What makes a fund company excellent?

The critical item is the hardest to measure

John Rekenthaler 5 December, 2019 | 1:50AM

Office buildings

I began my Morningstar career by laying bricks: Study a fund's performance record and portfolio holdings, interview its manager, compose an analysis. Fund by fund, month by month, year by year. My knowledge came one brick at a time, lacking a blueprint, unaware even of what I was constructing.

That wasn't the fastest path toward recognizing that funds are best understood as outputs of an institution rather than as stand-alone entities, but I eventually got there. Slowly, patterns emerged. Each of this company's stock funds trades frequently. This firm hires from the outside. That one promotes from within. This organization is quick to liquidate its losing funds. With repetition, the individual clues become evidence.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
T. Rowe Price Group Inc95.19 USD-2.01

About Author

John Rekenthaler

John Rekenthaler  John Rekenthaler is Vice President of Research for Morningstar.