CHICAGO, Jan. 5, 2011 /PRNewswire/ -- Morningstar, Inc. 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.
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Media Contact:
Nadine Youssef, 312-696-6601 or nadine.youssef@morningstar.com
SOURCE Morningstar, Inc.
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