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January 23, 2013 at 07:00 PM
Morningstar announced its 2012 U.S. Fund Manager of the Year award winners in early January, after releasing the names of nominees by category in late December. According to the Chicago-based research firm, the awards acknowledge managers who “not only delivered impressive performance in 2012, but also excellent long-term risk-adjusted returns, and who have been good stewards of fund shareholders’ capital.”
This year, the mutual fund research firm introduced new awards for two types of strategies—allocation and alternatives—in addition to domestic stock, international stock and fixed income. The 2012 Fund Manager of the Year award winners are as follows:
Domestic-Stock Fund Manager of the Year: Bill Frels and Mark Henneman, Mairs & Power Growth (MPGFX).
In its award-winner announcement, Morningstar says that Mairs & Power Growth’s, Bill Frels and Mark Henneman have produced one of the best long-term records of any large-blend fund. Since Frels became co-manager in 1999, the firm notes, the fund has beaten all but one of its large-blend category peers and trounced the S&P 500 with an 8.2% annualized gain through 2012.
Other nominees for this award were American Funds New Economy team (ANEFX) and Timothy Hartch and Michael Keller of BBH Core Select (BBTEX). “Managers Timothy Hartch and Michael Keller set this fund apart in several ways,” writes Morningstar senior fund analyst George Carlson. “They run a concentrated portfolio of roughly 30 stocks, ignore the sector and individual stock weightings of the fund’s S&P 500 benchmark, and focus heavily on downside protection.”
Steve Wymer of the Fidelity Growth Company (FDGRX) is “a rarity,” says Carlson, who adds that he is an aggressive-growth manager who has “survived and thrived through multiple bubbles and bear markets.”
“Although he willingly pays up for rapid growers and will invest heavily at times in risky biotech firms, Wymer has lasted 16 years at this fund by exhibiting patience and conviction,” Carslon adds.
A long-term perspective was a distinction of category winner Mairs & Power Growth (MPGFX). “Of the fund’s top 25 holdings (which comprise most of its assets), 18 were bought in the 1990s and only one hasn’t been held for at least 10 years,” according to Morningstar.
Bill Nygren of Oakmark (OAKMX) and Oakmark Select (OAKLX) rounded out the list of nominations in this category.
International-Stock Fund Manager of the Year: Rajiv Jain, Virtus Foreign Opportunities (JVIAX) and Virtus Emerging Markets Opportunities (HEMZX).
Rajiv Jain has managed Virtus Foreign Opportunities since 2002, and Virtus Emerging Markets Opportunities since 2006. He follows “a high-conviction approach regardless of market trends and is willing to hold portfolios that look very different than the benchmark,” according to Morningstar. The strategy has served him well, according to Morningstar. His funds have landed in the top decile of performance for most periods under his management.
Other nominations in this category were George Evans of Oppenheimer International Growth (OIGAX), David Samra and Daniel O’Keefe of Artisan International Value (ARTKX), as well as Mark Yockey of Artisan International (ARTIX) and Artisan International Small Cap (ARTJX).
Fixed-Income Fund Manager of the Year: Mark Kiesel, PIMCO Investment-Grade Corporate Bond (PIGIX)
