Morningstar Advisor - Summer 2007 - (Page 77)

On the Web Visit MorningstarAdvisor.com for more research and insights Most Popular Q2 Articles • Overheard at the 2007 Morningstar Investment Conference • • • • Fiduciary Focus: Fleecing 403(b) Plan Participants A Conversation with a Fiduciary Alternatives for American Funds Fans Building the Business 101: Saying Goodbye to Clients How Much Is Your Client Paying for That 529 College Savings Plan? Coming in Q3 Nearly 1,000 advisors attended our annual investment conference June 27–29 in Chicago. Here are a few of the best quotes we heard from panelists. ”Subprime is a total unmitigated disaster, and it’s only going to get worse.” —Jeffrey Gundlach, TCW Funds ”My message is twofold. First, there is an extraordinarily important role for advisors to help individuals with retirement, and second, most conventional wisdom does not capture risk of longevity on cash flows.” —Jim Rothenberg, Capital Research and Management Co. “I think we have a very important mission. It’s to get clients to somehow contend with the biases and preferences they systematically express to the detriment of their wealth.” —Lew Sanders, AllianceBernstein “The fund industry has been on its best behavior the last several years. I think there’s a recognition today that keeping current investors on board is more important than attracting new investors.” —Don Phillips, Morningstar. Sales Idea to Share with Clients Striking a Balance: In today’s complex market, the idea of researching, implementing, and managing asset allocation can be daunting. Balanced funds, which include a blend of stocks and bonds, may help offset this challenge and provide consistency over time. This free, NASD-reviewed chart is available at http://MorningstarAdvisor.com/salesideas/ ideas.asp “One very important point that has to be understood about cap-weighted indexing is that it is only optimal for investors under one circumstance: if the prices for all stocks are efficiently set. The more that I study the economy, the more I see cracks in the efficient market theory.” —Jeremy Siegel, Wharton School of the University of Pennsylvania “If I had to pick one company to buy and own for the next five years, Fastenal would be it.” —Pat Dorsey, Morningstar ”Corporate Japan is still very much struggling with this notion that the primary constituent should be the owners of the business. Japan doesn’t like to innovate.” —David Herro, Oakmark Funds “Hedge funds are not an investment. They’re a compensation scheme.” —Jean-Marie Eveillard, First Eagle Funds “If we are to rely on history as a predictor of future returns, we are likely to be disappointed, because the future is unlikely to be anywhere near the recent or even historical past.” —Ranji Nagaswami, AllianceBernstein Retiring with Natalie Choate Podcast Natalie Choate is the country’s top expert on estate planning for retirement benefits. Her book Life and Death Planning for Retirement Benefits is the bible of IRA distribution planning. Listen to Natalie every month at http://MorningstarAdvisor.com/products/podcasts.asp MorningstarAdvisor.com 77 http://MorningstarAdvisor.com http://MorningstarAdvisor.com/salesideas/ideas.asp http://MorningstarAdvisor.com/products/podcasts.asp http://MorningstarAdvisor.com

Table of Contents Feed for the Digital Edition of Morningstar Advisor - Summer 2007

Morningstar Advisor - Summer 2007 Contents Letter from the Publisher Get to Know the Bond “All-Stars” Research Briefs Our Stewardship Test Gets Tougher Save It for Later Too Many Oranges Best of Both Worlds No Two Clients Are Alike When It Comes to VAs, It’s Seller Beware Hands On: Finding the Suitable Fund Share Class for Your Client Fund Style Can Drift Off Course Sticking to Their Style, Through Thick and Thin Marathon Man Growth, With a Chaser A Menu of Ideas to Fill Five Market Baskets Funds: Finding Funds with Conviction Stocks: So You Say You Want Income? All Eyes on China Mutual Fund Analyst Picks Undervalued Stocks Most Popular Variable Annuities What’s New at Morningstar and on the Web The Advisor’s Economic Moat

Morningstar Advisor - Summer 2007

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