Fund Times: T. Rowe Announces Manager Changes

Rob Gensler, who has successfully run  T. Rowe Price Global Technology (PRGTX) since January 2002, has stepped down as manager of this offering and is likely to focus attention on his other charge,  T. Rowe Price Global Stock (PRGSX). As of April 1, 2006, Jeffrey Rottinghaus has stepped in to run Global Technology. Rottinghaus has been with T. Rowe Price since 2001, serving first as a technology sector analyst assisting with small-cap  T. Rowe Price New Horizons (PRNHX), and then as manager of T. Rowe Price Developing Technology  since June 30, 2005.

Developing Technology and Global Technology are Rottinghaus' first attempts at running funds solo, so we'll be watching his moves closely in the months ahead. With Gensler's departure from Global Technology and the lack of a long track record for Rottinghaus, we'll also be reevaluating that fund's status as a Morningstar Fund Analyst Pick.

Personnel Changes at American Century
A recent press release from American Century Investments announced the departure of fund managers John Sykora and Gina Sanchez. Sykora, portfolio manager on  American Century Select (TWCIX), is leaving to spend more time with his family. American Century veteran Harold Bradley, who is chief investment officer for various equity strategies at the firm, will replace him at Select. Sanchez, according to the press release, was on the team "responsible for American Century's various asset allocation portfolios (My Retirement, One Choice and Strategic Allocation)," and will be departing to work at a private endowment. Portfolio managers Jeff Tyler and Irina Torelli, also on the asset-allocation team, will continue to run these offerings.

Maine Leads the Way with New 529 Legislation
John Baldacci, the Governor of Maine, recently signed legislation that provides residents of his state with tax deductions for contributions made to any state's, not just Maine's, 529 college savings plan. In contrast, only around half the states offer any tax deduction on contributions at all, and those that do offer the benefit only to state residents investing in home state plans. Though the amount is a quite modest $250 per-beneficiary deduction, and it will not take effect until 2007, this more-inclusive tax incentive is the first of its kind in the 529 industry. The deduction will not be available to certain higher-income families.

Despite the limited scope of the legislation, we hope that more states will eventually follow Maine's lead. If additional states do move in this direction, and several are currently considering legislation that would do so, it should simplify investors' ability to compare the wide array of available 529 plan options--both in-state and out-of-state--and promote a level playing field for all plans to compete for the assets of college savers.

MainStay Small Cap Opportunity to Close
The advisor to  MainStay Small Cap Opportunity (MOPIX), New York Life Investment Management LLC, announced on Tuesday that it would close the fund to new investors on June 1, 2006. Existing shareholders as of that date will be allowed to continue investing in the fund. The quantitatively driven fund has amassed nearly $1.15 billion in assets since its Dec. 30, 2002, inception. Additionally, the advisor manages another $325 million of institutional assets in separate accounts, using the same strategy. Funds in the small-cap space can become unwieldy if assets grow too large--a phenomenon we call asset bloat. In the press release on the fund closure, MainStay Investments president Chris Blunt said: "We believe this decision is in the best interest of existing shareholders," and we would have to agree.

Munder Replaces CIO
Munder Capital Management has announced the appointment of John S. Adams to the post of chief investment officer, replacing Enrique Chang, who recently departed for American Century. Adams will retain a place on the management team of Munder Balanced , though additional responsibilities will be shifted to that fund's other management team members, who will now be led by Joe Skornicka.

Phoenix Drops Engemann
The Phoenix Companies have abandoned Engemann Asset Management as subadvisor to a few of its funds, including  Phoenix Capital Growth  and  Phoenix Nifty Fifty , a Morningstar Fund Analyst Pan. Harris Investment Management, a Chicago-based advisor, will be taking over the funds, should shareholders approve, as early as June or July. Phoenix said the switch from Engemann to Harris was motivated by the funds' underperformance under Engemann, as well as the attraction they had to Harris' quantitative investment approach, as applied to the Harris Insight fund lineup. Additionally, Phoenix and Harris have entered a strategic alliance with Phoenix becoming the advisor for 19 of Harris' funds, which will be renamed the Phoenix-Insight Funds.

New Manager for Baron Fifth Avenue Growth
Randall Haase has been selected as the new manager for  Baron Fifth Avenue Growth (BFTHX). Former manager Mitch Rubin abruptly stepped down on March 3, 2006, reportedly to start his own hedge fund. Since 2000, Haase has worked at Duquesne Capital Management, and prior to that, he ran the Alliance Quasar Fund (now  AllianceBernstein Small Cap Growth (QUASX)) from 1994 through 1999, for Alliance Capital Management.