OVERLAND PARK, Kan. - Waddell & Reed Financial will combine the Ivy Funds and the W&R Funds into one fund family with a combined $1.5 billion under management, operating under the Ivy Funds name.
The mergers are pending shareholder approval at a June meeting and would occur later that month. Six Ivy funds will not change; all W&R funds will assume the Ivy name.
Seven Ivy funds will merge into existing W&R or other Ivy funds and will carry the W&R funds' track records, where applicable. Ivy U.S. Blue Chip will merge into the W&R Core Equity Fund; Ivy U.S. Emerging Growth into W&R Mid-Cap Growth; Ivy International Small Companies into W&R International Growth; Ivy Global into W&R International Growth; Ivy Developing Markets into Ivy Pacific Opportunities; Ivy Money Market into W&R Money Market; and Ivy Global Science and Technology into W&R Science and Technology.
Also, Ivy Growth will merge into Waddell & Reed Advisors Accumulative, and Ivy Bond will merge into Waddell & Reed Advisors Bond.
CDC IXIS invests in Hansberger
BOSTON - CDC IXIS Asset Management North America made an equity investment in Hansberger Group. Terms of the deal and size of the ownership stake were not disclosed, said Wendy D. Schoenfeld, spokeswoman for CDC.
Hansberger manages part of the CDC Nvest Star Worldwide Fund for CDC IXIS, and could manage more of CDC's international equity products in future, Ms. Schoenfeld said.
Janus debuts risk-managed fund
DENVER - Janus Capital Group launched the Janus Risk-Managed Stock Fund, managed by subsidiary Enhanced Investment Technologies.
The mutual fund takes advantage of market volatility to produce returns higher than its S&P 500 benchmark with less downside risk, according to a statement from the company.
Ashmore debuts debt fund
LONDON - Ashmore Investment Management launched the Ashmore Emerging Market Debt Fund, a Luxembourg-registered, open-end SICAV fund for European investors, according to Jerome Booth, director of research for Ashmore. The objective of the portfolio, the initial size of which is e28 million (US$27 million), is to invest primarily in fixed-income assets, mainly sovereign debt from emerging market countries, primarily those denominated in G-7 currencies, principally U.S. dollars.
Subadviser use up, says Lipper
NEW YORK - The three-year bear market has caused mutual fund families to increase their use of subadvisers in an effort to diversify their asset base in a volatile market, according to a study by Lipper Inc., New York.
Boutique fund companies that specialize in a particular area, such as domestic equities, are hiring subadvisers to run international equity and fixed-income assets to keep assets in the fund family when skittish investors decide to shift their holdings.
"Those smaller fund groups that have relied heavily on domestic equity advisory fees for their livelihood must diversify into more asset classes to better serve their clients' interest and frankly, in some cases, survice," said Jeff Keil, vice president at Lipper.
Templeton reopens global fund
Templeton Global Long-Short Fund reopened to new investors March 1. Portfolio manager Dale Winner said that reopening the fund enables the management team to take advantage of "compelling investment opportunities around the globe."
Through February, the fund had $142 million in assets. It will remain open until it hits $500 million in assets. The fund is available to retirement plan participants and retail investors.