Morningstar Advisor - April/May 2012 - (Page 6)
Editor-in-Chief Jerry Kerns Managing Editor Ryun Patterson
Alternatives analyst Josh Charney’s profile of Michael Aronstein (“Undiscovered in Plain Sight, Page 56) highlights the extremely competitive nature of the investment business. “I came to the realization that fund managers are a lot like aspiring actors; they are waiting for that big day where someone will give them the opportunity to showcase their talent,” Charney says. Charney also wrote a sidebar for our Spotlight section (“Three Traits of a Successful Long-Short Equity Manager,” Page 45).
Editor-at-Large Don Phillips Contributing Editors Dan Culloton, Paul Justice, Haywood Kelly Contributors Greg Carlson, Josh Charney, Michael Coop, Erin Davis, Philip Guziec, David Krempa, Paul Larson, Samuel Lee, Elliot Olson, Joung Park, Carl Richards, Kate Stalter, Timothy Strauts, Terry Tian, Francisco Torralba Data Editors Mnason Chew, Preethi Parmar, Alina Tarlea Proofreader Jennifer Gierat Art Director Alexander Skoirchet Illustrator Keith Negley Photographer Alexander Aleman, Dustin Grove Publisher Leslie Banks
Freelance illustrator Keith Negley approached this issue’s illustrations by boiling each story down to its core message and assigning imagery to that message. “The art for the Spotlight section, for example, was about how asset managers need to create more-accessible investment products, so I thought of things that are visually complicated, and the cats cradle seemed like the perfect fit,” he says. Negley lives and works in Brooklyn, N.Y., and he is a regular contributor to The New York Times and The Wall Street Journal.
Director of Advertising Sales Mary Uribe Regional Sales Directors Dan Atkinson, Tony Lignelli, Kristina Niemi, Stuart Roge Morningstar, Inc. Chairman and CEO Joe Mansueto President, Equity and Credit Research Group Catherine Odelbo Sr. Vice President, Financial Communications Business Mike Barad Managing Director, Design David Williams How to Reach Morningstar Advisor Subscriber Services and Circulation firstname.lastname@example.org Editorial and Letters to the Editor email@example.com Advertising firstname.lastname@example.org Rate card available at
Joung Park covers the gold-mining industry for Morningstar, and the miners’ leverage to bullion prices means that he must mind the macro picture. Park’s research article (“Central Banks Driving the Gold Rush,” Page 64) was prompted when a salesperson asked him whether European central banks would liquidate their gold holdings to pay off sovereign debt. The short answer to that question is “highly unlikely,” but Park’s research demonstrates how central banks profoundly influence the bullion market through other means.
http://advisor.morningstar.com/products/advisormagazine.asp Reprints and Licensing email@example.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 magazine is provided by Morningstar and Ibbotson Associates unless otherwise noted. © 2012 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.
As alternative investments are getting more popular, so are some myths and misconceptions. Morningstar alternatives analyst Terry Tian did some mythbusting in an article for this issue’s Spotlight section (“Why Absolute Return Funds Fail to Deliver,” Page 46). “The notion ‘absolute return’ is a recent example,” Tian says. “It might work well in marketing, but the term is misleading in essence. I believe education plays a key role to ensure investors are buying into these alternative funds for the right reason.”
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.
Morningstar Advisor April/May 2012
Table of Contents for the Digital Edition of Morningstar Advisor - April/May 2012
Morningstar Advisor - April/May 2012
Letter From the Editor
We’re Too Smart
How Do You Use Alternatives?
Taking the Lead
How to Find Economic Moats
The Beauty of Currencies
No Clarity on Bonds
Four Picks for the Present
Performance Chasing, Evaluated
Technology’s Slim Pickings
How Much Is Enough?
The Fear Bubble
Three Traits of a Successful Long-Short Equity Manager
Why Absolute-Return Funds Fail to Deliver
An Economist’s Response to Crises
Undiscovered in Plain Sight
Untangling ETF Tax- Efficiency Myths
Central Banks Driving the Gold Rush
U.S. Industrials Could Add Some Magic to Europe-Weary Portfolios
No-Hesitation Allocation Funds
Our Favorite Mutual Funds
50 Most Popular ETFs
Undervalued Stocks With Wide Moats
The Greatest Story Ever Told
Morningstar Advisor - April/May 2012