4 / 5 Stars
5 4 4 5 5
Zacks Investment Research
Standard & Poor's
4 / 5 Stars
#14 in Moderate Allocation
U.S. News evaluated 249 Moderate Allocation 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 21.05 percent over the past year, 11.21 percent over the past three years, 10.75 percent over the past five years, and 8.47 percent over the past decade.
|Trailing Returns||Updated 10.31.2013|
|Year to date||19.1%|
|3 Years (Annualized)||11.2%|
|5 Years (Annualized)||10.8%|
|10 Years (Annualized)||8.5%|
The Oakmark Equity and Income Fund, which reopened to investors in 2008, has a long track record of steady returns.
As of November 05, 2013, the fund had assets totaling $19.90 billion. Its portfolio consists of a mix of stocks and bonds.
The fund had a rought 2010, and it finished near the bottom of its category. Management missed the corporate bond rally in 2009, but lost much less than the average fund in its category during the downturn in 2008. So far in 2011, management has steered away from bonds and into stocks. In its March commentary, management said: "We continue to believe that fixed-income investments are riskier than normal. ... The long-term outlook for [U.S.] government debt is unpleasant." The fund has returned 21.05 percent over the past year and 11.21 percent over the past three years.
Historically, the fund has leaned toward value stocks, and management has employed a generally conservative strategy that has paid off during hard times. “Careful stock selection and attention to downside risk have put this fund at the top of its category for the 10-year period through late August 2010 with an 8 percent annualized return,” notes Morningstar. The fund closed to new investors in 2004 and reopened in 2008. The fund has returned 10.75 percent over the past five years and 8.47 percent over the past decade.
Says Raymond James, “The buy-and-sell discipline set for the equity portion of the fund is to buy stocks that they believe are trading at 60 percent or less of their intrinsic value and to sell out of the position when they believe the stock trades at 90 to 100 percent of that value.” On the bond side, management has traditionally shown a strong preference for treasuries.
Role in Portfolio
Morningstar calls it a "core" holding for conservative investors.
Clyde McGregor has managed the fund since its 1995 inception. Edward Studzinski joined him in March 2000.
Oakmark Equity and Income Fund has an expense ratio of 0.78 percent.
The fund’s conservative strategy makes it a relatively safe pick.
The fund's Value Line Overall Rank, a measure of risk-adjusted performance and relative growth in fund returns, is 3 on a scale of 1 to 5, with 1 being the best and 5 the worst.Value Line 2013-11-12
The fund's Value Line Growth Persistence rank, which awards funds that consistently outperform their broad universes, is 3 for one year, 4 for five years, and 3 for 10 years. Scores are on a 1 to 5 scale, with 1 being the best and 5 the worst.Value Line 2013-11-12
The fund's Value Line Risk Rank, a measure of volatility, is 2 on a scale of 1 to 5, with 1 being the least volatile and 5 the most.Value Line 2013-11-12