Edward Jones has dropped Janus Capital in favor of rival Pimco as a subadvisor on the $6 billion Bridge Builder Core Plus Bond fund.
Pimco's Alfred Murata and Daniel Ivascyn will now be co-managers on the fund alongside PMs from other subadvisors Loomis Sayles, MetWest and T. Rowe Price, according to a filing with the Securities and Exchange Commission.
Launched on July 13 2015 the fund is up 2.43% since inception, narrowly lagging its benchmark, the Bloomberg Barclays Capital US Aggregate Bond index, which is up 2.48% over the same period.
Pimco and Janus declined to comment.
A spokesman for Edward Jones confirmed the contents of the filing but declined to comment further.
To find out more about how Edward Jones picks portfolio managers, click here.
Pimco liquidates smart beta fund
Separately, Pimco has liquidated one of its smart beta offerings, the Pimco RAE Worldwide Fundamental Advantage PLUS fund.
The fund, which is subadvised by Rob Arnott’s Research Affiliates, was once as large as $4.2 billion, but assets had fallen to $316 million at the end of March.
Over three years the fund ranked 23 out of 26 strategies on offer in the Citywire Liquid Alternative – Market Neutral category, returning -2.2% versus the sector average of 2.5%.
Shorter term performance has been stronger, however. Over one year it ranked 10 out of 33 funds, returning 5.6% over 12 months, versus the average which was up 1.6%.
‘We constantly review our suite of strategies and may liquidate a fund from time to time if we feel it no longer serves our clients’ needs. We are committed to RAE and will be expanding our RA relationship in equities,’ said a Pimco spokeswoman.
Fahmi and Mariappa are managing directors of Pimco.
Arnott is the chairman and founder of Research Affiliates and is known as the ‘godfather of smart beta’, although he has recently been critical of the term's misuse and mistakes made by investors using factors.
Pimco and Research Affiliates have collaborated for more than a decade on a number of funds. In January the former filed to launch a series of factor-based exchange-traded funds (ETFs) which will follow new single and multi-factor indices created by Arnott's shop.
These are the:
- PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF;
- PIMCO RAFI Dynamic Multi-Factor International Equity ETF;
- and the PIMCO RAFI Dynamic Multi-Factor US Equity ETF.