The Wall Street Journal - 16.08.2019

B10| Friday, August 16, 2019 THE WALL STREET JOURNAL.

Net YTD
Fund NAV Chg % Ret
American Century Inv
Ultra 47.17 +0.18 16.7
American Funds Cl A
AmcpA p 30.94 +0.08 11.5
AMutlA p 40.85 +0.13 10.0
BalA p NA ... NA
BondA p 13.37 +0.05 8.0
CapIBA p 59.89 +0.25 8.1
CapWGrA 46.80 +0.23 10.6
EupacA p 50.11 +0.34 11.2
FdInvA p 56.92 +0.15 10.5
GwthA p 48.37 +0.18 13.1
HI TrA p 9.92 ... 7.4
ICAA p 36.92 +0.09 10.1
IncoA p 22.08 +0.06 8.6
N PerA p 43.07 +0.24 14.3
NEcoA p 43.92 +0.17 13.1
NwWrldA 64.54 +0.31 12.5
SmCpA p 54.30 -0.04 15.8
TxExA p 13.46 +0.01 7.2
WshA p 44.51 +0.11 11.5
Baird Funds
AggBdInst 11.32 +0.03 9.2
CorBdInst 11.65 +0.03 9.6
BlackRock Funds

HiYldBd Inst 7.58 ... 10.0 BlackRock Funds A GlblAlloc p 18.33 ... 7.7 BlackRock Funds III iShS&P500IdxK338.86 +0.90 15.0 BlackRock Funds Inst EqtyDivd 18.75 -0.01 11.1 GlblAlloc 18.45 ... 7.9 MultiAstIncome10.74 ... 9.4 StratIncOpptyIns 9.91 ... 5.5 Bridge Builder Trust CoreBond 10.59 +0.04 8.3 CorePlusBond10.43 +0.04 7.9 Intl Eq 10.65 +0.02 6.9 Del Invest Instl Value 20.62 -0.01 6.3 Dimensional Fds 5GlbFxdInc 10.97 +0.01 4.0 DFARlEst 40.05 +0.46 23.6 EmgMktVa 25.61 +0.13 -4.4 EmMktCorEq 19.10 +0.09 ... IntlCoreEq 12.03 -0.01 4.6 IntlVal 15.48 -0.03 -0.6 IntSmCo 16.60 -0.05 4.7 IntSmVa 16.68 -0.05 0.9

Net YTD Fund NAV Chg % Ret LgCo 22.01 +0.06 15.0 TAUSCoreEq217.92 -0.01 12.3 US CoreEq1 23.07 +0.01 13.1 US CoreEq2 21.10 -0.02 12.0 US Small 31.29 -0.15 5.7 US SmCpVal 29.61 -0.25 -0.8 US TgdVal 20.20 -0.16 2.5 USLgVa 34.09 -0.03 7.2 Dodge & Cox Balanced 96.53 -0.23 7.3 GblStock 11.55 -0.02 4.7 Income 14.15 +0.04 8.4 Intl Stk 38.19 -0.01 3.5 Stock 176.82 -0.82 6.9 DoubleLine Funds CoreFxdIncmI NA ... NA TotRetBdI 10.83 +0.03 6.2 Edgewood Growth Instituti EdgewoodGrInst34.40 +0.24 19.5 Fidelity 500IdxInstPrem99.19 +0.27 15.1 ExtMktIdxInstPre59.42 -0.10 13.6 IntlIdxInstPrem38.81 +0.06 7.0 MidCpInxInstPrem21.63 +0.04 16.5 SAIUSLgCpIndxFd15.39 +0.04 15.0

Net YTD Fund NAV Chg % Ret

Thursday, August 15, 2019

Top 250 mutual-funds listings for Nasdaq-published share classes by net assets. e-Ex-distribution.f-Previous day’s quotation.g-Footnotes x and s apply.j-Footnotes e and s apply.k-Recalculated by Lipper, using updated data.p-Distribution costs apply, 12b-1.r- Redemption charge may apply.s-Stock split or dividend.t-Footnotes p and r apply.v-Footnotes x and e apply.x-Ex-dividend.z-Footnote x, e and s apply.NA-Not available due to incomplete price, performance or cost data.NE-Not released by Lipper; data under review.NN-Fund not tracked.NS-Fund didn’t exist at start of period.

Mutual Funds

SerLTTreBdIdx10.30 +0.11 22.8 SmCpIdxInstPrem18.79 -0.07 9.4 TMktIdxInstPrem80.69 +0.15 14.8 USBdIdxInstPrem12.06 +0.05 8.8 Fidelity Advisor I NwInsghtI 31.59 +0.05 17.0 Fidelity Freedom FF2020 15.60 +0.03 9.3 FF2025 13.57 +0.03 9.6 FF2030 16.69 +0.03 10.2 Freedom2020 K15.58 +0.03 9.3 Freedom2025 K13.55 +0.03 9.7 Freedom2030 K16.67 +0.03 10.2 Freedom2035 K13.76 +0.01 10.3 Freedom2040 K 9.54 +0.01 10.1 Fidelity Invest Balanc 23.08 +0.03 12.7 BluCh 97.84 +0.08 16.5 Contra 12.75 +0.06 16.8 ContraK 12.76 +0.06 16.9 CpInc r 9.87 +0.01 12.0 GroCo 19.00 +0.02 18.6 GrowCoK 19.03 +0.03 18.7 InvGrBd 11.65 +0.04 9.2 LowP r 45.74 -0.18 5.4 Magin 10.63 +0.05 19.8 OTC 11.89 +0.02 19.5 Puritn 21.78 +0.08 12.0 SrsEmrgMkt 17.69 +0.13 7.7 SrsGroCoRetail16.84 +0.02 19.2 SrsIntlGrw 15.73 +0.09 17.4 SrsIntlVal 8.93 -0.01 3.8 TotalBond 10.97 +0.04 9.2 Fidelity SAI TotalBd 10.73 +0.03 9.1 First Eagle Funds GlbA 56.33 +0.14 10.7 FPA Funds

FPACres 31.74 -0.05 9.5 Franklin A1 CA TF A1 p 7.76 ... 9.5 IncomeA1 p 2.24 ... 8.4 FrankTemp/Frank Adv IncomeAdv 2.22 ... 8.6 FrankTemp/Franklin A Growth A p 106.10 +0.33 17.9 RisDv A p 65.02 +0.19 18.1 FrankTemp/Franklin C Income C t 2.27 ... 7.9 FrankTemp/Temp A Growth A p 20.46 -0.01 -1.3 FrankTemp/Temp Adv GlBondAdv p10.74 -0.06 -0.7 Guggenheim Funds Tru TotRtnBdFdClInst27.64 +0.03 5.7 Harbor Funds CapApInst 71.99 +0.36 16.2 Harding Loevner IntlEq NA ... NA Invesco Funds A EqIncA 9.97 -0.01 10.2 Invesco Funds Y DevMktY 40.31 +0.25 7.2 JPMorgan R Class CoreBond 12.10 +0.04 9.1 CorePlusBd 8.59 +0.03 9.2 Lord Abbett A ShtDurIncmA p 4.22 ... 4.3 Lord Abbett F ShtDurIncm 4.22 +0.01 4.4 Metropolitan West TotRetBd 11.12 +0.02 8.8 TotRetBdI 11.12 +0.03 9.0 TRBdPlan 10.46 +0.02 9.0 MFS Funds Class I ValueI 40.59 +0.16 15.7

MFS Funds Instl IntlEq 25.29 +0.05 13.0 Nuveen Cl I HYMunBd 18.10 ... 10.7 Oakmark Funds Invest EqtyInc r 29.33 -0.02 9.1 Oakmark 73.91 -0.30 8.2 OakmrkInt 20.91 -0.08 2.2 Old Westbury Fds LrgCpStr 14.28 +0.07 12.9 Parnassus Fds ParnEqFd 46.21 +0.19 18.9 PGIM Funds Cl Z TotalReturnBond15.04 +0.04 10.4 PIMCO Fds Instl AllAsset 11.44 +0.03 5.6 ShortT 9.79 ... 2.0 TotRt 10.55 +0.04 8.6 PIMCO Funds A IncomeFd NA ... NA PIMCO Funds I2 Income NA ... NA PIMCO Funds Instl IncomeFd NA ... NA Price Funds BlChip 113.09 +0.84 17.8 EqInc 29.97 -0.01 11.0 EqIndex 76.01 +0.20 14.9 Growth 67.11 +0.42 17.5 HelSci 75.39 +0.17 12.5 InstlCapG 40.97 +0.21 14.8 IntlStk 16.64 +0.05 11.2 MCapVal 25.73 +0.03 5.5 MidCap 92.42 +0.33 21.0 N Inc 9.78 +0.03 8.9 NHoriz 61.65 +0.09 27.9 OverS SF r 9.74 ... 4.7 R2020 21.67 +0.06 11.0

R2025 17.21 +0.05 11.5 R2030 24.99 +0.07 12.1 R2035 18.28 +0.06 12.4 R2040 25.96 +0.08 12.7 Value 35.14 +0.07 14.9 PRIMECAP Odyssey Fds AggGrowth r 42.30 +0.03 10.4 Growth r 36.92 -0.03 6.3 Stock r 31.29 -0.07 8.8 Schwab Funds S&P Sel 44.07 +0.12 15.0 TSM Sel r 50.03 +0.09 14.8 TIAA/CREF Funds BdIdxInst 11.25 +0.04 8.7 VANGUARD ADMIRAL 500Adml 263.41 +0.70 15.0 BalAdml 36.75 +0.10 12.7 CAITAdml 12.21 ... 6.9 CapOpAdml r143.58 -0.10 8.8 EMAdmr 32.83 +0.23 4.3 EqIncAdml 72.35 +0.06 10.4 ExplrAdml 90.94 -0.11 16.9 ExtndAdml 85.59 -0.14 13.7 GNMAAdml 10.54 +0.01 4.8 GrwthAdml 83.00 +0.37 20.8 HlthCareAdml r80.22 +0.05 4.4 HYCorAdml r 5.82 ... 11.0 InfProAd 26.48 +0.10 8.6 IntlGrAdml 87.61 +0.33 10.6 ITBondAdml 11.99 +0.06 10.7 ITIGradeAdml10.12 +0.04 10.0 LTGradeAdml 11.45 +0.08 22.7 MidCpAdml 199.04 +0.34 17.2 MuHYAdml 11.89 ... 8.9 MuIntAdml 14.63 ... 7.0 MuLTAdml 12.10 +0.01 8.6 MuLtdAdml 11.14 ... 3.9 MuShtAdml 15.88 ... 2.0 PrmcpAdml r132.09 -0.18 9.2

RealEstatAdml127.97 +1.39 23.1 SmCapAdml 71.13 -0.08 13.2 SmGthAdml 63.41 +0.05 20.1 STBondAdml 10.63 +0.03 4.6 STIGradeAdml10.76 +0.02 5.0 TotBdAdml 11.19 +0.04 9.0 TotIntBdIdxAdm23.65 +0.13 9.8 TotIntlAdmIdx r26.45 +0.06 5.8 TotStAdml 70.64 +0.14 14.8 TxMCapAdml147.14 +0.44 15.6 TxMIn r 12.54 +0.02 6.5 USGroAdml 103.40 +0.34 19.0 ValAdml 41.36 +0.02 9.8 WdsrllAdml 60.72 -0.09 11.2 WellsIAdml 65.20 +0.23 11.8 WelltnAdml 70.98 +0.18 12.2 WndsrAdml 66.60 -0.20 9.7 VANGUARD FDS DivdGro 29.43 +0.13 21.3 INSTTRF202023.15 +0.07 10.1 INSTTRF202523.41 +0.07 10.6 INSTTRF203023.52 +0.06 10.7 INSTTRF203523.62 +0.07 10.9 INSTTRF204023.72 +0.06 11.0 INSTTRF204523.76 +0.06 11.0 INSTTRF205023.79 +0.05 11.0 IntlVal 33.54 +0.10 4.5 LifeCon 20.33 +0.07 10.1 LifeGro 32.96 +0.09 10.8 LifeMod 27.11 +0.08 10.5 PrmcpCor 25.64 -0.04 9.6 STAR 26.24 +0.05 11.4 TgtRe2015 15.17 +0.05 9.5 TgtRe2020 31.51 +0.10 10.1 TgtRe2025 18.81 +0.06 10.6 TgtRe2030 34.13 +0.10 10.7 TgtRe2035 20.85 +0.05 10.8 TgtRe2040 35.84 +0.09 10.9

TgtRe2045 22.42 +0.06 10.9 TgtRe2050 36.08 +0.09 10.9 TgtRet2055 39.16 +0.10 10.9 TgtRetInc 13.76 +0.05 8.9 TotIntBdIxInv 11.83 +0.07 9.7 WellsI 26.91 +0.09 11.7 Welltn 41.10 +0.11 12.2 WndsrII 34.22 -0.05 11.2 VANGUARD INDEX FDS 500 263.40 +0.70 15.0 SmValAdml 52.11 -0.14 7.4 TotBd2 11.15 +0.04 8.9 TotIntl 15.81 +0.04 5.7 TotSt 70.61 +0.14 14.7 VANGUARD INSTL FDS BalInst 36.76 +0.10 12.7 DevMktsIndInst12.55 +0.01 6.5 DevMktsInxInst19.62 +0.02 6.4 ExtndInst 85.58 -0.15 13.7 GrwthInst 83.01 +0.38 20.8 InPrSeIn 10.79 +0.04 8.7 InstIdx 258.47 +0.68 15.0 InstPlus 258.49 +0.68 15.1 InstTStPlus 61.39 +0.13 14.9 MidCpInst 43.97 +0.07 17.2 MidCpIstPl 216.85 +0.36 17.2 SmCapInst 71.13 -0.08 13.2 STIGradeInst 10.76 +0.02 5.0 STIPSIxins 24.87 +0.04 3.9 TotBdInst 11.19 +0.04 9.0 TotBdInst2 11.15 +0.04 9.0 TotBdInstPl 11.19 +0.04 9.0 TotIntBdIdxInst35.48 +0.19 9.8 TotIntlInstIdx r105.77 +0.24 5.8 TotItlInstPlId r105.79 +0.24 5.8 TotStInst 70.66 +0.14 14.8 ValueInst 41.35 +0.01 9.8 Western Asset CorePlusBdI NA ... NA

Net YTD Fund NAV Chg % Ret

Net YTD Data provided by Fund NAV Chg % Ret

MONEY & INVESTING

lapse—but the ability of central banks to help appears to be impaired. Interest rates can’t be cut nearly as much as they usually are in a down- turn, while global coordination seems unlikely given President Trump’s antipathy to China and objections to lower Euro- pean rates.

T

o me, it looks as though the panic is overdone. Not because I think the global economy is great or that central banks have more tools to help (they do, but the remaining options are so polit- ically controversial they are unlikely to be deployed unless things get really bad). My con- cern is that the moves have come far too quickly and so are likely to reverse equally fast if there is even a smidgen of good news. Investors are betting on everything being awful for ages, but even bad outcomes usually come with periods of relief. Charles Gave, founder and chairman of research house Gavekal in Hong Kong, points to another panic signal: Both gold and long bonds are doing very well, rather than moving inversely. He argues that since the ’90s, both did exception- ally well only during the 2008 crisis, the eurozone implosion, and the panic over China and oil prices in early 2016. Of course, just because recent panics proved ill-founded doesn’t mean this one is nec- essarily mistaken, or that it won’t intensify before calm is eventually restored. Just as in a bubble—when stock or prop- erty prices can rise far further than is rational in the expecta- tion of others buying at a still- higher price—a panic can push up the prices (and so depress the yields) of bonds far more than seems plausible. There may be money to be made by buying long bonds if bad stuff keeps happening. But buying bonds at such stupidly high prices and low yields isn’t a way to keep your investment safe. It is speculation.

sis, breaking a pattern of stocks swinging further than long bonds that had held since the mid-1980s. Over both five and 10 years, there have been as many days where the three- month gain or loss was more than 15% in the 30-year bond as in U.S. stocks (assuming coupons and dividends are re- invested).

P

art of this is because with lower yields, bond prices move more for the same change in the yield, a concept known in the industry as duration. Bonds are riskier than they used to be. However, the scale of the recent rise in long-bond prices and decline in yields smacks of panic. Bonds are being bought because people are worried about a weakening global economy, the trade fight be- tween the U.S. and China, the growing belief that a new Cold War beckons and the failure of central-bank efforts to boost inflation. Political troubles in India, Hong Kong and the U.K. spur a search for safety, too. Moves of this scale usually come only when the imagined outcomes are terrible: A U.S. default was in prospect in 2011 and the eurozone really did look like it would blow up its own currency, while in 2008 major banks were failing. You might lose money after inflation on bonds, but equities would fall far more. Back then, the fears were assuaged when central banks stepped in, and long bonds sold off horribly. This time, the imagined future mostly isn’t so bad—investors are bracing for a recession rather than a com- plete financial or currency col-

Continued from page B1

Ultralong

Bonds Are

The Gamble

was known for double-digit re- turns. In 2013, Marcato gained 26% pushing for changes at companies such as auction houseSotheby’s. The firm was involved in other high-profile fights including at Buffalo

employees were given leeway to operate as they saw fit, the people said. The bank’s “red team,” an internal group intended to find vulnerabilities in the firm’s security, once broke into the private elevator to execu- tive floors, a move some employees involved thought would have crossed the line at other firms, according to one of the people familiar with the matter. Sometimes the tech-centric culture of the firm could com- plicate security, the people said. Technology employees had at times been given free rein to write in many coding languages—so many that it made it harder for the cybersecurity unit to spot problems, according to people familiar with the matter. About five years ago, the company started navigating a huge technological shift: moving its data to the cloud. While a cloud-based server could in some ways be more secure, it also required a dif-

ferent set of security knowl- edge than its old data centers did. The alleged hacker was a former employee ofAmazon Web ServicesInc., the cloud service that hosts much of Capital One’s tech infrastruc- ture. “We will incorporate the learnings of this incident to further strengthen our cyber defense,” the bank spokeswoman said. Cybersecurity falls under the chief information security officer. The bank in 2017 hired Michael Johnson for the role. Mr. Johnson, a veteran of the federal government, quickly clashed with employees who thought his style was unsuited to the private sector, according to the people. Senior cybersecurity employees unhappy under Mr. Johnson left for jobs else- where, the people said. Some went to other divisions at Capital One. Most of Mr. John- son’s initial direct reports have departed. Some of their

replacements have left too. Through the spokeswoman, Mr. Johnson declined to comment. The bank spokeswoman said that Mr. Johnson “joined us as an experienced CIO and since that time we have grown our team of highly talented cyber leaders and experts to ef- fectively manage our cyber de- fenses and preparedness.” Routine cybersecurity mea- sures to help protect the company sometimes fell by the wayside, some of the people said. For instance, the bank around late 2017 bought software from a company called Endgame to improve its ability to detect hacks, some of the people said. More than a year after buying the software, Capital One still hadn’t fin- ished installing it, one of the people said. Endgame declined to comment. The bank spokeswoman said that Capital One is “con- stantly developing and adapt- ing” to “an ever-changing threat landscape.”

tion. We’ve invested heavily in
cybersecurity and will con-
tinue to do so.”
The bank spokeswoman
said the cybersecurity unit’s
total head count has risen
over the past several years.
The hack was one of the
largest in recent years. Capital
One’s breach was particularly
surprising because it ran
counter to a popular percep-
tion that the bank was ahead
of the game in technology.
For years, Capital One stood
out among banks as a place
where top technology talent
wanted to work. Many em-
ployees liked the fact that it
was still led by a founder,
Richard Fairbank. Technology

Continued from page B1

Cyber Unit

Flagged

Staff Woe

An activist hedge fund that
had the backing of billionaire
William Ackman has lost more
than 90% of its assets.
Marcato Capital Manage-
mentLP’s assets fell to around
$250 million at midyear from
$3.2 billion in 2015, people fa-
miliar with the numbers said.
Marcato’s decline in assets is
due to poor performance and
client redemptions, the people
familiar said.
In recent months, Marcato
founder Richard “Mick”
McGuire sold investment posi-
tions to meet redemption re-
quests, though he has no plans
to shut his firm, according to a
person familiar with his think-
ing.
Mr. McGuire, 42, launched
his San Francisco-based firm

in 2010 after working for Mr. Ackman’s Pershing Square Capital ManagementLP. Both are activist investors, advocat- ing for change at companies. Mr. McGuire’s firm was backed by some prominent cli- ents, including Mr. Ackman andBlackstone GroupInc., which invested $100 million. Blackstone has since pulled its money, a person familiar said. Mr. Ackman declined to comment through a spokesman. Marcato’s flagship fund lost 42% last year, counting a los- ing bet on crane makerTerex Corp. More recent performance figures for that fund weren’t available. Another of Marcato’s funds lost about 20% last year and has gained about 1% this year, the people said. In better times, Marcato

Wild WingsInc. and Ugg’s ownerDeckers OutdoorCorp. Marcato is one in a series of once-darling investors that have recently fallen in performance. Mr. Ackman is among them. The billionaire ran one of the most successful funds before a pair of disastrous bets and redemptions pared his fund by roughly $9 billion from its 2015 peak. This year, Mr. Ackman is doing better. Pershing Square Holdings, a proxy for the firm’s private hedge fund, is up about 50% through July. Activist hedge funds are up 9.3% this year through July, according to HFR, though they are trailing the S&P 500, which gained 20%. —Cara Lombardo and Corrie Driebusch contributed to this article.

BYRACHAELLEVY

Fund Backed by Ackman Shrivels by 90%

Two of the largest food
manufacturers in the U.S.
said the federal government’s
commodities regulator failed
to hold up its end of a deal
that settled a 2015 lawsuit re-
lated to alleged manipulation
of the wheat futures market.
Mondelez International
Inc. andKraft HeinzCo. said
statements made by the Com-
modity Futures Trading Com-
mission on Thursday violated
the terms of a consent order
agreed to this week that set-
tled the lawsuit.
The consent order says
parties involved in the case
would refrain from publicly
commenting about it, other
than referring to “the terms
of this settlement agreement
or public documents filed in
this case.”
On Thursday, the regulator
announced the settlement
with entities connected to
Mondelez and Kraft that al-
legedly manipulated the mar-
ket for wheat futures.
“Market manipulation in-
flicts real pain on farmers by
denying them the fair value
of their hard work and
crops,” Heath Tarbert, chair-

man of the commission, said. “It also hurts American fami- lies by raising the costs of putting food on the table. Mondelez and Kraft plan to seek relief in court over the commission’s messages about the cases, the companies said in separate statements. “The commission’s state- ment is fully compliant with the terms of the consent order,” a spokesman for the regulator said. Four years ago, the agency sued the entities, claiming they developed a plan in 2011 to purchase December-dated wheat futures contracts, thus signaling that food makers and grain processors planned to buy large quantities of wheat at the end of that year. The prices to purchase physical wheat before Decem- ber fell, permitting the Mon- delez and Kraft entities to take profits and save money, the commission said in the lawsuit. Both entities have denied manipulating the market, according to a court filing. The settlement requires a Mondelez subsidiary to pay a $16 million fine and abide by an injunction prohibiting vio-

lations of a law governing commodity trading, according to court documents. The pre- decessor company of Kraft Heinz must also follow the injunction but doesn’t have to pay a fine. Deerfield, Ill.-based Mon- delez International was formed in 2012, when its for-

mer parent company spun off the Kraft North American grocery business into a separate company. That company in 2015 completed a merger with H.J. Heinz Co., forming Kraft Heinz. Two members of the CFTC said it was unusual for the regulator to be limited in

what it can say about any particular case. Commissioners Dan Berko- vitz and Rostin Behnam also said the language of the consent order in question doesn’t restrict individual commissioners from commenting on the matter. “In our view, in future sit-

uations, the commission should not accept any confi- dentiality provisions or re- strictions on the commission’s ability to make public statements,” the two commissioners said in a joint state- ment. Both voted in favor of the agreement.

BYMICAHMAIDENBERG

Mondelez, Kraft

Say Regulator

Violated Pact

Richard ‘Mick’ McGuire’s firm was hit by client redemptions.

ADAM JEFFERY/CNBC/NBCU PHOTO BANK/GETTY IMAGES

The two companies plan to seek relief in court over the CFTC’s messages. Mondelez’s LU biscuit plant in Nantes, France.

LOIC VENANCE/AGENCE FRANCE-PRESSE/GETTY IMAGES

The Wall Street Journal - 16.08.2019

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