Mutual Funds: More Funds Closing

Julius Baer International Equity

Julius Baer International Equity fund is scheduled to close to new investors on May 4, according to a regulatory filing on Monday. "International Equity fund's assets have grown to over $12 billion, and the fund's core strategy limits the capacity for additional assets," Julius Baer said in the filing.

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Tweedy Browne Global Value

"Current stock market levels worldwide present few investment opportunities selling at an attractive discount to intrinsic value," said Chris Browne, a co-manager at both funds, in a statement. In 2000, Browne and his team won investment research firm Morningstar's coveted Manager of the Year award for international stock funds. "Moreover, certain holdings of both funds have risen to levels of full value in our view, resulting in both funds being net sellers of securities," Browne added. Year to date, the Global Value fund has gained 4%, while the American Value fund is down 4.6%. In particular, Browne said his team is nervous about high valuations in value stocks, which have outperformed their growth peers since the technology bubble burst in 2000. "The result is that the price difference between the most expensive and the least expensive stocks is narrower than we can recall in more than 30 years," Browne said. The funds have adequate levels of cash to take advantage of future buying opportunities, and if they remained open, new investors "could excessively dilute existing fund shareholders' investments in a limited pool of cheap stocks," he added.

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The trend continues...