Fidelity to replace Raker with Persaud to run dividend funds

Dec 26, 2013 @ 2:54 pm

Fidelity Investments, the world's second-biggest mutual-fund company, said Ramona Persaud on Jan. 1 will take over management of two dividend growth funds that collectively manage almost $10 billion.

Ms. Persaud will replace Lawrence Rakers on Fidelity Dividend Growth Fund and Fidelity Advisor Dividend Growth Fund, according to regulatory filings made available Dec. 17. Mr. Rakers, who had run the funds since 2008, will take a position within Fidelity's global asset-allocation unit, said Nicole Goodnow, a spokeswoman for the Boston-based firm.

The $8.7 billion Fidelity Dividend Growth Fund returned an annualized 12% over the past three years, behind 91% of similarly managed funds, and 31% in the past year, trailing 53% of rivals, according to data compiled by Bloomberg. The $1.1 billion Fidelity Advisor Dividend Growth Fund returned an annualized 12% over the past three years, behind 74% of peers, and 31% in the past year, behind 51% of peers.

Ms. Persaud, who's been at Fidelity since 2003, also manages Fidelity Global Equity Income Fund, Fidelity Advisor Global Equity Income Fund and the global portion of Fidelity Equity Income Fund.

The $3 billion Fidelity Advisor Capital Development Fund also had a manager change, with Matthew Fruhan replacing Harlan Carere this month, according to a separate regulatory filing. Mr. Fruhan manages the $2.2 billion Fidelity Large Cap Stock Fund, which has returned an annualized 18% over the past three years, putting it ahead of 95% of rivals.


“We believe that both of these appointments are in the best interest of the shareholders of the funds,” Ms. Goodnow said in an e-mailed statement. “Any time we appoint a portfolio manager or managers to a particular fund, we closely examine a number of options to ensure that the structure we're putting in place provides the fund with what we believe will be the potential to post successful returns.”

Morningstar Inc. reported the manager changes earlier Thursday.

(Bloomberg News)


What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video


Top questions surrounding future of DOL fiduciary rule

Reporter Greg Iacurci and managing editor Christina Nelson discuss the biggest uncertainties springing from the Fifth Circuit Court of Appeals' decision to vacate the regulation.

Latest news & opinion

What the next market downturn means for small RIAs

Firms that have enjoyed AUM growth because of the runup in stocks may find it hard to adjust to declining revenues if the market suffers a major correction.

DOL fiduciary rule likely to live on despite appeals court loss

Future developments will hinge on whether the Labor Department continues the fight to remake the regulation its own way.

DOL fiduciary rule: Industry reacts to Fifth Circuit ruling

Groups on both sides of the fiduciary debate had plenty to say.

Fifth Circuit Court of Appeals vacates DOL fiduciary rule

In split decision, judges say agency exceeded authority.

UBS, after dumping the broker protocol, continues to see brokers come and go

The wirehouse has seen 14 individuals or teams leave and five join for a net loss of $2.4 billion in AUM


Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting It'll help us continue to serve you.

Yes, show me how to whitelist

Ad blocker detected. Please whitelist us or give premium a try.


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print