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Fund Times

Vanguard GNMA Changes Managers

Plus, Supreme Court to hear Janus case, AXA Rosenberg update, and more

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Michael Garrett of Wellington Management Company, who rejoined the team running Morningstar Analyst Pick  Vanguard GNMA (VFIIX) a month or so ago, has been named sole manager. Garrett is a familiar face to shareholders and has contributed to the fund's strong long-term record. He'd served as comanager with the departing Thomas Pappas from 2006-09 and worked on the fund for more than 10 years before leaving to run the Federal Reserve's agency mortgage purchase program for Wellington. A Vanguard spokesperson said Pappas has decided to leave the firm at year-end.

Supreme Court to Hear Janus Case
Earlier this week, the United States Supreme Court announced it would review a federal appeals court ruling that allowed shareholders to file a class-action lawsuit against Janus Capital Group. The lawsuit, filed in 2003 by First Derivatives Traders, alleged that Janus and other fund companies allowed certain clients to engage in market-timing, a practice that involves making rapid short-term trades at the expense of other shareholders. The suit was filed on behalf of Janus' equity shareholders, not investors in the Janus mutual funds (the latter have already been compensated by Janus for damages from market-timing). The Supreme Court will consider the case during its next term, which begins in October.

Courtney Goethals Dobrow does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.