5 / 5 Stars
5 3 5 5 2
Zacks Investment Research
Standard & Poor's
4 / 5 Stars
#14 in Large Value
U.S. News evaluated 326 Large Value 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 19.80 percent over the past year, 14.75 percent over the past three years, 23.10 percent over the past five years, and 10.38 percent over the past decade.
|Trailing Returns||Updated 02.28.2014|
|Year to date||0.8%|
|3 Years (Annualized)||14.8%|
|5 Years (Annualized)||23.1%|
|10 Years (Annualized)||10.4%|
ING Corporate Leaders Trust looks almost exactly the same now as it did in 1935.
As of March 05, 2014, the fund has assets totaling almost $1.53 billion invested in 22 different holdings. Its portfolio consists of shares of large companies.
To say that this fund prefers big blue chips is an understatement. Notably, the fund's average market capitalization is a quarter larger than that of the S&P 500. By a similar token, describing this fund as concentrated doesn't do justice to how truly compact its portfolio is. As of the end of 2010, the fund owned shares in 21 companies, but even that number, tiny as it may be, doesn't fully capture the fund's top-heavy nature. Together, just 10 companies comprise 80 percent of the fund's portfolio. Five of them--Exxon Mobil, Union Pacific Corporation, Berkshire Hathaway, Praxair, and Chevron--each represent at least 9 percent of the portfolio. Exxon Mobil, the fund's top holding, makes up a whopping 19 percent. In 2010, all five of the fund's mega positions ended the year in the black, which in turn helped lead the fund to top-notch performance. By a similar token, the fund held up relatively well in 2008, since the huge, battle-tested companies in which it invests are the types that tend to be the most stable during downturns. But during 2009's heated rally, the fund returned just 12 percent--less than half the return of the S&P 500--since it didn't own the riskier fare that did best during the rebound. The fund has returned 19.80 percent over the past year and 14.75 percent over the past three years.
This fund launched in 1935 with 30 names in its portfolio. By prospectus, it can only own the 30 companies on that original list and any direct descendents--created through mergers, acquisitions, or spinoffs--of those companies. Companies can occasionally be sold (for instance, the fund dumped Citigroup in 2009), but none can be added unless they are directly tied to one of the original 30. That means that for all intents and purposes, this fund's portfolio is on autopilot. This is reflected in the fund's 0 percent turnover ratio. Over time, while this fund's conservative nature has occasionally held it back, it has built up some impressive numbers. As of the end of the first quarter, its trailing 10-year returns landed it in the top 2 percent of Morningstar's large-value category. The fund has returned 23.10 percent over the past five years and 10.38 percent over the past decade.
The fund invests in blue chips that are leaders in their respective industries. The fund owns some of the world's largest companies, and the fund's average market cap is significantly higher than that of the S&P 500. Essentially, this fund is on autopilot, since it can only own a company if it is one of the 30 names that were in the portfolio when the fund launched in 1935 or if it is directly descended from one of those 30 companies. Currently, the fund's concentrated portfolio includes just 21 companies. The fund does have the ability to get rid of companies, but it rarely exercises it.
Role in Portfolio
This fund could lend support to a well-balanced portfolio.
ING oversees the fund.
ING Corporate Leaders Trust Fund has an expense ratio of 0.52 percent.
Like all stock funds, this one comes with some risks.