Fund Openings, Closings, Manager Moves: Heartland May Liquidate Government Fund - TheStreet

Fund Openings, Closings, Manager Moves: Heartland May Liquidate Government Fund

Shareholders will soon vote whether to shut down the underperforming fund.
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In a few weeks Heartland Government shareholders will be asked to approve putting the mutual fund out of its misery.

This week

Heartland Funds

filed preliminary proxy materials asking shareholders of its sagging Government fund to approve its liquidation. Shareholders should receive the proxy, dated June 30, in a couple of weeks. Government funds generally invest in intermediate-term bonds issued by the U.S. government.

Citing the $33 million fund's modest assets, the proxy materials say the fund's prospects for posting solid performance and keeping expenses low are dim. While the fund is much smaller than the average intermediate-term bond fund, which has some $270 million in assets, its 0.76% expense ratio is lower than the 0.96% category average.

On the performance front, the fund is not a star. It's 7.4% 10-year annualized return beats most of its peers, but over virtually every other time period it ranks at or near the cellar, according to Morningstar. Over the past year the fund's -0.1% return is the category's worst.

Proxies are due Aug. 8. If shareholders approve the liquidation plan, they will get cash for their shares.

See Thursday's

Fund Openings, Closings, Manager Moves.

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Fund Openings, Closings, Manager Moves.

See Monday's

Fund Openings, Closings, Manager Moves.