(PUB) Investing 2015

22

Corrections to June Issue Changes to the 500 | Russel Kinnel

Vanguard Capital Value VCVLX moved from the large-blend Morningstar Category to mid-cap blend. The fund’s average market cap has come down to $10 . 8 billion as of March 31 . The fund has 24% of assets in small caps, 35% in mid-caps, and 40% in large caps. MainStay ICAP International ICEUX has moved from foreign large-value to foreign large-blend. The fund’s valuations are now close to those of the MSCI EAFE Index. Our categories are based on the average statistics for valuations, growth, and market cap of an equity fund over the trailing three-year period. K

FundInvestor had two errors in the last issue. On Page 13 , the list of Leaders was copied over into the list of Laggards. On Page 36 , the last three sector funds were cut off.

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.

We have posted a corrected version of the issue on our website at mfi.morningstar.com/Newsletter.aspx.

We regret the errors.

Summary of Changes Add

TIAA-CREF Growth & Income Joins M500 TIAA-CREF Growth & Income TIGRX is joining the Morningstar 500 . This large-growth fund has a Morningstar Analyst Rating of ´ and has been a winner under manager Susan Kempler. The fund has outpaced both the S & P 500 and peers since Kempler took the helm in March 2005 . The approach is mild-mannered but effective. She builds a wide-ranging portfolio with an emphasis on firms with strong managers who are good users of capital. Kempler adjusts position sizes often, leading to a fairly high turnover rate. The fund has a low expense ratio of 0 . 44% , and Kempler invests more than $1 million of her own money alongside the fund. See the facing page for more details. Litman Fund Falls Out I am dropping Litman Gregory Masters Smaller Companies MSSFX . The fund is small and has produced mediocre performance. Two Funds Move Categories As part of our annual review of fund categories, we have moved two Morningstar 500 funds.

Drop

TIAA-CREF Growth & Inc

Litman Gregory Masters Sm Cmp

Rating Change (upgrades)

To

From

• ´

T. Rowe Price New Horizons

Rating Change (downgrades)

To

From

‰ •

FPA Perennial

Rating Change (change from Under Review) To

From

‰ ˆ

Columbia Acorn Select

‰ ˆ

Columbia Acorn USA

‰ ˆ

Columbia Acorn

Rating Change (Under Review)

To

From

ˆ •

Matthews China Investor

ˆ Œ

Matthews Pacific Tiger Investor

ˆ ´

Appleseed

New Ratings

To

´

Vanguard Global Equity

•

Vanguard High Div Yld Indx

•

Mairs & Power Small Cap