Morningstar today announced its 2013 U.S. Fund Manager of the Year award winners live on CNBC’s Power Lunch program. The awards acknowledge managers who delivered impressive performance for the year, have shown excellent long-term risk-adjusted returns, and have been good stewards of fund shareholders’ capital.
The winners are:
Domestic-Stock Fund Manager of the Year: Dennis Lynch and team, Morgan Stanley Focus Growth, Morgan Stanley Institutional Growth, Morgan Stanley Institutional Mid Cap Growth and Morgan Stanley Institutional Small Company Growth.
Lynch leads the 18-member team that runs the four funds, each of which returned more than 35 percent for the year. The team focuses on finding unique, market-leading companies, including pre-IPO investments.
International-Stock Fund Manager of the Year: David Samra and Daniel O'Keefe, Artisan International Value and Artisan Global Value.
Artisan International Value ranked in the top percentile in Morningstar’s foreign large-blend category with a 30.5 percent gain, beating the category benchmark by nearly 8 percentage points. Artisan Global Value also returned more than 30 percent last year. Samra and O’Keefe favor financially sturdy firms trading at significant discounts to their estimated value. The team also won the award in 2008.
Fixed-Income Fund Manager of the Year: Daniel J. Ivascyn and Alfred T. Murata, PIMCO Income.
The fund gained 4.8 percent in 2013, boosted by its core investment in non-agency mortgage-backed securities and smaller holdings in investment-grade and high-yield corporate securities. Ivascyn and Murata’s three- and five-year trailing returns have also been in the multi-sector bond category’s best quintile, and have kept the fund’s volatility below the average of its category's peers.
Allocation Fund Manager of the Year: Steven Romick, Mark Landecker and Brian Selmo, FPA Crescent. Romick has led the fund since inception more than 20 years ago. The fund’s 11 percent annualized gain from inception through December 2013 beats the category by more than 4 percentage points, according to Morningstar. The team is known for its competitive long-term record, savvy stock-picking and producing equity-like returns with below-average volatility. FPA Crescent returned 22 percent for the year.
Alternatives Fund Manager of the Year: Brian Hurst, Yao Hua Ooi, and team, AQR Managed Futures Strategy I. In 2013, the fund gained 9.4 percent while the category lost approximately 1 percent. AQR Managed Futures Strategy is the only positively rated managed futures fund that Morningstar covers.