2 / 5 Stars
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Zacks Investment Research
Standard & Poor's
3 / 5 Stars
#189 in Large Value
U.S. News evaluated 325 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 17.05 percent over the past year, 10.90 percent over the past three years, 16.13 percent over the past five years, and 6.33 percent over the past decade.
|Trailing Returns||Updated 01.31.2014|
|Year to date||-3.3%|
|3 Years (Annualized)||10.9%|
|5 Years (Annualized)||16.1%|
|10 Years (Annualized)||6.3%|
The Mutual Shares fund's strong value-oriented investments have provided steady long-term results with below-average volatility.
As of February 05, 2014, the fund has assets totaling $16.16 billion. Its portfolio consists of mainly stocks of large domestic and foreign companies.
A small cash holding served it well in the beginning of the market recovery. British American Tobacco and CVS are longtime holdings that have consistently done well. As the stock market continues to climb, management isn't afraid to raise its cash holdings if it belives things are becoming overvalued. The fund has returned 17.05 percent over the past year and 10.90 percent over the past three years.
Over the years, the fund has performed strongly in down markets but has trailed behind during sharp market recoveries, according to Morningstar. Since 2008, the fund has been slowly getting back to its historically strong long-term performance level. The fund has been known for its low volatility within its category. The fund has returned 16.13 percent over the past five years and 6.33 percent over the past decade.
The management's investment strategy is to search for deep-value securities in domestic and foreign companies. It looks for undervalued securities as well as merger arbitrage and distressed-debt situations. It generally invests the equity portion of the fund's portfolio in large companies with market capitalizations greater than $5 billion, with a portion in smaller companies as well. The fund can invest up to 35 percent of its assets in foreign securities.
Role in Portfolio
Morningstar says the fund plays a core role in an investment portfolio.
Peter Langerman, David Segal, and Deb Turner manage this fund. Langerman returned to the fund as portfolio manager in 2005 after leaving the fund in 2002. He joined Franklin Templeton in 1996 and has served as president and chief executive officer of Franklin Mutual Advisors and as a member of the management team of the Mutual Series funds. Segal has been a portfolio manager since 2005, having joined Franklin Templeton in 2002. Turner has been an assistant portfolio manager since 2001, joining Franklin Templeton in 1996.
Mutual Shares Fund has an expense ratio of 1.12 percent.
Value securities have potential risks due to the possibility that their price may not increase and may in fact decrease. Also, the investment in foreign securities can be risky because of currency fluctuations as well as economic and political instability. The fund's investment in companies engaged in mergers, reorganizations, and liquidations also carries risks, as does its investment in lower-rated bonds, which can lead to higher credit risks, according to the prospectus.