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Aug 7, 2014

Janus’ Kozlowski seeks stocks immune to market malaise

BOSTON (Reuters) – Concerned that trends in the economy may not help stock prices much, Janus Capital Group’s Dan Kozlowski is looking for companies that can help themselves.

As manager of the $4.2 billion Janus Contrarian Fund, Kozlowski has posted strong returns by buying companies that take transformative steps, like changing executives or going through mergers to get an edge in a slow-growth era.

Jul 29, 2014

Federated’s Bakhshian looks for stocks with pricing power

BOSTON (Reuters) – Federated Capital Income Fund CAPAX.O has made a bundle with optimistic bets since the financial crisis. The question now is how it can maintain its strong returns.

The answer is a stock-heavy portfolio padded with oil companies, banks and technology shares, according to co-manager Linda Bakhshian, who believes the economy is still improving and interest rates are poised to climb.

Jul 24, 2014

Asset manager Legg Mason to buy UK’s Martin Currie

By Neha Dimri and Ross Kerber

(Reuters) – Asset manager Legg Mason Inc LM.N said it would buy UK-based international equity specialist firm Martin Currie, continuing an effort to revamp its business.

Under Joseph Sullivan, who became CEO in February 2013, Legg Mason has sold several businesses, created new products and bought other small investment firms as it tries to move beyond a long period of net quarterly withdrawals by customers.

Jul 23, 2014

Money fund rule changes offer new reality to U.S. retail investors

BOSTON, July 23 (Reuters) – New rules announced on Wednesday
will likely drive safety-oriented retail investors away from
some money market funds because they highlight risks and make it
harder to pull cash out when market turmoil strikes.

The U.S. Securities and Exchange Commission’s reform will
force institutional “prime” money market funds to float their
share price, a major change from the current convention that
allows them to maintain a stable $1 per share net asset value.
The new rules also would allow money funds to impose fees and
restrictions on withdrawals during times of extreme market

Jul 21, 2014

Cautious on stocks, ClearBridge’s Bauman sits on $1 billion

BOSTON (Reuters) – What do you do with $1 billion in extra cash? For Evan Bauman, one of America’s top performing fund managers, the answer is simple: nothing for now.

“The broad market is not cheap anymore,” Bauman, co-manager of the ClearBridge Aggressive Growth Fund said, referring to a stock market that has hit several record highs in recent months, and which the Federal Reserve warned last week was overvalued in parts.

Jul 17, 2014

Time Warner investors want higher bid, bigger cash ratio from Murdoch

BOSTON, July 16 (Reuters) – To clinch a deal to buy Time
Warner Inc, Rupert Murdoch’s Twenty-First Century Fox
Inc will not only need to raise the value of its bid
above $80 billion but also boost its ratio of cash to stock,
investors said on Wednesday.

Time Warner said it rejected Murdoch’s unsolicited offer, of
which 60 percent would be Twenty-First Century Fox stock and 40
percent cash, a far-reaching proposal that would reshape the
media landscape.

Jun 30, 2014

Activist Peltz builds up $1 billion stake in BNY Mellon

June 30 (Reuters) – Activist investor Nelson Peltz has built
up a $1 billion stake in BNY Mellon Corp in what could
lead to a shakeup over lagging stock performance and rising
operating expenses at the world’s largest custody bank.

Shares of BNY rose more than 2 percent.

Peltz’s Trian Fund Management LP “has recently contacted the
Bank of New York Mellon to express its interest in discussing
Trian’s ideas and initiatives to drive long-term growth and
enhance shareholder value with the company’s management and its
board,” according to a person familiar with Trian’s thinking.

Jun 24, 2014

Index fund guru Bogle finds little traction on governance

NEW YORK (Reuters) – Jack Bogle, a celebrity for low cost investors, faces a disconnect with his own fan base when it comes to corporate governance.

Bogle, founder and former chief executive of index fund giant Vanguard Group Inc, is a well-known critic of investment firms that he says should use the massive number of shares they control to bring tougher oversight to areas like executive pay or corporate political contributions.

Jun 24, 2014

Target date fund assets soar to $624 billion – study

BOSTON, June 24 (Reuters) – Assets in target date funds rose
24 percent to $624 billion in 2013, a new report found,
reflecting a surging stock market and how investors have flocked
to the simplified retirement savings vehicles – often as their
default choice.

Target date funds take their name from the year in which an
investor plans to retire or stops contributing to savings.

Jun 18, 2014

Vanguard bond head warns of risk in yield hunt

NEW YORK (Reuters) – Vanguard Group Inc’s new bond chief on Wednesday said investors could be ignoring warning signs in less stable countries in their search for yield.

Recent bond sales have underscored how eager investors are for higher returns – even in countries that could face significant risks, Gregory Davis, global head of fixed income for Vanguard, said at the Reuters Global Wealth Management Summit in New York.

    • About Ross

      "I cover mutual funds and the companies that offer them including Fidelity Investments and Legg Mason Inc, plus related topics like retirement savings issues and socially responsible investing. I'm based in Boston and joined Reuters in 2009."
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