Fidelity's Abigail Johnson Takes on Larger Role

Fidelity Investments announced Abigail Johnson has been appointed president of Fidelity Financial Services, making her the second in command of the financial-services giant. In her new role, Johnson will oversee the firm's asset management, retail and institutional brokerage, retirement and benefits services, and other corporate functions. She will continue to report to her father, Edward Johnson III, who remains the company's chief executive officer, and she will remain on the boards of the firm's asset-allocation and fixed-income funds. Previously, she served as Fidelity's president of personal, workplace, and institutional services organization.

The impact of this move is not yet clear. On one hand, the Johnson family will continue to run Fidelity. On the other, Johnson's appointment alters the company's reporting structure. Ronald O'Hanley, president of the firm's asset-management and corporate-services groups, will now report to Abigail Johnson rather than to her father. Fund shareholders, though, won't likely notice any immediate changes. Johnson's ascension didn't coincide with any additional moves in the firm's asset-management division.  

JP Morgan Shutters Fund
JP Morgan will liquidate Undiscovered Managers Behavioral Growth on or around Oct. 31, 2012. The small-cap growth fund was comanaged by Russell Fuller, cofounder of subadvisor Fuller & Thaler Asset Management. The Thaler in the firm's name refers to Richard Thaler, a principal at the firm and a renowned economics and finance professor at The University of Chicago's Booth School of Business. Thaler, whose academic research concentrates on behavioral finance, was active in establishing the firm's investment processes. Indeed, this fund focused in part on small- and mid-cap companies whose upside earnings surprises didn't cause commensurate spikes in prices. The fund, though, had a mixed record and it struggled to attract assets. JP Morgan Undiscovered Managers Behavioral Value (UBVLX), this fund's sibling, isn't suffering a similar fate. 

Putnam Makes Manager Changes
Putnam has named Walter Scully and Karan Sodhi assistant portfolio managers on  Putnam Equity Income (PEYAX) and Putnam International Value (PNGAX), respectively. The moves coincide with Darren Jaroch taking over Equity Income in the wake of longtime manager Bart Geer leaving for a position at BlackRock. Jaroch will continue running both Equity Income and International Value. But the inclusion of Scully and Sodhi as comanagers should help lighten some of his workload.  

Nuveen Merging Funds
Nuveen is seeking shareholder approval to merge Nuveen Large Cap Value into Nuveen Dividend Value (FFEIX) in October 2012. Nuveen Large Cap Value's assets have dwindled to less than $140 million after several years of steady outflows. The move also makes sense as both funds are run by the same management team. Owners of Nuveen Large Cap Value should expect to see fees drop by 5 basis points as a result of the merger.

Guggenheim Alters Fund Mandate
The board of  Guggenheim Managed Futures Strategy (RYMTX) has approved a change to the fund's investment strategy that will allow it to invest 20% of assets in a proprietary strategy designed to find and exploit price trends in the commodity, currency, equity, and fixed-income markets.Guggenheim's head of quant research, Heiko Ebens, is joining the three-person team managing the fund to help with the new strategy.

The company also intends to liquidate Guggenheim Long Short Equity   and Guggenheim All Cap Value , both roughly $2 million funds that it absorbed as part of its recent acquisition of Rydex.

Manning & Napier Set to Launch Funds
Manning & Napier is launching Strategic Income Conservative and Strategic Income Moderate. The two offerings will invest in four existing funds (Core Bond (EXCRX), Dividend Focus (MNDFX), High Yield Bond (MNHYX), Real Estate (MNRIX)) with the goals of income, growth, and risk management. The same senior research group that oversees all of the firm's funds will also oversee these two. Strategic Income Conservative's asset allocation will be 15%-45% stocks and 55%-85% bonds; Moderate's will be 45%-75% stocks and 25%-55% bonds.

Manager Change at Columbia 
Alexander Powers, who has run Columbia Bond (UMMGX) since 1997, announced his plans to retire in January 2013. His comanagers Carl Pappo and Michael Zazzarino remain on the fund, and Pappo will take over lead-management responsibilities when Powers leaves.

Etc.
JP Morgan plans to liquidate JP Morgan Short-Term Bond II in November 2012.

Robert Sinnott, a quant analyst at AlphaSimplex, has joined the three-person team behind  Natixis ASG Managed Futures Strategy (AMFAX).

Tom Nelson has stepped down from comanaging Guinness Atkinson Global Energy (GAGEX). Tim Guinness, Ian Mortimer, and Will Riley remain onboard as comanagers.

William Leung has stepped down from comanaging DWS RREEF Global Real Estate Securities (RRGAX). Chris Robinson will replace him, and the fund's six other comanagers are still in place.

May Yu has joined Morgan Stanley Institutional Asian Equity as a fourth comanager.

Mutual fund analysts Shannon Kirwin and Rob Wherry contributed to this report.