|Expense Ratio (net)||0.67%|
|Last Cap Gain||0.00|
|Morningstar Risk Rating||Average|
|Beta (3Y Monthly)||1.07|
|5y Average Return||N/A|
|Average for Category||N/A|
|Inception Date||May 2, 1963|
A version of this article appeared in the April 2019 issue of Morningstar FundInvestor. A flurry of manager changes in 2019 has triggered downgrades to several Morningstar Medalist fund ratings. Below are some funds that were downgraded due to manager changes.
Ten years ago, Vanguard, American Funds, and Fidelity were the largest mutual fund companies, controlling 40% of the industry's assets. After those firms, there was a significant drop, with PIMCO placing fourth with 5% market share, most of which rested in a single fund ( PIMCO Total Return PTTRX). In aggregate, their funds had posted above-average performance, with below-average expense ratios (significantly below, in the case of Vanguard and American Funds).
In February, Morningstar manager research analysts affirmed the Morningstar Analyst Ratings of 112 funds and six separately managed accounts. Baird Aggregate Bond BAGIX employs a cohesive team and a proven and deliberate process, and it sports low fees, all of which supported an upgrade to Gold from Silver. Lead manager and Baird CIO Mary Ellen Stanek heads a veteran team of five portfolio managers who have each worked at Baird for nearly two decades.
Fidelity Investments parent FMR LLC said its 2018 operating profit rose 18.6 percent to $6.3 billion as new products like no-fee index funds helped the Boston mutual fund firm counter falling markets and keep pace with bigger rivals. While total assets under management fell slightly, according to an annual report sent on Thursday by the closely held company, Fidelity reported record net deposits of $100.8 billion from customers across all its investment products. The inflow figure was striking at a time when other managers known for active funds have struggled to match the rush of money to index funds and other passive products from BlackRock Inc and Vanguard Group.
Prominent U.S. investor Jeffrey Vinik is promising potential clients a cut in fees and said that it had been tougher to raise money than he initially thought, as he prepares to relaunch Vinik Asset Management after six years on the sidelines. Vinik, who once ran Fidelity's Magellan mutual fund and then oversaw $10 billion at his own hedge fund, had hoped to raise as much as $3 billion in the hedge fund relaunch. "We will offer investors a 50-basis point discount on management fees in our 1/30 and 2/20 tranches," the fund manager wrote in a letter seen by Reuters.
"If a statue is ever erected to honor the person who has done the most for American investors, the hands down choice should be Jack Bogle." - Warren Buffett
One of the biggest draws of closed-end mutual funds is the fact that they can offer investors a chance to buy a basket of stocks or bonds at what's called a "discount to net asset value." That's where you purchase shares of a closed-end mutual fund and get, say, a dollar's worth of underlying securities for just 90 cents a share. "If you are thoughtful about when you buy and what you buy and you have patience, good things can happen," says Maury Fertig, co-founder of Relative Value Partners in Northbrook, Ill. Roughly 80% of closed-end mutual funds trade at a discount to NAV due to the unique way that these funds operate.