September 17, 2011 - A Mutual Fund You'll Be Hearing More About - by Morningstar Investment Research
MassMutual Select Focused Value MFVSX doesn't have an enormous asset base. It isn't led by a household-name manager, and it's not widely available, either. Despite those apparent disadvantages, it's an intriguing fund nonetheless, one that we'll soon provide analyst coverage for and that lends itself to an illustration of Morningstar's analytical pillars: performance, parent, people, process, and price. Through Sept. 8, 2011, Select Focused Value ranks in the large-blend category's top decile in all trailing periods of three years or more. (Its one-year return lands in the peer group?s 12th percentile.) Based on the fund's similarly strong dollar-weighted returns, which account for money flows into and out its coffers, investors have enjoyed most of its outperformanc e, too. Morningstar associate director of fund analysis Shannon Zimmerman notes that the fund's performance is an indication that shareholders have found the fund easy to use, which isn't always the case with successful funds, particularly those that have been as volatile and vulnerable to market declines as this one. He offers more insight on MassMutual Select Focused Value's performance and evaluates the fund's management and its strategy, but he also addresses some issues that might affect the fund in the future.
Among the other topics we addressed this week:
Fidelity Gives Magellan Manager the Boot. After a spate of terrible performance, Fidelity finally hangs up on Harry Lange.
Top 10 Dividend-Yielding Stocks of Our Ultimate Stock-Pickers. Our top managers continue to look to the pharmaceutical industry for yield.
Fund Investors and Their Managers Go Separate Ways on Stocks. Fund managers are more bullish than fund investors these days.
ETF Spotlight: IShares MSCI All Country Asia ex Japan. This is a bet on Asia's future, but don't let rosy prospects blind you to history.
The Latest Developments in International Index Funds. What was once a sparse landscape is now overflowing with choice.
CEF Spotlight: A Short-Duration Fund. Eaton Vance Short Duration Diversified Income uses derivatives to create leverage.
Two New Wide Moats in Oil Services and Rig Equipment. National Oilwell Varco and Schlumberger now have wide economic moats.
Financial Planners Can Do Better Than FINRA-FP. If there's to be an SRO, a more selfish self-regulatory model makes sense.
Are EU Periphery Debt Problems Spreading Inward? Greek bonds are pricing in a near-term default, while French financials are in the hot seat.
QuantShares Rolls Out Four New Market-Neutral ETFs. UBS launches 12 volatility ETNs. Plus, the week's best- and worst-performing ETFs.
No Bargains for No-Moat Health Service Providers. No-moat health service providers are most challenged by industry uncertainty.