Morningstar announces top fund managers

Morningstar announces top fund managers
Oakmark's David Herro takes his third award in the international stock fund category
JAN 17, 2017
David Herro was named international stock fund manager of the year by Morningstar Inc., the third time he has earned that distinction. Mr. Herro, who runs Oakmark International (OAKIX), was one of several fund managers to earn awards from Morningstar. The awards are for managers with excellent long-term risk-adjusted returns, superior 2016 returns, and overall skill in management. “These fund managers deserve recognition for the skill they've demonstrated, amassing impressive long-term records while demonstrating a commitment to shareholders,” said Laura Pavlenko Lutton, Morningstar's director of manager research, North America. Mr. Herro's fund gained 7.91% last year vs. 0.79% for the average foreign large blend fund. The fund has beaten more than 90% of its category peers the past five, 10 and 15 years, Ms. Lutton said. This is a hat trick for Mr. Herro, who was Morningstar's 2006 international-stock fund manager of the year and international-stock fund manager of the decade for 2000-2009 . Other winners include: Domestic-stock fund manager of the year: David Wallack, T. Rowe Price Mid-Cap Value (TRMCX). The fund gained 24.3% in 2016, according to Morningstar, and has averaged a 15.06% average annual return the past five years — a record that puts it in the 8th percentile of all mid-cap value funds “David's success in stock picking is mainly a result of his careful research and thoughtfulness dedicated to each company he invests in,” Ms. Lutton said. Fixed-income fund manager of the year: Ford O'Neil and team, Fidelity Total Bond (FTBFX). It was a tough year for bond funds: The average intermediate-term bond fund gained just 3.23% in 2016. Fidelity Total Bond gained 5.86%. The fund has been in the top 19% of its category the past 10 years, returning an average annual gain of 4.89%. Allocation/alternatives fund manager of the year: Equity and Fixed-Income Investment Policy Committees, Dodge and Cox Balanced (DODBX). The team at Dodge & Cox has always been there for investors who were born to be mild. The fund gained 16.56% last year, putting it in the third percentile for its category. It's gained an average 7.45% a year for the past 15 years, putting it in the top 4% of all moderate target risk funds. Past performance, of course, is no indication of future returns. Not all Managers of the Year have fared well afterwards. The 2009 winner for domestic stocks, for example, was Bruce Berkowitz, manager of Fairholme fund (FAIRX). The fund tumbled 32.42% in 2011 and 11.48% in 2015.

Latest News

Five-person Raymond James team jumps to Janney in Maryland
Five-person Raymond James team jumps to Janney in Maryland

The group led by a 37-year industry veteran brings $470 million in assets to the Philadelphia-based broker dealer.

$20B Merit looks to next phase as Constellation takes minority stake
$20B Merit looks to next phase as Constellation takes minority stake

The Atlanta, Georgia-based national wealth firm revealed its new PE partner as prior backers Wealth Partners Capital Group and HGGC’s Aspire Holdings exited their investments.

$350M father-son duo hops from Osaic to Equitable Advisors
$350M father-son duo hops from Osaic to Equitable Advisors

The latest departures in Ohio mark another setback for the hybrid RIA, which is looking to "expanding its presence across all models and segments of the wealth management industry.”

Fresh off HPS acquisition, BlackRock inks deal for $7.3B ElmTree Funds
Fresh off HPS acquisition, BlackRock inks deal for $7.3B ElmTree Funds

The St. Louis-based real estate investment firm gives the asset management giant a valuable access point to the roughly $1 trillion net lease market.

SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees
SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees

Eliseo Prisno, a former Merrill advisor, allegedly collected unapproved fees from Filipino clients by secretly accessing their accounts at two separate brokerages.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.