(PUB) Morningstar FundInvestor

22

New Entrants From Meridian and Diamond Hill Changes to the 500 | Russel Kinnel

tronic edition at mfi.morningstar.com . We regret the error. Here are the correct figures for those funds. œ

Fidelity OTC Portfolio FOCPX

11.09%

Fairholme FAIRX

11.34%

American Century Heritage TWHIX

12.07%

ASTON/Fairpointe Mid Cap CHTTX

11.41%

I am adding the promising Meridian Small Cap Growth MISGX . The fund is run by former Janus managers Brian Schaub and Chad Meade. They did a fine job at Janus Venture JAVTX and Janus Triton JATTX . Now they are at Arrowpoint Asset Manage- ment, a firm teeming with ex-Janus people. The fund is not yet in No Transaction Fee supermarkets. I am dropping Turner Small Cap Growth TSCEX . The fund has seen an ebb in performance and recently got a new manager in Jason Schrotberger. Meantime, assets have declined to $140 million. I am also adding Diamond Hill Small-Mid Cap DHMAX , which we rate Gold. Since taking over in 2005 , Chris Welch has put up outstanding returns of 9 . 8% annualized compared with 8 . 4% for the index. Welch is also a listed but not lead manager on Diamond Hill Large Cap DHLAX and Diamond Hill Small Cap DHSCX . All three are run in a patient Graham and Dodd style that emphasizes good com- panies trading at steep discounts. To make room, I am dropping Neutral-rated Rainier Small/Mid Cap Equity RIMSX . We give the fund a Neutral on all pillars except for Price, which is a Negative. So, one could say pretty safely that it has failed to distinguish itself. In 2013 , Rainier stream- lined management in an attempt to improve perform- ance. That might help, but we’re on the sidelines for now. Error in 10-Year Returns We published incorrect 10 -year returns for 16 funds in the July issue of FundInvestor because of a program- ming glitch. The corrected figures are now in our elec- See the facing page for more.

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.

Artisan Mid Cap Value ARTQX

11.59%

Brown Capital Management Small Company BCSIX

12.50%

Fidelity Small Cap Discovery FSCRX

12.74%

T. Rowe Price Capital Appreciation PRWCX

9.17%

T. Rowe Price Media & Telecommunications PRMTX

15.77%

Artisan International Small Cap ARTJX

12.72%

Oppenheimer Global Opportunities OPGIX

10.09%

Loomis Sayles Investment Grade Bond LIGRX

7.79%

Fidelity Capital & Income FAGIX

7.82%

Fidelity New Markets Income FNMIX

10.33%

T. Rowe Price Tax-Free High Yield PRFHX

5.33%

AMG Yacktman Focused YAFFX

10.96%

Summary of Changes Add

Drop

Meridian Sm Cap Grwth

Turner Small Cap Growth

Diamond Hill Small-Mid Cap

Rainier Sm/Md Cap Equity

Rating Change (downgrades) From Calamos Market Neutral Income ‰ ´ MainStay ICAP International ´ • Thornburg International Value ´ • Vanguard Total Bnd Mrkt Index • Œ Wasatch Long/Short Investor ´ • To

Rating Change From DoubleLine Total Return Bond ” ‰ To