Funds Shedding Assets at an Alarming Pace
A look at some funds that have lost more than half of their assets in the past year.
It's no secret that actively managed equity funds have been besieged by outflows for the past few years. This trend has hit several funds harder than others: They've lost more than half of their assets in the past 12 months alone. Outflows can raise trading costs by forcing managers to sell stocks they don't want to and it can distract them from finding new ideas. Here's a look at some funds that have seen 50% or more of their assets flee in the past year.
Artio Global Investors' flagship international offerings, Artio International Equity (BJBIX) and Artio International Equity II (JETAX), have seen their combined asset base shrink from $35.0 billion at the end of 2007 to roughly $3.1 billion as of Oct. 31, 2012. In just the past 12 months, International Equity and International Equity II have suffered respective outflows of 63% and 76% of their assets. A prolonged slump following 2008's downturn has been the cause of those redemptions. Since the beginning of 2009 through Oct. 31, International Equity and International Equity II have lagged the foreign large-blend category average by a cumulative 28.78% and 25.06%, respectively. The funds' three- and five-year trailing returns land in the bottom decile, and 10-year trailing returns for the older International Equity are middling.
Michelle Canavan Ward, CFA does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.