Massive Outflows in June at PIMCO Total Return
New lead managers for 2 Mairs & Power funds, ORIX to buy 90% of Robeco, and Harbor removes Marsico Capital as the subadvisor of Harbor International Growth.
Over the past two-plus weeks, many bond investors have headed for the exits, on the heels of Federal Reserve Bank chairman Ben Bernanke disclosing plans to end quantitative easing.
The news has roiled bond markets, and some of the first flow data that has been released by fixed-income managers show that June was an ugly month for them from a fund-flows perspective.
Among those bond funds feeling major pain is PIMCO Total Return (PTRRX), which is the world's largest bond fund. PIMCO recently informed Morningstar that PIMCO Total Return's preliminary net outflows for June were a whopping $9.9 billion. That's about 3.5% of the $285 billion that the fund had at the end of May. The fund slid 2.6% for the month.
Morningstar will release its June fund flows data in another week. To view May 2013 flows data, go here.
Eyeing Bill Frels' Upcoming Retirement, Mairs & Power Taps Lead Managers for Growth and Balanced Funds
Mairs & Power is preparing for the retirement of longtime portfolio manager Bill Frels more than a year from now, on Dec. 31, 2014 (at age 75). Effective July 1, Mark Henneman is lead manager of Mairs & Power Growth (MPGFX) and Ron Kaliebe is lead manager of Mairs & Power Balanced (MAPOX). Frels is moving to a comanager role on both funds.
Both funds have earned 5-star records under Frels' lead, as well as Morningstar Analyst Ratings of Silver. Frels joined Mairs & Power in 1992 and had been lead manager of the Balanced fund since then. He began comanaging the Growth fund in 1999 with George Mairs III, taking over as lead manager in 2004. Frels and Henneman were named Morningstar's Domestic-Stock Fund Manager of the Year in 2012 for their work on the Growth fund.
These are well-laid transitions: Henneman and Kaliebe have been comanagers of their respective funds since 2006, and Frels will be contributing for another 18 months. This is another example of a culture of strong stewardship that has earned Mairs & Power a Parent rating of Positive from Morningstar's analysts.
ORIX to Purchase 90% of Robeco
Japanese bank ORIX Corporation will purchase 90% of Robeco Groep N.V., the asset-management arm of Dutch bank Rabobank.
Robeco Groep has a heavy imprint on funds managed in the United States. Robeco Boston Partners, a U.S. subsidiary of the asset-management arm, manages $21 billion across seven mutual funds, hedge funds, and separately managed accounts. Harbor Capital Advisors is also a wholly owned subsidiary of Robeco Group.
This sale will mark Robeco Investment Management's second ownership change. Robeco purchased the asset manager in 2002 and changed its name from Boston Partners to Robeco Boston Partners. Harbor Capital Advisors uses a subadvisor model and does not retain in-house investment staff. In both cases, Robeco has historically taken a hands-off approach to its subsidiaries' investment practices. That approach is expected to continue under the new management regime.
Marsico Fired From Harbor International Growth
Harbor International Growth (HAIGX) removed Marsico Capital Management as subadvisor of the fund in May 2013. The fund is now subadvised by Baillie Gifford Overseas and managed by Gerard Callahan, Iain Campbell, and Joseph Faraday.
ING Large Cap Value Gains Comanager
On June 30, Vincent Costa joined the management team of ING Large Cap Value (IEDAX) as a comanager. ING Large Cap Value is now managed by Costa, Robert Kloss, and Christopher Corapi. Also on June 30, Costa stepped down as comanager of ING U.S. Stock Index Portfolio (INGIX) and was replaced by new manager Kai Yee Wong. Wong manages the fund with existing manager Steve Wetter.
John Hancock to Liquidate 2 Funds
John Hancock Funds has announced that on July 31, it will liquidate two tiny funds: the $1.9 million JHancock Leveraged Companies and the $3.5 million JHancock Small Cap Opportunities .
John Hancock Strategic Income Opportunities Comanager Retires
John Iles retired as manager of the $4.1 billion JHancock Strategic Income Opportunities (JIPAX) on July 1, 2013. Iles will assist with the transition until July 31, 2013. Daniel Janis III and Thomas Goggins will remain on the management team.
2 Hartford Diversified International Managers Step Down, 2 Others Sign On
On June 28, Cheryl Duckworth and Theodore Jayne stepped down as comanagers of Hartford Diversified International (HDVAX). At that same time, Gregg Thomas and Tara Connolly Stilwell joined the fund as comanagers.
Manager Changes at Invesco Core Plus Bond
On June 28, John Craddock stepped down as comanager of Invesco Core Plus Bond (ACPSX). That same day, Robert Waldner and Michael Hyman joined the fund as comanagers, alongside existing comanagers Scott Roberts, Darren Hughes, Claudia Calich, and Charles Burge.
Invesco to Merge 2 Funds
Two Invesco funds will be merged in July 2013. Invesco Dynamics will be merged into Invesco Mid Cap Growth and Invesco Municipal Bond will be merged into Invesco Municipal Income (VKMMX).
BlackRock Beefs Up Management of Short Obligation Funds
Richard Mejzak is now a comanager on BlackRock Ultra-Short Obligations , and Eric Hiatt is now a comanager on BlackRock Short Obligations (BBSOX). The funds are now both managed by Mejzak and Hiatt.
Manager Departs Eaton Tax Advantaged Bond Fund
Brian Clouser is no longer a named manager on Eaton Vance Tax Advantaged Bond Strategy Short-Term (EABSX). The fund is now managed by James Evans, Brian Barney, and new manager Devin Cooch.
Invesco Global Quantitative Core Fund to Change Name
Invesco Global Quantitative Core (GTNDX) will change its name to Invesco Global Low Volatility Equity Yield on July 31, 2013.
JPMorgan International Equity Gains Comanager
On July 1, Shane Duffy joined the management team of JPMorgan International Equity (JIERX). The fund is now managed by Duffy, James Fisher, and Thomas Murray.
Senior fund analyst Laura Lallos, fund analysts Josh Charney, Robert Goldsborough, and Kailin Liu, and fund analysis intern Noah Braendel contributed to this report.
Morningstar Fund Analysts does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.