Morningstar Advisor - December 2012/January 2013 - (Page 6)

Contributors MorningstarAdvisor Editor-in-Chief Jerry Kerns Editor-at-Large Don Phillips David Blanchett Clients invest to achieve a goal, and for most people, this goal is retirement. But how can an advisor gauge whether his or her planning decisions are having a positive impact on helping clients achieve their goals? Enter Gamma, a new Morningstar metric that David Blanchett, head of retirement research at Morningstar, helped develop (“Alpha, Beta, and Now…Gamma,” Page 60). “Gamma is based on the idea that there are other things you can to do help someone achieve a successful retirement beyond just picking good mutual funds and determining how much to invest in stocks and bonds,” he says. “At its core, Gamma seeks to quantify the benefits associated with intelligent financial planning and to help people understand the impact good advice can have on achieving a goal.” Contributing Editors Dan Culloton, Paul Justice, Haywood Kelly Contributors Rachel Barkley, David Blanchett, Scott Burns, Greg Carlson, Matthew Coffina, Andrew Gogerty, Philip Guziec, Paul D. Kaplan, David Krempa, Samuel Lee, Kailin Liu, Laura Pavlenko Lutton, Steven Pikelny, Jeffrey Ptak, Carl Richards, Kate Stalter, Timothy Strauts, Terry Tian, James X. Xiong Data Editors Mnason Chew, Alina Tarlea Proofreaders Ann Marie Gray, Courey Gruszauskas Art Director Alexander Skoirchet Illustrator Kotryna Zukauskaite Photographers Stan Kaady, Jason Ackley Publisher Leslie Marshall Director of Advertising Sales Mary Uribe Regional Sales Directors Dan Atkinson, Tony Lignelli, Kristina Niemi, Stuart Roge Morningstar, Inc. Chairman and CEO Joe Mansueto Managing Director, Design David Williams Andrew Gogerty Strategist Andrew Gogerty covers exchanged-traded-fund managed portfolios for Morningstar and says that they are the logical next step in the evolution of money management for clients. “The technology of ETFs allows advisors to have global access to investment opportunities on an exchange without the conflicts inherent in other investment vehicles,” he says. “It democratizes investing.” It also allows advisors to focus on other areas of their practice, a point he hammers home in “ETF Managed Portfolios on the Rise,” Page 41. Director, Corporate Marketing Kristin Mateja How to Reach Morningstar Advisor Subscriber Services and Circulation Editorial and Letters to the Editor Advertising Rate card available at Reprints and Licensing 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. © 2013 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. 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. Kotryna Zukauskaite Illustrating financial topics for a magazine aimed at professional investors was a big challenge for Lithuanian Kotryna Zukauskaite. “It broadened my understanding of the subject,” she says, “but it also raised the bar for me as an illustrator. It pushed me to limits not only visually but also conceptually.” Zukauskaite earned her bachelor of arts after spending each year at a different school in Lithuania, the United Kingdom, and Russia. She says that her geometric paper-collage-like work is inspired by East European animation and 20th Century propaganda posters. 1280401 6 Morningstar Advisor December/January 2013

Table of Contents for the Digital Edition of Morningstar Advisor - December 2012/January 2013

Morningstar Advisor - December2012/January 2013
Letter From the Editor
What Stands Between Me and Stupid
Why Do You Use Dynamic Funds of Funds?
Serving Clients and Community
How to Pick an ETF Managed Portfolio Strategy
Tactical View of Risk
Investments á la Carte
Investment Briefs
Unbundling ETF Managed Portfolios
Risks Loom Over Telecom Industry
Outsourcing Asset Allocation
ETF Managed Portfolios on the Rise
Age-Based Options Take Over 529 Industry
How the Landscape for Advisors Is Changing
Mark Egan Embraces Volatility
Alpha, Beta, and Now … Gamma
Performance Gaps
Gains in Momentum
Companies Where Management Teams Add Value
Our Favorite Mutual Funds
50 Most-Popular Equity ETFs
Undervalued Stocks With Wide Moats
The Once and Future King

Morningstar Advisor - December 2012/January 2013