3 / 5 Stars
1 1 5 4 4
Zacks Investment Research
1 (Strong Buy)
Standard & Poor's
3 / 5 Stars
#130 in Large Blend
U.S. News evaluated 487 Large Blend 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 15.07 percent over the past year, 10.74 percent over the past three years, 19.16 percent over the past five years, and 5.92 percent over the past decade.
|Trailing Returns||Updated 02.28.2014|
|Year to date||-0.9%|
|3 Years (Annualized)||10.7%|
|5 Years (Annualized)||19.2%|
|10 Years (Annualized)||5.9%|
Caution is a virtue that Dreyfus Appreciation's management team has wholeheartedly embraced.
As of March 05, 2014, the fund has assets totaling almost $5.79 billion invested in 66 different holdings. Its portfolio consists of shares of large blue-chip companies.
Recently, this fund has posted some respectable numbers. In 2008, the fund shed 32 percent. While that loss was painful in absolute terms, on a relative basis the fund comfortably beat both its peer group and the S&P 500 that year. In 2009, though, the fund failed to capitalize on the market's heated rally, with its modest 21 percent return landing it in the bottom quartile of Morningstar's large blend category. In 2010, the fund once again moved closer to the front of the pack, with companies like Philip Morris and Apple contributing strongly to its performance. Lately, the fund has been heavy on consumer goods picks. Apart from Philip Morris, Coca-Cola and Procter & Gamble also enjoy prominent spots in the fund's portfolio. The fund has returned 15.07 percent over the past year and 10.74 percent over the past three years.
Historically, the fund has held up well in weak and mediocre markets but fallen to the middle or back of the pack during rallies. That's largely a product of management's cautious strategy, which places an emphasis on huge blue chips with steady business models. Another defining characteristic has been management's strict buy-and-hold philosophy. The fund's turnover ratio currently sits at 29 percent. By comparison, a fund that replenishes its entire portfolio once a year would have a ratio of 100 percent. The fund has returned 19.16 percent over the past five years and 5.92 percent over the past decade.
According to the fund's prospectus: "The fund focuses on 'blue chip' companies with total market capitalizations of more than $5 billion at the time of purchase, including multinational companies. These are established companies that have demonstrated sustained patterns of profitability, strong balance sheets, an expanding global presence and the potential to achieve predictable, above-average earnings growth. The fund employs a 'buy-and-hold' investment strategy, which is an investment strategy characterized by a low portfolio turnover rate, which helps reduce the fund's trading costs and minimizes tax liability by limiting the distribution of capital gains."
Role in Portfolio
Morningstar calls this a "core" holding.
Lead manager Fayez Sarofim, along with five other managers, runs the fund.
Dreyfus Appreciation Fund, Inc. has an expense ratio of 0.94 percent.
Like all stock funds, this one comes with some risks.