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