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Morningstar FundInvestor
June 2016
Leaders
Jensen Quality Growth
JENSX
has outperformed
99%
of its large-growth peers for the year to date. The
managers’ close eye on quality and valuations lead
this fund to lag in risk-fueled bull markets, but it does
better in choppy markets, as has been the case in
2016
. The fund, which has a Morningstar Analyst Rating
of Silver, has benefited from strong security selection
in the healthcare sector—
Stryker Corporation
SYK
and
UnitedHealth Group
UNH
are both up more than
14%
this year. In addition, some of its largest holdings
in the technology and industrials sectors—such as
Accenture
ACN
and
3M
MMM
—have contributed
to results.
Bronze-rated
Seafarer Overseas Growth and Income
SFGIX
has posted great results since opening in
2012
, and it continued that strong showing in
2016
by
outperforming
90%
of its diversified emerging-
markets peers. Lead manager Andrew Foster invests
in a mix of dividend-paying common and preferred
stocks and convertible and other bonds, which helps
the fund do well in down and choppy markets.
Big technology holdings such as
Arcelik
ARCLK
and
Infosys
INFY
and healthcare holdings such as
Odontoprev
ODPVY
and
Hisamitsu Pharmaceutical
HPX
have posted double-digit returns. The fund has
also benefited by giving an underweighting to hard-
hit financials, and those it does own—such as
Bolsa
Mexicana de Valores
BOMXF
—have done well.
Gold-rated
Fidelity Total Bond
FTBFX
has outperformed
96%
of its intermediate-term bond peers in
2016
.
Manager Ford O’Neil and his team make the most of
the fund’s wide mandate, investing in high-yield,
emerging-markets, and international bonds in addition
to investment-grade U.S. bonds. Results have been
driven by overweighting strong-performing high-yield
and emerging-markets bonds and Treasury Inflation-
Protected Securities. In addition, security selection
in the investment-grade U.S. bond space has
been strong.
Laggards
Neutral-rated
FPA U.S. Value
FPPFX
has lagged
98%
of its large-blend peers thus far in
2016
. Manager
Gregory Nathan has given significant overweightings
to the poor-performing consumer discretionary and
healthcare sectors, and stock selection within those
sectors has also been weak. Over-the-counter drug
producer
Perrigo
PRGO
is down
33%
this year after its
CEO
left to join
Valeant Pharmaceuticals
VRX
. Auto
manufacturers
Daimler
DAI
and
Bayerische Motoren
Werke
BMW
are both down more than
15%
.
Gold-rated
Oakmark International
OAKIX
has trailed
95%
of its foreign large-blend peers for the year
to date. Managers David Herro and Rob Taylor ply a
value-oriented philosophy that can look contrarian
at times. Currently, that philosophy leads them to be
heavy in the hard-hit financials and consumer discre-
tionary sectors. Top financials investments such as
Credit Suisse
CSGN
and
Nomura Holdings
NMR
are
down more than
23%
this year. In the consumer
discretionary space, the fund has been hurt by giving
an overweighting to the automobiles industry—
holdings
Honda Motor
HMC
, Daimler,
Toyota
TM
, and
BMW
are down double-digits this year.
Silver-rated
Fidelity Capital & Income
FAGIX
has lagged
92%
of its high-yield-bond peers in
2016
.
With often sizable allocations to equities and
lower-rated bonds, this fund is one of the most aggres-
sive options in the high-yield bond Morningstar
Category. That hurt the fund in early
2016
, as global
risk assets sharply sold off, and it hasn’t been able
to recover. Furthermore, the fund has a sizable position
in
Allergan
AGN
, which fell after its planned merger
with Pfizer fell apart.
K
Contact Andrew Daniels at
andrew.daniels@morningstar.comTen Worst-Performing Funds
Fund Name
YTD Cat Rank %
Matthews China Investor 100
Oakmark Global I
99
Scotia Dynamic U.S. Growt 99
Sequoia
99
FPA US Value
98
Touchstone Sands Capital
98
Fidelity Low-Priced Stock 97
Janus Contrarian T
97
Natixis ASG Global Altern 97
Oppenheimer Global A
97
Ten Best-Performing Funds
Fund Name
YTD Cat Rank %
Artisan Value Investor
1
Champlain Mid Cap Adv
1
Fairholme Focused Income 1
Jensen Quality Growth J
1
Longleaf Partners
1
Longleaf Partners Small-C 1
Mairs & Power Growth Inv 1
Mairs & Power Small Cap 1
Manning & Napier Equity S 1
Permanent Portfolio Perma 1
Quality Leads Jensen to the Top
Leaders & Laggards
|
Andrew Daniels