UPDATE 1-Federated switches manager on underperforming bond fund
March 7 (Reuters) - Money manager Federated Investors named a new manager to oversee its $7.6 billion Total Return Bond Fund, which has lagged similar funds in recent years.
Donald Ellenberger, a 26-year veteran of the firm, will take over as senior portfolio manager of the fund from Joseph Balestrino, who is leaving but will continue to be available on a consulting basis, Pittsburgh-based Federated said in a statement. Balestrino worked at Federated for 27 years.
Federated's Total Return Bond Fund gained 3.71 percent over the past year, trailing the performance of 69 percent of similar funds, according to data from Morningstar. The fund trailed 71 percent of peers over the past three years.
Ellenberger, who graduated from Pennsylvania State University and has an MBA from Stanford University, heads Federated's yield curve strategy committee.
He currently manages the firm's $681 million U.S. Government Securities 2-5 Years Fund and co-manages several other funds. The 2-5 Years fund outperformed 85 percent of similar funds over the past three years, according to Morningstar.
Federated, best known as a manager of money market funds, oversaw total assets of $380 billion at the end of 2012.