager on the fund since 1997, co-founded Broadview in 2001 after managing the fund as part of Milwaukee-based Fiduciary Management Inc. (FMI) from 1997 through 2001. After an amicable split, FMI remained the advisor to the fund, but Broadview has operated independently of FMI since its founding. Lane, who currently owns 100% of Broadview, had indicated in the past that an ownership transition to bring the fund in-house was a long-term goal for the firm.

Broadview has been working closely with fund services company ALPS to help facilitate the transition. A member of ALPS' team will be named chief compliance officer of the fund, and ALPS will handle the bulk of the back-office tasks related to managing a mutual fund. A positive for shareholders and prospective investors is that ALPS has estimated the expense ratio on the fund will drop to 1.12% from 1.26% as a result of the transition.

Coinciding with the reorganization, there are plans in the works to broaden the ownership stake of Broadview in the near future. As a result, comanagers Rick Whiting, Faraz Farzam, and Aaron Garcia will be awarded meaningful ownership stakes in the firm, reflecting their contribution to the process. This should help ensure continued stability for the fund's investment professionals.

Fidelity Pacific Basin Gains New Manager
On Oct. 18, Fidelity Pacific Basin FPBFX underwent a manager change as longtime manager Dale Nicholls stepped aside and was replaced by John Dance.

The manager change on the $695 million fund was one of the final manager changes required by the recent split between Fidelity Management & Research and its affiliate Fidelity Worldwide (formerly known as FIL) that happened this year. Now, all U.S. funds' strategies are run by FMR portfolio managers, who use only FMR global analysts rather than relying on FIL analysts as they had in the past.

Nicholls, who recently relocated to Hong Kong after being based in Singapore since 2003, will continue working on funds available exclusively to overseas investors. This includes Fidelity Pacific, which is a Luxembourg-domiciled fund sold all over Europe and Asia. Morningstar's Hong Kong-based analyst team rates that fund a Bronze.

Dance has been with Fidelity Management & Research since 2008, when he joined as a research analyst. In 2011, he began managing the consumer discretionary subportfolio of Fidelity International Equity Central Fund. He then became co-sector leader of the combined consumer discretionary and consumer staples team in 2012. Prior to 2008, Dance had worked for FIL as a research analyst.

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.