December 2016 IssueLong scroll reading

Manager changes

By Chip

Manager changes come in three varieties: the utterly inconsequential, the individually significant and the broadly worrisome. Inconsequential changes, the vast majority of them, represent the normal tweaking of management teams or the comings-and-goings of competent but undistinguished professionals. Individually significant changes are ones where the manager made a real difference to a fund’s success, and where his or her departure might well disrupt the fund’s prospects. The dismissal of Wellington Management from Voya International Core, for example, substantially changes the fund’s profile and diminishes its short-term attractiveness. Broadly worrisome changes occur when principled managers with distinguished long-term records are dismissed because they’re “out of step” with the market. Quite frequently at the tops of frothy markets, value managers find their services no longer required. GMO famously lost 40% of its assets just before the crash of 2000 vindicated what they’d been doing. This month, the removal of Osterweis Capital Management from Clearwater Core Equity Fund has that sort of feel. Osterweis is famously independent, generally successful and often-enough out of step with relentlessly optimistic markets. Their departure might be more significant as a market indicator than as an indicator of Clearwater’s immediate prospects.

Because bond fund managers, traditionally, had made relatively modest impacts of their funds’ absolute returns, Manager Changes typically highlights changes in equity and hybrid funds.

Ticker Fund Out with the old In with the new Dt
ALATX AB Multi-Manager Alternative Strategies Fund As of the end of the year, CQS, LLC will no longer subadvise the fund. The other subadvisors will remain. 11/16
AABSX AllianzGI Best Styles Emerging Markets Equity Fund No one, but . . . Rohit Ramesh has joined Michael Heldmann in managing the fund. 11/16
AOMAX AlphaOne Small Cap Opportunities Fund Steven Dray is no longer listed as a portfolio manager for the fund. Christopher Crooks and Daniel Goldfarb will continue to manage the fund. 11/16
TWBIX American Century Balanced Fund No one, but . . . Steven Rossi joins Claudia Musat, G. David MacEwen, Robert Gahagan and Brian Howell in managing the fund 11/16
ACPQX American Century Core Equity Plus Fund No one, but . . . Steven Rossi joins Claudia Musat and Scott Wittman in managing the fund 11/16
BEQAX American Century Equity Growth No one, but . . . Steven Rossi joins Claudia Musat in managing the fund 11/16
EFEAX Ashmore Emerging Markets Frontier Equity Fund Bryan D’Aguiar will no longer serve as a portfolio manager for the fund. Felicia Morrow and Andy Brudenell will continue managing the fund. 11/16
BXMDX Blackstone Alternative Multi-Strategy Fund Rail-Splitter Management, LLC will no longer serve as a subadvisor to the fund. The other subadvisors will remain. 11/16
QWVPX Clearwater Core Equity Fund Osterweis has been terminated as a subadvisor to the fund. Given their contrarian philosophy, their dismissal might be a bad sign for the future. The other subadvisors will remain. 11/16
SUWAX Deutsche Core Equity Fund Owen Fitzpatrick, Thomas Hynes and Brendan O’Neill are no longer listed as portfolio managers for the fund. Pankaj Bhatnagar will continue to manage the fund and is joined by Arno Puskar and Di Kumble. 11/16
DRFMX Dreyfus Emerging Markets Fund Gaurav Patankar is no longer listed as a portfolio manager for the fund. Warren Skillman will continue to manage the fund. 11/16
DTMAX Dreyfus Total Emerging Markets Fund Gaurav Patankar is no longer listed as a portfolio manager for the fund. Sean Fitzgibbon, Federico Zamora and Josephine Shea will continue to manage the fund. 11/16
ELASX Emerald Small Cap Value Fund No one, but . . . Richard Giesen and Ori Elan are joined by Steven Russell on the management team. 11/16
EPIAX Epiphany FFV Strategic Income Fund No one, but . . . Daniel Mulvey has been added as a portfolio manager, joining J. Joseph Veranth and Robert Leuty 11/16
FSEAX Fidelity Emerging Asia Colin Chickles will retire at the end of December. John Dance will continue to manage the fund. 11/16
FGLAX Fidelity Global Balanced Fund John Lo, Maria Nikishkova, and Andy Weir no longer serve as co-managers of the fund. Most of the “A” team, Geoff Stein, John Dance, Stephen Dufour, Stefan Lindblad and David Simner will continue to manage the fund. 11/16
FMSLX FMC Select Fund Michael Kelter steps aside after one year Timothy Muccia will continue to manage the fund. 11/16
ITHAX Hartford Capital Appreciation Fund Frank Catrickes will no longer serve as a portfolio manager for the fund. Saul Pannell, Kent Stahl and Gregg Thomas will continue to manage the fund. 11/16
HCTAX Hartford Global Capital Appreciation Fund Frank Catrickes will no longer serve as a portfolio manager for the fund. Michael Carmen, Nicolas Choumenkovitch, David Palmer, Saul Pannell, Kent Stahl and Gregg Thomas will continue to manage the fund. 11/16
JSFBX John Hancock Seaport Fund Michael Carmen will no longer serve as a portfolio manager for the fund. Nicholas Adams, Steven Angeli, John Averill, Robert Deresiewicz, Bruce Glazer, Andrew Heiskell, Mark Lynch, Kirk Mayer, Keith White, Jennifer Berg, Ann Gallo and Jean Hynes will continue to manage the fund. 11/16
Various Nationwide Destination 2010 Fund, Nationwide Destination 2050 Fund, Nationwide Destination 2015 Fund, Nationwide Destination 2055 Fund, Nationwide Destination 2020 Fund, Nationwide Destination 2060 Fund, Nationwide Destination 2025 Fund, Nationwide Investor Destinations Aggressive Fund, Nationwide Destination 2030 Fund, Nationwide Investor Destinations Moderately Aggressive Fund, Nationwide Destination 2035 Fund, Nationwide Investor Destinations Moderate Fund, Nationwide Destination 2040 Fund, Nationwide Investor Destinations Moderately Conservative Fund, Nationwide Destination 2045 Fund, Nationwide Investor Destinations Conservative Fund Benjamin Richer is no longer listed as a portfolio manager for the funds Christopher C. Graham, who has no investment in any of his 16 funds, remains. 11/16
NCLEX Nicholas Limited Edition No one, but . . . Neal Dihora has joined David Nicholas in managing the fund. 11/16
FFEIX Nuveen Dividend Value Fund Effective immediately, Cori B. Johnson is no longer a portfolio manager for the fund. David Chalupnik and Derek Sadowsky will continue to serve as portfolio managers for the fund. 11/16
FRMPX Nuveen Small Cap Growth Opportunities Fund Effective immediately, Robert McDougall is no longer a portfolio manager for the fund. Jon Loth will serve as the sole portfolio manager for the fund. 11/16
FRGWX Nuveen Large Cap Growth Opportunities Fund Effective immediately, Scott Mullinix is no longer a portfolio manager for the fund. David Chalupnik and Harold Goldstein will continue to serve as portfolio managers for the fund. 11/16
FRSLX Nuveen Mid Cap Growth Opportunities Fund Effective immediately, Scott Mullinix is no longer a portfolio manager for the fund. James Diedrich and Harold Goldstein will continue to serve as portfolio managers for  the fund. 11/16
NMKAX Nuveen Multi-Asset Income Fund Effective immediately, Cori B. Johnson is no longer a portfolio manager for the fund. Her tenure with the fund, which launched in September, was only six weeks. The other ten managers continue to manage the fund. 11/16
NMXAX Nuveen Multi-Asset Income Tax-Aware Fund Effective immediately, Cori B. Johnson is no longer a portfolio manager for the fund. The other eight managers continue to manage the fund. 11/16
OHYIX Oaktree High Yield Bond Fund Shannon Ward no longer serves as co-portfolio manager for the fund Sheldon Stone, David Rosenberg and James Turner will continue to serve as the co-portfolio managers. 11/16
MMSCX Praxis Small Cap Fund, which will become the Praxis Small Cap Index Fund on January 1st. Luther King Capital Management will no longer subadvise the fund. Therefore, J. Luther King and Steven Purvis will no longer serve as portfolio managers for the fund. Everence Capital Management will assume the responsibility of day-to-day management, with Dale Snyder listed as portfolio manager. 11/16
PGEAX Putnam Global Energy Fund Greg Kelly will no longer serve as a portfolio manager for the fund. Ryan Kauppila will now manage the fund. 11/16
PPGAX Putnam Global Sector Fund Class Greg Kelly and Kelsey Chen are no longer listed as portfolio managers for the fund. Michael Maguire joins the extensive management team of Sheba Alexander, Isabel Buccellati, Jacquelyne Cavanaugh, Kelsey Chen, Aaron Cooper, Samuel Cox, Neil Desai, Christopher Eitzmann, Vivek Gandhi, Ryan Kauppila, David Morgan, Daniel Schiff, Walter Scully, and Di Yao. 11/16
SLSAX Sterling Capital Long/Short Equity Fund Effective immediately, Russell Lucas will no longer serve as a portfolio manager of the fund. Michael Gregory, Ashton Lee, Derek Pilecki, L. Joshua Wein, James Willis, Charles Frumberg, Brian Agnew and Ward Davis will continue to manage the fund. 11/16
FNAPX Strategic Advisers Small-Mid Cap Multi-Manager Fund D. Kevin McCreesh and Ronald Mushock are no longer listed as portfolio managers for the fund. Menno Vermeulen, Greg Sleight, Puneet Mansharamani, Josef Lakonishok and Guy Lakonishok join Don San Jose, Brian Schaub, Chad Meade, George McCabe, David Daglio and Barry Golden. 11/16
SDRIX Swan Defined Risk No one, but . . . Robert Swan has joined Randy Swan in managing the fund. 11/16
USHYX USAA High Income Fund R. Matthew Freund is no longer a portfolio manager for the fund. Julianne Bass will be joined by John Spear and Kurt Daum in managing the fund. 11/16
USAIX USAA Income Fund R. Matthew Freund is no longer a portfolio manager for the fund. Julianne Bass and Brian Smith will be joined by John Spear and Kurt Daum in managing the fund. 11/16
USIBX USAA Intermediate-Term Bond Fund R. Matthew Freund is no longer a portfolio manager for the fund. Julianne Bass and Brian Smith will be joined by John Spear and Kurt Daum in managing the fund. 11/16
USSBX USAA Short-Term Bond Fund R. Matthew Freund is no longer a portfolio manager for the fund. Julianne Bass and Brian Smith will be joined by John Spear and Kurt Daum in managing the fund. 11/16
IAGEX Voya Global Equity Dividend Fund Kris Hermie will no longer manage the Fund. Nicolas Simar and Bruno Springael will continue to manage the fund. 11/16
IICWX Voya International Core Wellington Management Company will no longer a sub-advise the fund, effective January 20th. PanAgora Asset Management and Voya Investment Management will be the new subadvisors. 11/16
WLCAX Wells Fargo Large Company Value Fund Phocas Financial Corporation will no longer subadvise the fund, effective February 1st. Stephen Block and William Schaff will no longer manage the fund. Analytic Investors, LLC will take over as subadvisor with Dennis Bein, Harindra de Silva and Ryan Brown listed as portfolio managers. 11/16
GVIEX Wilmington Multi-Manager International Fund The Board is making changes to subadvisors and investment strategies. As a result the entire management team has been removed. The new management team is Yoshihide Itagaki, Matthias Born, Toby Hudson, Boris Jurczyk, Toshinori Kobayashi, Caroline Moleux, Kay Möller, Michael Nuske, Thorsten Winkelmann and Isabelle de Gavoty. 11/16
WGERX Winton Global Equity Portfolio Matthew Beddall no longer serves as portfolio manager for the fund. David Harding continues to manage the fund. 11/16
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About Chip

Cheryl Welsch, MBA (Western Governors). Cofounder, technical director. Chip is the lead developer for information technology, virtual reality, and business programs at Eastern Iowa Community Colleges. Chip is responsible for making the Observer actually happen; in cooperation with our graphic designer, she also controls how the Observer looks and acts. She also writes our monthly Manager Changes feature and whittles away at the typofest in our drafts.