3
Morningstar FundInvestor
March 2
013
The fund was a pick from January
2001
through Nov-
ember
2011
. Over that time it modestly outperformed
by holding up well in the credit meltdown of
2007
and
2008
as it lost less than most of its peers.
In
2011
we decided it was solid but not quite worthy
of a Gold rating because of a mix of fees, performance,
and stewardship. We awarded it a Silver. Then, we
took it down a notch to Bronze following Nick Calamos’
departure in
2012
. We felt the team was still deep
but Calamos’ departure was a loss.
Conclusion
Our opinions evolve as the fundamentals of a fund
evolve, such as management, expenses, or long-term
risk-adjusted performance. Having more gradations
of ratings allows us to make our conviction clear—
for instance, a shift to Silver from Gold means that
we still hold a fund in high regard even if it isn’t
quite good enough to win our top rating.
The five pillars of our ratings—People, Process, Parent,
Performance, and Price—focus on the drivers of com-
petitive advantages such as managers, strategy,
analysts, fees, and the firms backing the portfolio man-
agement teams. These things tend to be more stable
than performance, so, generally speaking, most of
our Analyst Ratings won’t change much over time.
œ
Œ
/ Analyst Pick
Category Performance
Star Rating
Harbor Bond Instl.
Growth of $10,000
Versus Category
QQQQQ
QQQQ
QQQ
QQ
Q
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
26,000
22,000
18,000
14,000
10,000
Œ
/ Analyst Pick
Á
No Rating
Category Performance
Star Rating
Templeton Dev. Mkts.
Growth of $10,000
Versus Category
QQQQQ
QQQQ
QQQ
QQ
Q
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
40,000
32,500
25,000
17,500
10,000
Data through January 2013
Data through January 2013
