Morningstar Advisor - August/September 2013 - (Page 18)

Investments à la Carte Five Picks for the Present Stock: Suncor Energy SU Fair Value Stocks Estimate Morningstar Rating Uncertainty Medium QQQQQ $52 2012 Stock Price Compared With Fair Value Estimate $60K Fair Value – Daily Daily Closing Price 40 07/12 10/12 01/13 04/13 Economic Moat Narrow Canada’s largest integrated oil sands producer was created when Suncor and PetroCanada merged. After the merger, the firm sold more than CAD 3 billion of assets and completed a joint venture with Total TOT. Suncor’s assets have the potential to generate more than CAD 9 billion in annual cash flow over the next five years. These include a biofuel Forward P/E 10.2 Market Cap $45.6 billion refinery and 255 megawatts of installed wind capacity. Downstream assets include refineries, retail stations, and petrochemicals. Upstream assets include offshore Eastern Canada and the United Kingdom, as well as onshore assets in Libya, Syria, and Canada. David McColl Mutual Fund: Scout International UMBWX Mutual Fund Category Foreign Large Growth Morningstar Rating Morningstar Analyst Rating QQQQ Scout International (Index) $16K MSCI EAFE GR USD (Index) 10 01/09 01/10 01/11 01/12 01/13 Expenses 0.99% Longtime manager James Moffett employs a moderate-growth strategy that focuses on sturdy large caps he can hold for the long haul. While the portfolio typically sticks to the country and sector weightings of the MSCI EAFE Index, Moffett often buys lesser-known firms that go unnoticed by his peers, such as Minimum Investment $1,000 Total Assets $9.3 billion Sampo, the Finland-based insurer and his top holding. The fund tends not to keep up with its more aggressive peers during rallies, but a slow-and-steady approach has worked over the long term. The fund’s 6.3% annualized gain the past 15 years bests the foreign large-growth peer group by 2 percentage points. Rob Wherry Separate Account: Madison Mid-Cap Equity Separate Account Category 8 Mid-Cap Growth Investment Style 8 Mid-Cap Growth Morningstar Rating $25K Madison Mid-Cap Equity (Index) Longtime managers Rich Eisinger and Matt Hayner favor high-quality growth stocks that have high returns on capital, strong free cash flows, competitive advantages, and proven management teams. The account has a concentrated portfolio of 35 holdings, and the team’s conviction in its bottom-up research is apparent from the low 26% turnover. Recent performance belies the account’s long-term QQQQ S&P 500 TR (IA Extended) (Index) 20 15 10 01/09 01/10 01/11 01/12 01/13 18 Morningstar Advisor August/September 2013 Minimum Investment $5 million Number of Holdings 35 Total Assets $1.3 billion record. It outpaces the mid-growth peer group over the trailing three-, five-, and 15-year periods. It has shined in down markets by keeping losses below the category average. Meanwhile, the price multiples of the average holding are below those of both the Russell Midcap Growth Index and the mid-growth peer group, which should give it a fighting shot at outperforming both. Rob Wherry

Table of Contents for the Digital Edition of Morningstar Advisor - August/September 2013

Morningstar Advisor - August/September 2013
Contents
Contributors
Letter From the Editor
Under Pressure
Has Your View of Bonds Recently Changed?
The Simple Life Cuts a Path to Prosperity
How Extended Is Your Bond Fund?
A Bond Contrarian Scours the Globe for Value
Investments á la Carte
Investment Briefs
Bond Market Behemoths
Shopping in the Digital Age
Shopping in the Digital Age
Diverse Crowd
Motor City Meltdown
Bond Convergence
Corporates Are Fairly Valued, but Opportunities Will Arise
A Legend Still Pines for the Good Fight
Greener Pastures
Forecasting Market Bubbles and Crashes
Forecasting Market Bubbles and Crashes
Home-Court Advantage
Overcoming Technophobia
These Funds Are Counting on Undervalued Sectors
Our Favorite Mutual Funds
50 Most-Popular Equity ETFs
Undervalued Stocks With Wide Moats
What Price Advice?

Morningstar Advisor - August/September 2013