Morningstar Advisor - April/May 2013 - (Page 3)

April/May 2013 Features Morningstar Conversation Spotlight: Risk Learning to Live With Risk Once investors accept that risk is part of the equation, they can take steps to manage it. 36 50 Risk’s Wake-Up Call Investors can take precautions, but at some point, they need to realize that no one can predict the future. Undiscovered Manager 56 Seeing Is Believing The team at the small-cap shop SouthernSun relies more on their senses than a computer to understand companies. Risk On/On Risk Every investment decision you make is a verdict on risk and uncertainty. 38 The Risk of Being Overconfident The very best investors know their limitations. Most investors pretend they know. 40 Year of Living Dangerously Bond investors were rewarded for their risk-taking in 2012. Will they face a reckoning in 2013? 42 The Risk-Parity Approach A relatively new way to construct portfolios says many investors aren’t truly diversified. 46 A Guide to Mutual Funds Running Risk-Parity Strategies Ask these seven questions before putting clients into these challenging funds. 49 What Moats Tell Us About Risk Stocks with strong competitive advantages offer a path to returns with less risk. 3

Table of Contents for the Digital Edition of Morningstar Advisor - April/May 2013

Morningstar Advisor - April/May 2013
Letter From the Editor
The Pursuit of Happiness and Financial Advice
What Strategies Do You Use to Control Risk?
Driven to Succeed for Clients and Family
How to Assess a Portfolio’s Bond Risk
Luck, Skill, and Investing
Investments á la Carte
Investment Briefs
Investing’s No- Brainers Have Costs
A Defensive Ride
Risk On/On Risk
The Risk of Being Overconfident
Year of Living Dangerously
The Risk-Parity Approach
A Guide to Mutual Funds Running Risk-Parity Strategies
What Moats Tell Us About Risk
Risk’s Wake-Up Call
Seeing Is Believing
Why Investors Lag the Returns of Their Funds
Liquidity Signals
Pump Them Up
Golden Oldies Keep on Truckin’
Our Favorite Mutual Funds
50 Most-Popular Equity ETFs
Undervalued Stocks With Wide Moats
Our Social Blind Spot

Morningstar Advisor - April/May 2013