2 / 5 Stars
2 2 2 1 4
Zacks Investment Research
Standard & Poor's
3 / 5 Stars
U.S. News evaluated 464 Large Growth Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.
Note: Profile written for different share class.
The fund has returned 29.61 percent over the past year, 12.06 percent over the past three years, 18.58 percent over the past five years, and 7.81 percent over the past decade.
|Trailing Returns||Updated 06.30.2014|
|Year to date||7.5%|
|3 Years (Annualized)||12.1%|
|5 Years (Annualized)||18.6%|
|10 Years (Annualized)||7.8%|
Munder Growth Opportunities is detoxing after a technology-sector binge.
As of July 03, 2014, the fund has assets totaling almost $493.16 million invested in 80 different holdings. Its portfolio consists of shares of large and mid-sized companies.
As of the end of May, 34 percent of the fund's stock holdings were in companies classified by Morningstar as technology investments. While that may seem like a huge stake, consider this: Within the past three years, that position has been as high as 70 percent. The fund's traditional reliance on the technology sector has produced some wild swings in performance. It lost upwards of 40 percent, for instance, in 2001, 2002, and 2008. In 2003, meanwhile, it returned 68 percent, while in 2009 it returned 78 percent. More recently, however, the fund has mellowed out quite a bit. While tech names such as Apple and Google enjoy prominent spots in its portfolio, the fund is nonetheless more diversified than it has been in the past. At times, for instance, the fund has had no exposure to energy companies. Now, with ExxonMobil as its top holding and Chevron among its top 15 (as of the end of May), the sector is well represented. The fund has returned 29.61 percent over the past year and 12.06 percent over the past three years.
Whether the fund's recent changes are a positive or a negative depend on the vantage point. Investors looking for a pure technology product will likely be disappointed. But for those who want strong tech exposure with the safety of a bit of diversification, the shift will be a welcome one. Nonetheless, even in its current shape, investors should remember that this fund comes with some sector risk. The fund has returned 18.58 percent over the past five years and 7.81 percent over the past decade.
According to the fund's prospectus: "In selecting individual securities for the Fund, the advisor employs a bottom-up analysis, which involves a thorough review of a company's products and services, competitive positioning, balance sheet and financial stability. In addition, the advisor attempts to identify and evaluate underlying growth drivers for each company and to arrive at a projected fair value for the company. . . . The Fund is subject to a fundamental policy, which cannot be changed without shareholder approval, to concentrate (i.e., invest at least 25% of its total assets) in securities of companies engaged in the research, design, development, manufacturing or distribution of products, processes or services for use with Internet-related businesses. As a result of the foregoing strategies and policy, the Fund is likely to have a significant level of investment within the information technology sector."
Role in Portfolio
This fund could lend support to a well-balanced portfolio.
A team of three managers runs the fund.
Munder Growth Opportunities fund has an expense ratio of 2.43 percent.
Like all stock funds, this one comes with some risks.