CHICAGO, Jan. 3 /PRNewswire/ -- Facing an uncertain market in 2004, the
best mutual fund managers demonstrated the kind of prowess, strategy and
agility required to serve investors well.  To recognize the best of these top
performers, Morningstar, Inc., a leading provider of investment research,
today announced its 2004 Fund Manager of the Year awards for portfolio
managers in three categories: domestic stock, international stock, and fixed
income.

    -- Domestic-Stock Fund Manager of the Year:
       Brian Berghuis
       T. Rowe Price Mid-Cap Growth (RPMGX)
    -- International-Stock Fund Manager of the Year:
       Bryan C. Cameron, Mario C. DiPrisco, Jacob M. Gofman, John A. Gunn,
       Gregory R. Serrurier, Diana S. Strandberg, and Kouji Yamada
       Dodge & Cox International Stock (DODFX)
    -- Fixed-Income Fund Manager of the Year:
       Ken Leech and team
       Western Asset Core Bond (WATFX)

    "2004 had a dismal beginning and strong ending," said Kunal Kapoor,
director of mutual fund analysis for Morningstar, Inc. "Many great fundamental
managers posted stellar returns, making this year full of good candidates for
our Fund Manager of the Year award. As always, we didn't simply rely on short-
term performance; we rewarded those who have demonstrated an ability to make
money for investors during many different market cycles. We also picked
managers who keep shareholders' best interests in mind and have the courage to
stand by their investing strategies regardless of whether they are in
fashion."

     Domestic-Stock Fund Manager of the Year:
     Brian Berghuis
     T. Rowe Price Mid-Cap Growth (RPMGX)

    Brian Berghuis has built an impressive record at T. Rowe Price Mid-Cap
Growth since the fund's launch in 1992. The fund returned more than 18 percent
in 2004, and during the trailing 10 years, it has returned nearly an
annualized 16 percent, placing in the top 5 percent of the mid-growth
category.
    Berghuis looks for companies with strong long-term growth potential, such
as Nucor and BJ Services, but is careful to not overpay for them. He has
consistently posted above-average returns and has shown an ability to manage
the fund during down markets. Most recently, the fund rebounded solidly from
the bear market, posting sound returns in 2003 and 2004. Berghuis has thus
been able to produce five years of strong relative performance.
    "Berghuis' record is an indication of his stock-picking prowess," Kapoor
said. "He didn't throw his investing discipline out the window to chase hot
Internet stocks. Like other T. Rowe Price managers, he has done an excellent
job of staying focused on fundamentals and risk. Moreover, he is a strong
voice for corporate governance."

     International-Stock Fund Manager of the Year:
     Bryan C. Cameron, Mario C. DiPrisco, Jacob M. Gofman, John A. Gunn,
     Gregory R. Serrurier, Diana S. Strandberg, and Kouji Yamada
     Dodge & Cox International Stock (DODFX)

    Unlike some firms, Dodge & Cox's team of analysts compile their research
on a global sector basis, so the same pool of analysts provides ideas for all
the firm's offerings. The results have been remarkable: In a little less than
four years, the firm has become a force in the foreign-stock arena. The fund
is still relatively young, but its 32 percent return in 2004 lands at its
category's top, and its trailing three-year return of nearly 20 percent ranks
in its group's top quintile.
    The team looks for moderately priced stocks with strong management, and it
is focused on the long term. For example, amid the negative news surrounding
pharmaceutical stocks in 2004, the team added to positions in Bayer and
GlaxoSmithKline, showing the conviction required to wade into a sector where
few others are going.
    "One of the key differences at Dodge & Cox is its extremely low fees,"
Kapoor said. "Many fund companies pad their earnings by raising fees on
foreign funds because the market will bear it. This firm charges only 0.82
percent, compared with an average of 1.55 percent. With these high fees,
investors have to ask themselves why they would pay more elsewhere. It
wouldn't be for expertise, because the Dodge & Cox managers have that in
spades, and it is not honest shareholder communication and topnotch
stewardship, because in those respects, you can't improve much on Dodge &
Cox."

     Fixed-Income Manager of the Year:
     Ken Leech and team
     Western Asset Core Bond (WATFX)

    As one of the largest managers of bonds for institutions in the United
States, Western Asset is not well known among individual investors. Yet, it
has become one of the most formidable fixed-income firms around. A unit of
Legg Mason, the firm has relied on considerable resources to post its
impressive 10-year record on the Core Bond Fund. During that stretch, the fund
placed in the intermediate bond fund category's top 2 percent. This team was
also a runner-up for Fixed-Income Manager of the Year in 2003.
    Led by chief investment officer Ken Leech, the fund's management team
repositions the fund based on top-down analysis and consistently adds value by
finding bonds that perform a little better than their credit ratings suggest.
Although the fund has a high minimum investment of $1 million, investors can
purchase it through some fund supermarkets in smaller increments.
    "The top bond shops remain consistently dominant, and previous fixed-
income winners continue to post outstanding returns year in and year out,"
Kapoor said. "This year we recognize another great fund shop - Western Asset
Management. Its flagship fund, the Core Bond Fund, was up 5 percent in 2004
and has posted outstanding returns for the long term. The fund has produced
top-quartile returns in four of the past five years and above-average returns
in seven of the past eight years."

    Runners-Up for 2004
    Chris Davis and Ken Feinberg, co-managers of Selected American Shares
(SLASX), were runners-up for the domestic-stock category. The Causeway
International Value (CIVVX) team, composed of James Doyle, Harry Hartford, and
Sarah Ketterer, were runners-up for the international-stock category. Dan
Fuss, winner of the 1995 Fixed-Income Manager of the Year award, and Kathleen
Gaffney, his co-manager at Loomis Sayles Bond (LSBRX), were runners-up in the
bond category.
    Established in 1988, the Morningstar Fund Manager of the Year award
recognizes portfolio managers who demonstrate excellent investment skill and
the courage to differ from the consensus to benefit investors. To qualify for
the award, managers' funds must have not only posted impressive returns for
the year, but the managers also must have a record of delivering outstanding
long-term performance and of aligning their interests with shareholders'. The
Fund Manager of the Year award winners are chosen based on Morningstar's
proprietary research and in-depth evaluation by its senior analysts.

    For the complete report, go to:
http://news.morningstar.com/doc/article/0,,124370,00.html

    For the complete list of past and current winners, go to:
http://www.morningstar.com/press/pressrelease.html?id=124703

     Calendar-year results for 2004 are based on preliminary data.

    About Morningstar, Inc.
    Chicago-based Morningstar, Inc. is a global investment research firm,
offering an extensive line of print, software, and Internet-based products and
services for individuals, financial advisors and institutions. The company is
a trusted source for investment information, data, and analysis of stocks,
mutual funds, exchange-traded funds, closed-end funds, and variable
annuity/life subaccounts.

    CONTACT:  Kathy Habiger, 312-696-6241, kathy.habiger@morningstar.com