3 / 5 Stars
2 1 5 4 2
Zacks Investment Research
Standard & Poor's
3 / 5 Stars
#210 in Large Blend
U.S. News evaluated 492 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 19.62 percent over the past year, 11.81 percent over the past three years, 21.25 percent over the past five years, and 6.40 percent over the past decade.
|Trailing Returns||Updated 03.31.2014|
|Year to date||2.3%|
|3 Years (Annualized)||11.8%|
|5 Years (Annualized)||21.2%|
|10 Years (Annualized)||6.4%|
Like many large blend funds, Payson Total Return has a fairly concentrated portfolio of about 40 stocks with a smaller portion of fixed-income investments that short, or bet against, treasury bonds. Management favors stable blue chips that have substantial market share.
As of April 22, 2014, the fund has assets totaling almost $70.64 million invested in 38 different holdings. Its portfolio primarily consists of large-cap domestic stocks with a smaller portion of bonds and international stocks.
According to the fund’s annual report released in March 2010, management reduced its exposure to healthcare and consumer staples in 2010, and shifted assets to “more economically sensitive sectors” such as consumer discretionary, basic materials, and industrials. Management also initiated a small position in high-yield bonds and emerging market equities. After the meteoric rally of 2009 and strong performance in 2010, management has trimmed positions in some of its best performers and adopted a slightly more defensive stance going into 2011. “Now is not the time to reach for return, and definitely not the time to chase yields,” the report said. “It is a time to reduce risk and be prepared to accept much lower returns until opportunities improve.” As of late January 2011, the fund’s three-year trailing returns placed it in the top 5 percent of Morningstar-rated large-blend funds. The fund has returned 19.62 percent over the past year and 11.81 percent over the past three years.
Over the long term, the fund has consistently lagged the S&P 500 and its category, but has still performed well, losing money only twice in the past decade. The fund has returned 21.25 percent over the past five years and 6.40 percent over the past decade.
According to the fund’s prospectus, management uses both quantitative analysis and fundamental research to find stocks that are “undervalued compared to the company’s financial condition” to achieve high current income and capital appreciation. Management tends to keep the fund’s holdings in line with the S&P 500.
Peter Robbins, John Downing, and William Weickert comanage the fund.
Payson Total Return Fund has an expense ratio of 1.07 percent.
A fairly concentrated portfolio of about 40 names might make the fund more susceptible to market volatility.