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Fund Spy: Morningstar Medalist Edition

Change You Can Live With

This widely held fund should be able to handle an impending manager retirement.

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The impending retirement of a veteran manager shouldn't derail the Gold-rated  American Funds Fundamental Investors (ANCFX).

Its most senior manager, James Drasdo, who has run a slice of this fund for nearly 30 years, will retire at the end of June 2013. American Funds hasn't named a replacement, so the number of named portfolio counselors managing independent portions of the fund will drop to five from six, and the average tenure of those stock-pickers will slip to 10 years from about 14. That's still well above-average experience for the large-blend category. Indeed, managers like Dina Perry have worked on this fund for more than a decade and on other funds, such as the Gold-rated  American Funds New Perspective (ANWPX), for as much as 20 years. The advisor's multiple, independent portfolio counselor system is designed, in part, to smooth transitions like this. 

Dan Culloton has a position in the following securities mentioned above: ANWPX. Find out about Morningstar’s editorial policies.