David Herro was named international stock fund manager of the year by Morningstar Inc., the third time he has earned that distinction.
Mr. Herro, who runs Oakmark International (OAKIX), was one of several fund managers to earn
awards from Morningstar.
The awards are for managers with excellent long-term risk-adjusted returns, superior 2016 returns, and overall skill in management. “These fund managers deserve recognition for the skill they've demonstrated, amassing impressive long-term records while demonstrating a commitment to shareholders,” said Laura Pavlenko Lutton, Morningstar's director of manager research, North America.
Mr. Herro's fund gained 7.91% last year vs. 0.79% for the average foreign large blend fund. The fund has beaten more than 90% of its category peers the past five, 10 and 15 years, Ms. Lutton said. This is a hat trick for Mr. Herro, who was Morningstar's 2006 international-stock fund manager of the year and
international-stock fund manager of the decade for 2000-2009 .
Other winners include:
Domestic-stock fund manager of the year: David Wallack, T. Rowe Price Mid-Cap Value (TRMCX). The fund gained 24.3% in 2016, according to Morningstar, and has averaged a 15.06% average annual return the past five years — a record that puts it in the 8th percentile of all mid-cap value funds “David's success in stock picking is mainly a result of his careful research and thoughtfulness dedicated to each company he invests in,” Ms. Lutton said.
Fixed-income fund manager of the year: Ford O'Neil and team, Fidelity Total Bond (FTBFX). It was a tough year for bond funds: The average intermediate-term bond fund gained just 3.23% in 2016. Fidelity Total Bond gained 5.86%. The fund has been in the top 19% of its category the past 10 years, returning an average annual gain of 4.89%.
Allocation/alternatives fund manager of the year: Equity and Fixed-Income Investment Policy Committees,
Dodge and Cox Balanced (DODBX). The team at Dodge & Cox has always been there for investors who were born to be mild. The fund gained 16.56% last year, putting it in the third percentile for its category. It's gained an average 7.45% a year for the past 15 years, putting it in the top 4% of all moderate target risk funds.
Past performance, of course, is no indication of future returns. Not all Managers of the Year have fared well afterwards. The 2009 winner for domestic stocks, for example, was Bruce Berkowitz, manager of Fairholme fund (FAIRX). The fund tumbled 32.42% in 2011 and 11.48% in 2015.
