Click here to close now.




















Welcome!

Microsoft Cloud Authors: Adine Deford, Elizabeth White, the Editor, Michael Krems, Xenia von Wedel

News Feed Item

Morningstar Announces 2012 U.S. Fund Manager of the Year Award Winners

CHICAGO, Jan. 3, 2013 /PRNewswire/ -- Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research, today announced its 2012 U.S. Fund Manager of the Year award winners. The awards acknowledge managers who not only delivered impressive performance in 2012, but also excellent long-term risk-adjusted returns, and who have been good stewards of fund shareholders' capital. This year, Morningstar introduced new awards for two types of strategies—allocation and alternatives—in addition to domestic stock, international stock, and fixed income. To recognize outstanding fund managers each year, Morningstar selects leaders in each type of strategy. The 2012 Fund Manager of the Year award winners in the United States are:

Domestic-Stock Fund Manager of the Year:
Bill Frels and Mark Henneman, Mairs & Power Growth (MPGFX)

International-Stock Fund Manager of the Year:
Rajiv Jain, Virtus Foreign Opportunities (JVIAX) and Virtus Emerging Markets Opportunities (HEMZX)

Fixed-Income Fund Manager of the Year:
Mark Kiesel, PIMCO Investment-Grade Corporate Bond (PIGIX)

Alternatives Fund Manager of the Year:
The team of Eric Newman, Kevin Gates, Larry Eiben, Richard Gates, Chao Chen, and Yan Liu, TFS Market Neutral (TFSMX)

Allocation Fund Manager of the Year:
David Giroux, T. Rowe Price Capital Appreciation (PRWCX)

"Despite a high level of economic and political uncertainty this past year, broad swaths of the market performed better than many investors would have expected, and each of our fund managers of the year have added value relative to their own benchmarks and broader peer groups, not just in 2012 but over the long haul," said Scott Burns, director of North American fund research for Morningstar. "We introduced awards for fund managers overseeing allocation and alternative strategies this year to recognize the growing investor interest in these areas. Interest in strategies using multiple asset classes has grown over the past 20 years, especially with the emergence of target-date funds and more flexible, go-anywhere funds pursuing a range of different goals. Assets in funds employing alternative strategies rose about 21 percent in 2011, and then another 16 percent through November 2012."

Domestic-Stock Fund Manager of the Year: Bill Frels and Mark Henneman, Mairs & Power Growth (MPGFX)
At Mairs & Power Growth, Bill Frels and Mark Henneman have produced one of the best long-term records of any large-blend fund. Since Frels became co-manager in 1999, the fund has beaten all but one of its large-blend category peers and trounced the S&P 500 with an 8.2 percent annualized gain through year-end 2012.

"The managers follow an extremely patient approach—of the fund's top 25 holdings, 18 were bought in the 1990s and 17 of those have remained in the portfolio for at least 10 years," said Michael Herbst, director of active fund research for Morningstar. "The managers' success stems from a deep understanding of their holdings and their preference for companies that can increase earnings in difficult economic environments. While the basic materials and industrials sectors were two of the worst-performing sectors in 2012, the fund's holdings in those sectors boosted its returns, including paint and coatings firm Valspar, cleaning-products maker Ecolab, and chemicals firm H.B. Fuller."

The $2.5 billion fund has a Morningstar Analyst Rating™ of Silver, the company's second-highest Medalist rating, along with a Morningstar Rating™ of 5 stars for its past risk-adjusted performance. Among all the 2012 nominees for Domestic-Stock Fund Manager of the Year, Mairs & Power Growth offers the lowest fees with a 0.72 percent expense ratio.

International-Stock Fund Manager of the Year: Rajiv Jain, Virtus Foreign Opportunities (JVIAX) and Virtus Emerging Markets Opportunities (HEMZX)
Rajiv Jain has managed Virtus Foreign Opportunities since 2002, and Virtus Emerging Markets Opportunities since 2006. He follows a high-conviction approach regardless of market trends and is willing to hold portfolios that look very different than the benchmark. The strategy has served him well—his funds have landed in the top decile of performance for most periods under his management. Through Dec. 31, 2012, the $1.3 billion JVIAX posted a 11.1 percent annualized return for the 10-year period while HEMZX, with $6.7 billion in assets, had a 17.4 percent annualized return for the same period.

"Jain's approach has produced attractive risk-adjusted returns over his tenure, especially compared with other emerging-markets funds. His relatively high exposure to Indian stocks worked well for the fund in both 2011 and 2012 despite a lagging Indian market in 2011," Herbst said. "He looks for companies with strong balance sheets, steady growth rates, and straightforward business models, with a heavy tilt to consumer-product companies, which have helped him weather market downturns."

He has more than $1 million invested in the two funds combined. JVIAX and HEMZX have a 1.47 percent and 1.62 percent expense ratio, respectively. Both funds have a Silver Analyst Rating and a 5-star Morningstar Rating for risk-adjusted performance. Jain is employed by Vontobel Asset Management, which sub-advises the Virtus funds.

Fixed-Income Fund Manager of the Year: Mark Kiesel, PIMCO Investment-Grade Corporate Bond (PIGIX)
Mark Kiesel is the 10-year manager of one of the best-performing corporate bond funds over both long- and short-term periods: the fund has an 11.1 percent three-year annualized return and a 10.7 percent five-year annualized return. The fund's average annual gain of 8.2 percent since he joined in December 2002 through April 2012 is the second-best showing in the intermediate-term bond category. For 2012, the $10.2 billion fund gained 15 percent.

"Kiesel's long-standing bet on banks paid off this year, along with his selective exposure to companies in cyclical industries. He balances PIMCO's overall firm views on the global economy with his ability to pick securities from the bottom up," Herbst said. "There's a lot of complexity to the techniques employed in the portfolio, and Kiesel has executed them well. He looks for margins of safety but doesn't shun credit risk—the fund's exposure to contingent capital securities issued by Lloyds TSB, a more esoteric and riskier type of holding, was one of his best-performing positions this year."

The fund has a Silver Analyst Rating, a 5-star Morningstar Rating for risk-adjusted performance, and an expense ratio of 0.5 percent. In 2010, Kiesel was nominated in the same category.

Alternatives Fund Manager of the Year: The team, TFS Market Neutral (TFSMX)
TFS Market Neutral is one of the oldest funds in the market-neutral category, with an eight-year track record and $1.8 billion in assets. In 2012, the fund achieved the highest absolute return of 7.8 percent in its category, and its risk-adjusted return (daily annualized Sharpe ratio) ranked fourth. The fund's quantitative small-cap equity-focused strategy also produced a significant positive alpha relative to the Russell 2000, as it has done in all but two years since inception.

"It's unusual for a quantitative fund to have such consistent, positive performance, but the team behind the models is really what drives results. The six listed portfolio managers come from quantitative backgrounds and are supported by a small group of analysts, programmers, and traders who regularly help test existing models and build new ones," said Nadia Papagiannis, CFA, director of alternative funds research for Morningstar. "The team is also always looking for new strategies, and performs back-testing analysis at least once a year, or if a strategy performs unexpectedly."

TFS Market Neutral is currently the only alternative mutual fund with a Gold Analyst Rating. The fund has a 5-star Morningstar Rating for risk-adjusted performance, and a 2.47 percent expense ratio. Five of the six portfolio managers on the team are equity partners at the employee-owned firm, which requires management to invest 50 percent of their liquid net worth in TFS' managed products. 

This is the first year Morningstar has awarded an Alternatives Fund Manager of the Year award. Morningstar defines alternative investments as those that do not fit neatly in its traditional equity or fixed-income style boxes—either because they invest in different asset classes, take long and short positions, or because they are illiquid.

Allocation Fund Manager of the Year: David Giroux, T. Rowe Price Capital Appreciation (PRWCX)
David Giroux joined the fund in 2006, and since then has beaten 97 percent of moderate-allocation category peers, delivering top-decile returns on a risk-adjusted basis. Giroux follows a straightforward asset allocation approach, generally investing 55-65 percent of assets in equities and the rest in a mix of fixed income and cash. For most of his tenure, Giroux has favored convertible bonds, and more recently, leveraged loans, in the fixed-income segment of the fund.

"Giroux's stellar performance in 2012 came from multiple areas, including his stock selection and a strong showing from the fund's bank loan stake. Top holdings across multiple sectors, such as Thermo Fisher Scientific, Walt Disney, and Invesco, fueled the fund's gains in 2012, but Giroux has successfully taken full advantage of T. Rowe Price's deep research operation over the long term, too," said Laura Lutton, director of fund-of-funds research for Morningstar. "The $13.7 billion fund returned nearly 14.7 percent for the year, and remains an excellent core holding."

The fund has earned a Gold Analyst Rating and has a 5-star rating for risk-adjusted performance. Giroux has more than $1 million invested in the fund, and the fund's 0.71 percent expense ratio is below average for the category.

This is the first year Morningstar has awarded an Allocation Fund Manager of the Year award. Fund managers considered for this award must run funds that combine at least two asset classes in a single portfolio.

Established in 1988, the Morningstar Fund Manager of the Year award recognizes portfolio managers who demonstrate excellent investment skill and the courage to differ from the consensus to benefit investors. To qualify for the award, managers' funds must have not only posted impressive returns for the year, but the managers also must have a record of delivering outstanding long-term risk-adjusted performance and of aligning their interests with shareholders'. Nominated funds must be Morningstar Medalists—a fund that has garnered a Morningstar Analyst Rating of Gold, Silver, or Bronze. The Fund Manager of the Year award winners are chosen based on Morningstar's proprietary research and in-depth qualitative evaluation by its fund analysts.

All year-end figures cited in this press release are preliminary and subject to change.

For Morningstar's article about the winners, go to: http://www.morningstar.com/goto/fmoy2012. For the complete list of past and current winners, go to: http://corporate.morningstar.com/FMOYhalloffame.

About Morningstar, Inc.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offers an extensive line of products and services for individuals, financial advisors, and institutions. Morningstar provides data on more than 385,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 8 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its registered investment advisor subsidiaries and has approximately $195 billion in assets under advisement and management as of Sept. 30, 2012. The company has operations in 27 countries.

Analyst Ratings are subjective in nature and should not be used as the sole basis for investment decisions. Analyst Ratings are based on Morningstar's current expectations about future events and therefore involve unknown risks and uncertainties that may cause Morningstar's expectations not to occur or to differ significantly from what was expected. Morningstar does not represent its Analyst Ratings to be guarantees nor should they be viewed as an assessment of a fund's or the fund's underlying securities' creditworthiness.

©2013 Morningstar, Inc.  All Rights Reserved.
MORN-C

Media Contact:
Nadine Youssef, +1 312 696-6601 or [email protected]

SOURCE Morningstar, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of technology leadership, Micron's memory solutions enable the world's most innovative computing, consumer,...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevOps to advance innovation and increase agility. Specializing in designing, imple...
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Treloar, President and COO of Bebaio, will explore examples of brands transforming their businesses by t...
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes about through a Communications Platform as a Service which allows for messaging, screen sharing, video...
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and analyzed? As an area of investment, how might a retail company move towards an innovation methodolo...
The Internet of Things (IoT) is about the digitization of physical assets including sensors, devices, machines, gateways, and the network. It creates possibilities for significant value creation and new revenue generating business models via data democratization and ubiquitous analytics across IoT networks. The explosion of data in all forms in IoT requires a more robust and broader lens in order to enable smarter timely actions and better outcomes. Business operations become the key driver of IoT applications and projects. Business operations, IT, and data scientists need advanced analytics t...
A producer of the first smartphones and tablets, presenter Lee M. Williams will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater. In his session at @ThingsExpo, Lee Williams, COO of ETwater, will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater.
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
While many app developers are comfortable building apps for the smartphone, there is a whole new world out there. In his session at @ThingsExpo, Narayan Sainaney, Co-founder and CTO of Mojio, will discuss how the business case for connected car apps is growing and, with open platform companies having already done the heavy lifting, there really is no barrier to entry.
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of streaming data in the cloud with an enterprise grade SLA. It features built-in integration with Azur...
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Akana has announced the availability of the new Akana Healthcare Solution. The API-driven solution helps healthcare organizations accelerate their transition to being secure, digitally interoperable businesses. It leverages the Health Level Seven International Fast Healthcare Interoperability Resources (HL7 FHIR) standard to enable broader business use of medical data. Akana developed the Healthcare Solution in response to healthcare businesses that want to increase electronic, multi-device access to health records while reducing operating costs and complying with government regulations.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...
MuleSoft has announced the findings of its 2015 Connectivity Benchmark Report on the adoption and business impact of APIs. The findings suggest traditional businesses are quickly evolving into "composable enterprises" built out of hundreds of connected software services, applications and devices. Most are embracing the Internet of Things (IoT) and microservices technologies like Docker. A majority are integrating wearables, like smart watches, and more than half plan to generate revenue with APIs within the next year.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...