Morningstar Advisor - April/May 2011 - (Page 47)

Morningstar Conversation U.S. Fund Firms Learn to Speak UCITS By Christopher Traulsen The European market is alluring to U.S. firms, but making the jump isn’t cheap or easy. In this issue’s Spotlight section (Page 38), Robert Pozen and Theresa Hamacher have much to say in favor of Europe’s UCITS fund regulation. In short, they argue that U.S. fund regulations have kept the mutual fund industry from competing as effectively globally as their European counterparts, while offerings under the UCITS regime have stolen the lead in asset growth. With that in mind, we thought it would be of interest to speak with the heads of two U.S.-based fund companies that have operations in Europe for their perspective on the challenges facing the U.S. fund industry and best practices from both sides of the Atlantic. Greg Johnson, CEO of Franklin Templeton Investments, provides the perspective that comes with a long history of well-established operations in both markets. Franklin Templeton is a major player in Europe and Asia, with more than 252 funds domiciled in those regions, compared with 115 in the United States. Dodge & Cox Chairman Emeritus John Gunn and COO Tom Mistele bring a different point of view to the table. Their firm is well known and highly regarded in the United States, but it has only recently launched a foray into European markets with the establishment of a Dublin-domiciled UCITS range in late 2009. Although the participants differed in their responses to many of our questions, they all are fond of the collaborative nature of fund regulation in Europe and are excited by the growth prospects of new markets around the world. From London, we talked to Johnson on Feb. 24 and Gunn and Mistele on Feb. 25. The conversations have been edited for clarity and length. 47

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