Tag Archives: mutual funds

Best And Worst Q4’15: Large Cap Blend ETFs, Mutual Funds And Key Holdings

Summary The Large Cap Blend style ranks second in Q4’15. Based on an aggregation of ratings of 21 ETFs and 841 mutual funds. UDOW is our top-rated Large Cap Blend style ETF and CMIIX is our top-rated Large Cap Blend style mutual fund. The Large Cap Blend style ranks second out of the twelve fund styles as detailed in our Q4’15 Style Ratings for ETFs and Mutual Funds report. Last quarter , the Large Cap Blend style ranked second as well. It gets our Attractive rating, which is based on aggregation of ratings of 21 ETFs and 841 mutual funds in the Large Cap Blend style. See a recap of our Q3’15 Style Ratings here. Figures 1 and 2 show the five best and worst-rated ETFs and mutual funds in the style. Not all Large Cap Blend style ETFs and mutual funds are created the same. The number of holdings varies widely (from 19 to 1396). This variation creates drastically different investment implications and, therefore, ratings. Investors seeking exposure to the Large Cap Blend style should buy one of the Attractive-or-better rated ETFs or mutual funds from Figures 1 and 2. Figure 1: ETFs with the Best & Worst Ratings – Top 5 (click to enlarge) * Best ETFs exclude ETFs with TNAs less than $100 million for inadequate liquidity. Sources: New Constructs, LLC and company filings The Arrow QVM Equity Factor (NYSEARCA: QVM ) and the First trust High Income ETF (NASDAQ: FTHI ) are excluded from Figure 1 because their total net assets are below $100 million and do not meet our liquidity minimums. Figure 2: Mutual Funds with the Best & Worst Ratings – Top 5 (click to enlarge) * Best mutual funds exclude funds with TNAs less than $100 million for inadequate liquidity. Sources: New Constructs, LLC and company filings The Green Owl Intrinsic Value Fund (MUTF: GOWLX ) is excluded from Figure 2 because its total net assets are below $100 million and do not meet our liquidity minimums. The ProShares UltraPro Dow30 ETF (NYSEARCA: UDOW ) is the top-rated Large Cap Blend ETF and the Calvert Large Cap Core Portfolio (MUTF: CMIIX ) is the top-rated Large Cap Blend mutual fund. Both earn a Very Attractive rating. The Ark Innovation ETF (NYSEARCA: ARKK ) is the worst-rated Large Cap Blend ETF and the Lazard Enhanced Opportunities Portfolio (MUTF: LEOOX ) is the worst-rated Large Cap Blend mutual fund. Both earn a Very Dangerous rating. Wells Fargo & Company (NYSE: WFC ) is one of our favorite stocks held by CMIIX and earns our Attractive rating. Since 2010, Wells Fargo has grown after-tax profits ( NOPAT ) by 14% compounded annually, while simultaneously improving NOPAT margins from 15% to 25%. The company has improved its return on invested capital ( ROIC ) from 8% to 10% over the same timeframe. Despite the business strength, WFC has fallen 4% in the past three months, which has left shares undervalued. At its current price of $55/share, Wells Fargo has a price to economic book value ratio ( PEBV ) of 1.1. This ratio implies that the market expects Wells Fargo’s NOPAT to increase by no more than 10% over its corporate life. If Wells Fargo can grow NOPAT by just 5% compounded annually for the next decade , the stock is worth $68/share today – a 24% upside. Stratasys (NASDAQ: SSYS ) is one of our least favorite stocks held by ARKK and earns our Dangerous rating. Since Stratasys went public in 2012, its NOPAT has fallen from $19 million to -$33 million. In addition to falling profits, Stratasys currently earns a bottom quintile -9% ROIC, which is down from 1% in 2012. Despite the stock being down over 80% from its record high, Stratasys shares could fall even further as the expectations baked into the stock price remain unrealistic. To justify the current price of $23/share, Stratasys must immediately achieve 1% pre-tax margins (-40% in 2014) and grow revenues by 27% compounded annually for the next 16 years. Investors would be wise to steer clear of SSYS. Figures 3 and 4 show the rating landscape of all Large Cap Blend ETFs and mutual funds. Figure 3: Separating the Best ETFs From the Worst ETFs (click to enlarge) Sources: New Constructs, LLC and company filings Figure 4: Separating the Best Mutual Funds From the Worst Funds (click to enlarge) Sources: New Constructs, LLC and company filings D isclosure: David Trainer and Thaxston McKee receive no compensation to write about any specific stock, style, or theme.

New Mutual Fund Aims To Democratize Access To Venture Capital

By DailyAlts Staff Following the Crash of ’29 and subsequent onset of the Great Depression, securities regulators moved to restrict the general public’s access to “esoteric” investments. The problem: These laws have arguably helped the rich get richer while barring less-affluent investors from investing in assets that could have made them more affluent. Not only that, but many of the investments prohibited or discouraged by Depression-era securities laws also have low correlation to the broad stock and bond markets. During the Crash of ’08 and subsequent Great Recession, the importance of low correlation was made very clear – hence the popularity of liquid alternatives. Liquid Venture Capital But while liquid alternatives have democratized retail-investor access to a variety of hedge fund strategies, some asset classes remain out of reach: Infrastructure, private equity, and especially venture capital – that is, until now. While infrastructure and “PE” investments for non-accredited investors are still hard to come by (but, are becoming more available – see articles on funds from Altegris , Pomona Capital and AMG ), Leland Funds and Thomson Reuters have launched an innovative new mutual fund providing retail access to “VC” investments: The Leland Thomson Reuters Venture Capital Index Fund (MUTF: LDVAX ). “Historically, sophisticated institutional investors have been the only market participants able to gain meaningful access to venture capital investments, which are expensive, illiquid and require high minimum investments,” said Leland Funds CIO and fund Portfolio Manager Neil Peplinski, in a recent announcement. “The Leland Thomson Reuters Venture Capital Index Fund addresses these issues and provides investors with less expensive, more liquid exposure to the potentially strong returns typically associated with the traditionally hard-to-access venture capital asset class.” Thomson Reuters VC Index The fund tracks the Thomson Reuters Venture Capital Index , which was launched in October 2012. The index is designed to track the performance of individual U.S. venture capital-backed private companies by using “economic factors and market indicators to calculate optimal asset weights across a number of sectors.” The portfolio, which consists of exclusively liquid, publicly traded assets, is modified over time to reflect changes in the U.S. VC universe. “We are excited to draw on the strength of Thomson Reuters’ comprehensive research on diversified venture-backed companies to bring this distinct fund offering to the market,” said Paul Ingersoll, CEO of Good Harbor Financial, the advisor to the fund and owner of the Leland Funds. “Through this partnership, we are helping democratize access to this important asset class and we look forward to a long-term collaboration.” Fund Details The investment advisor to the fund is Good Harbor Financial. Shares of the Leland Thomson Reuters Venture Capital Index Fund are available in three share classes: A (LDVAX), C (MUTF: LDVCX ), and I (MUTF: LDVIX ). The minimum investments for A and C shares, which both have a management fee of 1.25% and respective net-expense ratios of 1.70% and 2.45%, is $2,500. The minimum initial investment for the I shares, which have a 1.25% management fee and a 1.45% net-expense ratio, is $5 million. For more information, visit the fund’s website .

3 Top-Rated PIMCO Mutual Funds To Strengthen Your Portfolio

Pacific Investment Management Company, LLC (commonly known as PIMCO) is a renowned investment management firm, headquartered in Newport Beach, California. The company was founded in 1971. In 2000, the company was acquired by Allianz Asset Management of America L.P. However, it continues to operate as an autonomous subsidiary of Allianz ( OTCQX:AZSEY ). It boasts more than 2,000 employees working in 13 offices across 12 countries. It manages assets worth $1.52 trillion (as of June 30, 2015). It offers a broad lineup of investment solutions to its clients that encompass the entire gamut of equities, bonds, currencies, real estates, alternative investments and risk management. Below we share with you the 3 top-rated PIMCO mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and we expect the fund to outperform its peers in the future. PIMCO High Yield Municipal Bond Fund A (MUTF: PYMAX ) invests a major portion of its assets in debt obligations that are expected to provide income that are free from federal income tax. PYMAX may invest in investment grade municipal bonds and not more than 30% of its assets in “private activity” bonds. The PIMCO High Yield Municipal Bond A fund has returned 5.2% in the last one year. PYMAX has an expense ratio of 0.85% as compared to a category average of 0.97%. PIMCO Mortgage-Backed Securities Fund A (MUTF: PMRAX ) seeks total return. PMRAX invests a large portion of its assets in a diversified portfolio of mortgage-related Fixed Income Instruments. PMRAX may also invest in derivative instruments including options, futures contracts and swap agreements. The PIMCO Mortgage-Backed Securities A fund has returned 1.9% in the last one year. As of June 2015, PMRAX held 550 issues, with 11.28% of its total assets invested in FNMA. PIMCO Global Bond (USD-Hedged) Fund A (MUTF: PAIIX ) invests the majority of its assets in Fixed Income Instruments that are economically linked to a minimum of three nations including the U.S. PAIIX generally invests at least 25% of its assets in Fixed Income Instruments, which are economically tied to non-U.S. countries. PAIIX may also invest in derivative instruments. The PIMCO Global Bond (USD-Hedged) A is a non-diversified fund and has returned 1.5% in the last one year. PAIIX has an expense ratio of 0.90% as compared to a category average of 1.03%. Original Post