Wasatch Closes Two Funds While Wells Fargo Opens One

Wasatch Funds closed two more of its small-cap funds, leaving just two of the company’s funds open. In contrast, Wells Fargo Funds Management opened a new fund, the Wells Fargo Small Company Value Fund. The fund is sub-advised by Peregrine Capital Management.

The Wasatch Core Growth Fund is closed to new investors. The Wasatch Small Cap Growth Fund, which is already closed to new investors, is now also closed to existing shareholders. Wasatch closed the Small Cap Growth and Small Cap Value funds to new investors last year.

Wasatch Funds’ chairman Sam Stewart said in a statement that closing funds is an important part of the company’s investment discipline. "Wasatch chooses to close funds because we believe that this is the best way to protect the interests of shareholders and ensure that their assets are invested the way they expect," he said.

The Wells Fargo fund’s manager, Tasso Coin Jr., expects small-cap value stocks to continue to outpace growth stocks. "These stocks continue to remain undervalued relative to other asset classes and are well-positioned to maintain a leadership position," he said in a statement.

The fund will hold roughly 100 stocks and have annual turnover of 50%-80%. It will employ a proprietary quantitative screening process to target companies with traditional value characteristics, the company said in a statement.

 

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