3 / 5 Stars
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Zacks Investment Research
Standard & Poor's
3 / 5 Stars
U.S. News evaluated 122 Small 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 23.01 percent over the past year, 14.10 percent over the past three years, 19.49 percent over the past five years, and 9.98 percent over the past decade.
|Trailing Returns||Updated 06.30.2014|
|Year to date||4.5%|
|3 Years (Annualized)||14.1%|
|5 Years (Annualized)||19.5%|
|10 Years (Annualized)||10.0%|
Target Small Capitalization Value is quite diversified.
As of July 03, 2014, the fund has assets totaling almost $2.04 billion invested in 816 different holdings. Its portfolio consists of shares of small- and midsized companies.
As of the end of January, this fund owned shares of 665 companies. Only one name, Bucyrus International, accounted for more than 1 percent of its portfolio. To put that into perspective, investors in this fund get substantially more diversification, at least when measured by number of holdins, than they would in an S&P 500 index fund. Lately, the fund has had mixed results. In 2009 and 2010, it finished in the bottom half of Morningstar's small-value category. This year, however, things have been looking up, and management has done a solid job of navigating difficult market conditions. The fund has returned 23.01 percent over the past year and 14.10 percent over the past three years.
This fund looks for undervalued companies with room to grow. Like many of its peers, it has substantial stakes in the financial services and industrials sectors. Because it is so broadly diversified, it will rarely stand out in individual years. Its long-term results, however, are stellar. As of the end of May, its trailing 10-year returns landed it in the top 6 percent of its Morningstar category. The fund has returned 19.49 percent over the past five years and 9.98 percent over the past decade.
According to the fund's prospectus: "The Portfolio seeks investments that will increase in value. To achieve our objective, we invest in stocks of small companies that we believe are undervalued and have an above-average potential to increase in price, given the company's sales, earnings, book value, cash flow and recent performance."
Role in Portfolio
This fund could lend support to a well-balanced portfolio.
Paul Magnuson and Paul Viera run the fund.
Target Small Capitalization Value Fund has an expense ratio of 1.17 percent.
Like all stock funds, this one comes with some risks.