(PUB) Morningstar FundInvestor

September 2013

Morningstar FundInvestor

15

We named Laporte Morningstar’s Domestic-Stock Fund Manager of the Year for 1995 .

Fidelity Launching Short-Duration, High-Yield Fund

Fidelity has filed to launch the Fidelity Short Dura- tion High Income fund, which will be designed to provide higher yields with lower interest-rate sen- sitivity. The fund will seek to keep an average duration—a measure of the fund’s interest-rate sen- sitivity—of less than three years. Relative to the broader short duration, high-yield market, the fund will focus on higher-quality bonds—primarily those rated BB or B, with a significant underweighting to bonds rated CCC or lower. The fund also will invest a smaller slug of the fund’s assets in floating-rate securities and investment-grade corporate bonds. Matt Conti, who heads Fidelity’s well-regarded lever- aged-finance group, will serve as the fund’s lead manager. Conti also manages Fidelity Focused High Income FHIFX , a portfolio dedicated to the higher- quality end of the junk-bond sector. Michael Plage, who comanages Fidelity Advisor Corporate Bond FCBAX , will manage the new fund’s corporate-bond sleeve. The fund is expected to launch later this year. PIMCO to Launch Managed-Futures Fund PIMCO is looking to build out its lineup of alternatives funds, and the firm has filed to launch a managed- futures fund. The PIMCO Trends Managed Futures Strategy fund will use quantitative strategies to invest in derivatives linked to interest rates, curren- cies, mortgages, credit, commodities, equity indexes, and volatility-related instruments, according to a preliminary prospectus. The firm hasn’t named the fund’s manager or listed the fund’s expense ratio. T. Rowe New Era Manager to Remain With Firm T. Rowe Price announced that Tim Parker, the manager of Neutral-rated T. Rowe Price New Era PRNEX , will remain with the firm rather than leave by the end of September, as was previously announced in April. However, Shawn Driscoll is still slated to take over New Era and sector head responsibilities by Sept. 30 . œ

Corrections In our August cover story, we included a table of funds with currency risk. Tweedy Browne Global Value TBGVX should have been on the Low Risk side of the table as it hedges its currency exposure. You can see the fixed version of the August issue at mfi.morn- ingstar.com on the Newsletters tab. Also, on Page 22 , we incorrectly stated Quoc Tran’s tenure at Weitz funds. He spent three years at Weitz, not five as stated. We regret the errors. Oakmark Funds Bought GM Shares We recently learned that Berkshire Hathaway BRK .A bought shares of General Motors GM . Inter- estingly, Oakmark’s managers were on the same track. A number of the funds bought large stakes in GM in the second quarter. New Guide to Fund Investing We have updated the Guide to Fund Investing. You can find it on mfi.morningstar.com . We’ve also updated the Fund Family Reports for the third quarter. What’s Up With PIMCO All Asset All Authority? I’ve received a few emails asking me why PIMCO All Asset All Authority PAUDX is having a poor year. The answer is really the same biases that clicked for it in prior years. Rob Arnott has been more bullish on emerging markets than on the United States, and he’s had a fair amount of inflation protection in the fund. So, the formula of going short the U.S. and long emerging markets has been a bad one this year. In addition, commodities and Treasury Inflation-Protected Securi- ties have been getting smacked. Finally, because the fund invests in other PIMCO funds, it suffered from the firm’s mistaken bet on long-term TIPS , which bore the brunt of the recent backup in rates.