(PUB) Morningstar FundInvestor

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Fund Manager Changes

Fund News

Harbor International Growth HIIGX Impact: Neutral 05-21-13 Harbor has replaced manager James Gendelman and Marsico Capital with Gerard Callahan, Iain Campbell, Joseph Faraday, and Paul Faulkner of Baillie Gifford, a firm that subadvises portions of two Vanguard funds. | Our Take: Harbor rarely makes subadvisor changes, but it’s understandable as performance has long lagged and Marsico has seen some managers and analysts leave. We don’t see Baillie Gifford as a big upgrade, but it does at least seem to be more stable. We are dropping the fund from coverage. Impact: Negative 05-13-13 Jonathan Coleman has been moved off this fund to run Janus Triton JATTX and Janus Venture JAVTX. Comanager Barney Wilson now becomes the sole manager after two years as a comanager. Wilson did have a strong five-year track record at Janus Global Technology JAGTX. | Our Take: We are maintaining our Neutral rating on the fund. Wilson is running his first diversified fund, so we can’t really make the case for this fund at this point. Impact: Negative 05-13-13 Brian Schaub and Chad Meade, who produced great returns at both funds, have left the building. They have been replaced at Triton by Jonathan Coleman, who had run the Neutral-rated Janus Fund JANSX, and at Venture by Coleman and Maneesh Modi (who is running a fund for the first time). Coleman ran mid- growth fund Janus Enterprise JAENX from 2002–07 and did well (though his record wasn’t as impressive as Meade and Schaub’s). He also comanaged Janus Venture once before from 1997 to the end of 2000, and like other Janus funds it did well in the frothy markets and gave it back in the downturn. | Our Take: This sucks. It’s a huge blow to lose managers doing so well. We lowered the funds to Neutral from Silver. Impact: Positive 05-13-13 Manager Ron Sachs has left, and Janus moved Mark Pinto onto the fund. Pinto runs the Neutral-rated Janus Growth & Income JAGIX and the Silver-rated Janus Balanced JABAX. | Our Take: We had rated the fund Neutral because of an unimpressive run for Sachs, and we are maintaining our Neutral rating with Pinto at the helm. Pinto figures to run a more growth-oriented strategy than at his other charges. Growth & Income has been a mediocre performer, but he’s performed well at a separate account using a concen- trated large-growth approach. Impact: Negative 10-01-13 Dan Martino will transition off this fund at the end of September. Analyst Paul Greene has been promoted to comanager until he takes over on Oct. 1. | Our Take: We hate to see Martino go but recognize that the fund has weathered past departures well thanks to the depth of the analyst team. Greene has been an analyst at T. Rowe since 2006. We’ve lowered our rating to Bronze from Silver. While we think the fund is likely to continue to outperform, it is not a destination but a stepping stone for new portfolio managers toward a diversified growth fund. Impact: Negative 05-10-13 Joe Milano has unexpectedly left T. Rowe Price, and it has promoted Dan Martino from T. Rowe Price Media & Telecommunications PRMTX to take his place. | Our Take: What a blow. We’ve lowered the rating to Neutral from Gold. You don’t often see surprise changes at T. Rowe; normally a new manager has a transi- tion period. What’s more, while past Media & Telecom managers have moved on to diversified funds, results have been mixed. The good news is that Martino did a fine job at his previous fund, so there may yet be hope for this one. Janus Fund JANSX Janus Triton JATTX and Janus Venture JAVTX Janus Twenty JAVLX T. Rowe Price Media & Telecommunications PRMTX T. Rowe Price New America Growth PRWAX

Matthews Fund to Close Matthews is closing Matthews Asia Dividend MAPIX to new investors on June 14 . We gave the $ 5 . 5 billion fund a Morningstar Analyst Rating of Gold. The fund has top-decile returns for the trailing three- and five-year periods. The Silver-rated Matthews Asian Growth & Income MACSX is probably the best substitute if you missed the deadline. Matthews Asian Growth & Income also looks for dividend-paying stocks, but it has a slug of convertible bonds and preferreds, too. In addition, it has a much smaller China stake than Matthews Asia Dividend does. Vanguard Cuts Fees at Some Funds Vanguard announced that investors in one of the firm’s exchange-traded funds and five of its mutual fund share classes will benefit from lower fees, effective immediately. Vanguard Dividend Appreciation Index VDAIX , Gold-rated Vanguard Dividend Growth VDIGX , Gold-rated Vanguard Energy Admiral share class VGELX and Investor share class VGENX , and Gold- rated Vanguard Precious Metals and Mining VGPMX all saw expenses fall between 2 and 5 basis points each. Vanguard Dividend Appreciation Index’s fee fell to 0 . 20% from 0 . 25% , while Vanguard Divi- dend Growth’s expense ratio slid to 0 . 29% from 0 . 31% . Vanguard Energy Admiral share class’ fee dropped to 0 . 26% from 0 . 28% , while Vanguard Energy Investor share class’ expense ratio fell to 0 . 31% from 0 . 34% . Vanguard Precious Metals and Mining’s fee dropped to 0 . 26% from 0 . 29% . Also, the ex- pense ratio of Vanguard Dividend Appreciation ETF VIG fell to 0 . 10% from 0 . 13% . Berkowitz Benefits May 6 was a big day for Fairholme and Bruce Berkowitz. MBIA reached an agreement with Bank of America for B of A to pay it $ 1 . 7 billion. Berkowitz