Q. What’s the future for Tyco International Ltd.? I am a shareholder. - D.M., via the InternetA. The future looks bright for this diversified company that is eager to shed lingering negative publicity from the scandal associated with a past CEO.A US federal judge ruled late last year that L Dennis Kozlowski, its former CEO now in prison, must forfeit compensation and benefits of more than $100 million earned over seven years beginning in 1995. Kozlowski put Tyco’s name in world headlines before his eventual conviction in 2005 of grand larceny, conspiracy and securities fraud in connection with improper compensation.Since that debacle, the Swiss-based company has worked hard to pay off lawsuits, pay down debt and improve its financial condition, while adding profitable businesses and divesting less profitable ones. Ed Breen, chairman and CEO since 2002, is credited with having done a good job of moving forward.Tyco International shares are up 25 percent this year following a 16 percent gain last year and a 65 percent increase in 2009. Its fiscal first-quarter profits more than doubled on increased revenues.It is paying $300 million for a 75 percent stake in KEF Holdings Ltd. in the United Arab Emirates. That privately held valve manufacturer is the world’s top provider of casings for the oil, gas, chemical and mining industries. Tyco purchased Brink’s (now called Broadview) Home Security Holdings Inc last year to add to its solid-performing ADT security business.Much of recent interest in Tyco stock involved speculation about a reported bid for the firm by Schneider Electric SA, but that French company announced that it is not currently in such discussions.The consensus rating of Tyco shares is between a “buy” and a “hold,” according to Thomson Reuters, consisting of four “strong buys”, five “buys”, nine “holds” and one “underperform”.In good financial condition with low debt and strong cash flow, Tyco entered the Standard & Poor’s 500 index last year to replace a company that was acquired. Tyco’s businesses include security services, fire protection services, flow control and safety products, which, despite their cyclical nature, have impressive international growth possibilities.Earnings are expected to increase 13 percent this year compared to 29 percent expected for conglomerates as a group. Next year’s predicted 17 percent rise is in line with its peers. The forecast is for a five-year annualised growth rate of 13 percent versus 16 percent for conglomerates.Q. What’s your expectation for Vanguard Energy Fund? It has been recommended. - C.R., via the InternetA. Energy is important yet carries risks. That is why this concentrated large-capitalization energy fund should only represent a portion of an individual’s overall holdings.The rise in the price of oil and the ongoing demand from emerging markets has lately been positive for Vanguard. Returns had been hurt by its holdings of BP, Anadarko and Transocean, all involved in the oil spill in the Gulf of Mexico.The Vanguard Energy Fund is up 21 percent over the past 12 months to rank in the lower one-third of energy funds. Its three-year annualised decline of one percent places it in the top one-fifth of its peers.“This is a satellite holding designed for investors bullish on energy and looking to make a narrow bet on the sector,” said Rob Wherry, mutual fund analyst with Morningstar Inc. in Chicago. “It invests in large-cap oil companies, which are a little more insulated against wide swings in commodity prices than small and mid-cap companies, so volatility is somewhat below average for its category.”Karl Bandtel of Wellington Management, lead manager since 2002, handles most of the assets and is supported by a team of analysts. He has been with Wellington since 1990 and became assistant manager of this fund in 1992. Never afraid to purchase shares of companies that other investors are selling, Bandtel seeks inexpensively priced firms to hold long-term. A small portion of the fund is run by Vanguard’s quantitative equity group that employs computer models to select stocks using factors such as valuation and improving fundamentals.Top holdings in the portfolio of more than 100 stocks were recently ExxonMobil Corp, Occidental Petroleum Corp, Chevron Corp, Royal Dutch Shell plc, EOG Resources, BP plc, Baker Hughes Inc and Halliburton Co.“This is an inexpensive fund to own,” said Wherry, noting the “no-load” (no sales charge) fund requiring a $25,000 minimum initial investment has a low 0.38 percent annual expense ratio. “So if you’re looking to do a sector bet in energy, this is one of the smart ways to play it.”Q. How do I check out whether a financial planner is reputable? - P.G., via the InternetA. People or firms paid to give advice about investing in securities generally must register with either the Securities and Exchange Commission or their state securities agency.You can view an adviser’s most recent registration at the SEC’s Investment Adviser Public Disclosure website www.adviserinfo.sec.gov Those that manage less than $100 million usually must register with the state securities agency in the state of their principal place of business.You can find out from the Financial Industry Regulatory Authority (FINRA) whether a broker is licensed by going to BrokerCheck at www.finra.org/Investors or by calling 1-800-289-9999. This will give their name, where they work, where they have worked in the past, length of time in the industry and any disciplinary history.“Even if everything checks out OK, meet in person to make sure he or she understands your investment goals and objectives,” said John Gannon, senior vice-president in investor education with FINRA in Washington, D.C. “You must feel comfortable working with them.”At the Financial Planning Association’s website, www.fpanet.org, you can input your zip code to obtain the names of three financial planners in your area.Andrew Leckey answers questions only through the column. Address inquiries to Andrew Leckey, 555 N. Central Ave., Suite 302, Phoenix, Ariz. 85004-1248, or by e-mail at andrewinv[AT]aol.com (C) 2011 TRIBUNE MEDIA SERVICES, INC.