Morningstar Advisor - June/July 2013 - (Page 6)
Contributors
MorningstarAdvisor
Michael Coop
Editor-in-Chief Jerry Kerns
Editor-at-Large Don Phillips
As head of alternative investments for Ibbotson Associates Australia,
Michael Coop sees a lot of investors make mistakes when
choosing which alternatives to add to their portfolios. “Alternative
investments are still a great way to get diversification,” he says,
“but investors have struggled to distinguish between good
diversifiers versus funds with high fees that behave like equities
or government bonds.” Coop discusses how investors can find
true alternatives in this issue’s Spotlight section, “Beware the Lure
of Diversification,” Page 36.
Contributing Editors Dan Culloton, Haywood Kelly
Contributors Basili Alukos, Michael Brennan, Greg Carlson,
Matthew Coffina, Michael Coop, Rajneesh Motay, Steven Pikelny,
Jeffrey Ptak, Carl Richards, Kate Stalter, Terry Tian,
Francisco Torralba, Dan Werner, Abby Woodham, John Zecy
Data Editors Mnason Chew, Alina Tarlea
Proofreaders Ann Marie Gray, Courey Gruszauskas
Art Director Alexander Skoirchet
Illustrator Lloyd Miller
Photographer Stan Kaady
Publisher Leslie Marshall
Director of Advertising Sales Mary Uribe
Regional Sales Directors Dan Atkinson, Tony Lignelli,
Kristina Niemi, Stuart Roge
Morningstar, Inc.
Chairman and CEO Joe Mansueto
Rajneesh Motay
Managing Director, Design David Williams
Director, Corporate Marketing Kristin Mateja
After the market crash of 2008, the investment industry scrambled to
develop products that would offer investors a smoother ride.
One example is variable annuities with built-in volatility management. In “The Price of Managing Volatility,” Page 63, Rajneesh
Motay, an investment consultant with the Morningstar Investment
Management division, takes a close look at these riders to determine
whether they are good deals for investors.
How to Reach Morningstar Advisor
Subscriber Services and Circulation
magazine_custserv@morningstar.com
Editorial and Letters to the Editor magazine_editor@morningstar.com
Advertising magazine_adrates@morningstar.com
Rate card available at
www.global.morningstar.com/mediakit2013
Reprints and Licensing magazine_licensing@morningstar.com
How to Reach Morningstar
Customer Service +1 312 384-4000
Advisor Product Sales +1 877 586-5405
Data Questions +1 312 696-6600
Morningstar Advisor is published bimonthly by Morningstar, Inc., 22 W. Washington St.,
Chicago, IL 60602. An annual subscription for delivery in the U.S. is $60. All exhibit data in this
Lloyd Miller
magazine is provided by Morningstar and Ibbotson Associates unless otherwise noted.
Lloyd Miller collects the objects and tools that often appear
in his illustrations. He finds that they help him convey the ideas he’s
trying to communicate. “I find that their efficiency and purpose,
combined with their clarity of form, make them particularly
applicable to the investing subjects in this issue,” he says. This
issue is the third time we’ve worked with Miller. He illustrated our
debut issue, which focused on hedge funds in spring 2007,
and the August/September 2012 issue on municipal bonds. His work
has also appeared in The New York Times, The Wall Street Journal,
and the Harvard Business Review.
6
Morningstar Advisor June/July 2013
© 2013 Morningstar. All Rights Reserved. The information contained herein: (1) is intended solely
for informational purposes; (2) is proprietary to Morningstar and/or its content providers;
(3) may not be copied or distributed; (4) is not warranted to be accurate, complete, or timely; and
(5) does not constitute investment advice of any kind. Neither Morningstar nor its content
providers are responsible for any damages or losses arising from any use of this information. Past
performance is no guarantee of future results. “Morningstar” and the Morningstar logo are
registered marks of Morningstar, Inc.
Disclosure: Morningstar licenses its indexes to certain providers, including BlackRock Institutional
Trust Company, N.A., First Trust, and Deutsche Bank, for use in exchange-traded funds and
exchange-traded notes. These ETFs and ETNs are not sponsored, endorsed, issued, or sold by
Morningstar. Morningstar does not make any representation regarding the advisability of
investing in ETFs and ETNs that are based on Morningstar indexes.
1483181
http://www.global.morningstar.com/mediakit2013
Table of Contents for the Digital Edition of Morningstar Advisor - June/July 2013
Morningstar Advisor - June/July 2013
Contents
Contributors
Letter From the Editor
Not Your Values
How Do You Use Alternatives for Clients?
Working to Build a Niche
How to Put Buffett’s Investing Philosophy into Practice
Sophisticated Strategies for the Masses
Investments á la Carte
Investment Briefs
The Percentile Trap
Defense Firms Will Stay Aloft
Beware the Lure of Diversification
Using Alternatives in Practice
Managed Futures and Cash Rates
The World Is Getting Grayer
Waiting to Pull Up Anchor
The Price of Managing Volatility
Let’s Get Back to Basics
Our Favorite Mutual Funds
50 Most-Popular Equity ETFs
Undervalued Stocks With Wide Moats
Mutual Fund Urban Myths
Morningstar Advisor - June/July 2013
https://www.nxtbook.com/nxtbooks/morningstar/magazine_2024q1
https://www.nxtbook.com/nxtbooks/morningstar/magazine_2023q4
https://www.nxtbook.com/nxtbooks/morningstar/magazine_2023q3
https://www.nxtbook.com/nxtbooks/morningstar/magazine_2023q2
https://www.nxtbook.com/nxtbooks/morningstar/magazine_2023q1
https://www.nxtbook.com/nxtbooks/morningstar/magazine_2022q4
https://www.nxtbook.com/nxtbooks/morningstar/magazine_2022q3
https://www.nxtbook.com/nxtbooks/morningstar/magazine_2022q2
https://www.nxtbook.com/nxtbooks/morningstar/magazine_2022q1
https://www.nxtbook.com/nxtbooks/morningstar/magazine_2021q4
https://www.nxtbook.com/nxtbooks/morningstar/magazine_2021q3
https://www.nxtbook.com/nxtbooks/morningstar/magazine_2021q2
https://www.nxtbook.com/nxtbooks/morningstar/magazine_2021q1
https://www.nxtbook.com/nxtbooks/morningstar/magazine_2020q4
https://www.nxtbook.com/nxtbooks/morningstar/magazine_2020q3
https://www.nxtbook.com/nxtbooks/morningstar/magazine_2020q2
https://www.nxtbook.com/nxtbooks/morningstar/magazine_2020q1
https://www.nxtbook.com/nxtbooks/morningstar/magazine_2019winter
https://www.nxtbook.com/nxtbooks/morningstar/magazine_2019fall
https://www.nxtbook.com/nxtbooks/morningstar/magazine_2019summer
https://www.nxtbook.com/nxtbooks/morningstar/magazine_2019spring
https://www.nxtbook.com/nxtbooks/morningstar/magazine_20191201
https://www.nxtbook.com/nxtbooks/morningstar/magazine_20181011
https://www.nxtbook.com/nxtbooks/morningstar/magazine_20180809
https://www.nxtbook.com/nxtbooks/morningstar/magazine_20180607
https://www.nxtbook.com/nxtbooks/morningstar/magazine_20180405
https://www.nxtbook.com/nxtbooks/morningstar/magazine_20180203
https://www.nxtbook.com/nxtbooks/morningstar/magazine_20181201
https://www.nxtbook.com/nxtbooks/morningstar/magazine_20171011
https://www.nxtbook.com/nxtbooks/morningstar/magazine_20170809
https://www.nxtbook.com/nxtbooks/morningstar/magazine_20170607
https://www.nxtbook.com/nxtbooks/morningstar/magazine_20170405
https://www.nxtbook.com/nxtbooks/morningstar/magazine_20170203
https://www.nxtbook.com/nxtbooks/morningstar/magazine_20171201
https://www.nxtbook.com/nxtbooks/morningstar/magazine_20161011
https://www.nxtbook.com/nxtbooks/morningstar/magazine_20160809
https://www.nxtbook.com/nxtbooks/morningstar/magazine_20160607
https://www.nxtbook.com/nxtbooks/morningstar/magazine_20160405
https://www.nxtbook.com/nxtbooks/morningstar/magazine_20160203
https://www.nxtbook.com/nxtbooks/morningstar/magazine_20161201
https://www.nxtbook.com/nxtbooks/morningstar/magazine_20151011
https://www.nxtbook.com/nxtbooks/morningstar/magazine_20150809
https://www.nxtbook.com/nxtbooks/morningstar/magazine_20150607
https://www.nxtbook.com/nxtbooks/morningstar/magazine_20150405
https://www.nxtbook.com/nxtbooks/morningstar/magazine_20150203
https://www.nxtbook.com/nxtbooks/morningstar/magazine_20151201
https://www.nxtbook.com/nxtbooks/morningstar/magazine_20141011
https://www.nxtbook.com/nxtbooks/morningstar/magazine_20140809
https://www.nxtbook.com/nxtbooks/morningstar/magazine_20140607
https://www.nxtbook.com/nxtbooks/morningstar/magazine_20140405
https://www.nxtbook.com/nxtbooks/morningstar/magazine_20140203
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20141201
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20131011
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20130809
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20130607
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20130405
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20130203
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20131201
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20121011
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20120809
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20120607
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20120405
https://www.nxtbook.com/nxtbooks/morningstar/investorconference2012
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20120203
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20121201
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20111011
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20110809
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20110607
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20110405
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20110203
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20111201
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20101011
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20100809_lincoln
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20100809
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20100607_lincoln
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20100607
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20100405_lincoln
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20100405
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20100203
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20101201
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20091011
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20090809
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20090607
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20090405
https://www.nxtbook.com/nxtbooks/morningstar/advisor_20090203
https://www.nxtbook.com/nxtbooks/morningstar/advisor_2008fall
https://www.nxtbook.com/nxtbooks/morningstar/advisor_2008summer
https://www.nxtbook.com/nxtbooks/morningstar/advisor_2007spring
https://www.nxtbook.com/nxtbooks/morningstar/advisor_2007fall
https://www.nxtbook.com/nxtbooks/morningstar/advisor_2007summer
https://www.nxtbook.com/nxtbooks/morningstar/advisor_2008spring
https://www.nxtbook.com/nxtbooks/morningstar/advisor_2008catalog
https://www.nxtbook.com/nxtbooks/morningstar/advisor_2008winter
https://www.nxtbookmedia.com