(PUB) Morningstar FundInvestor

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Funds From Westwood, TIAA-CREF Join 500 Changes to the 500 | Russel Kinnel

Thus, you have a big, diffuse portfolio. This Bronze- rated fund charges a modest 0 . 49% in expenses, though that is with the help of a fee waiver that brings fees down from 0 . 61% . That waiver expires in February 2014 . Two Go Out To make room, I’m dropping Wasatch Large Cap Value FMIEX . The fund recently got a makeover when David Powers was brought in to replace Ralph Shive and Michael Shinnick. Powers comes over from Eagle Asset Management. We are also dropping Schneider Small Cap Value SCMVX , which is no longer covered because of its small asset base. Going Soon Three Vanguard funds will be leaving shortly because they are being merged away. As noted in News, Vanguard Growth Equity VGEQX , Vanguard Tax- Managed Growth & Income VTGLX , and Van- guard Tax-Managed International VTMGX will be merged into similar funds. œ

We have two new additions this month.

What is Morningstar FundInvestor 500 ? The Morningstar FundInvestor 500 features the industry’s best and most notable funds. Use the list to get new investment 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.

First, there’s the Bronze-rated Westwood Income Opportunity WHGIX . This conservative-allocation fund has posted excellent results under manager Mark Freeman. Freeman looks across a firm’s capital structure to find good values, and he puts it together in a mix of stocks, bonds, preferreds, convertibles, REIT s, MLP s, and cash. Generally, the fund has less than half of the portfolio in equities, but today it’s over that line because Freeman prefers stocks and even cash to bonds. For stock selection, Freeman uses a value strategy not too different from other Westwood funds such as Teton Westwood Equity WESWX . The fund charges a modest expense ratio of 0 . 90% on its Institutional shares. You can gain access to the Institutional shares for a $ 5 , 000 minimum through many discount brokerages such as Fidelity, but it is not in the No Transaction Fee system. We are also adding TIAA-CREF Social Choice Equity TICRX . It’s a socially screened equity fund that can serve nicely as a core holding. The fund is almost an index fund but not quite. Man- agement begins with the stocks in the Russell 3000 and then applies screens on social criteria such as the environment, human rights, employee relations, safe products, and high ethics. That pares the list to about 1 , 900 names and then the quantitative team at the firm selects about half of those names to actually include in the portfolio. See facing page for more.

Summary of Changes

Add

Drop

TIAA-CREF Social Choice Equity

Schneider Small Cap Value

Westwood Income Opportunity

Wasatch Large Cap Value

Category Change To Vanguard Intrm-Trm Invmt-Grade Inv Interm-Trm Bnd Corporate Bond Vanguard Lng-Trm Invstmnt-Grd Inv Lng-Term Bond Corporate Bond PIMCO Invstmnt Grade Corp Bd Instl Interm-Trm Bnd Corporate Bond PIMCO All Asset All Authority D World Alloc Tactical Alloc T. Rowe Price Corporate Income Lng-Term Bond Corporate Bond PIMCO Global Multi-Asset D World Alloc Tactical Alloc Hussman Strategic Total Return Conserv Alloc Tactical Alloc From