Morningstar has named several portfolio managers from major mutual fund companies as fund managers of the year.
The awards recognize managers with outstanding leadership and performance value in four categories: domestic stock, international stock, fixed income and allocation/alternatives.
"In 2017, we saw a powerful equity rally around the world, while returns on the bond side were muted," said Laura Pavlenko Lutton, Morningstar's director of manager research, North America. "In both areas, our fund managers of the year used their proven investment approaches to come out on top, and we also recognize these managers for their strong investment teams, impressive long-term records, and a clear dedication to making money for investors."
Here are the 2017 award winners:
Domestic-Stock Fund Manager of the Year: Steven Wymer, Fidelity Growth Company (FDGRX)
2017 Return: 36.8 percent
2017 Morningstar Category Rank (percentile): 5
10-Year annualized Return: 11.44 percent
10-Year Category Rank: 4
Morningstar Analyst Rating: Silver
Wymer has made a substaintial impact at Fidelity Growth Company since 1997. His positive growth outlook influenced results for both short-term and long-term funds. His innovation and ability to seek out new technological opportunities in the market are evident in the fund's results which have "surpassed its Russell 3000 Growth Index," according to Morningstar.
"Wymer's success is a result of his time-tested investing approach, utilizing Fidelity's research team and executing a thoughtful strategy that has played well in a growth-fueled market," Lutton said.
International Stock Fund Manager of the Year: Sarah Ketterer, Harry Hartford and team, Causeway International Value (CIVIX)
2017 Return: 27.1 percent
2017 Morningstar Category Rank (percentile): 14
10-Year Annualized Return: 3.1 percent
10-Year Morningstar Category Rank (percentile): 10
Morningstar Analst Rating: Gold
The team, guided by Sarah Ketterer and Harry Hartford, have demonstated a disciplined approach that has impacted portfolio performance, particularly in long-term results. Notably, an investment in Volkwagen stock during the U.S. emissions disruption, which gained over 40 percent during an uncetain time for the German automaker in 2017, highlighted the team's strategic analysis in long-term value investing, Morningstar said.
"This value-oriented fund's 2017 showing is even more impressive considering the growth-led market environment that has persisted," Lutton said. "The fund also possesses an excellent long-term track record, delivering an 8.3 percent annualized gain since its 2001 inception."
Fixed-Income Fund Manager of the Year: Michael Collins, Robert Tipp, Richard Piccirillo, and Gregory Peters, Prudential Total Return Bond (PDBZX)
2017 Return: 6.6 percent
2017 Morningstar Categor Rank (percentile): 2
10-Year Annualized Return: 6.0 percent
10-Year Morningstar Category Rank (percentile): 1
Morningstars Analyst Rating: Silver
Of all the winners, the Prudential Total Return Bond Fund had the highest percentile rankings for both 2017 and for the last decade. It was in the top 1 percent of all funds in its category for the last 10 years.
According to Morningstar, the fund runs nearly $700 billion in assets. Chief investment Officer Mike Lillard's background in risk management has benefited the team in utlizing key resources for risk guidelines. The four senior investors bring over 23 years of experience to develop the portfolio across "sectors and disciplines of 125 portfolio managers, 100 analysts and 50 quanitative professionals."
"Their collaborative approach shows in the fund's underlying methodology and overall process. With a methodical approach, strong risk controls, and robust security valuation, we expect that this team will continue to do well,”said Lutton.
The fund has a gold rating. Giroux previously won Morningstar Fund Manager of the Year in 2012, according to Morningstar.
Allocation/Alternatives Fund Manager of the Year: David Giroux, T. Rowe Price Capital Appreciation (PRWCX)
Morningstar Analyst Rating: Gold
2017 Return: 15.4%
2017 Morningstar Category Rank (Percentile); 22
10-Year Annualized Return: 9.0%
10-Year Morningstar Category Rank (percentile): 1
This is the second win for David Giroux and his team, which also ranked among the top 1 percent of funds in its category for the last decade. In 2012, Giroux lead the gold-rated T. Rowe Price Appreciation as the inaugural Morningstar Allocation Fund Manager of the Year. Giroux's positive outlook and investment principles have lead the fund to gain in its gategory every year since 2008.