Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Morningstar tends to hold on to its favorites long after problematic ones have gone to the great beyond. Artio International BJBIX or JETAX is a perfect example of this. The writing was on the wall long before the recent corporate collapse and decision to abandon its domestic equity operations. The fund in in the bottom 5% for 1, 3, and 5 years and has for four years straight. Assets were $14 billion in 2007 and are now barely $1 billion. But M* give it a Silver analyst rating? Hello, Morningstar? On the other hand, some funds that struggle for years can return to the top, given the talents of a great long-time manager. Artisan International ARTIX is just such a fund. Some folks had given it up for dead, but Mark Yockey proved pundits wrong once again. You need to dig under the surface and not accept some rating or recommendation at face value.
I think M* should publish a running tally of its fund Picks/Pans and/or their latest color-coded, five-pillar rating score by year. A historical and unabashed record of this difficult arena of fund recommendation and implied prediction. Ultimately, M* and all of us watching M* would be better for it. A constant reminder of the role well intended fund prediction plays as a function of time...if nothing else, it would help temper expectations.
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But it was not so bad for M* to give it a "Pan." In fact, M* rates JAWWX "Neutral." No negative factors in any of the five evaluation pillars.
That said, at least Carlson advised last January that "Janus Worldwide is best watched from the sidelines for now."