Morningstar Advisor - Winter 2008 - (Page 9) Inbox The magazine of investing insights for independent-minded advisors Fall 2007 Excellent articles. Two questions: Rather than by country of origin, can we see a mutual fund’s international statistics based on revenues? For example, if Coca-Cola has 70% overseas revenue and I have a mutual fund that’s 100% Coke, it would be a foreign fund, not a 100% domestic fund. Also, is there a way to break out returns from currency? Matthew Rapoport BNY Mellon Wealth Management , New York, NY to remind me that however difficult it may be to find them and stay with them when they are out of favor, terrific managers like these two give our clients as fair a chance at earning returns on our invested capital as can be found in the managed investment world. Dan McConlogue Eleven O’Clock Associates, LLC , Danbury, CT Morningstar Advisor Fall 2007 International Eveillard & Whitman Consumer Staples Editor’s note: Photographer Christopher Lane was happy to accommodate the request. Editor’s note: The answer to your first question The New Investing Geography The best companies in the world don’t constrain themselves to countries. Why should investors? Cover_7.indd 1 1/8/08 8:25:16 PM E-mail your feedback, ideas, and viewpoints to magazine_editor@morningstar.com is no, but we’ll pass along your requests to our development team. As for your second question, Coca-Cola and other companies with multinational operations state the impact of foreign currency in their 10-K in dollar terms, along with the percentage change of individual currencies they use around the world. It is complex, partly because a firm like Coca Cola operates in more than 60 currencies. I hold the most high respect for both of these managers, and I loved the article. Thank you. Bill Boatwright UBS Financial Services , Encino, CA Fund Analyst Picks Fall 2007 Issue: International Investing I prefer not to buy global funds since it complicates my decisions regarding foreign exposure. However, as markets are becoming more connected, I may have to rethink my attitude. For example, I like the American Funds Smallcap World SMCWX because it has the capability to look for small- and midcaps around the world, including U.S. markets. Kenneth Schlachter Bartlett & Co., Cincinnati, OH Eveillard and Whitman I enjoy your magazine and find many of your articles well written and germane to my business as an investment advisor. I really take issue with your Mutual Fund Analyst Picks list, however. Why do you insist on listing closed funds? Peter Traczyk Financial Planner, Oak Park, IL Editor’s note: We keep closed funds on the We use both kinds of managers—[those that roam and those that stick to one area]. The issue is to know which you prefer and know which strategy your manager provides. As long as the advisor assesses the risks of both strategies and understands their clients’ needs and tolerances, both strategies, delivered from different managers, is of value to clients. William Moore Deloitte & Touche Investment Advisors, Atlanta, GA Within the first month that I opened my door as an independent RIA 10 years ago, I bought Third Avenue Value TAVFX and First Eagle Global SGENX for my first client. “Class” is a term from my father’s generation, and whenever he uses that word, he smiles. When I think of Jean-Marie Eveillard and Marty Whitman, I, too, think of class, and yup, damned if I don’t smile as well. I would like to inquire as to how I could obtain a copy of the picture of the two of them on page 50 of the Fall 2007 issue. Yes, I know it may seem a little corny, but I plan on hanging that picture in my office to remind me that long-term value investing is why I got into this business—and list to avoid confusion. We don’t want shareholders of a closed fund to wonder if we have changed our opinion of it. We also want to them to know if the closed fund deserves their new money. That said, beginning with this issue, we will indicate in the table if a fund is closed to new investors. Sign Me Up I wish to congratulate you on Morningstar Advisor. You provide information I haven’t seen elsewhere, and I regularly read six or seven financial periodicals. I have sent in my free subscription card. Thanks! George Bates George E. Bates & Associates , Rockford, IL MorningstarAdvisor.com 9 http://MorningstarAdvisor.com
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