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to ensure that current management is responsible for the fund’s performance during the entire time frame. In terms of risk, we narrowed it down to funds that have achieved low or below average Morningstar Risk ratings. This measure assesses variations of monthly returns compared with similar funds over three-, five-, and 10-year periods, emphasizing investors’ higher sensitivity to downside risk in the trade-off for returns.

the fund has remained nimble. True, the fund has shed an average of 1% during the past three years, but during the past decade, it’s averaged a 4% annual gain for fundholders. Its strong relative performance and belowaverage volatility are owed to the stock-picking of several portfolio counselors who each run slices of the fund independently. Though the counselors run their portions of the fund independently, they tend to be long-term oriented with their picks, and price multiples tend to hug the category norms.
Scout International UMBWX

when building this portfolio, and he’s cautious in his preference for industry leaders with sturdy balance sheets. He also treads gingerly in emerging markets and avoids Chinese and Russian firms.
Tweedy Browne Global Value TBGVX

Like the other two funds on this list, Tweedy Browne Global Value has posted strong relative returns in both 2008 and 2009, but it still shed an average of 3% annually during the past three years. That said, the typical large-value fund lost twice as much. Managers William Browne, John Spears, and Tom Shrager look across the market-cap spectrum for stocks, but their penchant for steady growers with strong balance sheets has provided ballast for the fund when markets are reeling.
Karin Anderson is a mutual fund analyst with Morningstar.

And And

Tot Ret Annlzd 10 Yr Manager Tenure (Longest)

/ > 2 > 10 / 5 Below Avg 5 Low )

And ( Mstar Risk 10 Yr Or Mstar Risk 10 Yr

The screen pulled several funds as of April 13. Here are a few that stand out.
American Funds EuroPacific Growth AEPGX

While this fund’s assets have climbed to more than $100 billion during the past decade,

James Moffett has skippered Scout International since its 1993 inception. During the past 10 years, this foreign largeblend fund sailed past its category average with its 5% average annual gain. (It shed 1% on an annualized basis over the trailing three years, though.) Moffett combines top-down and bottom-up analysis

September 15–17, 2010 The Swissôtel Chicago, Illinois

To register, and for more information: +1 866 839-9729 or MorningstarAdvisor.com/2010ETFInvest

ETF Invest Conference
You’re invited to Morningstar’s ﬁrst annual ETF Invest Conference

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As a ﬁnancial advisor, you want the latest investment insight, and at Morningstar, our goal is to deliver independent research so you can sort through the facts about the growing ETF market. This September in Chicago, Morningstar will bring together the best and the brightest in the ETF industry at the Morningstar ETF Invest Conference. The agenda promises to provide thought-provoking dialogue about investing with ETFs—from both a strategic and tactical viewpoint.

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MorningstarAdvisor.com 69

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Morningstar Advisor - June/July 2010

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