Skip to Content
Fund Times

Fund Times: Openings, Closings, & Manager Changes

AXP, Fidelity, Evergreen, Nuveen, and others.

Mentioned: , , , , , , , , ,

American Express Financial's (AXP) existing value mutual funds need help and they may have found it in some proven bargain bloodhounds. The financial firm's AXP fund family plans to inaugurate a new stable of subadvised offerings with proven entities like Chris Davis of Selected American (SLASX) and Martin Whitman of Third Avenue Value (TAVFX) at the helm. Also, Fidelity Investments, which already has five funds specializing in health-care equities, plans to start a new sector fund focusing on drug-company stocks. 

Openings
Investors looking for a good value mutual fund--one that buys stocks that look cheap compared with measures such as earnings, cash flow, or book value--have not had much of a selection at American Express' AXP funds. The family's two existing funds, AXP Equity Value (INEGX) and AXP Diversified Equity-Income (INDZX), have lagged their large-value category peers badly for most of the last decade. But better choices may be on the way, according to filings with the Securities and Exchange Commission. In June American Express will roll out three new value funds run by outside managers whose names have become synonymous with value investing. The funds will be part of a new line of subadvised, broker-sold funds, dubbed AXP Partners Funds, that American Express plans to offer, said Morningstar analyst Bradley Sweeney.

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