Columbia Acorn A (LACAX) Fund

One of the growth stock mutual funds category is mid cap growth fund. This stock mutual fund invests mainly in companies with market capitalization between $2 billion and $10 billion. One of popular mutual funds is Columbia Acorn fund.

Columbia Acorn A (Ticker: LACAX)

This Columbia Acorn fund uses its assets to buy small- and mid-sized companies with market capitalizations under $5 billion at the time of purchase. It invests the most of assets in U.S. companies, however also may invest some part of assets (<33%) in foreign companies in developed markets and in emerging markets.

Columbia Acorn Fund

Fund Details

• Fund Inception Date: Oct 13, 2000
• Ticker Symbol: LACAX
• CUSIP: 197199102
• Beta (3yr): 1.22
• Rank in category (YTD): 34%
• Category: Mid-Cap Growth
• Distribution Rate: 0.05%
• Capital Gains: 0%
• Expense Ratio: 1.06%
• Sales Load: 5.75%
• Net Assets: $ 18.19 billion
• Number of Years Up: 8 years
• Number of Years Down: 3 years
• Annual Turnover Rate: 18%

Updated on 5/22/2012

This mutual fund has total net assets of $18.19 billion. It also has a low dividend yield of 0.26%. This yield was distributed in June 2011 ($0.08). Morningstar analysts have rated this domestic stock fund with Bronze rating. It was introduced to public in June 1970. Charles P. McQuaid is the current fund manager. He has managed it since December 1978. The annual expense ratio is 0.76%. The average expense ratio fee in the Mid-Cap Growth category is 1.37%.

This mid cap growth mutual fund has YTD return of 13.06% and 5-year average return of 4.03%. Since its inception in 1970, it has managed to achieve 33 years of positive return and 8 years of negative return. The best 1-year total return was achieved in 2003 with 45.68%. Based on the load adjusted return, the performance of this stock mutual fund is as follow:

• 1-year: 4.09%
• 3-year: 31.18%
• 5-year: 4.03%
• 10-year: 9.82%

Investors can start investing in this best US stock fund with a minimum initial investment of $2.500 for brokerage account and $1,000 for IRA account. There is no minimum subsequent needed. This top performer mid cap growth fund is available for purchase through 109 brokerages. They are E Trade Financial, Schwab Retail, Merrill Lynch, JP Morgan, Td Ameritrade Inc, Ameriprise Brokerage, etc. The other classes of this fund are Class B (LACBX), Class C (LIACX) and Class I (CANIX), and Class Z (ACRNX).

The top 10 stocks in its holdings as of February 2012 are Lululemon Athletica Inc (2.01%), AMETEK Inc (1.77%), Donaldson Co. Inc (1.70%), Mettler-Toledo International (1.59%), FMC Technologies Inc (1.47%), Informatica (1.35%), Crown Castle International Corp (1.31%), Alexion Pharmaceuticals Inc (1.24%), tw telecom Inc (1.13%) and Amphenol Corp (1.08%).  The top sectors are Industrials, Information Technology, Consumer Discretionary, Financials, Health Care and Energy.

Some of the investment risks are stock market risk, small company stocks risk, foreign company stocks risk, etc.

Advantages and disadvantages

Pros of investing:

• Low annual turnover holdings rate
• Reputable management
• Low expense fee

Cons:

• Class A has 5.75% sales load

Disclosure: No Position

Other domestic stock funds:

• Meridian Growth Fund
• Best Mid Cap Blend Stock Mutual Fund of 2010