The Penn Capital Select Financial Services Fund has been reborn as the Turner Future Financial Services Fund. Turner Investment Partners has picked up a new product from Penn Capital Management in Cherry Hill, New Jersey.

The three-year-old fund has only $400,000 in assets under management. Nonetheless, Penn Capital decided to hand over management of the fund in order to concentrate on high-yield and small-cap equities. The bulk of the firm's business lies in institutional and separately managed accounts.

"The financial services fund wasn't in our interest for our firm resources," said Jim McBride, vice president for Penn Capital. "We loved the asset class but couldn't commit the resources necessary to run it. Turner certainly could."

McBride said that, while the fund had performed well, it just never took off from a marketing standpoint. He blamed lack of brand and distribution for the fund's lackluster sales.

"To be successful in the retail market, you need a lot of things," he said. "First you need brand; second, you need wholesalers; third, you need performance. Focusing our efforts on the proper resources makes the most tremendous sense."

The firm will continue to run its remaining high-yield fund. However, that offering is designed largely for Penn Capital's institutional clients. "That's for people who don't make our $10 million separate account minimum," said McBride.

Nonetheless, Penn Capital will probably throw their hats back in their ring at some point in the future; McBride said the firm is looking forward to a small-cap fund within the next year or two, when resources within the firm accommodate it.

For Turner's sake, Penn Capital's decision came at a good time.

"They chose to stop offering that product at the same time that we decided to start offering it," said Stephen Kneeley, Turner president and chief executive officer. "It's a good business decision for both sides."

Four years ago, Penn Capital joined Turner's TIP Funds, a trust that holds three fund families. By consolidating forces, the combined firms gain operating efficiencies as well as capitalizing off the trust's TIP brand name. 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE