Nominees for the “2023 Morningstar Awards for Investing Excellence” were announced today, with a trio of contenders for “Outstanding Portfolio Manager” and “Exemplary Stewardship.”
The awards recognize portfolio managers and asset management firms who demonstrate excellent investment skill and an alignment of interests with the strategies’ investors.
“These distinguished nominees stand out for their long histories of consistent results, disciplined, yet not hidebound, investment philosophies and processes, and commitment to serving investors’ interests,” said Tim Strauts, Morningstar’s head of manager research, North America. “We’re proud to continue our recognition of individuals and firms that are delivering positive investor outcomes with their talent, diligence, and thoughtful approaches.”
The nominees for the 2023 Morningstar Awards for Investing Excellence in the United States are:
Outstanding Portfolio Manager
• Scott Davis of Columbia Threadneedle, manager of Columbia Dividend Income (LBSAX)
• David Giroux of T. Rowe Price, manager of T. Rowe Price Capital Appreciation (PRWCX)
• Rick Rieder of BlackRock, manager of BlackRock Strategic Income Opportunities (BSIIX) and BlackRock Total Return (MPHQX)
Davis may be the least well-known nominee, writes Dan Culloton, director of equity strategies for Morningstar Research Services LLC in an article posted today about the nominees. “He runs a big fund—the $36.3 billion Columbia Dividend Income GSFTX—and has posted strong results but keeps a low of a profile,” the article notes.
Since the early November 2001 start of Davis’ tenure through the end of February 2023, Columbia Dividend Income’s nearly 9% annualized gain for its institutional shares beat the large-value Morningstar Category and the Russell 1000 and Russell 1000 Value indexes in absolute and risk-adjusted terms. During Davis’ run, Columbia Dividend Income’s institutional shares turned a $10,000 investment into more than $62,500 through the end of February 2023, while the same sum in the Russell 1000 Value and Russell 1000 indexes became about $50,400 and $58,900, respectively.
Giroux, the manager of T. Rowe Price Capital Appreciation PRWCX won Morningstar Allocation Manager of the Year honors in 2017 and 2012 and often has been in the running in other years.
Culloton’s article notes the fund’s 9.3% annualized gain from July 2006 through February 2023 beat the peer group mean and the Morningstar Moderate Target Risk Index by big margins and even matched the all-equity S&P 500′s gain in that time with far less volatility.
“In 2018, he started reducing the portfolio’s stock holdings from between 50 and 70 to about 40 because his analysis showed the fund was better off focusing on its best ideas,” Culloton writes.
Rieder, the article says, “took over a fixed-income operation in 2010 that was still smarting from the global financial crisis and manager turnover and built it into one of the strongest bond investing teams in the industry.”
His approach has helped him stay the course and deliver long-term success across multiple categories. “That approach entails devouring copious quantities of research, distilling it into a diversified collection of small bets rather than a few large ones, and monitoring risk like a border collie patrolling for strays and wolves,” Culloton writes.
Exemplary Stewardship
• Baird Asset Management
• Capital Group (American Funds)
• Jensen Investment Management
Eligible candidates in this category are limited to U.S.-based firms that have earned a Morningstar Parent Pillar ratings of High, which signals Morningstar’s utmost confidence in their stewardship of investor capital. Only nine firms meet this exacting standard, writes Gabriel Denis, a senior manager research analyst for Morningstar Research Services LLC. More details about each of the three nominees in this category can be found in Denis’ article posted today.
Morningstar will announce the award winners in both categories on Tuesday, March 21, 2023, and CNBC will feature the Investing Excellence Awards on its “Power Lunch” program.
Morningstar has granted annual awards to accomplished portfolio managers since 1988. The Morningstar Awards for Investing Excellence winners are chosen based on research and in-depth qualitative evaluation by Morningstar’s manager research group.
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• Way Too Much Risk in 401k Target-Date Fund Glide Paths: Morningstar
• Morningstar Honors Target Date Pioneer Jerome Clark for Investing Excellence
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
