Akre Focus Fund (AKREX)

The next fund in Kiplinger’s 25 Best mutual funds is Akre Focus fund. This fund has been in the list since 2009. Although the fund asset size is small and it is new, Chuck Akre (‘the fund manager’) is a well known manager who used to run FBR Focus (FBRVX) until 2008. Akre Focus fund has a similar strategy as its previous fund. This fund also has low volatility compare to S&P 500 index, although it is investing primarily in Mid-Cap and Small-Cap companies. More details about the fund information and performance can be found in my main Kip 25 Best fund page.

Akre Focus Fund (AKREX)

The investment in Akre Focus Fund is seeking for long term capital appreciation. The fund goal is to achieve above average investment returns for investors with low market risk. The primary net assets are invested in the securities of the companies that are listed on the U.S. stock exchanges. It invests in the common stocks of any capitalization range companies. Beside common stocks, AKREX Fund is also invested in preferred stocks, options, warrants. It may also invest in other equity-like instruments, such as partnership interests, limited liability company interests, business trust shares and rights and other convertible securities.

Akre Focus Fund

AKREX Fund Details

• Fund Inception Date: September 2009
• Ticker Symbol: AKREX (Retail Class)
• CUSIP: 742935125
• Beta: 0.64
• Rank in category: 98
• Category: Mid Cap Growth
• Yield: 0.0% (annual dividend)
• Turnover Rate: 12%
• Capital Gains: If available, it will be paid annually
• Number of Years Up: 1 year
• Number of Years Down: 0 year

updated on 5/9/2011

AKREX fund is managed by Charles T. Akre since August 2009. This Akre Focus Fund has 1.49% annual expense rate, slightly higher than the average (1.42%). For investors or traders who are interested to invest in this fund, there is a 0.25% 12b1 fee in its annual expense ratio, but there is no sales load. The minimum balance to invest in this fund is $2,000 for brokerage account and $1,000 for IRA account. A minimum of $250 is needed for the subsequent investmentThere are more or less 31 brokerages where we can purchase this fund, including JP Morgan, Schwab Retail, Ameriprise Brokerage, Vanguard NTF, Fidelity Retail Funds Network, etc.

Since this fund is considered new, there is no Morningstar rating given yet. The 1-year load adjusted returns is 17.0%, with 2.81% of year-to-date return. In 2010, this fund had given out a 19.29% of total return. This AKREX is retail class; another class is the institutional class (AKRIX with the CUSIP of 742935125). AKRIX has lower gross expense ratio of 1.20%. AKRIX fund has better performance since inception compared to AKREX which is due to its lower fees. The fund net asset is $290 million.

This fund has a 12% of holding turnover, which is quite low compared to the average holding turnover in the category which is 105.61%. As of March, 2011, the top 10 holdings of this fund are American Tower Corp (8.9%), Dollar Tree Inc (8.6%), Ross Stores Inc (8.5%), Lamar Advertising Co (7.6%), Mastercard Inc (7.1%), Markel Corp. (5.0%), Hartford Financial Services - Conv Pref (4.9%), FactSet Research Systems Inc (4.7%), optionsExpress Holdings Inc (4.0%), and O'Reilly Automotive Inc (4.0%). Top 5 sectors of this fund include consumer discretionary (38.4%), financials (20%), cash & equivalent (17.2%), information technology (12.2%), and telecommunication services (8.9%).  Please note, since this is an actively managed fund, the fund holding may be changed anytime.

Investing in mutual fund involves investment risks:

• General Market Risk
• Equity Risk
• Mid Cap and Small Cap Investment Risk
• Non Diversification Risk
• Management Risk
• New Fund Risk
• Regulatory Risk

Disclosure: No Position.

Other Kiplinger's Best Mutual Funds are:

• Baron Small Cap
• T. Rowe Price Equity Income (PRFDX)