408 / 772
22
I’m adding
JPMorgan Income Builder
JNBAX
to the
Morningstar
500
.
The fund has a Morningstar Analyst Rating of Bronze
and aims to meet growing demand for income with
a bit of growth to go with it. Investors are certainly
interested: The fund has taken in
$2
billion in the
past
12
months to boost its asset base to
$13
billion.
The fund has a greater foreign-equity tilt than you
typically see in a conservative-allocation fund. At the
end of the second quarter, it had
31%
of assets in
foreign equities to just
16%
in U.S. equities and
46%
in bonds. Management has tremendous flexibility
to move to the most attractive income-producing
assets. Besides equities and investment-grade bonds,
high-yield debt, preferred stocks, convertible bonds,
emerging-markets debt, and nonagency mortgages
are fair game.
Or, to put it another way, this fund isn’t really all that
conservative. Like
Franklin Income
FKINX
, it goes
a long way to produce a sizable yield. See the facing
page for more.
Wasatch Long/Short Goes Out
To make room, I’ve given
Wasatch Long/Short
FMLSX
the heave-ho. We have downgraded the fund
to Neutral from Bronze.
The fund has made some big missteps including
an ill-timed bet on energy. The fund’s one-year loss
of
12
.
6%
is among the worst in the long-short
Morningstar Category. In addition, it appears to be
moving to ready itself for succession as comanager
Ralph Shive moves toward retirement age.
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.
JPMorgan Income Builder Joins M500
Changes to the 500
|
Russel Kinnel
Summary of Changes
Add
Drop
JPMorgan Income Builder
Wasatch Long/Short
Rating Change (upgrades)
To
From
Vanguard Long-Term Invest-Grade
• ´
Vanguard High-Yield Corporate Inv
• ´
Rating Change (downgrades)
To
From
Dreyfus Appreciation Investor
´ •
Weitz Partners Value Investor
• Œ
New Ratings
To
Harbor Mid Cap Value Investor
´
USAA Tax Exempt Interm-Term
´
Ratings Confirmed in August
Fund Name
Ticker
Rating
American Funds 2020 Trgt Date Retire
AACTX
•
American Funds American Balanced
ABALX
•
Calamos Convertible
CCVIX
ˇ
Fidelity International Discovery
FIGRX
´
Harding Loevner Global Equity Advisor
HLMGX
•
Harding Loevner International Eq
HLMNX
•
Loomis Sayles Investment Grade Bond
LIGRX
Œ
Oppenheimer Global
OPPAX
•
Oppenheimer International Growth
OIGAX
•
Sequoia
SEQUX
Œ
Sound Shore Investor
SSHFX
•
T. Rowe Price Mid-Cap Growth
RPMGX
Œ
T. Rowe Price Mid-Cap Value
TRMCX
Œ
T. Rowe Price Retirement 2015
TRRGX
Œ
T. Rowe Price Value
TRVLX
´
TIAA-CREF Growth & Income Instl
TIGRX
´
Vanguard Growth & Income
VQNPX
ˇ
Vanguard Growth Index Adm
VIGAX
•
Vanguard Interm-Term Invmt-Grade
VFICX
•
Vanguard International Value
VTRIX
´
Vanguard Long-Term Tax-Exempt
VWLTX
•
Vanguard Short-Term Investment-Grade VFSTX
•
Vanguard Value Index Adm
VVIAX
•
Weitz Hickory
WEHIX
•