Morningstar to change fund rating calculations
CHICAGO - Morningstar on July 1 will change the way it calculates mutual fund ratings, ranking funds within much narrower peer groups. It will use nearly 50 categories, compared with the four broad asset classes used now (domestic stock, international stock, taxable bond and municipal bond). The new ranking system also will move to portfolio-based analysis and an enhanced risk-adjusted return measure that accounts for all variations in a fund's month-to-month performance and puts more emphasis on downside risk.
Mutual funds will continue to be ranked between one and five stars, based on three-year performance, and historical star ratings will not change.
TIAA-CREF to launch variety of funds in 4th quarter
NEW YORK - TIAA-CREF plans to launch six mutual funds in the fourth quarter. The new funds are large-cap value, midcap value, small-cap index, midcap growth, inflation-linked bond and the company's first REIT fund, said Pat Connor, TIAA-CREF spokesman.
CSAM, ING pick State Street for accounting
BOSTON - Credit Suisse Asset Management and ING Financial both hired State Street Corp. to provide fund accounting services for their mutual fund operations. State Street, which is custodian for the Credit Suisse and ING funds, replaced PFPC as fund accountant and administrator at Credit Suisse, said Carolyn Lisa, Credit Suisse spokeswoman. The firm had no comment on why PFPC was replaced. ING Financial, whose fund family includes the former Pilgrim Funds, chose to retain State Street, which was fund accountant for the Pilgrim Funds.
Vanguard adopts Provident, Schroder funds
VALLEY FORGE, Pa. - Vanguard Group adopted two new funds, the $31 million Provident Investment Counsel Mid Cap Fund and the $26 million Schroder International Smaller Companies Fund. Similar to its adoption of the Turner Growth Equity Fund in 2000, Vanguard will reorganize the Provident and Schroder funds into new Vanguard Funds. The reorganized Provident fund will be called the Vanguard Mid-Cap Growth Fund, and the Schroder fund will be called the Vanguard International Explorer Fund. Both funds will remain unchanged in terms of investment style, process, and management teams. However, as part of the adoption, they give up their previous status as Provident and Schroder funds.
ND Holdings seeks name change to Integrity
MINOT, N.D. - ND Holdings Inc., a Minot-based money manager, has filed papers with the SEC to change its name to Integrity Mutual Funds. According to the proxy statement, the name change will more accurately identify the core business of the company, which is mutual fund asset management. The name change is subject to shareholder approval.
2 funds get new names
Two mutual funds have been given new names.
INVESCO Funds, Atlanta, renamed the INVESCO Equity Income Fund the INVESCO Core Equity Fund. The fundamental aspects of the $3.3 billion fund, managed by Charles Mayer, remain the same. The fund invests in dividend-paying large-cap equities and seeks diversification through all 10 sectors of the S&P 500.
And Franklin Templeton, San Mateo, Calif., renamed the Franklin Growth & Income Fund the Franklin Capital Growth Fund, effective May 1. The fund's objectives, capital appreciation and current income, will remain the same.