(PUB) Investing 2015

15

December 2015

Morningstar FundInvestor

Columbia Acorn ACRNX is fourth, with $7 billion in outflows. A prolonged performance slump has spurred the outflows. As we have mentioned before, we are concerned that those outflows could hinder performance as it can be difficult to manage outflows at a fund that invests heavily in small caps. Goldman Sachs Strategic Income GSZAX is fifth, with $6 . 1 billion in outflows. Although the fund is supposed to adeptly time interest-rate moves, it has been on the wrong side of some duration calls of late. We rate the fund Neutral. Correction on Fidelity Capital & Income The November issue of FundInvestor incorrectly stated that Fidelity Capital & Income FAGIX was under- performing in 2015 because of an overweighting in CCC debt. In fact, the fund has an underweighting in CCC s relative to its benchmark. Two Vanguard Dividend Funds Set to Launch Vanguard expects to launch two dividend-oriented foreign-equity index funds in December. The funds will be available in open-end and exchange-traded fund forms. The funds are comparable to domestic counter- parts that focus on dividend income and dividend growth, respectively. “Vanguard International High Dividend Yield Index Fund will follow an income investing strategy, which invests in companies with high dividend yields, while Vanguard International Dividend Appreciation Index Fund will emphasize stocks exhibiting dividend growth,“ the firm said. K

Vanguard Index Funds Top Fund Flows Two Vanguard index funds led the way in year-to-date fund flows through October 2015 . Vanguard Total International Stock Index VTIAX has taken in $54 billion and Vanguard Total International Bond Index VTIBX has taken in $18 billion. Some of that money comes directly from fundholders, but a big chunk comes from Vanguard’s target-date funds and other funds of funds. Third on the list is Metropolitan West Total Return Bond MWTRX , which has taken in $17 billion this year. It was the most popular choice of those fleeing PIMCO Total Return PTTRX in the wake of Bill Gross’ departure. PIMCO Income PONDX is fourth, with $10 billion in inflows. Dan Ivascyn’s wide-ranging fund continues to perform well even amid the controversy at PIMCO . Vanguard Total Bond Market Index VBTLX is fifth, with $9 billion in inflows for the same reasons as the two passive Vanguard funds above. PIMCO Total Return Leads Outflows On the flip side, PIMCO Total Return has suffered $51 billion in outflows through the first 10 months of 2015 . Although the pace has slowed, it is still in redemptions. In October, $2 . 5 billion left the fund. Next is Templeton Global Bond TPINX , which has shed $7 . 8 billion this year. Manager Michael Hasenstab’s preference for emerging markets has stung the fund this year, though his long-term record remains strong. Ivy Asset Strategy Fund WASAX has lost $7 . 5 billion so far. The fund is down 9% this year because of some bad timing and significant investments in Macau gaming stocks. We downgraded the fund to Neutral in June 2014 because of manager changes and a number of other issues.