PGIM hires and fires subadvisor
PGIM Investments has dropped Wellington Management as a subadvisor of the $180.4 million Prudential Financial Services fund, in favor of one of its own subsidiaries, according to a Securities and Exchange Commission (SEC) filing.
Wellington was the sole subadvisor with Mark Lynch in charge of day-to-day management of the fund but it will be replaced by Prudential subsidiary Jennison Associates, effective November 1 2017.
The fund will also shift its strategy away from investing in global financials towards investing in domestic financials and will change its name to the Prudential Jennison Financial Services fund.
Its benchmark will also change from the MSCI World Financial Index to the S&P Composite 1500 Financial index.
The Prudential Financial Services fund has trailed its peers pretty significantly and is ranked last out of five Global Financial Services funds by Citywire for three-year total returns to the end of August. Over that time was down 6.2% compared to the average Global Financial Services fund which was up 16.7%.
BlackRock drop science
BlackRock is to revamp the $516.3 million BlackRock Science & Technology Opportunities fund at the end of the year.
The fund which is managed by AA-rated Tony Kim is changing its name to the BlackRock Technologies Opportunities fund.
It is also changing its benchmark from the MSCI World Information Technology index to the MSCI All-Country World Information Technology index.
Where the fund currently invests 80% of assets in science and technology companies, it will now invest up to 80% of assets in solely technology companies.
To reflect the move away from science-based securities that have less of an emphasis on technology, the fund will no longer target industries like pharmaceuticals, healthcare distribution and services, specialty chemicals and industrial gases.
The fund has performed well and is ranked fourth out of 36 Science & Technology funds tracked by Citywire for three-year total returns to the end of August. Over that time it returned 68.5% compared to the average Science & Technology fund which was up 48.1%.
Invesco plots low vol fund
Invesco is planning to launch the Invesco US Managed Volatility fund, according to a SEC filing.
It will have an annual management fee of 10 basis points.
The fund will invest 80% of assets in equities and derivatives with a volatility management overlay which sells short exchange-traded futures contracts when market volatility is high.
The firm has also filed to launch 12 target date funds for every five years ranging from 2015 to 2065.
The fund range will be managed by Nguyen and Borbidge.