5 / 5 Stars
5 5 5 5 1
Zacks Investment Research
Standard & Poor's
5 / 5 Stars
#4 in Conservative Allocation
U.S. News evaluated 183 Conservative Allocation Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.
The fund has returned 13.35 percent over the past year, 8.52 percent over the past three years, 12.69 percent over the past five years, and 7.66 percent over the past decade.
|Trailing Returns||Updated 01.31.2014|
|Year to date||-0.5%|
|3 Years (Annualized)||8.5%|
|5 Years (Annualized)||12.7%|
|10 Years (Annualized)||7.7%|
Although this fund falls in the conservative allocation category, management's main focus is generating income for clients. This means management will venture into higher-risk sectors like high-yield bonds to meet that income mandate. "Every investment in the fund is aimed at generating income," says co-manager Ray Munsch. Management can invest up to 30 percent in stocks, as long as they are strong dividend-payers. Co-manager George Cipolloni says the team will make major changes in the fund's allocation strategy if necessary. For instance, in late 2007, before the financial crisis took hold of the markets, Cipolloni says the fund went as low as 17 percent in stocks. Otherwise, the management team will invest in a mix of investment-grade and lower-quality bonds. Currently, a little more than half of the fund's assets are invested in corporate bonds. With assets of just under $1 billion, management is flexible and able to invest in stocks of all sizes. Over the past 10 years, the fund has returned about 9 percent, on average, which places it in the top 1 percent of its category.
The investment seeks to provide investors with current income while seeking to preserve capital by taking, in the opinion of the Advisor, reasonable investment risks. The fund invests only in the corporate bonds of those issuers that, in the opinion of the Advisor, have sufficient net worth and operating cash flow to repay principal and make timely interest payments. It may invest in corporate bonds, U.S. Treasury bills, bonds and notes, debt securities issued by U.S. government agencies, preferred stocks, asset-backed securities, mortgage-backed securities, municipal bonds and dividend-paying common stocks.
Fees are Average compared to funds in the same category.
Berwyn Income Fund has an expense ratio of 0.64 percent.
Risk is Below Average compared to funds in the same category according to Morningstar.