Fund Times: Three Funds Trump the Bond King
Plus, news from Matthews, MainStay, Turner, and WisdomTree.
Plus, news from Matthews, MainStay, Turner, and WisdomTree.
The world's biggest bond fund, PIMCO Total Return (PTTRX), is also one of the best. However, three intermediate-bond funds have bested legendary manager Bill Gross' returns at PIMCO. Each has done so by taking on more risk than PIMCO Total Return.
Calvert Income (CFICX) has returned 8.16% for the trailing 10 years, while Managers Bond (MGFIX) has returned 7.62%, and Dreyfus Intermediate-Term Income is up 7.41%. PIMCO Total Return has returned 7.12% over the same period.
At Calvert, lead manager Greg Habeeb makes bold sector calls and typically has a sizable stake in high-yield debt. Managers Bond is subadvised by Loomis Sayles' Dan Fuss, who currently has one third of assets in bonds rated BBB or lower. Kent Wosepka has run Dreyfus Intermediate-Term for a year and a half. Wosepka will make sector calls, too, as well as hold high-yield and emerging-markets debt.
Matthews Plans New Fund
Asia specialist Matthews Funds has filed with the SEC to launch yet another Asia-focused fund. Matthews Asia Pacific Equity Income will invest in income-paying publicly traded common stocks, preferred stocks, and convertible preferred stocks.
The fund is expected to have operating expenses of 1.50% of assets. The lead manager will be Andrew Foster, who is director of research at Matthews. Foster is also the lead manager of Matthews India (MINDX).
Multiple MainStay Manager Changes
MainStay funds announced Monday manager changes at three mutual funds. The firm said that Kathy O'Connor and Jeffrey Sanders have resigned as portfolio managers of MainStay Mid Cap Opportunity and MainStay Small Cap Opportunity (MOPAX). They have been replaced by Joan Sabella and Tony Elavia. Sabella has managed MainStay Balanced (MBNAX) since its inception in 1989. Elavia is chief investment officer of NYLIM Equity Investors Group.
MainStay also announced that Christopher Harms, manager of MainStay Intermediate Term Bond (MTMAX), has resigned. "The fund continues to be managed by Gary Goodenough along with Joseph Portera," the firm said.
Turner Makes Comanager Changes at Mid-Cap Growth Fund
Turner Funds said that Tara Hedlund and Jason Schrotberger are joining Chris McHugh at the helm of Turner Midcap Growth . Both Hedlund and Schrotberger have been with Turner since 2000. McHugh remains the lead manager. Bob Turner and Bill McVail are stepping aside from this fund, but retain their other manager and analyst duties.
Former SEC Chairman Joins ETF Family
WisdomTree Investments, a purveyor of exchange-traded funds, said former Securities and Exchange Commission chairman Arthur Levitt has joined the firm as a senior advisor.
Levitt joins Wharton professor and author Jeremy Siegel and former hedge fund manager Michael Steinhardt in advisory roles at the firm. Like them, Levitt will "work with management on key industry issues and assist in raising public awareness of WisdomTree's dividend-oriented investment approach," according to a statement.
Like a lot of other ETF firms, WisdomTree has flooded the market with new exchange-traded offerings recently. It apparently hopes to differentiate itself by adding big names from Wall Street and academia to its management roster. No matter how many luminaries are on the shingle, though, the shop is still unproven.
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