Supreme Court Knocks PIMCO

The Supreme Court has rebuffed bond giant PIMCO, allowing a $600 million class-action lawsuit to proceed. In doing so, the court affirmed an earlier ruling by Judge Richard A. Posner of the Seventh U.S. Circuit Court of Appeals. The lawsuit, filed by Richard Hershey and Breakwater Trading LLC in 2005, alleges that PIMCO manipulated the price of 10-year Treasury notes on the Chicago Board of Trade.

Fidelity Asia Managers Fired and Another One Replaced
Following an investigation into a breach of the firm's code of ethics, Fidelity fired Wilson Wong and Kevin Chang, former managers of  Fidelity China Region (FHKCX) and Fidelity Advisor Emerging Asia  (FEAAX). The two were suspended when the investigation began mid-January, and at that time, Fidelity announced two manager changes. Joseph Tse, the original and longtime manager of Fidelity China Region, returned for a second tour of duty. Colin Chickles took over Fidelity Advisor Emerging Asia.

The firm indicated that the ethics breach had no negative impact on its clients' funds, though the Financial Times reported that Wong and Chang's use of personal trading accounts sparked the investigation.

Wong did a reasonable job on Fidelity China Region throughout the roller-coaster ride that followed his 2007 start. That said, fundholders had to endure three manager changes, excluding Tse's recent return, since January 2005. Chang's five-plus-year record on Fidelity Advisor Emerging Asia was more impressive and bested most Pacific/Asia ex-Japan funds during that time frame.

The good news for Fidelity China Region fundholders is that Tse is one of the more experienced Asian equity managers. Chickles has less experience running funds. He ran Fidelity Series Emerging Markets fund from January 2008 through August 2009, and in October 2009, he replaced Jess Tan on  Fidelity Southeast Asia (FSEAX), which has a broader regional focus than his newest charge. Still, he has more than a decade of experience as an emerging-markets analyst and will draw from more than 15 Hong Kong-based analysts.

Separately, Fidelity announced that as of March 8, Chris Sharpe (comanager of the Fidelity Freedom funds) and Geoff Stein (manager of the Fidelity Asset Manager funds) will take over  Fidelity Advisor Dynamic Capital Appreciation  from Fergus Shiel. Shiel has managed the fund since 2005. The fund will stay mostly sector-neutral and delegate security selection to the major Fidelity Select sector-fund managers and analysts. This is a significant departure from Shiel's eclectic approach.

Goodbye to Tax-Exempt Bonds?
The Bond Buyer reported this week on legislation proposed by Senators Ron Wyden, D-Ore., and Judd Gregg, R-N.H., that would do away with tax-exempt bonds. The bill also would turn state and local bonds' tax exemption into a tax credit and eliminate advance refunding. Wyden was the original sponsor of the legislation that led to the Build America bonds.

First Eagle Appoints New CEO
This week, First Eagle Investment Management named Bridget A. Macaskill president and chief executive officer. John Arnhold is now chief investment officer and remains chairman. Macaskill, who has been at First Eagle for a little more than a year, earlier served as CEO of Oppenheimer Funds. She is currently a trustee and on the investment committee for the TIAA-CREF funds.

Neuberger Berman Announces New CFO
Asset manager Neuberger Berman announced today that William A. Arnold has been named chief financial officer of the firm, effective early next month. Arnold arrives at Neuberger Berman from Citigroup, where he'd held roles including chief financial officer for the global investment management business.

Eaton Vance Names New Muni Co-Director
Eaton Vance has named Thomas M. Metzold co-director of municipal investments. He replaces Bob MacIntosh, who left the firm after 19 years to pursue other interests. Metzold joins Cynthia J. Clemson, who has been co-director of municipal investments since November 2005. Metzold will remain at the helm of  Eaton Vance National Municipal Income (EANAX), and he and Clemson will continue to comanage  Eaton Vance High-Yield Municipals Income (ETHYX).

John Hancock Registers New Target-Date Series
John Hancock recently filed with the SEC to launch a new target-date series called the John Hancock Retirement Portfolios. The new series joins the firm's existing Lifecycle Portfolios. Its glide path will likely be more conservative than the Lifecycle Portfolios'.

Mutual Series Veteran Launches Two New Funds
Evermore Global Advisors, LLC, launched two new funds--Evermore Global Value (EVGBX) and Evermore European Value . Both will be managed by David Marcus, who managed Analyst Pick  Mutual European (TEMIX) and comanaged  Mutual Shares (TESIX) and Mutual Discovery in the late 1990s. Marcus is co-founder, CEO, and CIO of Evermore Global Advisors.

Etc.
This week, TCW announced the completion of its purchase of Metropolitan West Asset Management.

On Feb. 19, Michael D. Petroff, a member of the team that manages  Heartland Value Plus (HRVIX), resigned from the fund and Heartland Advisors Inc., to pursue other interests. Bradford A. Evans and Adam J. Peck will continue to manage the fund, and the firm doesn't have plans to replace Petroff.

Wells Fargo has released the list of more than 20 Evergreen funds it plans to merge into Wells Fargo Advantage funds. Evergreen shareholders can click here to learn the specifics of the proposed mergers.

Turner is liquidating Turner Midcap Equity (  and ) on April 30. It appears the fund never got off the ground, having accumulated only $2 million in assets since its January 2007 inception.

John Hancock Strategic Income Opportunities (JIPAX), which is run by the team at  John Hancock Strategic Income (JHFIX) (Dan Janis, Jack Iles, Barry Evans, and Thomas Goggins), has launched. The new funds will have more exposure to foreign currencies and overseas sovereign and corporate bonds. It also can invest in preferred stock.

RiverSource Partners Small Cap Value  replaced subadvisor Federated MDTA with Turner Investment Partners. Turner joins subadvisors Barrow, Hanley, Mewhinney & Strauss; Donald Smith & Co.; and Metropolitan West Capital Management.

Baron has dropped its 1% redemption fee for holding shares less than six months.

Following Morgan Stanley's sale of Van Kampen to Invesco, Van Kampen funds will add Invesco to the beginning of each fund name. For example, Van Kampen Limited Duration  will become Invesco Van Kampen Limited Duration.

Michael Smith joined Thomas Pence and Michael Harris as comanagers of Wells Fargo Advantage Endeavor Select  (STAEX).

Monte Avery, Shannon Radke, and Robert Walstad replaced Robert Loest as portfolio managers of Integrity Williston Basin/Mid-North America Stock (ICPAX).

Bruce Speca, Bob Boyda, and Steve Medina replaced Steve Orlich as portfolio manager of John Hancock Alternative Asset Allocator (JAAAX).

Adam Weigold replaced Robert MacIntosh as portfolio manager of Eaton Vance New Jersey Municipals Income  (ETNJX).

OFI Institutional Management is no longer a subadvisor of  USAA Income Stock (USISX). The two other subadvisors, Grantham, Mayo, Van Otterloo and Co. and Epoch Investment Partners, will continue to manage the fund. Epoch came on board in January of this year.

Pending shareholder approval, CNL Global Real Estate  will merge into the newly created American Beacon Global Real Estate.

Fund analysts Karin Anderson, Josh Charlson, David Falkof, and Jonathan Rahbar contributed to this column.