Morningstar Advisor - April/May 2011 - (Page 22)

Investments à la Carte Four Picks for the Present Mutual Fund: Fidelity Municipal Income FHIGX Category Muni National Long Asset Allocation Cash US Stock Non US Stock Bond Other Investment Style 8 Medium Long Total Rtn Since Inception 6.52% Total Assets $5.3 billion Expenses 0.46% Turnover Ratio 10% –100 –50 0 50 100 This fund has what it takes to handle all types of markets. It’s run by Jamie Pagliocco, who comanaged the fund with Christine Thompson before she became CIO of Fidelity’s bond group in 2010. Pagliocco maintains the same prudent, team-based approach that has produced outstanding long-term returns with below-average volatility across the Fidelity muni-fund lineup. The fund’s emphasis on high-quality, liquid bonds led to a strong defensive showing in downturns such as 2008’s financial crisis and the recent municipal-bond sell-off. But Pagliocco and crew have also made moves that should help it outperform in more favorable climates. Miriam Sjoblom Exchange-Traded Fund: Vanguard Global ex-US Real Estate VNQI Number of Stocks 423 Daily Volume and Closing Price Assets in 10 Largest Holdings 26.8% Expense Ratio 0.35% Number of Countries 36 Top Country 18.7% in Japan Assets $96.1 million 300K 200 100 11/1/10 Daily volume Daily closing price $53 51 49 47 3/1/11 Vanguard’s new global real estate offering is the cheapest and most diversified global real estate ETF on the market. Investors should look into this fund, which offers access to the 70% of the real estate market left out by U.S. REIT funds. International real estate funds have not enjoyed broad acceptance, with total ETF assets slightly under $3 billion, versus close to $17 billion in U.S.-focused ETFs. Unlike U.S. REITs, international real estate companies have not recovered their pre-crisis peaks, leaving them with potentially attractive valuations. Samuel Lee Separate Account: Manning & Napier Core Equity Category 7 Large Growth Asset Allocation Cash US Stock Non US Stock Bond Other Investment Style 7 Large Growth Total Assets $2.202 billion Price/Earnings 17.78 –100 –50 0 50 100 This separate account pretty much does it all. It has outperformed in up markets while also holding up better than nearly all of its large-growth rivals in downdrafts. Its team managed and leverages the same team of proven analysts that supports Manning & Napier’s successful line-up of separate accounts and mutual funds. They use a global, 52 50 48 53 52 51 50 49 48 Assets in Top 10 Holdings Turnover Ratio 27.69% 51% 47 46 45 all-cap11/19/1012/17/101/12/112/3/112/25/11 approach12/22/101/18/11 2/9/11 11/1/1011/26/1012/23/101/20/112/11/11 11/2/1011/29/1012/27/101/21/112/14/11 11/3/1011/30/10and1/4/111/26/112/17/11 11/4/10 12/1/1012/28/101/24/112/15/11 11/5/10 12/2/1012/29/101/25/112/16/11 11/8/10 12/3/1012/30/10 1/27/112/18/11 11/10/1012/7/10 1/3/11 a1/31/112/23/11 11/9/10 12/6/1012/31/10 1/28/112/22/11 11/11/1012/8/10 1/5/11 2/1/11 2/24/11 11/12/1012/10/10 meld range of3/1/11 11/15/1012/13/10 1/6/11 2/2/11 2/28/11 11/16/1012/14/101/10/11 2/4/11 styles, 11/17/1012/15/101/7/11 2/7/11 11/18/1012/16/10 1/13/11 2/8/11 11/22/1012/20/101/14/11 2/10/11 11/23/1012/21/10 1/19/11 11/24/10 12/9/10 1/11/11 looking at growth, cyclical, and deep-value plays. That may seem a tad unwieldy, but the team’s bottom-up research and timing has been spot on. Simply put, they’ve been in the right place at the right time much more often than not, and they’ve picked the right 300000 stocks with regularity. Michael Breen 200000 100000 22 Morningstar Advisor April/May 2011

Table of Contents for the Digital Edition of Morningstar Advisor - April/May 2011

Morningstar Advisor - April/May 2011
Letter From the Editor
The Debate That Matters Most
What Can the Mutual Fund Industry Do Better?
Cool Logic, Warm Intent
How to Start a Mutual Fund
Owner and Operator
Middle East Revolts Roil Oil Markets
Four Picks for the Present
Investment Briefs
How We Improve Our Odds of Picking Outperformers
Health Care Survived 2010, but Investors Want Proof
The Global Fund-Leadership Playoffs: Europe vs. the United States
U.S. Fund Investors Have It Good
U.S. Fund Firms Learn to Speak UCITS
Balancing Act
The Tamer Ride
Investors Lend a Hand
Healthy, Wealthy, and Wide
Foreign Funds That Win at Concentration
Mutual Fund Analyst Picks
50 Most Popular ETFs
Undervalued Stocks With Wide Moats
VAs Finish 2010 With a Solid Gain
Buying Good Funds, Poorly

Morningstar Advisor - April/May 2011