Updates

Jason Gottlieb becomes Artisan’s new CEO on June 4, 2025. He’s not a new import. Mr. Gottlieb has been the president of Artisan Partners since 2021. He joined the firm first in October 2016, prior to which he led Goldman Sachs’ Alternative Investment and Manager Selection Groups and was a portfolio manager on Goldman Sachs Multi-Manager Alternatives Fund. Artisan’s superpower has been its ability to identify and attract superstar management teams from elsewhere; the term they once used was “category killers.” Over the past five years, it’s reported that Mr. Gottlieb has had 1600 conversations with managers who might aspire to be Artisan Partners. While not all new partners manage mutual funds for the firm, you get a sense of their selectivity when you look at the ratio of conversations to fund launches over the past five years. 1600 conversations, five launches.

Eric Colson, Mr. Gottlieb’s predecessor, will become chair of Artisan’s Board of Governors.

Paul Headley is returning as CEO of Matthews Asia. Mr. Headley was one of the Matthews Asia co-founders, along with Paul Matthews, in 1991. The firm was, for decades, distinguished as the most successful, risk-conscious adviser in Asian equities. Its funds were legendary for steadiness and for a willingness to close tight and early in order to protect the interests of their shareholders. In 2022, Matthews appointed Cooper Abbott as their CEO. Mr. Abbott had been president and chair of Carillon Tower Advisors, a firm which had absorbed the Scout Funds and Reams Asset Management, for the preceding 18 years. It was not a fruitful partnership. William Samuel Rocco highlighted the challenges facing Mr. Headley:

Matthews International Capital Management’s Parent rating drops to Below Average from Average, owing to yet more personnel changes, a deep slide in assets under management, and other issues.

The firm has suffered from extreme personnel turnover throughout the 2020s, and it has lost 15 members of its investment team during the past two years, including a former CIO/portfolio manager and other key individuals. … Most of the firm’s strategies have posted mixed, or worse, returns in recent years, and investors have pulled assets away. And with just USD 6 billion of AUM in April 2025, the firm is only around half the size it was in mid-2023 and one fifth the size it was at its peak in the late 2010s. (05/27/2025)

The firm’s assets and the size of its investment staff have fallen in tandem: Matthews has less than half the talent and less than half the assets they had prior to Mr. Cooper’s ascendance.

We’ve been working with the folks at Matthews to find time to talk with Mr. Headley sometime in the first week or so of June, and we’ll surely share what we learn.

Briefly Noted . . .

Small Wins for Investors

Wisconsin Capital Funds is converting its Class A shares to investor shares for its Plumb Balanced and Plumb Equity Funds. The conversions are expected to occur after the close of business on June 27, 2025. The expense amounts will be the same for the investor class as the A share class counterparts, minus the front-end load. The initial minimum investment will be $2,500.00 for the investor share class compared to $250.00 for the A share class.

Launches and Conversions

The Emerald Insights and Emerald Financial and Banking Innovation funds are being reorganized into an ETF and another open-ended fund, respectively. The Emerald Insights fund will be reorganized into the F/m Emerald Special Situations ETF; the Emerald Financial and Banking Innovation fund will be reorganized into the Emerald Banking & Finance Evolution Fund. A shareholder meeting will be held on July 29. If approved, the reorganizations will occur on or about August 1.

Franklin Multisector Income ETF is in registration. The fund will invest in a diversified portfolio of U.S. and foreign debt securities across multiple fixed income sectors. The portfolio managers will be Albert Chan, CFA, Benjamin Cryer, CFA, Patrick Klein, Ph.D., Thomas Runkel, CFA, Michael V. Salm, and Matthew J. Walkup. Total annual fund operating expenses are projected to be 0.39%.

Franklin Templeton has approved the conversion of the following Putnam funds into ETFs:

• Putnam California Tax Exempt Income fund
• Putnam Massachusetts Tax Exempt Income fund
• Putnam Minnesota Tax Exempt Income fund
• Putnam New Jersey Tax Exempt Income fund
• Putnam New York Tax Exempt Income fund
• Putnam Ohio Tax Exempt Income fund
• Putnam Pennsylvania Tax Exempt Income fund
• Putnam Short-Term Municipal Income fund
• Putnam Tax-Exempt Income fund and Putnam Tax Free High Yield fund

Franklin Advisers believes that the reorganization will provide multiple benefits for shareholders of the mutual funds, including lower net expenses, additional trading flexibility with respect to fund shares, and increased portfolio holdings transparency.

Invesco has begun offering three new active exchange-traded funds (ETFs). The Invesco QQQ Hedged Advantage ETF (QQHG), the Invesco Comstock Contrarian Equity ETF (CSTK), and the Invesco Managed Futures Strategy ETF (IMF) will each feature veteran Invesco PM teams.

• Invesco QQQ Hedged Advantage (QQHG) is led by Peter Hubbard, John Burrello, Chris Devine, and Scott Hixon. It will have a 0.45% expense ratio. QQHG attempts to replicate the performance of the Nasdaq-100 Index while also employing an ‘option overlay strategy’ to hedge against volatility and downside risk. 
• Invesco Comstock Contrarian (CSTK) is led by Devin Armstrong, CFA, and Kevin Holt, CFA; it will have an expense ratio of 0.35%. CSTK aims for the total return through capital growth and income, with our portfolio managers focusing on discrepancies between stock prices and company values.
• Invesco Managed Futures (IMF0 is managed by John Burrello, Chris Devine, and Scott Hixon and will have a 0.65% expense ratio. IMF employs a futures strategy that takes both long and short positions across a variety of global markets and asset classes, seeking long-term capital appreciation with low correlation to traditional markets. 

JPMorgan Unconstrained Debt Fund is being reorganized into the JPMorgan Flexible Debt ETF on or about September 26, 2025. The ETF will be managed in a substantially similar manner to the fund. 

Lazard US Systematic Small Cap Equity Portfolio will be converted into an ETF on or about September 12, 2025.

RiverNorth Core Opportunity Fund is being reorganized into an exchange-traded fund. The reorganization is subject to shareholder approval. If approved, the reorganization will occur early in the third quarter of 2025.

Old Wine, New Bottles

TETON Westwood SmallCap Equity Fund will change its name to Keely Small Cap Fund effective June 27, 2025.

Off to the Dustbin of History

Baillie Gifford International Smaller Companies fund will be liquidated on or about July 21, 2025.

Franklin FTSE Hong Kong ETF will be liquidated on or about July 8, 2025.

Hartford Schroders Commodity Strategy ETF, Hartford Longevity Economy ETF, Hartford Multifactor Diversified International ETF, and Hartford Multifactor International Small Company ETF are expected to liquidate on or about June 30, 2025.

JPMorgan Total Return Fund will be liquidated on or about July 29, 2025.

Oakhurst Short Duration Bond and Short Duration High Yield Credit funds will be liquidated on or about July 30, 2025.

Putnam Intermediate-Term Municipal Income fund will be liquidated on or about July 18, 2025.

Victory Pioneer Global Value Fund will be liquidated on or about July 25, 2025.

Western Asset Short Duration Income and Total Return ETFs will be liquidated on or about August 29, 2025.

Victory THB US Small Opportunities Fund was liquidated on April 29, 2025.