504 / 772
22
I’m adding
Ariel International Equity
AINTX
to the
Morningstar
500
.
The fund is run by Rupal Bhansali, a seasoned
manager with an impressive resume. She’s worked
for Soros Fund Management, MacKay Shields,
and Oppenheimer Capital. She managed
MainStay
International Equity
MSEAX
from May
2001
to
May
2011
, handily outpacing the typical foreign large-
growth peer while largely matching the
MSCI
All Country World Index ex
USA
. She also runs
Ariel
Global Equity
AGLOX
and invests between
$10
,
000
and
$50
,
000
in each mutual fund.
Bhansali describes her strategy as an all-weather
approach that keeps an eye on downside protection,
and she points out that her portfolios have held up
well in past downturns. She looks for contrarian
value plays such as
Nokia
NOK
but also owns steadier
names like
Roche
RHHVF
. The fund has produced
strong returns since its December
2011
launch, thanks
in part to an overweighting in Japan that Bhansali put
on early but has since reduced. The fund has enjoyed
a number of winners in Europe such as
Deutsche
Boerse AG
DB1
,
Reckitt Benckiser Group
3RB
, and
Telefonica Deutschland Holding
O
2
D.
The fund is in its category’s top percentile for the
trailing three years. Ariel Global Equity is in the top
quartile for the trailing three years. The two mutual
funds have less than
$100
million in assets, but
institutions have found Bhansali, and she currently
manages more than
$1
.
4
billion in assets across
international and global mutual funds and separate
accounts at Ariel. The fund’s expense ratio of
1
.
26%
is decent given its small asset base.
Third Avenue Value Goes Out
To make room, I’m dropping
Third Avenue Value
TAVFX
. The Neutral-rated fund has suffered a
long slump, and it has seen about one third of assets
under management leave in the past
12
months.
I’m also adding
T. Rowe Price Summit Municipal
Intermediate
PRSMX
to the Morningstar
500
.
This Gold-rated fund offers a better expense ratio than
most T. Rowe Price muni funds, but it requires a
$25
,
000
minimum investment.
Lead manager Charlie Hill has beaten four fifths of
his peers over his
20
-year tenure at the fund. He
avoids taking on a lot of credit risk and instead seeks
to add value through sector and issue selection. It
makes for a rather mild-mannered fund, but one that
cautious investors will appreciate.
To make room, I am dropping
Wells Fargo Advantage
Short-Term Municipal
STSMX
. Wells Fargo has
dropped its no-load share classes, thus making it less
appealing to the typical
FundInvestor
subscriber.
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.
Ariel International Equity Joins M500
Changes to the 500
|
Russel Kinnel
Summary of Changes
Add
Drop
T. Rowe Price Summit Muni Interm Third Avenue Value
Ariel International Equity
Wells Fargo Adv Shrt-Trm Muni
Rating Change (Upgrade)
From
To
T. Rowe Price High Yield
• Œ
Rating Change (Downgrades)
From
To
JHancock Floating Rate Income
´ ‰
MainStay ICAP International
´ ‰
PIMCO All Asset All Authority Inst
• ´
T. Rowe Price New Income
• ´
T. Rowe Price Spectrum Income
• ´
Vanguard Windsor II Inv
• ´
First Eagle Fund of America
• ´
First Eagle US Value
´ ‰
Rating Change (Under Review)
From
To
MainStay ICAP Equity
´ ˆ
MainStay ICAP Select Equity
´ ˆ
MainStay MAP
´ ˆ
Sequoia
Œ ˆ
New
Ratings
To
Janus D
‰
Meridian Small Cap Growth Investor
´
Royce Special Equity Multi-Cap Service
´