Alex Berenson and
Fund guru John Rekenthaler said Tuesday he was resigning as
publisher and editor to join
The John Nuveen Co.
as vice president and head of the company's investment strategies group. He joined Morningstar in 1988 and has been editor of
"I just wanted to do it," Rekenthaler told
. "I'm not changing my wife or my kid ¿ There's no deeper darker secret ¿ It's not money. It's not fame either. It's not really power. It's change."
John Nuveen is a Chicago-based investment bank that specializes in underwriting municipal bond offerings. It has recently moved into the open-end fund business and now has three mutual funds.
A replacement for Rekenthaler -- regularly quoted in the mutual fund press -- has not yet been named.
may be virtually synonymous with index funds, but it's not the only game in town.
You wouldn't know it, though, from Jonathan Clements' piece in
The Wall Street Journal
on Tuesday about why investors should build global index portfolios and not rely on index funds that mimic the
Clements writes in detail about several domestic and international Vanguard index offerings and quotes George Sauter, the portfolio manager of 18 Vanguard index funds, but only makes reference to one other index fund --
Schwab Small-Cap Index fund
While Vanguard is undoubtedly the indexing king with 62% of the money in indexed funds under its management, according to Morningstar, other fund families are making concerted efforts to encroach on its turf.
recently undercut Vanguard by lowering the expense ratios of their S&P 500 index funds slightly below those of the
Vanguard Index: 500 Portfolio
And for investors who want the convenience of one-stop-shopping mutual fund supermarkets like no-fee
, Vanguard index funds are not an option.
But with advertising like Clements' piece telling investors how to "index the world" with Vanguard, perhaps they will end up the only game in town after all.
Tech investors who these days can't rid themselves of the grim memory of last summer's tech meltdown should take comfort from the months that followed.
After falling more than 16% from May 30 through July 25, 1996, science and technology funds tracked by
Lipper Analytical Services
have rebounded 31.4% in the subsequent 10 1/2 months through June 12.
The top fund for tech swashbucklers since the bottom has been the tiny $4 million
Ivy Global Science & Technology
, which only started last July, with a 59.5% return. That handily beat the 42.5% return for the S&P 500-imitating Vanguard Index: 500, according to Lipper.
Several of Fidelity's sector funds made up the most ground. The $1.5 billion
Fidelity Select Electronics
rose 57.1% after having fallen 15%; $437 million
Fidelity Select Technology
jumped 45.5% after having dropped 18.6%; and the $531 million
Fidelity Select Computers
added 39.8% after having dipped 15.3%.
The worst-performing tech fund during last summer's downturn -- the $4.8 million
First American: Technology
, which dropped 21.5% -- has continued to trail its peers with a 19.4% return since then.
The author of this item, Avi Stieglitz, owns shares of Fidelity Select Electronics and Fidelity Select Computers.