MassMutual drops shops in merger
MassMutual is to merge the $195 million MassMutual Select Large Cap Value fund into the $247.9 million MassMutual Select Diversified Value fund, according to a Securities and Exchange Commission (SEC) filing.
MassMutual said that the merger would offer shareholders of the Select Large Cap Value fund the opportunity to continue to invest in a larger mutual fund that provides a similar investment program at a lower cost, without recognizing capital gain or loss as a direct result of the transaction.
As of September 30, the Select Large Cap Value fund had a management fee of 0.60% and the Select Diversified Value fund had a management fee of 0.50%. Following the merger, the firm expects the combined fund to have a management fee rate of 0.50%.
The Select Large Cap Value fund is subadvised by Barrow Hanley Mewhinney & Strauss (BHMS) and Huber Capital Management. The portfolio managers on the fund are Huber's Joseph R. Huber as well as BHMS' Ray Nixon, Brian F. Quinn and R. Lewis Ropp.
It has returned 25% over the past three years until the end of October and ranks 42 out of 93 Multi-Cap Value funds tracked by Citywire.
The Select Diversified Value fund is subadvised by Brandywine Global Investment Management and T. Rowe Price. The portfolio managers on the fund consist of Brandywine's Citywire A-rated Joseph J. Kirby, Henry F. Otto and Steven M. Tonkovich as well as Citywire A-rated T. Rowe manager John D. Linehan.
It has returned 27.6% over the past three years until the end of October and ranks 35 out of 101 Large-Cap Value funds tracked by Citywire.
Following the merger Brandywine Global Investment Management and T. Rowe Price will continue to subadvise the strategy.
HSBC veteran finds new frontier
The Citywire A-rated manager joined HSBC in 2012, having previously worked at EMSO Partners, Morley Fund Management, now Aviva Investors, and Morgan Grenfell Asset Management, now Deutsche Asset Management. In all these roles he specialized in emerging market equities.
Following Turner’s exit, the HSBC Frontier Markets fund will be run by existing lead manager Ramzi Sidani alongside Talib Saifee.
There will be no change to the fund’s investment process and the managers will be supported by a team of 12 investment professionals and 50 experts in regional offices, according to a spokesman for HSBC.
Citywire AA-rated Brudenell now runs the Ashmore Emerging Markets Frontier Equity fund.
Over five year’s Turner ranks third out of 318 managers tracked by Citywire in the Equity – Emerging Markets category, with 62.7% total returns, well ahead of the category average’s 26.7%. His old boss Brudenell ranks second over this period.
Russell runs its winner
Existing shareholders and new investors will be able to purchase shares of the US large cap equity fund through the close of business on April 25 2018.
Managed by James Barber and Kevin Divney, the Large Cap Equity fund has returned 31.4% over the past three years until the end of October and ranks 76 out of 184 Large-Cap Core funds tracked by Citywire.
The Multifactor US Equity fund is also managed by Berber and Divney but it has outperformed the former by returning 36.3% during the same period. It is ranked 28 out of the 184 funds tracked by Citywire in the Large-Cap Core category.
The Large Cap Equity fund is subadvised by a roster of managers consisting of TCW Investment Management, Ceredex Value Advisors, Jacobs Levy Equity Management, Sustainable Growth Advisers and William Blair Investment Management. It is unclear whether they will stay on or be removed from the fund upon completion of the merger.
The Multifactor US Equity fund has no subadvisors.
A Russell spokesman did not return requests for comment at the time of publication.