Fund Times: Numeric Funds to Liquidate
Plus, news on the Wasatch funds' reopening, new funds from Aston, and more.
Numeric Investors has decided to get out of the mutual fund business, so on Feb. 23, 2007, it will liquidate all of its retail mutual funds. Numeric is closing the funds because they comprise only 3.5% of their business (about $450 million out of $13 billion), and three of the four funds are closed to new investors, so there's no opportunity for growth. The offerings that will be liquidated are as follows: N/I Numeric Investors Growth (NISGX), N/I Numeric Investors Emerging Growth (NIMCX), N/I Numeric Investors Mid Cap (NIGVX), and N/I Numeric Investors Small Cap Value (NISVX). This will allow the firm to focus on its separate account business. Numeric has separate accounts that employ the same strategies as the funds, but they also run large-cap, market-neutral, and other strategies.
This is a surprise and a real disappointment because the advisor runs some excellent quantitative funds, it has shown itself to be a shareholder-friendly shop, and many of these fund's strongest peers are closed. Also, investors should note that those that hold the funds in taxable accounts may receive significant capital gains distributions as a result of the liquidation. Possible replacements for Growth and Emerging Growth include Bridgeway Small-Cap Growth (BRSGX). For the Mid Cap fund, we suggest Vanguard Strategic Equity (VSEQX), and for the Small Cap Value portfolio, we suggest Bridgeway Small-Cap Value (BRSVX).
Lawrence Jones does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
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