(PUB) Morningstar FundInvestor

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Fund News

Fund Manager Changes

Columbia Dividend Income LBSAX Impact: Negative 12-31-13 Comanager Dick Dahlberg is set to retire at the end of 2013. Scott Davis will lead the fund with help from Mike Barclay, who was named comanager in 2011. | Our Take: Losing an experienced manager like Dahlberg is a blow, but Davis has equal claim to the fund’s strong record, so we are maintaining our Silver rating of the fund. Davis has been a comanager on the fund since 2001 and was an analyst serving the fund for three years before that. Impact: Negative 09-01-13 FPA Paramount is changing both managers and strategies. The fund will adopt a more value-driven strat- egy. In addition, longtime managers Eric Ende and Steve Geist will step aside, and recently named comanagers Greg Herr and Pierre Py will take over. | Our Take: It’s an odd move considering that just two years ago FPA announced the fund would switch from a domestic mandate to a global one even though Ende and Geist had long been domestic-stock investors. Given the limited track records on the new managers, we have lowered our rating to Neutral from Silver. Impact: Negative 09-09-13 UBS has brought in Dan Neuger from Pinebridge Investments to comanage the fund, and UBS will continue to subadvise the fund. Neuger replaces Sam Console, who was part of the team that replaced Lawrence Kemp when Kemp left in November 2012 but left UBS in April. Peter Bye, who came on board in 2012, remains as comanager. Unfortunately, the fund has now lost Paul Graham to retirement. Graham had had oversight of the fund since 2003 and was named comanager when Kemp left. | Our Take: We had hoped that Schwab would follow former manager Lawrence Kemp to BlackRock and change subadvisors. Instead, UBS has brought in Dan Neuger from Pinebridge Investments to run the fund, and the firm will continue to subadvise the fund. So, I’m disappointed. Impact: Negative 10-31-13 Jesper Madsen stepped back from being lead manager and will leave the firm in October. Yu Zhang and Robert Horrocks have taken over. | Our Take: Madsen’s departure is a loss. However, Horrocks is a seasoned investor with a strong record. We are maintaining our Silver rating on this fund, whereas we’ve lowered the rating on Matthews China Dividend because Zhang is the only manager scheduled to be on the fund after Madsen retires. Impact: Negative 10-31-13 Jesper Madsen moved from lead manager to comanager in April, and he will retire in October. Yu Zhang was comanager for a year before becoming lead manager in April. Matthews said it will decide in the coming months whether it will add a comanager to the fund when Madsen departs. | Our Take: Zhang served as an analyst at Matthews starting in 2007 until he became a manager. In addition, he has served as comanager for two years at Matthews Asia Dividend MAPIX . We lowered the fund’s rating to Neutral from Bronze because of Zhang’s limited experience as a lead manager, the key role Madsen has played, and the uncertainty surrounding the comanager position. Because it’s a collaborative effort at Matthews, we expect that the strategy will not change significantly. Impact: Positive 09-05-13 Former Janus managers Chad Meade and Brian Schaub were named to run this fund once Arrowpoint’s acquisition of Meridian funds was completed. They replace interim managers Larry Cordisco and James England, who had filled in for a year in the wake of Rick Aster’s death. | Our Take: This is a big upgrade and brings welcome stability as the fund has been in limbo since Aster’s death. The pair did a brilliant job at Janus Venture JAVTX and Janus Triton JATTX . I anticipate this fund to look a fair amount like Triton with a concentrated portfolio of small- and mid-cap growth stocks. The fund has a modest $2.1 billion asset base, but that will likely grow with the new managers on board. FPA Paramount FPARX Laudus Growth Investors LGILX Matthews Asia Dividend MAPIX Matthews China Dividend MCDFX Meridian Growth MERDX

Aston/Fairpointe Mid Cap to Close Silver-rated Aston/Fairpointe Mid Cap CHTTX announced it will close to new investors on Oct. 18 . The $ 4 . 8 billion fund has been a standout under Thyra Zerhusen, Marie Lorden, and Mary Pierson. The fund’s strong 32 . 2% year-to-date return likely led to accelerated inflows. They run a focused, low-turnover mid-blend strategy that has produced strong long-term returns. This year, health-care and tech names have led the way for the fund. Calamos Reopens Convertible Fund Calamos Convertible CCVIX announced its reopen- ing as of Sept. 6 . The fund closed in October 2012 . The fund has experienced steady outflows since 2011 . We recently lowered our rating on the fund to Neutral. American Century Vista Merging Away American Century announced that it will close the long-struggling American Century Vista TWVAX , merging the fund’s assets into another mid-cap growth fund, American Century Heritage TWHIX . The merger will take place Dec. 6 , 2013 . We rate Vista Neutral and Heritage Bronze. A $ 1 . 5 billion fund, Vista has experienced both under- performance and manager turnover since 2008 . And since previous lead manager Glenn Fogle left the firm in 2009 , the new management team has not been able to right the ship. Are SRI Investors Better Timers? I was looking at TIAA-CREF Social Choice Equity TISCX , and I noticed something interesting. The fund’s Morningstar Investor Returns were significantly better than its stated total returns.

For the trailing five years, the fund’s investor returns are 11% versus 7 . 6% for total returns, and for 10 years