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FundInvestor
had two errors in the last issue. On Page
13
, the list of Leaders was copied over into the list
of Laggards. On Page
36
, the last three sector funds
were cut off.
We have posted a corrected version of the issue on
our website at mfi.morningstar.com/Newsletter.aspx.
We regret the errors.
TIAA-CREF Growth & Income Joins M500
TIAA-CREF Growth & Income
TIGRX
is joining the
Morningstar
500
. This large-growth fund has a
Morningstar Analyst Rating of
´
and has been
a winner under manager Susan Kempler.
The fund has outpaced both the S
&
P
500
and peers
since Kempler took the helm in March
2005
. The
approach is mild-mannered but effective. She builds a
wide-ranging portfolio with an emphasis on firms
with strong managers who are good users of capital.
Kempler adjusts position sizes often, leading to a
fairly high turnover rate.
The fund has a low expense ratio of
0
.
44%
, and
Kempler invests more than
$1
million of her
own money alongside the fund. See the facing
page for more details.
Litman Fund Falls Out
I am dropping
Litman Gregory Masters Smaller
Companies
MSSFX
. The fund is small and has
produced mediocre performance.
Two Funds Move Categories
As part of our annual review of fund categories,
we have moved two Morningstar
500
funds.
Vanguard Capital Value
VCVLX
moved from the
large-blend Morningstar Category to mid-cap blend.
The fund’s average market cap has come down
to
$10
.
8
billion as of March
31
. The fund has
24%
of assets in small caps,
35%
in mid-caps, and
40%
in large caps.
MainStay ICAP International
ICEUX
has moved
from foreign large-value to foreign large-blend.
The fund’s valuations are now close to those of the
MSCI
EAFE
Index.
Our categories are based on the average statistics
for valuations, growth, and market cap of an equity
fund over the trailing three-year period.
K
What is Morningstar
FundInvestor
500
?
The Morningstar FundInvestor
500
features the industry’s
best and most notable funds.
Use the list to get new in-
vestment ideas and track the
funds you already own.
FundInvestor
subscribers have
access to one-page monthly
reports on all 500 funds on
mfi.morningstar.com. Just
type in the name or ticker of
the fund in the search box.
Corrections to June Issue
Changes to the 500
|
Russel Kinnel
Summary of Changes
Add
Drop
TIAA-CREF Growth & Inc
Litman Gregory Masters Sm Cmp
Rating Change (upgrades)
To
From
T. Rowe Price New Horizons
• ´
Rating Change (downgrades)
To
From
FPA Perennial
‰ •
Rating Change (change from Under Review) To
From
Columbia Acorn Select
‰ ˆ
Columbia Acorn USA
‰ ˆ
Columbia Acorn
‰ ˆ
Rating Change (Under Review)
To
From
Matthews China Investor
ˆ •
Matthews Pacific Tiger Investor
ˆ Œ
Appleseed
ˆ ´
New Ratings
To
Vanguard Global Equity
´
Vanguard High Div Yld Indx
•
Mairs & Power Small Cap
•