Morningstar Advisor - April/May 2009 - 23

Graham and his accounting teacher, Abe Briloff, who has detailed ways in which accountants can distort the economic truth of a business’ situation. Dreifus picks underfollowed, out-of-the-way, prosaic businesses that have simple accounting. They tend to expense things on the income statement rather than capitalize them, and they tend to have unshakable balance sheets. First Eagle Global SGENX Jean-Marie Eveillard buys well-capitalized companies of all sizes. He will also consider bonds, if he thinks they fundamentally make more sense, and often holds cash. Finally, gold is a perennial favorite of his for its insurance in the event of a market collapse. Currently, 78% of the fund’s portfolio is in stocks. Eveillard does have some financial exposure, but a chunk of it is Berkshire Hathaway BRK.A, which has a AAA credit rating. Eveillard is also strongly attracted to Japanese stocks now because of their impressive balance sheets. Three Battered But Still-Good Global Funds Fund analyst William Samuel Rocco found some good global funds that have suffered much more damage than the group norm during the worldwide equity meltdown but still remain strong long-term investments. T. Rowe Price Global Stock PRGSX A number of things have gone wrong here, and this fund has plunged 61% since Nov. 1, 2007, as a result. There still are ample grounds for optimism here. The go-anywhere growth strategy that Rob Gensler employs is inherently sound, and the fund’s relatively low expense ratio gives it an enduring edge. Thornburg Global Opportunities THOAX Brian McMahon and Vinson Walden’s willingness to buy stock in bunches has stung, as it has left this fund with lots of exposure to the weak Chinese market and no exposure to the relatively steady consumer-staples sector. Their taste for small firms has hurt. And their commitment to focusing on 30-40 issues has caused additional damage. Thus, this fund has lost 8 percentage points more than the world-stock norm of 53% since Nov. 1, 2007. That’s incredibly painful for shareholders, of course, but this fund posted impressive gains as stocks surged around the world during the managers’ first 15 months, and its since-inception returns are quite strong in relative terms. Dodge & Cox Global Stock DODWX This fund opened in May 2008, but it has suffered mightily nonetheless. This fund has plummeted 58% during its 10-month existence. But several members of this fund’s management team have earned impressive long-term results at Dodge & Cox Stock DODGX and Dodge & Cox International Stock DODFX. And the same sound value strategy is used at all three offerings. THE NATIONWIDE LIFETIME INCOME RIDER® Today’s volatile markets call for solutions you can trust. Only we have The Nationwide Lifetime Income Rider (L.inc), available with certain Nationwide variable annuities. L.inc is one of the few living beneﬁts to offer clients a 10% roll-up and spousal protection that’s uninterrupted. In a ﬂat or declining market, L.inc rises above the rest with the highest guaranteed income among competitors. Clients want beneﬁts like these. We guarantee it. Call us: 877-996-3669 and enter code 56210 for an illustration or more information Go online: Visit nationwide.com/livingbeneﬁts Nationwide Life Insurance Company. And while they do not guarantee the actual performance of the variable accounts, they do offer a level of protection against investment loss. Not a deposit, not FDIC or NCUSIF insured, not guaranteed by the institution, not insured by any federal government agency, may lose value. Variable annuities are issued by Nationwide Life Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation, member FINRA. In MI only: Nationwide Investment Svcs. Corporation. Nationwide, the Nationwide framemark, The Nationwide Lifetime Income Rider and On Your Side are service marks of Nationwide Mutual Insurance Company. For Broker/Dealer Use Only – Not For Use With The Public. VAV-0117AO.1 MorningstarAdvisor.com 23 LINE OR BELOW 2/17/09 3:42:29 PM

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Morningstar Advisor - April/May 2009

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