Mutual Fund Buzz for June 17: Gundlach Calls TCW 'Evil'

DoubleLine CEO talks about his new funds.


Today's fund news:

Jeffrey Gundlach, the ousted head of the TCW Total Return fund was very publicly fired from his perch atop one of the world's biggest bond funds. He talked with U.S. News about his former employer and his new company in some stark terms:

USN: What did you learn from getting fired by TCW?

JG: I didn't learn anything. I have a different job. I'm a CEO of what's going to be a very successful firm. I was basically running within TCW, where businesses are very standalone, by far the biggest business. I know very well how to run a big business. We're not a big business yet, but we're not exactly puny either. What I took away from it is there are a lot of evil people in the world. That's what I learned from it.

[For the full interview, see U.S. News: DoubleLine's Jeffrey Gundlach on Life After TCW.]

[See The Decade's 10 Worst Fund Disasters from U.S. News.]

Target-date funds may be required to add extra disclosure to keep investors better informed on the way the funds handle asset allocation, according to Reuters. As such funds vie to become retirement plan staples, new rules from the Securities and Exchange Commission could require marketing materials for any fund with "target date" in the name to include better information about planned allocation of the fund at the target date. Other proposals could require visual depictions of how assets in such funds shift over time. The industry is backing many of the current changes, but critics note that even if new rules are instituted some other corners of target-date marketing could be clearer, including guidance on when exactly target-date funds reach their most conservative allocations (Hint: It's not always the year mentioned in the fund's name).

Reuters: SEC Seeks Greater Target Date Fund Disclosures

[See Why Critics Are Still Skeptical About Target-Date Funds from U.S. News.]

Stock funds lost ground again in the week. Domestic stock mutual funds saw net outflows of $3.7 billion for the week ending June 9, according to the Investment Company Institute. Bond funds continued to gain ground with $4.7 billion in net inflows. International stock funds drew $779 million, and hybrid funds were up $220 million.

ICI: Long-Term Mutual Fund Flows