Morningstar Advisor - June/July 2012 - (Page 49)

Morningstar Conversation On the Go for Fixed Income By Miriam Sjoblom Dan Fuss and Michael Hasenstab have independent streaks that lead them to unconventional and profitable opportunities. Let’s face it. Last year was a triumph for traditional U.S. bond investing. Helped by a jolt of fear and a Federal Reserve shimmying to Chubby Checker, the passively managed Vanguard Total Bond Market Index VBTLX gained 7.7% in 2011, leaving many active bond managers in the dust. That rally did little to calm concerns about rising yields and the dearth of value in U.S. Treasuries, though. Many core bond managers have resorted to looking eyond their own backyard—to non-U.S. sovereign debt and currencies, junk bonds, and further down in companies’ capital structures—for relief from the lean opportunities offered by their increasingly U.S.-government-heavy investment-grade home base. That contingent looks like a herd of Johnnycome-latelies next to Dan Fuss, though. For more than 20 years, his Loomis Sayles Bond LSBRX has charted its own profitable path in and out of distressed corporate debt, busted and balanced convertibles, real estate investment trusts and other types of preferred and common stock, emerging-markets debt, and nondollar bonds. A dauntless contrarian, Fuss has yet to weather a crisis that he couldn’t use to his advantage, even if it means picking up a few battle scars along the way. Also known for investing with a staunchly independent mind, Templeton Global Bond’s TPINX Michael Hasenstab doesn’t need to throw out his playbook either. Hasenstab has a remarkable talent for spotting long-term trends in advance and then getting in on the ground floor. That was the case when he moved into Asian government bonds and currencies 49

Table of Contents for the Digital Edition of Morningstar Advisor - June/July 2012

Morningstar Advisor - June/July 2012
Letter From the Editor
Be Worth Remarking About
How Important Is Stewardship?
From West Point to Points East
Where a Fund’s Secrets Lie
Getting Fund Directors on Board
Managers Prep for Housing Rebound
Four Picks for the Present
Investment Briefs
A Hedge Against Career Risk
Natural Gas Reaches Capitulation
Family Matters
How Good Stewardship Predicts Superior Performance
Stewardship Goes Back to the Fundamentals
On the Go for Fixed Income
Where Shareholders Ride First Class
Dangers Lurk in Exchange-Traded Notes
Stocks on Sale in a Strong Market
A Good Steward Is Easy to Find
Our Favorite Mutual Funds
50 Most Popular ETFs
Undervalued Stocks With Wide Moats
Buffett Rule’s Biggest Losers

Morningstar Advisor - June/July 2012