(PUB) Investing 2016

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New Additions From Artisan, T. Rowe, and Fidelity Changes to the 500 | Russel Kinnel

Finally, we have Fidelity Growth & Income FGRIX rejoining the Morningstar 500 after an absence of many years. After a long stretch of unimpressive performance, the fund has picked up under Matt Fruhan. The Bronze-rated fund now actually pays attention to income. Fruhan seeks stocks with yields above the S & P 500 ’s that are trading at a discount to his estimates. The $5 . 8 billion fund charges a cheap 0 . 63% expense ratio. To make room, I’m cutting Wasatch Ultra Growth WAMCX , which we have dropped from coverage. A long-running slump has taken the fund to the bottom quartile of small-growth funds for the trailing 10 years. That has, in turn, spurred outflows that have brought assets down to $87 million. In addition, Calamos Growth & Income CVTRX is leaving the Morningstar 500 . The fund has endured a fair amount of manager turnover, including the departure of Gary Black in 2015 . Performance has been uninspiring, and assets have been leaving. See the facing page for more on the fund.

We’ve got three new additions to the Morningstar 500 this month.

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.

Artisan Global Equity ARTHX is a global fund man- aged by Mark Yockey, Andrew Euretig, and Charles- Henri Hamker. Yockey has a long, distinguished track record at Artisan International ARTIX . Euretig has been with Artisan since 2005 and a comanager on Artisan International since 2012 . Hamker has been with Artisan since 2000 and was also named a comanager on Artisan International in 2012 . Launched in 2010 , the fund has a Morningstar Rating of 4 stars, and it has outperformed 90% of its peers during the past five years. The fund has about $300 million in assets and charges 1 . 37% in expenses. Like Artisan International, the fund has a modest growth bias. However, the fund has a hefty 62% weighting in U.S. stocks, which puts it right on the borderline between our world-stock and U.S. large- growth Morningstar Categories. That U.S. bias has no doubt helped in recent years, as the United States has outperformed foreign markets for the most part, especially when a rising dollar is factored in. I’m also adding T. Rowe Price Global Allocation RPGAX . The fund invests in a mix of stocks and bonds around the world and keeps a small stake in alter- native investments. It has been run by Charles Shriver since its 2013 inception. Shriver has also managed T. Rowe Price Balanced RPBAX , which has a Morningstar Analyst Rating of Silver, since 2011 . The fund has $160 million in assets and charges 0 . 98% in expenses. So far in its short existence, it has outper- formed its world-allocation peers.

I’m also cutting Franklin Mutual European TEMIX , which has been dropped from coverage. K

Summary of Changes

Add

Drop

Artisan Global Equity

Calamos Growth & Income

Fidelity Growth & Income

Franklin Mutual European

T. Rowe Price Global Allocation

Wasatch Ultra Growth

Rating Change (Downgrades)

From

To

AllianzGI Technology

• ´

Fidelity High Income

Œ •

PIMCO Emerging Local Bond

´ ‰

T. Rowe Price New America Growth

´ ‰

T. Rowe Price Retirement 2015

Œ •

Vanguard Capital Value

´ ‰

Rating Change (Under Review)

From

To

Artisan Small Cap Value

´ ˆ ´ ˆ

USAA International