Fidelity Sacks Growth Manager, Shuffles Ranks

Steven Calhoun has been dropped as a manager of Fidelity Growth Strategies (FDEGX) after an almost seven-year run of lackluster performance. Under Calhoun, the fund returned an annualized 3.1% through April 24, 2012, versus 6.3% for the Russell Mid Cap Growth Index, and its rolling 36-month returns failed to beat the mid-cap growth peer group 98% of the time.  

Chris Lee, who joined Fidelity in 2004 and has managed Fidelity Select Consumer Finance (FSVLX) since 2009, will replace Calhoun as lead manager. Lee's promotion fits with a larger trend at Fidelity of narrowly focused sector managers jumping to more-diversified offerings. For example, the managers behind Fidelity Select Banking (FSRBX) and Fidelity Select Construction & Housing (FSHOX) were given the nod at Fidelity Trend (FTRNX) and Fidelity Overseas (FOSFX), respectively. Calhoun's two other charges, Fidelity Advisor Growth Strategies  and Fidelity Mid Cap Growth , will now be run by Fidelity's eight-member stock selector mid-cap team.

Fidelity also announced Fidelity Europe (FIEUX) will be managed from the firm's burgeoning London office. Fidelity is replacing the fund's Boston-based manager, Melissa Reilly, with London-based manager, Riesteard Hogan. Hogan does not have a public record managing money. However, he has run a European fund internally for Fidelity and has worked as an analyst at the firm since 2005. Reilly will remain the manager of Fidelity Europe Capital Appreciation . 

In addition, Fidelity is slated to launch the Fidelity Global Equity Income Fund in May. The fund will be run by Ramona Persaud, who recently took over a small slice of Fidelity Equity-Income (FEQIX), focusing on international stocks. The fund launch follows a broader effort by Fidelity to create more options for income-oriented investors, including naming new managers at Fidelity's existing two equity-income funds in October 2011. Industrywide dividend-focused strategies have been regaining popularity in today's low-yield environment. Barring additional new entrants, this will be the 22nd dividend-focused mutual fund to launch in the past 12 months.

Vanguard Cuts Fees
Vanguard announced expense ratio cuts on nearly 40 funds and ETFs this week, including some of its largest and fastest-selling funds.

The cuts average about 2 basis points, or hundredths of a percent, which doesn't seem like much until you consider the Vanguard's already low fee levels. Vanguard Inflation-Protected Securities Investor shares (VIPSX), for example, cut its fees by 9%, to 0.20% from 0.22%. The Admiral share class of the fund dropped expenses to 0.10% from 0.11%. Inflation Protected Securities was Vanguard's seventh-best-selling fund for the year ending in March. It took in $3.9 billion in inflows, or nearly 12% of its asset level of a year ago.

Vanguard's largest index funds, including the Admiral share classes of Vanguard Total Stock Market Index (VTSAX),  Total Bond Market Index (VBTLX), and 500 Index (VFINX), also saw fee reductions. Notably, the fees of the Admiral share class of Vanguard 500 (VFIAX) and the Vanguard S&P 500 ETF (VOO) are now 0.05%, making them the cheapest S&P 500 index funds retail investors can buy.

Vanguard has dominated fund flows recently. In the year ending March 31 it gathered more than $68 billion in inflows, according to Morningstar estimates. At the start of the year it reported that it had nearly $1.8 trillion under management. That allows the family to pass economies of scale on to investors in the form of lower fees.

For a list of the other Vanguard funds in this batch of fee cuts, click here.

Former Manager Back With Meridian Funds
Aster Investment Management, the advisor for the Meridian Funds, is reuniting with Larry Cordisco, one of its former portfolio managers. The firm announced that as of April 23, 2012, Cordisco is a comanager of Meridian Growth (MERDX). Cordisco previously comanaged Meridian Value (MVALX) from early 2004 until he left the firm late last year. The hiring is part of a broader transition at the firm in the wake of the death of its founder Rick Aster, who passed away earlier this year. Aster was a key manager on Meridian Growth, along with comanager William Tao (who remains in place). Hiring ex-employees is a trend at the firm: It also recently announced former portfolio manager Kevin O'Boyle returned in a wide-ranging research capacity. While these additions don't completely fill the void left by Aster's death, they make sense: Cordisco can hit the ground running since he knows the strategy and the corporate culture. Meanwhile, the funds' board of directors is readying a shareholder vote on whether to retain Aster Investment Management as the advisor going forward. That vote should happen in June 2012. 

Another Marsico Manager Heads for the Door
Charlie Wilson, who joined Marsico in 2006 and became comanager of Marsico Emerging Markets  in 2010, has left the firm. Comanagers Munish Malhotra and Josh Rubin remain, but Wilson's departure continues a worrisome trend. Former manager Cory Gilchrist left in September 2011. He managed two of the firm's seven offerings: Marsico 21st Century (MXXIX) and Marsico Global (MGLBX). Also, seven analysts who joined Marsico between 2003 and 2008 have left the firm since 2010. Four new analysts came on board last year, but only one had previous investment experience.

The firm's troubles attracting and retaining talented investors coincides with financial woes. Firm founder Tom Marsico bought his firm back from Bank of America (BAC) in a highly leveraged deal in 2007, just before the 2008 market meltdown and investor outflows depleted  the firm's asset base. (The firm restructured its debt in 2010.) Wilson's departure, plus the lack of replacements for all departed team members, underscores that concern.

DWS Subadvisor Swaps Managers
DWS Core Fixed Income  has changed managers yet again. In 2009, parent firm Deutsche Bank (DB) replaced the fund's managers--who had stumbled with a bet on commercial mortgages--with DB Advisors, an institutional management team. In 2012, the fund dropped DB Advisors and brought on subadvisor Fischer Francis Trees & Watts, with David Marmon serving as the lone manager. On April 30, Marmon will be removed as manager, making way for comanagers Ken O'Donnell and Gary Chan, also of Fischer Francis Trees & Watts.

Etc.
Just weeks after standout manager Dave Iben announced his departure from Tradewinds Global Investors, Columbia removed Tradewinds as a subadvisor to Columbia Multi-Advisor International Value . Dimensional Fund Advisors and Mondrian Investment Partners remain as subadvisors.

Frank Felicelli is no longer a manager at Franklin Equity Income (FISEX). Felicelli had served as a manager since the fund's inception in 1988, though his role was reduced when current comanagers Alan Muschott and Ed Perks joined the fund in 2005. Muschott and Perks remain at the helm, supported by comanager Matt Quinlin, who joined the fund in 2011.

Ivy International Balanced  will change its name to Ivy Global Income Allocation effective June 4.

The Columbia Retirement Plus target-date series funds are expected to liquidate on April 27. Columbia's board of trustees approved a proposal to liquidate the eight-fund series, whose largest offerings by assets are Columbia Retirement Plus 2025  and Columbia Retirement Plus 2030 .

Legg Mason filed to launch a go-anywhere bond fund in July 2012. The fund, Legg Mason BW Global High Yield, will be run by a team of managers, including Brian Kloss, Regina Borromeo, and Gary Herbert. Herbert comanaged Morgan Stanley Global Infrastructure  from 2002 to 2004.

John Hancock filed to launch the Fundamental Global Franchise Fund in June. Current  John Hancock Large Cap Equity (TAGRX) managers Walter McCormick and Emory Sanders Jr. will comanage the new offering. At least 40% of the portfolio will comprise international securities, according the preliminary prospectus.