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Leuthold to Merge Asset Allocation Fund Into Core Fund

The manager of Leuthold Asset Allocation, which has been reeling from outflows, has left the firm, prompting the merger. Also, AllianceBernstein changes named managers in its target-date series and target-risk suite, ING swaps out managers on its asset-allocation team supporting multiasset funds, and American Funds is set to launch an emerging-markets fund.

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The lead manager of Neutral-rated  Leuthold Asset Allocation (LAALX), Eric Weigel, has left the firm. The fund will be merged into Bronze-rated flagship offering  Leuthold Core Investment (LCORX). Weigel was just installed as lead manager in December 2012, and he had put a new strategy in place there to further differentiate the fund from Core Investment; the two had previously used the same asset allocation approach but constructed their equity portfolios differently. However, the firm found that investors in Asset Allocation wanted it to more closely resemble Core (which had been closed to all new investments when Asset Allocation was launched in 2006). As both funds have shrunk substantially in size recently due to outflows amid weak performance, the firm decided to merge the two. The merger is expected to take place by the end of October.

AllianceBernstein Swaps Out Managers of Target-Date Series, Target-Risk Suite
 AllianceBernstein (AB) has restructured its multiasset investment team, leading to changes in the named managers of its target-date series, AllianceBernstein Retirement Strategies, as well as its target-risk suite, AllianceBernstein Wealth Strategies. The target-date series has one of the worst long-term records among peers and has a Morningstar Analyst Rating of Negative.

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