Veteran Capital Group PM to retire
Veteran Capital Group portfolio manager Ronald Morrow is retiring after 20 years with the firm and nearly 50 years of industry experience.
As a result Morrow is to leave his post as a manager on the $94.8 billion American Funds Fundamental Investors fund.
The fund will continue to be managed by Gregory Johnson, Mark Casey, Martin Romo, Brady Enright, Michael Kerr and Dina Perry.
Morrow was also a manager on the $174.5 billion American Funds Growth Fund of America, which he stepped down from in November.
That fund continues to be managed by 12 other managers including Kerr, Romo and Casey.
Morrow joined Capital Group in 1997 as an equity investment analyst covering US small and mid-cap companies, particularly in the food, beverage and tobacco industries. Prior to joining Capital Group, he was head of capital markets at Rodman & Renshaw.
A spokesman for Capital Group said: 'After 20 years at Capital Group and 49 years in the industry, Ronald Morrow will be retiring at the end of the year. The firm’s multi-manager approach... provides a significant level of continuity for Capital Group’s investment strategies during times of transition.'
Ivy to merge two funds
Ivy Investments is proposing to merge the $907.4 million Ivy Dividend Opportunities fund into the $302.3 million Ivy Global Equity Income fund, according to a Securities and Exchange Commission (SEC) filing.
A vote on the merger is set for February 1. If approved, it will be effective February 26.
The principal investment strategies of the two funds are similar, with both investing primarily in large-cap companies. However, the Dividend Opportunities fund had limited growth opportunities, poor performance and somewhat duplicated other products in the Ivy fund complex, according to the filing.
The reorganization will not result in higher investment management fees or higher fund expenses for shareholders.
The current fee on the Dividend Opportunities fund and the Global Equity Income fund is 0.70%. After the reorganization, the fee on the Global Equity Income fund will be 0.69% due to the combination of the two funds’ assets.
Managed by Christopher J. Parker, the Ivy Dividend Opportunities fund has returned 19% over the past three years to the end of October and ranks 103 out of 127 Equity Income funds tracked by Citywire.
The Ivy Global Equity Income fund is managed by Robert E. Nightingale. The existing portfolio managers of both funds will serve as co-portfolio managers of the combined fund.
Davis plots another active ETC
Davis Advisors is to launch the Davis Select International exchange-traded fund (ETF), according to an SEC filing.
The launch is slated for February 28. The fund will charge a 0.55% management fee and be managed by Citywire A-rated Danton Goei.
While the mutual fund version of the ETF, the $200.1 million Davis International fund also managed by Goei, has the same management fee as the ETF, it charges a 1.04% total annual operating expense, compared to the ETF which charges a 0.75% total annual operating expense after fee waivers and reimbursements.
The actively-managed fund will utilize the Davis investment discipline which emphasizes individual stock selection and evaluation of management.
It will invest in shares in companies in developed and emerging markets across the market cap spectrum.
It will essentially follow the same strategy as the Davis International fund.
A 60-year old traditional active shop, Davis Advisors launched its first three actively-managed ETFs in January of this year, which all follow strategies available in existing Davis mutual funds. The ETFs are:
- Davis Select US Equity ETF
- Davis Select Financial ETF
- Davis Select Worldwide ETF
Davis had over $25 billion in assets in ETFs, mutual funds, separately managed accounts, variable annuities and offshore funds as of December 31, 2016.