Investor Relations
About Us
Investor Relations
 Press Release
U.S. Media Contact+1 312 696-6241
Kathy Panagopouloskathy.panagopoulos@morningstar.com
Morningstar Announces Fund Managers of the Year for 2002 - Fund Leaders Prove Their Worth in Bear Market

CHICAGO, Jan 02, 2003 – Good fund managers proved their worth last year, a period in which the SandP 500 Index dropped more than 20 percent. Honoring the best mutual fund managers for 2002, Morningstar, Inc. today announced its Fund Manager of the Year Award winners. The award, now in its 16th year, recognizes outstanding portfolio managers in three categories: domestic stock, international stock, and fixed income. The 2002 winners are:

  • Domestic-Stock Fund Manager of the Year:
    Joel Tillinghast, Fidelity Low-Priced Stock (FLPSX)
  • International-Stock Fund Managers of the Year:
    Rudolph-Riad Younes and Richard Pell, Julius Baer International Equity (BJBIX)
  • Fixed-Income Fund Manager of the Year:
    Management Team, Dodge and Cox Income (DODIX)

"2002 was one of the most challenging years for mutual fund managers–but one where rigorous analysis and disciplined investing paid off," said Russ Kinnel, director of fund analysis for Morningstar. "We look for managers who have enjoyed a great year and produced strong long-term performance. In addition, we want managers who put shareholders first and invest with conviction. The 2002 winners we selected have all these qualities. Not all of them made money during the bear market, but they were able to keep losses small, enabling shareholders to endure the difficult market conditions of the past few years."

Domestic-Stock Fund Manager of the Year:
Joel Tillinghast
Fidelity Low-Priced Stock

Through good times and bad, Joel Tillinghast has kept his fund, which now has $15 billion in assets, performing ahead of the competition. Managing that much money primarily in small-cap stocks requires Tillinghast to hold more equities and conduct more research than his peers. His fund owns nearly 900 stocks, and he understands the fundamentals of every company in the portfolio. The fund was down 6 percent for 2002.

Many funds do well when assets are tiny, but tank when assets grow to huge sums. Not so with Fidelity Low-Priced Stock Fund. In 1992, assets surged from $375 million to $2.2 billion. Even investors who had horrible timing and invested $10,000 in this fund in January 1993--after the small-cap stock rally peaked at the end of 1992--would have more than $37,000 today. Investing in the Russell 2000 would have produced $24,000.

"Steadiness has meant that Tillinghast has been a perennial runner-up for the award because he rarely posts monster returns," Kinnel said. "Yet, when we look back at the fund's long-term performance, he dwarfs the competition. It's time we recognize one of the best managers in the history of mutual funds."

International Stock Fund Managers of the Year:
Rudolph-Riad Younes and Richard Pell
Julius Baer International Equity

Rudolph-Riad Younes and Richard Pell follow a much bolder investing strategy than the other winners, but they still succeed at consistently beating their peers. They begin with a top-down assessment of sectors and countries. They also conduct thorough company research, another reason they have done well while other top-down managers have failed.

Younes and Pell have shown an uncanny knack for making smart market moves–beating their peers in years that favor both growth- and value-oriented investment styles. The Julius Baer International Equity fund, has led its category in every full calendar year since these managers took control in mid-1995. In 2002, it lost a little more than 3 percent to place in the top 5 percent of Morningstar's foreign-stock fund category. Even more impressive–Julius Baer International Equity posted an annualized return of nearly 10 percent during the trailing five years, beating all but five of its peers.

"There have been plenty of fund managers who went from hero to goat or vice versa since 1999," Kinnel said. "When we look at this fund's record, Younes and Pell posted top- quartile returns in 1997, 1998 and 1999. Then, they put up three more years of outstanding returns even as leadership in the market swung from large growth to small value. They aren't speculative momentum investors. They managed to stay one step ahead of the markets."

Fixed-Income Fund Managers of the Year:
Management Team
Dodge and Cox Income

The bond fund Managers of the Year also delivered steady, dependable performance. Dodge and Cox Income Fund's rolling 12-month returns outperformed those of its peers in every single period during a 10-year stretch–a feat no other fund could match.

"The secret is that management focuses on which bonds to add to the portfolio rather than making big interest-rate or credit bets," Kinnel said.

"We were also impressed by what Dodge and Cox Income didn't own. The fund is overweight in corporate bonds relative to its benchmark. In 2002 that meant trouble because investors ran from corporate bonds for fear they would get caught holding the next Enron. This fund not only avoided disasters, but it also found enough winners to return nearly 11 percent in 2002. Just as impressive, the fund's returns for the trailing five and 10-year periods rank in the top 10 percent of its category," Kinnel said.

The Dodge and Cox Income fund managers are: James Dignan, Thomas Dugan, Dana Emery, John Gunn, Jeffrey Klein, Peter Lambert, Charles Pohl, Kent Radspinner, Larissa Roesch, A. Horton Shapiro, and Robert Thompson.

Established in 1988, the Morningstar Fund Manager of the Year Award recognizes portfolio managers who demonstrate excellent investment skill and the courage to differ from consensus. To qualify for the award, managers must not only have a great year, but also must have a record of delivering outstanding long-term performance and of aligning their interests with shareholders. The Fund Manager of the Year Award winners are chosen based upon Morningstar's proprietary research and in-depth evaluation by its senior editorial staff.

For the complete report, go to:

For a list of past and present winners, go to:

About Morningstar, Inc.
Chicago-based Morningstar, Inc. is a global investment research firm, offering an extensive line of print, software, and Internet-based products and services for individuals, financial advisors, institutions, and the media. The company is a trusted source for investment information, data, and analysis of stocks, mutual funds, exchange-traded funds, closed-end funds, and variable annuity/life subaccounts.

 Printer-friendly version
SEC Filings
Annual Reports
Earnings Releases
Calendar of Events
Analyst Coverage
Corporate Governance
Investor Communications
Investor Questions
Stock Information
Safe Harbor Provision
Investor Relations Contacts
News and SEC Filing Alerts
Request an investor information kit 
© Morningstar. All rights reserved.