4 / 5 Stars
4 5 5 5 4
Zacks Investment Research
Standard & Poor's
4 / 5 Stars
#49 in Large Value
U.S. News evaluated 330 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 21.98 percent over the past year, 14.87 percent over the past three years, 18.51 percent over the past five years, and 8.53 percent over the past decade.
|Trailing Returns||Updated 06.30.2014|
|Year to date||6.9%|
|3 Years (Annualized)||14.9%|
|5 Years (Annualized)||18.5%|
|10 Years (Annualized)||8.5%|
California Equity Investment Income is a stock picker's fund.
As of July 03, 2014, the fund has assets totaling almost $201.98 million invested in 95 different holdings. Its portfolio consists primarily of shares of blue-chip companies.
Lately, management has stayed away from sector bets. Notably, the fund's sector weightings are within a few percentage points of those of the S&P 500. Since the fund is sector neutral, any outperformance stems from management's stock-picking ability. In selecting stocks, management looks to isolate attractively priced, dividend-paying companies that will reward investors with both current income and capital appreciation. Based on the fund's recent performance, it appears that management has been delivering the goods. In 2009, for instance, the fund gained 26 percent, which is a respectable figure for a value fund. Unlike large-cap growth funds, which far outpaced the S&P 500 during the rebound, large-cap value funds stayed relatively in step with the broader market. The fund followed up on that performance with a 19 percent return last year. That was good enough to beat the broader market and the average for its Morningstar category. The fund has returned 21.98 percent over the past year and 14.87 percent over the past three years.
Over time, this fund has rewarded patient investors. Its conservative approach, combined with its preference for dividend-paying stocks, has paid off over the long haul. Still, that's not to say that the fund has been without missteps. For instance, since 2000 the fund has finished six separate years in the bottom half of Morningstar's large-value category. The fund has returned 18.51 percent over the past five years and 8.53 percent over the past decade.
Management looks for dividend-paying stocks. True to its value leanings, management also looks to identify companies that are trading at a discount to what they are worth. Overall, the fund takes a relatively conservative approach to stock selection, and this can hold it back at times. The fund currently maintains sector weightings that are very similar to those of the S&P 500, meaning that management looks to add value mostly through stock selection.
Role in Portfolio
This fund could lend support to a well-balanced portfolio.
Stephen Rogers has managed the fund since 2003.
Shelton Capital Management Core Value Fund has an expense ratio of 0.84 percent.
Like all stock funds, this one comes with some risks.