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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.
Note: Profile written for different share class.
The fund has returned 26.42 percent over the past year, 17.85 percent over the past three years, 29.03 percent over the past five years, and 8.90 percent over the past decade.
|Trailing Returns||Updated 02.28.2014|
|Year to date||-2.1%|
|3 Years (Annualized)||17.8%|
|5 Years (Annualized)||29.0%|
|10 Years (Annualized)||8.9%|
For SunAmerica Focused Dividend Strategy, it's all about income.
As of March 05, 2014, the fund has assets totaling almost $7.75 billion invested in 37 different holdings. Its portfolio consists primarily of shares of large-cap companies.
As the stock market continues to wobble, Americans are hunkering down for what may turn out to be a sustained period of slow growth. In this climate, dividends, which provide shareholders with current income at regular intervals, are taking on newfound importance. In other words, investors are looking to use dividends to supplement lackluster returns elsewhere in their stock portfolios. That's good news for this fund, which scours the market for solid income picks. Specifically, this fund looks to isolate undervalued stocks with attractive yields.
In 2009, the fund had a blockbuster year, beating the broader market by upward of 20 percentage points. That's a hard act to follow, but the fund has managed to keep the streak going in 2010, and year-to-date through September, the fund had gained 7 percent. Recently, the fund has sported overweight positions in the consumer goods, industrial materials and healthcare sectors. The fund has returned 26.42 percent over the past year and 17.85 percent over the past three years.
The fund's long-term numbers are hard to argue with. As of the end of September, its trailing 10-year returns landed it in the top 2 percent of Morningstar's large value category. Over that 10-year period, the S&P 500 was virtually flat, but the fund managed to deliver annualized returns of nearly 7 percent. Given the market turmoil that investors experienced throughout the course of that stretch, that's quite the impressive track record. The fund has returned 29.03 percent over the past five years and 8.90 percent over the past decade.
According to the fund's prospectus: "The value oriented philosophy to which the Focused Dividend Strategy Portfolio subscribes--that of investing in securities believed to be undervalued in the market--reflects a contrarian approach, in that the potential for superior relative performance is believed to be highest when stocks of fundamentally solid companies are out of favor. The selection criteria [are] usually calculated to identify stocks of companies with solid financial strength that have low price-[to]-earnings ratios and may have generally been overlooked by the market."
Role in Portfolio
This fund could lend support to a well-balanced portfolio.
Brendan Voege manages the fund.
SunAmerica Focused Dividend Strategy Portfolio has an expense ratio of 1.63 percent.
Like all stock funds, this one comes with some risks.