Fidelity is reducing its management fees on three active bond ETFs, according to a Securities and Exchange Commission (SEC) filing.
Effective April 1, the Fidelity Corporate Bond ETF (FCOR), Fidelity Limited Term Bond ETF (FLTB) and Fidelity Total Bond ETF (FBND) will reduce fees from 0.45% to 0.36%.
Launched in 2014, the actively managed fixed income ETFs’ reduction will bring net expense ratios closer to the asset class median of 0.30%, according to Fidelity’s website.
The Fidelity Total Bond ETF (FBND) is the largest in terms of assets at $373.4 million, and is managed by Citywire A-rated, Michael Foggin, Citywire AA-rated Ford O'Neil, Michael Plage, Celso Munoz and Michael Weaver.
Prothro also manages the $173.2 million Fidelity Limited Term Bond ETF (FLTB) alongside Robert Galusza.
A spokesperson for Fidelity could not be reached for comment at the time of publication.
Lord Abbett to merge fund of funds
According to a document filed with the SEC, shareholders of the Lord Abbett Multi-Asset Focused Growth fund will be asked to vote on approval of the merger on June 28.
Both funds are fund of funds, which invest in other Lord Abbett mutual funds.
The funds are both managed by Giulio Martini and Citywire A-rated Robert Lee. The Lord Abbett Multi-Asset Focused Growth fund has an annual expense ratio of 137 basis points (bps) and the acquiring fund, the Lord Abbett Multi-Asset Growth fund, has a lower annual expense ratio of 127 bps.
The two funds' positioning is also different. For example, as of the end of February, the largest holding of the Lord Abbett Multi-Asset Focused Growth fund was the $3.3 billion Lord Abbett Growth Leaders fund at 27.8%, while the largest holding of the Lord Abbett Multi-Asset Growth fund was the $6.7 billion Lord Abbett High Yield fund.
A spokesman from Lord Abbett declined to comment.
PGIM to launch tech fund
PGIM Investments is to launch a technology fund, managed by its subsidiary Jennison Associates, according to a document filed with the SEC.
The PGIM Jennison Technology fund is slated for launch in June and is to be managed by Erika Klauer and Nicolas Rubinstein.
Both managers have been with Jennison for nearly 20 years. Klauer joined the firm in July 2001 and Rubinstein joined in 1997.
The fund is to have an annual management fee of 75 bps and will invest at least 80% of asset in the information technology sector and technology-related companies in other sectors.
Jennison Associates had $175.4 billion assets under management as of the end of 2017 and is one of eight investment management firms owned by PGIM. It specializes in fundamental research-based investments and offers both equity and fixed income strategies.
A PGIM spokeswoman declined to comment.
GMO cutting climate fund fee
Boston-based Grantham, Mayo, Van Otterloo & Co (GMO) is to extend a management fee reduction on the GMO Climate Change fund by a further six months.
The fund's management fee is currently reduced by 15 basis points to 0.45%, a cut that was set to expire on June 30.
This reduced fee will now stay in place for a further six months, until December 31.
The long-only global equity strategy, which invests in companies focused on climate change mitigation and adaptation, has $31.7 million in assets as of March 29, according to Morningstar.
A spokesman for GMO could not be reached at the time of publication.