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Foreign Funds Below the Radar Tracking Morningstar Analyst Ratings | Russel Kinnel

so far, and Cates and Hawkins have strong records over a much longer time. The main caveat, though, is that the fund has a very focused portfolio that’s best suited to investors with a 10 -year time horizon or more. Causeway International Value CIVVX rates a Gold for its strong management team and solid process. Sarah Ketterer and Harry Hartford boast an excellent 13 -year record at this fund and had a good record at Hotchkis & Wiley before that. The fund doesn’t own any emerging-markets stocks because they want to let clients decide their emerging-markets expo- sure on their own. They make contrarian investments in controversial value names like Toyota amid its recall problems or Allied Irish Bank amid the credit crisis. As you might guess, that means they have had some bumps along the way, but they’ve been bril- liant over the long term. Manning & Napier World Opportunities EXWAX offers the stability of a large team of managers. A 13 -member team oversees all of Manning & Napier’s funds, and it is supported by 32 analysts. This Gold- rated standout blends stock selection with top-down analysis to build a portfolio of three stock types: strategic profile companies with wide moats, bank- able deals that are deep-value plays, and cyclical plays. Those stock types lead the team all over the map. The current portfolio has a sizable energy bet that’s had mixed results so far, but we remain confident in the fund. œ

This year, the top-selling category is foreign large-blend. So, I thought I would help you find some foreign large-blend funds that are a little off the beaten path by diving into our smallest Morningstar Medalists in the category. Bronze-rated Neuberger Berman International Equity NIQVX is a real hidden gem under Benjamin Segal. This $ 1 . 1 billion fund takes an opportunistic approach to find out-of-favor bargains. Segal takes an all-cap approach in his search for steady growth and modest prices. Segal has a strong record, topping 98% of peers since he took over in 2003 . However, this fund's record doesn't capture the full record beacuse of a merger. Litman Gregory Masters International MSILX is a $ 1 . 6 billion fund that we recently lowered to Silver because of Amit Wadhwaney’s departure. The fund has seven subadvisors that select a focused portfolio of stocks. Despite the loss of Wadhwaney, it still boasts some great managers, such as David Herro of Oakmark, the Northern Cross team that runs Harbor International, Bill Fries and Vinson Walden of Thorn- burg, and Jean-Marc Berteaux of Wellington. I’m not as big of a fan of James Gendelman of Marsico, but that’s still a great lineup rolled into one fund. The final manager is Mark Little of Lazard—we don’t rate a fund he runs, so I don’t have an opinion there. I like how this fund lets investors diversify through different strategies. Longleaf Partners International LLINX merits a Bronze rating because of our high opinion of the managers at Longleaf. Mason Hawkins and Staley Cates, who run the firm’s domestic funds, are also managers here. But a key difference is that two over- seas managers, Scott Cobb and Ken Siazon, also have a big impact on the portfolio. Those two were named managers in 2010 and have a good record

What Are Morningstar Analyst Ratings?

Our ratings are chosen for long- term success. Analysts assess a fund’s competitive advantages by analyzing people, process, parent, performance, and price. They do rigorous analysis and then submit their ratings to a committee that vets their work for thoroughness and consistency.

Free Webinar: 7 Under the Radar Funds July 15 | 4 : 15 p.m. ET

You know about great funds like Fidelity Contrafund and Vanguard Total Stock Market, but the investing world doesn’t end there. There are quite a few hidden gems out there. Smaller funds have greater flexibility and we’ve found some great managers who can make the most of it. Russ will share 7 of these fund ideas and explain what their competitive advantages are.

Register here: http://register.webcastgroup.com/ L 4 /?wid= 0579506355 z