CHICAGO, Jan. 5, 2011 /PRNewswire/ -- Morningstar, Inc.
(Nasdaq: MORN), a leading provider of independent investment
research, today announced its 2010 Fund Manager of the Year award
winners. The award acknowledges managers who delivered not only
impressive performance in 2010, but also excellent long-term
performance, and who have been good stewards of fund shareholders'
capital. To recognize outstanding fund managers, Morningstar each
year selects leaders in three asset classes—domestic stock,
international stock, and fixed income. The 2010 Fund Manager of the
Year winners are:
Domestic-Stock Fund Manager of the Year:
Bob Goldfarb and David Poppe, Sequoia (SEQUX)
International-Stock Fund Manager of the Year:
Brent Lynn, Janus Overseas
(JAOSX)
Fixed-Income Fund Manager of the Year:
Michael Hasenstab, Templeton
Global Bond (TPINX)
"Each year we dig deep into our coverage universe to identify
those managers who led top-performing funds for the past year and
have also exhibited exemplary stewardship and stellar long-term
results," said Karen Dolan, director
of mutual fund analysis for Morningstar. "While the market
continued to rebound in 2010, these managers posted exceptional
gains—enough to overcome the difficult market environment of the
past few years that has much of the competition still reeling."
Domestic-Stock Fund Manager of the Year: Bob Goldfarb and David
Poppe, Sequoia (SEQUX)
Sequoia was launched in 1970 by Bill
Ruane and Richard Cunniff.
Bob Goldfarb has been on board since
1971. Originally a member of the fund's research team, Goldfarb was
named co-manager in 1998, and was joined by David Poppe at the helm in 2005.
The team's stock-picking strategy has remained consistent.
Goldfarb and Poppe hold stocks for the long term, seeking names
with top-quality management, rock-solid balance sheets, and the
ability to compound capital. The historically concentrated
portfolio typically holds between 15 and 30 stocks.
"Sequoia is one of the most deliberate and methodical funds out
there in regards to changes in its portfolio, shown by its
consistently low turnover. The fund's 2010 gains were not the
result of savvy tactical moves or one knockout pick, but emerged
from well-researched stocks that have long held a spot in the
portfolio; that is the exact same formula that has worked well here
for decades," Dolan said. Sequoia is a Morningstar Analyst Pick,
which means it's a favorite in its category according to
Morningstar's analyst team, for its talented and seasoned
management, long-term oriented approach, strong stewardship, and
low fees.
Performance has been consistently strong; Sequoia's 15-year
annualized return is 9.7 percent, and in 2010 the fund gained 19.5
percent, comfortably ahead of the category average of 14 percent.
The fund also held up well during the market downturn in 2008,
losing about 27 percent while the category dropped nearly 38
percent.
Goldfarb has more than $1 million
invested in the fund, and Poppe has between $100,000 and $500,000 in the fund. Sequoia was
closed to new investors for 25 years and reopened in 2008, further
demonstrating the managers' commitment to shareholders.
International-Stock Fund Manager of the Year: Brent Lynn, Janus Overseas (JAOSX)
A nearly 20-year veteran of Janus, Brent
Lynn joined the management team at Janus Overseas in
December 2000 and became lead manager
in 2003. During his tenure as lead manager, the fund has posted a
19.0 percent annualized gain, ahead of all its foreign large-cap
peers. In 2010, the fund returned 19.3 percent—more than 4
percentage points ahead of its category.
"Lynn's strategy is more aggressive than the typical core
international offerings that focus mostly on developed markets, but
it has proved resilient. His keen focus on growth and
stock-specific research has led him to favor prospects in emerging
markets, especially India,
Brazil, and China," Dolan said. "Most remarkable, though,
is just how well Lynn has managed those risks. The fund has posted
an annualized gain of 13.6 percent over the past five years, a
period that includes a very difficult 2008."
Lynn has more than $1 million
invested in the fund, and the fund's compensation plan places
primary emphasis on long-term performance, both of which help align
shareholders' and fund managers' interests. In addition, the fund's
expense ratio has remained below 1 percent while the category
average tops 1.5 percent.
Fixed-Income Fund Manager of the Year: Michael Hasenstab, Templeton Global Bond
(TPINX)
Outstanding long-term performance has garnered Michael Hasenstab the fixed-income award this
year. The fund's 10-year annualized return of 11.7 percent is
nearly double that of its category, and its results were similar
for the five-year period. A 12.7 percent return in 2010 brought
Templeton Global Bond to the best quartile of its world-bond
category, which is the eighth time in the past 10 calendar years
since Hasenstab joined the fund as a co-manager in 2001. He assumed
sole control of the fund in 2006.
"By shying away from overleveraged developed economies, the
fund's profile differs from traditional benchmarks and much of the
competition," Dolan said. "Hasenstab instead focuses on the bonds
and currencies of countries with low debt levels and positive
growth prospects. He has proved to be one of the few managers who
can execute a global bond strategy this well and this
consistently." The fund is a Morningstar Analyst Pick for its
strong management, performance, and uncommon strategy.
Hasenstab has invested more than $1
million in this fund, and the compensation structure for
long-term bonus awards at Franklin Templeton further strengthens
the alignment between fund managers and shareholders. The fund's
fees also land in the cheapest quintile of its peer group. The
fund's success hasn't gone unnoticed. Its nearly $16 billion intake over the past year is the
second-highest of any mutual fund in 2010.
Established in 1988, the Morningstar Fund Manager of the Year
award recognizes portfolio managers who demonstrate excellent
investment skill and the courage to differ from the consensus to
benefit investors. To qualify for the award, managers' funds must
have not only posted impressive returns for the year, but the
managers also must have a record of delivering outstanding
long-term performance and of aligning their interests with
shareholders'. The Fund Manager of the Year award winners are
chosen based on Morningstar's proprietary research and in-depth
evaluation by its fund analysts.
All year-end figures cited in this press release are preliminary
and subject to change.
For Morningstar's article about the winners, go to:
http://www.morningstar.com/goto/fmoy2010.
For the complete list of past and current winners, go to:
http://corporate.morningstar.com/FMOYhalloffame.
About Morningstar, Inc.
Morningstar, Inc. is a leading provider of independent
investment research in North
America, Europe,
Australia, and Asia. The company offers an extensive line of
Internet, software, and print-based products and services for
individuals, financial advisors, and institutions. Morningstar
provides data on approximately 370,000 investment offerings,
including stocks, mutual funds, and similar vehicles, along with
real-time global market data on more than 4 million equities,
indexes, futures, options, commodities, and precious metals, in
addition to foreign exchange and Treasury markets. The company has
operations in 26 countries.
©2011 Morningstar, Inc. All rights reserved.
MORN-C
Media Contact:
Nadine Youssef, 312-696-6601 or
nadine.youssef@morningstar.com
SOURCE Morningstar, Inc.