Morningstar Advisor - February/March 2010 - 21
10% for the past decade, while Oakmark International gained slightly more than 8%. Like in equities, there was a consensus between advisors and Morningstar’s analysts in the fixed-income arena: Both picked Bill Gross of PIMCO Total Return PTTRX, Managers PIMCO Bond MBDFX, and Harbor Bond HABDX. Gross combines PIMCO`s long-term macroeconomic outlook and perspective on short-term cyclical factors to select the portfolio’s holdings. The largest mutual fund with more than $192 billion in assets, PIMCO Total Return had a 10-year annualized total return of 7.7% for the decade, with similarly strong performance in the three- and five-year periods. Harbor Bond is a current Fund Analyst Pick. “Bill Gross and PIMCO are widely considered to be among the best in the business,” Dolan says. “Despite the fund’s immense size, he has maintained the fund’s perch at the top of its category.” Morningstar also announced its Manager of the Year Awards in January. In addition to Berkowitz in the domestic-stock category, the team at American Funds EuroPacific Growth AEPGX (Stephen Bepler, Mark Denning, Robert W. Lovelace, Carl Kawaja, Sung Lee, Nicholas Grace, Jonathan Knowles, and Jesper Lyckeus) won the International-Stock Manager of the Year Award for 2009 and the team at Loomis Sayles Bond LSBRX (Dan Fuss, Kathleen Gaffney, Matthew Eagan, Elaine Stokes) got the nod in the fixed-income category. “Just because an ETF provider isn’t currently charging 12b-1 fees doesn’t mean that more than a few of them haven’t reserved the right to do so in the future. And that is what all the hubbub is about,” Burns says. “There seems to be concern that providers are suddenly going to break with tradition and start charging these fees after decades of not doing so.” Burns says Morningstar analysts don’t think this will happen. “To be clear, what we are talking about is charging 12b-1 fees on top of existing fees,” he says. “If some ETF provider decides to reallocate money from one expense bucket to the 12b-1 bucket while overall fees stay the same, it is pretty clear that the investor hasn’t suffered an adverse event. “At any rate, our belief that ETF providers won’t charge 12b-1 fees isn’t because we feel they are kind souls with investors’ best interests in mind. Rather, the market efficiency of the way ETFs transact will prohibit them from doing so. Downplaying the Hubbub Over 12b-1 Fees in ETFs Scott Burns, Morningtsar’s director of ETF analysis, says that worries about ETFs putting clauses into their prospectuses that would allow the funds to charge 12b-1 fees are overblown. MorningstarAdvisor.com 21
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Morningstar Advisor - February/March 2010
Table of Contents for the Digital Edition of Morningstar Advisor - February/March 2010
Morningstar Advisor - February/March 2010
Contents
New on MorningstarAdvisor.com
Letter from the Editor
Contributors
How has the Downturn Affected Your View of Global Investing?
Consistently Good
Taking Aim at Sacred Cows
Investment Briefs
Nailing Downside Risk
World Class
Map of International Moats
The Global View from Abroad
Crafting a Global Investing Strategy
Asset-Allocation Heavyweights Square Off
A World of Flexibility
Stay-at-Home Globetrotter
Four Picks for the Present
Making Money on Overseas Calls
Foreign Stocks: Think Selection, not 'Spice'
Your Foreign-and World-Stock Headquarters
Mutual Fund Analyst Picks
50 Most Popular ETFs
Undervalued Stocks with Wide Moats
VAs: Assets Rise as New Sales Slip
New at Morningstar
Skin in the Game
Morningstar Advisor - February/March 2010 - Morningstar Advisor - February/March 2010
Morningstar Advisor - February/March 2010 - Cover2
Morningstar Advisor - February/March 2010 - 1
Morningstar Advisor - February/March 2010 - 2
Morningstar Advisor - February/March 2010 - Contents
Morningstar Advisor - February/March 2010 - 4
Morningstar Advisor - February/March 2010 - 5
Morningstar Advisor - February/March 2010 - New on MorningstarAdvisor.com
Morningstar Advisor - February/March 2010 - 7
Morningstar Advisor - February/March 2010 - 8
Morningstar Advisor - February/March 2010 - Letter from the Editor
Morningstar Advisor - February/March 2010 - 10
Morningstar Advisor - February/March 2010 - Contributors
Morningstar Advisor - February/March 2010 - 12
Morningstar Advisor - February/March 2010 - 13
Morningstar Advisor - February/March 2010 - How has the Downturn Affected Your View of Global Investing?
Morningstar Advisor - February/March 2010 - 15
Morningstar Advisor - February/March 2010 - Consistently Good
Morningstar Advisor - February/March 2010 - 17
Morningstar Advisor - February/March 2010 - Taking Aim at Sacred Cows
Morningstar Advisor - February/March 2010 - 19
Morningstar Advisor - February/March 2010 - Investment Briefs
Morningstar Advisor - February/March 2010 - 21
Morningstar Advisor - February/March 2010 - 22
Morningstar Advisor - February/March 2010 - 23
Morningstar Advisor - February/March 2010 - Nailing Downside Risk
Morningstar Advisor - February/March 2010 - 25
Morningstar Advisor - February/March 2010 - 26
Morningstar Advisor - February/March 2010 - 27
Morningstar Advisor - February/March 2010 - 28
Morningstar Advisor - February/March 2010 - 29
Morningstar Advisor - February/March 2010 - 30
Morningstar Advisor - February/March 2010 - 31
Morningstar Advisor - February/March 2010 - World Class
Morningstar Advisor - February/March 2010 - 33
Morningstar Advisor - February/March 2010 - Map of International Moats
Morningstar Advisor - February/March 2010 - 34A
Morningstar Advisor - February/March 2010 - 34B
Morningstar Advisor - February/March 2010 - The Global View from Abroad
Morningstar Advisor - February/March 2010 - 36
Morningstar Advisor - February/March 2010 - 37
Morningstar Advisor - February/March 2010 - 38
Morningstar Advisor - February/March 2010 - 39
Morningstar Advisor - February/March 2010 - Crafting a Global Investing Strategy
Morningstar Advisor - February/March 2010 - 41
Morningstar Advisor - February/March 2010 - 42
Morningstar Advisor - February/March 2010 - Asset-Allocation Heavyweights Square Off
Morningstar Advisor - February/March 2010 - 44
Morningstar Advisor - February/March 2010 - 45
Morningstar Advisor - February/March 2010 - 46
Morningstar Advisor - February/March 2010 - 47
Morningstar Advisor - February/March 2010 - 48
Morningstar Advisor - February/March 2010 - 49
Morningstar Advisor - February/March 2010 - A World of Flexibility
Morningstar Advisor - February/March 2010 - 51
Morningstar Advisor - February/March 2010 - 52
Morningstar Advisor - February/March 2010 - 53
Morningstar Advisor - February/March 2010 - Stay-at-Home Globetrotter
Morningstar Advisor - February/March 2010 - 55
Morningstar Advisor - February/March 2010 - 56
Morningstar Advisor - February/March 2010 - 57
Morningstar Advisor - February/March 2010 - Four Picks for the Present
Morningstar Advisor - February/March 2010 - 59
Morningstar Advisor - February/March 2010 - 60
Morningstar Advisor - February/March 2010 - Making Money on Overseas Calls
Morningstar Advisor - February/March 2010 - 62
Morningstar Advisor - February/March 2010 - 63
Morningstar Advisor - February/March 2010 - Foreign Stocks: Think Selection, not 'Spice'
Morningstar Advisor - February/March 2010 - 65
Morningstar Advisor - February/March 2010 - Your Foreign-and World-Stock Headquarters
Morningstar Advisor - February/March 2010 - 67
Morningstar Advisor - February/March 2010 - Mutual Fund Analyst Picks
Morningstar Advisor - February/March 2010 - 69
Morningstar Advisor - February/March 2010 - 70
Morningstar Advisor - February/March 2010 - 71
Morningstar Advisor - February/March 2010 - 50 Most Popular ETFs
Morningstar Advisor - February/March 2010 - 73
Morningstar Advisor - February/March 2010 - Undervalued Stocks with Wide Moats
Morningstar Advisor - February/March 2010 - 75
Morningstar Advisor - February/March 2010 - VAs: Assets Rise as New Sales Slip
Morningstar Advisor - February/March 2010 - 77
Morningstar Advisor - February/March 2010 - 78
Morningstar Advisor - February/March 2010 - New at Morningstar
Morningstar Advisor - February/March 2010 - Skin in the Game
Morningstar Advisor - February/March 2010 - Cover3
Morningstar Advisor - February/March 2010 - Cover4
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