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Morningstar: 11 Biggest Fund Manager Changes of 2016

Morningstar: 11 Biggest Fund Manager Changes of 2016

By    |   Wednesday, 21 December 2016 10:42 AM

Fund manager changes can make a big difference in how its investments perform, and the best managers develop a loyalty among investors.

Morningstar compiled a list of the most significant fund manager changes from this year.

“It’s worth following funds that made manager changes for at least a year or two after the change, to look for signs of how the new managers will run their funds,” writes Russel Kinnel, director of manager research at Morningstar.

If you see one of your funds on this list, you should check out Morningstar’s analysis of the possible negative effect of the manager change.

1. Janus High-Yield (JAHYX) and Janus Flexible Bond (JAFIX): Chief investment officer and lead manager Gibson Smith left Janus. Comanager Darrell Waters took over as lead manager.

2. MFS Global Equity (MWEFX): MFS announced that longtime lead manager David Mannheim will retire in 2017, though the exact date has not been determined. Ryan McAllister joined the fund as a comanager in September 2016. Roger Morley, who has been a comanager since 2009, will remain on board.

3. T. Rowe Price Small-Cap Stock (OTCFX): Greg McCrickard retired in October. He was replaced by Frank Alonso, who has been an associate portfolio manager on the fund since 2013. Alonso has been with T. Rowe Price since 2000.

4. Sequoia (SEQUX) : Bob Goldfarb stepped down as comanager in the wake of the implosion of top holding Valeant Pharmaceuticals (VRX). Sequoia explained that decision-making was too centralized and didn’t give enough room for analyst input.

5. Virtus Emerging Markets Opportunities (HEMZX) and Virtus Foreign Opportunities (JVIAX): Former Morningstar Fund Manager of the Year winner Rajiv Jain left subadvisor Vontobel to set up his own firm. Matthew Benkendorf, who has been at Vontobel for 17 years, took over.

6. MainStay MAP (MUBFX): This fund is run by two subadvisors, and managers from both teams have recently retired. Institutional Capital manager Jerry Senser retired at the same time as Roger Lob from Markston International. No new managers were added to the existing four-manager team from ICAP nor the two-manager team from Markston.

7. Oakmark Global (OAKGX) and Oakmark International (OAKIX): Rob Taylor surprised us by announcing he will retire at age 44. At Oakmark Global, David Herro will take Taylor’s spot alongside Clyde McGregor.

8. USAA Income (USAIX): USAA CIO Matt Freund, who comanaged this fund, left the firm to join Calamos Investments. Comanagers Julianne Bass and Brian Smith remain at the fund, with analyst Kurt Daum promoted to comanager to take Freund’s spot.

9. Fidelity Leveraged Company Stock (FLVCX): Tom Soviero will step down at the end of the year. Mark Notkin will take Soviero’s place. Notkin runs Fidelity Capital & Income (FAGIX), which has a Silver rating.

10. Vanguard Mid Cap Growth (VMGRX): Vanguard replaced subadvisor Chartwell Investment Partners with RS Investments on 50% of this fund. William Blair Investment Management will continue to run the other 50%.

11. T. Rowe Price New America Growth (PRWAX): Dan Martino stepped down to move to T. Rowe’s value team. He was replaced by analyst Justin White.

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Fund manager changes can make a big difference in how its investments perform, and the best managers develop a loyalty among investors.
Morningstar, fund, manager, change
Wednesday, 21 December 2016 10:42 AM
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