Ten Best Ranked Mid Cap Value Stock Mutual Funds 2010: Part 3

Ten best ranked mid cap value stock mutual funds 2010 - Part 3, top equity fund. This is my third article for Top Performer Mid Cap Value Mutual Fund of 2010. If you miss my previous articles, please check the following part 1 and part 2.

Mid cap value funds usually consist of companies which have capitalization between $2 billion and $10 billion. Most of these companies are based domestically in US. Some of the funds may invest in foreign stock market like Europe, Emerging Markets, Mediterranean, Pacific, Australia, Japan, etc.

Mid Cap Value Stock Mutual Funds

These funds were selected based on their rank in 2010. The fund also has a minimum net asset of $500 million and more. This may provide another boost of confident for investor to invest in this fund. The fund also has 2 stars or more Morningstar Rating.
The Ten Best Ranked Mid Cap Value Mutual Fund of 2010 (Part 3):

1. Neuberger Berman Equity Income A
2. MFS Mid Cap Value A
3. Allianz NFJ Renaissance A
4. AllianceBernstein Small-Mid Cap Value A
5. Fidelity Mid Cap Value
6. Goldman Sachs Mid Cap Value A
7. Hartford MidCap Value HLS IA
8. RidgeWorth Mid-Cap Value Equity A
9. JPMorgan Mid Cap Value A
10. Lord Abbett Mid-Cap Value A
11. The Delafield Fund
12. Vanguard Mid-Cap Value Index Inv

JPMorgan Mid Cap Value A (JAMCX)

JPMorgan Mid Cap Value fund investment pursues capital appreciation growth. This fund invests its net assets (include the borrowings for investment purposes) in equity securities of mid cap companies with market capitalizations between $1 billion and $20 billion at the time of purchase.

Since 1997, Jonathan E. Simon has managed the fund. The expense ratio of this fund is 1.23% per year. The 12b1 fee is 0.25% and the front end sales load is 5.25%. This JPMorgan fund has returned 19.47% over the past year and 8.68% over the past decade.

This minimum balance to invest in brokerage account of this fund is $1,000 (applies for JBMCX and JCMVX). No IRA account is available. This fund can be purchased from 106 brokerages include JPMorgan, Merrill Lynch, Edward Jones, Nationwide Retirement Innovator, Fidelity Retail FundsNetwork and Schwab Institutional NTF. The other class tickers of this fund are JBMCX, JCMVX, FLMVX, JMVZX and JMVSX. Some classes have lower expense ratio, such as 0.74% for FLMVX.

The top ten holdings of this fund as of February 28, 2011 are Energen Corp (2.1%), Republic Services Inc (1.9%), Loews Corp (1.8%), Devon Energy Corp (1.7%), The Gap Inc (1.7%), Fortune Brands Inc (1.6%), CMS Energy Corp (1.6%), Lincare Holdings Inc (1.6%), Ball Corp (1.5%), and Tyco Electronics Ltd (1.5%). These ten holdings make up a total of 17.0% of the portfolio.

Lord Abbett Mid-Cap Value A (LAVLX)

Lord Abbett Mid-Cap Value fund seeks to provide capital appreciation. The majority net assets investment is in equity securities of mid-sized companies. But this fund may also invest in warrants, common stocks, convertible preferred stocks and convertible bonds.

Jeff Diamond is the fund manager since June 25, 2008. This Lord Abbett fund has 1.15% annual expense ratio. The 12b1 fee of this fund is 0.35% and front end sales load of 5.75%. This fund has returned 1.54% over the past five years and 5.96% over the past ten years. The minimum initial investment for brokerage account is $1,000 and $250 for IRA account.

The other class tickers are LMCBX, LMCCX, LMCFX, LMCYX, LMCPX, LMCQX and LMCRX. LMCBX and LMCCX have the same minimum investment with LAVLX. The lowest expense ratio among the classes is LMCYX (0.8%).

As of Feb 28, 2011, the top ten largest holdings of this mid cap value fund are Interpublic Group of Co Inc (3.3%), Omnicom Group Inc (2.5%), Lazard Ltd (2.2%), El Paso Corp (2.1%), Mylan Laboratories Inc (2.0%), Bunge Ltd (2.0%), Fiserv Inc (1.9%), Weatherford International Ltd (1.8%), EQT Corp (1.7%), and City National Bank (1.5%).

The Delafield Fund (DEFIX)

As of September 28, 2009 The Delafield Fund is now part of the Tocqueville Trust. The investment in this Delafield Fund seeks long-term preservation of capital and growth of capital. The main net assets (>65%) investment is in the equity securities of undervalued domestic companies. The other assets investment is in debt securities and preferred stocks (35%) and in non-U.S. securities, including in ADRs, in both developed and emerging markets (25%).

Best Performer Growth Stock Mutual Funds 2012

J. Dennis Delafield is the CFA as well as Managing Director and fund manager of this fund since November 1993. The expense ratio of this mid cap value mutual fund is 1.27%. This is a no sales load fund. It has 0.25% of 12b1 fee. This fund has returned 8.60% over the past five years and 12.36% over the past decade. The minimum balance to invest in this fund is $1,000 for brokerage account and $250 for IRA account.

The top 10 holdings of this fund as of Dec 31, 2010 are Flextronics International Ltd (3.73%), Collective Brands Inc (2.82%), Owens-Illinois Inc (2.71%), Stanley Black & Decker Inc (2.57%), Checkpoint Systems Inc (2.56%), Ingersoll-Rand PLC (2.45%), Tyco International Ltd (2.34%), Albany International Corp (2.24%), Minerals Technologies, Inc (2.22%), and FMC Corp (2.17%).

Vanguard Mid-Cap Value Index Inv (VMVIX)

Vanguard Mid-Cap Value Index Investor investment doesn’t seek for capital growth. This fund tracks the performance of a benchmark index to measures the investment return of mid-capitalization value stocks. This VMVIX fund employs a passive management approach.

This Vanguard fund is passively managed by Donald M. Butler since August 2006. The expense ratio of this fund is among the lowest of all the funds mentioned in this article (0.26%). There is no 12b1 fee as well as no sales load. This mid cap value fund has returned 26% over the past one year and 6.72% over the past three years. The minimum balance to invest in this fund for either brokerage or IRA account is $3,000. This fund can be purchased from 66 brokerages. The best way to invest in this Vanguard fund is by opening an account in Vanguard.

The top 10 holdings of this fund are Cliffs Natural Resources Inc, Dover Corp, Humana Inc, Goodrich Corp, Cooper Industries plc, Lincoln National Corp, Micron Technology Inc, Bunge Ltd, Cimarex Energy Co, and Regions Financial Corp. These ten companies make up to 9.2% of total net assets portfolio.

Disclosure: No Position

updated on 4/3/2011

Other Interesting articles:

• BBH Core Select N (BBTEX)

Best 10 Mid Cap Value Stock Mutual Funds 2010 Part 2

This is my second article of Top 12 Performer Mid Cap Value Mutual Funds of 2010. If you miss the part 1 article, you can find the part 1 here. Similar to small cap stocks, mid cap stocks have been over performing the overall market. The following is the next 4 of this top 12 list.

1. Neuberger Berman Equity Income A
2. MFS Mid Cap Value A
3. Allianz NFJ Renaissance A
4. AllianceBern Small-Mid Cap Value A
5. Fidelity Mid Cap Value
6. Goldman Sachs Mid Cap Value A
7. Hartford MidCap Value HLS IA
8. RidgeWorth Mid-Cap Value Equity A
9. JPMorgan Mid Cap Value A
10. Lord Abbett Mid-Cap Value A
11. The Delafield Fund
12. Vanguard Mid-Cap Value Index Inv

Fidelity Mid Cap Value (FSMVX)

The investment in Fidelity Mid Cap Value is seeking for capital growth in long-term period. The major net assets investment of this fund, at least 80%, is in securities of domestic and foreign companies with medium market capitalizations. The market capitalizations benchmark is similar to companies in the Russell Midcap Index or the S&P MidCap 400 Index.

Bruce Dirks is the fund manager since February 7, 2005. The expense ratio of this fund is 0.94% annually, which is quite low compared to the average expense ratio which is 1.36%. This fund has returned 5.24% over the past three years and 3.84% over the past five years. This is a no sales load fund, and as well it applies no 12b1 fee. The minimum balance to invest in this Fidelity fund for either brokerage or IRA fund is $2,500.

The top ten holdings out of the 110 total holdings of this fund as of Dec 31, 2010 are Suntrust Banks Inc., Murphy Oil Corp., Discover Fin Svcs, Regions Financial Corp., Macys Inc., Unum Group, Lincoln National Corp., Comerica Inc., Edison Intl and Ventas Inc REIT. These top 10 holdings make up to 14.62% of the portfolio.

Goldman Sachs Mid Cap Value A (GCMAX)

The Goldman Sachs Mid Cap Value fund objective is to provide long term capital appreciation. This fund invests its net assets primarily in publicly traded U.S. securities, and foreign securities. At least 80% of its net assets are invested in a diversified portfolio of equity investments in mid-cap issuers.

Dolores Bamford has managed this mid cap value stock fund since 2002. This fund has 0.25% 12b1 fee and 5.50% front-end sales load. It has 1.16% expense ratio per year.

This Goldman Sachs fund has returned 22.51% over the past 1-year and 4.04% over the past three years. The minimum balance to invest in this fund is $1,000 for brokerage account (same applied for GCMCX) and $250 for IRA account. The other class tickers of this fund are GCMBX, GCMCX, GCMTX, GSMCX, GCMRX and GSMSX. Some other class has lower expense ratio and different minimum balance investment.

Best Performer US Domestic Stock Mutual Funds 2011

As January 2011, the top 10 holdings of this fund are Newfield Exploration Co. (2.8%), Principal Financial Group (2.1%), CBS Corp. (1.7%), Lear Corp. (1.7%), Equity Residential (1.7%), Forest Oil Corp. (1.6%), Xcel Energy Corp. (1.6%), Weatherford Intl Ltd. (1.6%), Everest Re Group Ltd. (1.6%) and The JM Smucker Co. (1.6%).

Hartford MidCap Value HLS IA (HMVIX)

Hartford MidCap Value HLS investment seeks capital appreciation in long-term period. The percentage net assets investment of this fund is 80% in mid-capitalization companies and 20% in securities of foreign issuers and non-dollar securities. The mid-capitalization companies are companies with market capitalizations within the range of the Russell Midcap and S&P 400 MidCap Indices.

This Hartford fund is managed by James N. Mordy since April 30, 2001. This fund charges an annual expense ratio of 0.85%. But this fund is now closed to new investors, you may invest either in retirement account or 401k account. This fund applies no 12b1 fee and no sales load.

This mid cap value fund is not available in IRA. It has returned 29.23% over the past one year, 7.39% over the past three years and 5.05% over the past five years. This fund can be purchased from only 7 brokerages, which are Northwestern Mutual Investor Service, Schwab RPS SDE, WR Hambrecht Co, Schwab RPS All, Matrix Financial Solutions, Trade PMR Transaction Fee and ADP Access OFA. The other class of this fund is Hartford MidCap Value HLS IB (HBMVX) with 1.1% expense ratio and 0.25% 12b1 fee.

The top 10 holdings of this fund are Arrow Electronics, Inc. (2.6%), Phh Corp. (2.4%), Virgin Media, Inc. (2.4%), Varian Semiconductor Equipment Associates Inc. (2.3%), Buck Holdings L.P. (2.1%), Delta Air Lines, Inc. (2.0%), Reinsurance Group Of America, Inc. (2.0%), Cigna Corp. (1.9%), Br Properties S.A. (1.9%) and Unum Group (1.9%). These holdings make up of 21.5% of the total net assets portfolio.

RidgeWorth Mid-Cap Value Equity A (SAMVX)

The investment in RidgeWorth Mid-Cap Value Equity mainly purpose is seeking for capital appreciation. Provides current income is the secondary purpose. The major net assets investment of this fund is in domestic equity securities of mid cap companies. The priority is at the companies with market capitalizations similar to those of companies in the Russell Mid-cap Index.

Don Wordell has managed this fund since Nov 30, 2001. The expense ratio of this RidgeWorth fund is 1.32% which is almost similar to the average in category (1.36%). The 12b1 fee for this fund is 0.30%. It has 5.75% of front end sales load. This mid cap value mutual fund has returned 21.81% over the past one year and 7.83% over the past five years. The minimum balance to invest in this fund in either brokerage or IRA account is $2,000. The other class tickers of this fund are SMFVX and SMVTX.

Best US Domestic Stock Mutual Funds 2011

Top 10 holdings of this fund are BB&T Corporation (3.1%), Northern Trust Corporation (2.9%), Intl Game Technology(2.9%), Comerica Incorporated (2.7%), Ashland Incorporated (2.6%), Hartford Financial Services Group (2.5%), MB Financial Incorporated (2.4%), Flowserve Corporation (2.3%), RR Donnelly & Sons Company (2.3%) and EOG Resources Incorporated (2.2%).

Disclosure: No Position

next: Best Mid Cap Value Mutual Fund of 2010: Part 3

Fund Information

No	Mutual Funds Description	Rank	Ticker	Yield	Morningstar Rating	Net Assets (Mil)	Expense Ratio	Min To Invest
5	Fidelity Mid Cap Value	15%	FSMVX	0.35%	2	$736	0.94%	$2,500
6	Goldman Sachs Mid Cap Value A	22%	GCMAX	0.36%	4	$8,350	1.16%	$1,000
7	Hartford MidCap Value HLS IA	25%	HMVIX	0.51%	3	$641	0.85%	$0
8	RidgeWorth Mid-Cap Value Equity A	28%	SAMVX	0.35%	4	$1,850	1.32%	$2,000

BlackRock Municipal 2018 Term Trust Fund (BPK)

BlackRock Municipal 2018 Term Trust fund (BPK) is top muni bond closed end fund. If you follow my previous blog entry, you will find the short duration closed end funds such as Nuveen Select Maturities Muni (Ticker: NIM), Nuveen Select Tax-Free Income Portfolio 3 (Ticker: NXR), etc.

This article will provide another Muni bond CEF with slightly longer average duration. This also means this fund is riskier and more volatile with interest rate hikes. This intermediate term Muni bond closed end fund is BlackRock Municipal 2018 Term Trust fund (Ticker: BPK).

BlackRock Municipal 2018 Term Trust (BPK)

The BlackRock Municipal 2018 Term Trust fund seeks tax exempt current income by investing in undervalued municipal bonds of investment grade. This BlackRock fund also will return the initial capital of USD 15 per share by 31-Dec-2018. The fund may invest some of its assets in non investment grade Muni bonds which rated as Ba/BB or B. The bond rating will be based on Moody's, S&P, Fitch rating, and BlackRock’s judgment. This BlackRock fund is managed by Jaeckel Jr (since 2006), O’Connor (since 2006), and Downs (since 2007). This fund also has total net assets of $231.6 million.

As part leverage Muni bond fund, this fund has 37.38% effective leverage. The fund charges 0.88% annual expense ratio. This annual expense includes 0.63 management fees, 0.23% other expenses and 0.01% interest expense. The fiscal year end is December 31st every year. As leveraged fund, it also has preferred shareholder distributions of 0.22%.

As of March 2011, this fund pays monthly distribution of $0.0780 per share. This means it has a yield of 6.03%. The average credit quality of this fund is A (investment grade). The average duration is 7.18 years. The average coupon is 5.10%. This BlackRock CEF consists of 107 bonds.

Best California Muni Bond Closed End Funds

As of January 2011, the fund top 5 states include Illinois (12.5%), New Jersey (10.1%), Texas (9.4%), California (8.2%), and Multi States (6.0%). The top 5 bond sectors are corporate-backed Muni’s, tax-backed, health, transportation, and housing.

As of March 30th 2011, the fund market price is traded 7.04% premium of its fund NAV. This is slightly higher than 52 weeks average of 6.92% premium. This BlackRock Municipal 2018 Term Trust fund is rated 5 stars by Morningstar. The fund market price has returned 5.94% over the past year and 5.55% over the past five years.

Disclosure: No Position

Nuveen Select Tax-Free Income Portfolio 3 Fund (NXR)

This article is featuring another short duration municipal bond closed end fund (Muni bond CEF). If you miss, my previous article on Nuveen Select Maturities Municipal bond fund, please check my previous blog entry. This article will feature Nuveen Select Tax-Free Income Portfolio

Nuveen Select Tax-Free Income Portfolio 3 (NYSE: NXR)

Nuveen Select Tax Free Income Portfolio 3 fund (Ticker: NXR) is one of the three Nuveen Select Tax-Free Income Portfolio managed by Thomas C. Spalding Jr since 1999. Nuveen Select Tax Free Income Portfolio 3 fund objective is to provide current income exempt from regular federal income tax, consistent with capital preservation. The majority of fund’s asset is invested in long term investment grade rated municipal bonds or debts.

The fund manager may invest <20% of net assets in unrated municipal obligations with comparable quality. This Nuveen fund may be attractive to people who seeks monthly tax free income, diversification of asset portfolio, and attractive after-tax total returns. The fund currently has total net assets of $176 million.

Nuveen Select Tax Free Income 3 fund holdings

This Muni bond CEF is part of non leverage bond closed end fund (i.e. fixed income CEF). The fund has an annual expense ratio of 0.37% (0.36% baseline expense and 0.01% interest expense). The fund distribution rate is 4.95%. This yield is paid monthly. The fund average credit rating is AA (investment grade). The fund market price has returned -4.41% over the past year and 4.17% over the past 5 year.

As of March 2011, the Nuveen fund has 113 numbers of holdings. This closed end fund has an average coupon of 4.43%. The fund average maturity is 15.01 years and the fund average modified duration is 4.96 years. The average bond price is $83.62. Most of the fund asset is invested in the municipal bonds (98%).

The top 10 Muni bond sectors are U.S. guaranteed bonds, health care, limited tax obligation, utilities, transportation Muni bond, consumer staples, general tax obligation, education & civic organization, water & sewer, and single family housing bonds. The top 5 states include Illinois (18.83%), California (10.13%), Texas (10.03%), Colorado (6.91%), and Indiana (6.15%).

Investment risks include:

• Call risk or prepayment risk
• Interest rate risk
• Credit risk

You might be interested in these Nuveen funds as well:

• Nuveen Select Tax Free Income Portfolio (Ticker: NXP)
• Nuveen Select TaxFree Income Portfolio 2 (Ticker: NXQ)

How can I buy this CEF?

Since this CEF is traded like stock in NYSE (New York Stock Exchange), you can buy with any online discount brokerage like Lightspeed, Interactive Brokers (IB), Fidelity, Merrill Edge and many more.

Disclosure: No Position

Nuveen Select Maturities Municipal Fund (NIM)

Nuveen Select Maturities Municipal fund is a Muni bond closed end fund (i.e. municipal bond CEF). Closed End Fund, also known as CEF, is a publicly traded investment fund which invests in stocks and bonds securities. If you are interested in short term municipal bond fund investment, investor should consider this Nuveen fund.

Nuveen fund holdings

This Nuveen Select Maturities Municipal fund objective is to provide current income exempt from regular federal income tax, consistent with the preservation of capital. It also has a secondary objective to provide portfolio value enhancement. The fund will invest majority of its assets in investment grade rated municipal debts (Baa and BBB or better). It may invest small part of its assets (<20%) in unrated municipal bonds / obligations.

Since 2007, the fund has been managed by Paul Brennan. The fund total common net assets are $123 million. The fund also charges an annual expense ratio of 0.58%. There is only baseline expense and there is no interest expense as of March 31, 2011. The fund has a distribution rate of 4.34% (6.68% taxable equivalent yield based on 35% federal tax rate). The average coupon is 4.89%. The fund average duration is 3.67 years. The average maturity is 11.22 years. There are 161 bonds in this fund. The 5 % annual portfolio turnover is low. The average credit rating of this fund is AA-.

Distribution history

As of March 2011, the fund asset allocation includes municipal bonds (98.7%), and cash (1.3%). The fund top 10 sectors include limited tax obligation (18.09%), U.S. guaranteed bond (17.35%), utilities bond (16.43%), general tax obligation (9.45%), health care (8.61%), transportation (7.60%). education and civic organization (5.1%), long term care (4.53%), consumer staples (4.37%), and water & sewer (3.58%). Top 6 state allocations are Illinois (14.59%), Colorado (12.03%), Pennsylvania (7.4%), Texas (6.7%), and Florida (6.35%).

As of March 28, 2011, the fund has returned -3.80% over the past year and 4.15% over the past 3 year. On the longer term, the fund has returned 3.88% over the past 5 year and 3.68% over the past decade.
Reason to invest in this Muni bond fund:

1. It has short average duration. Low risk to interest rate hike.
2. The fund market price trades at a 3.67% discount to its underlying assets or NAV
3. It pays a distribution which is tax free
4. This is a non leverage municipal bond closed end fund

Risks:

1. Due to underperform its index this past year, will the fund manager change his strategy? The average duration has increased slightly since September 2010 (3.42 years to 3.67 years)
2. Is there any interest rate hikes? If so, how much?

Disclosure: None

Top 10 Mid Cap Value Stock Mutual Funds 2010

Investing in value companies can be effectively through stock mutual fund or equity mutual fund. One of the fund category is mid cap value mutual fund. These types of fund usually invest in under value mid size companies which have $2 billion to $10 billion market capitalization.

Mid Cap Value Funds

The advisor will look for stocks that are cheaper or growing more slowly than typical market. These companies usually come from energy, financial, and manufacturing sectors.

The Top 10 Mid Cap Value stock fund of 2010 is ranked based on the fund performance in 2010. The fund also has more than $300 million net asset. The fund may include funds from variety of fund family like Neuberger Berman (Allianz Global Investors), MFS Investment Management, AllianceBernstein Investment, Fidelity, Goldman Sachs, JPMorgan, etc.

Neuberger Berman Equity Income A (NBHAX)

The investment in Neuberger Berman Equity Income is looking for current income as well as capital appreciation. This NBHAX fund seeks to produce a greater yield than the average current yield. The majority net assets investment is in equity securities that pay dividends. This includes real estate and utilities sectors and the investment in each sector may be up to 40% of total assets

This mid cap value mutual fund is managed by Alexandra S. Pomeroy since Oct 7, 2006. The annual expense ratio of this fund is 1.16%. This Neuberger Berman fund has returned 15.58% over the past one year and 5.16% over the past three years. The minimum balance to invest in this fund is $1,000 for either brokerage or IRA account. The other class tickers of this fund are NBHCX, NBHIX and NBHRX. Among all, NBHIX has the lowest expense ratio (0.8%).

Top 10 holdings of this fund are Foster S Group (1.9%), CenterPoint Energy (1.9%), Cenovus Energy (1.9%), AMB Property (1.9%), Blackrock Inc. (1.8%), Sanofi Aventis (1.8%), Crescent Point Energy (1.8%), Bonavista Energy Trust (1.8%), Franco Nevada (1.8%) and Total SA (1.7%).

MFS Mid Cap Value A (MVCAX)

MFS Mid Cap Value fund objective is to seek appreciation of capital. The major net assets investment of this fund is in equity securities. Normally, this fund invests >80% of its total assets in issuers with medium market capitalizations as stated in the range of the Russell Midcap Value Index. There is a probability of this fund to invest in either foreign securities or derivatives.

Kevin J Schmitz has managed this mutual fund since Nov 20, 2008. This fund has 1.25% expense ratio per year. This fund has returned 3.81% over the past three years and 2.62% over the past five years. The minimum balance to invest in this stock mutual fund is $1,000 for brokerage account and $250 for IRA account. This fund can be purchased from 87 brokerages, such as Morgan Stanley Advisors, Pershing FundCenter, Td Ameritrade, Inc., JPMorgan, Merrill Lynch and Edward Jones. The other class tickers of this fund are MCBVX, MVCCX, MCVIX, MVCGX, MCVRX, MVCHX and MVCJX. Some classes have lower expense ratio and different minimum investment.

As of January 2011, the top 10 holdings of this fund are NVR Inc., Allied World Assurance Co Holdings Ltd, QEP Resources Inc., AON Corp, Celanese Corp, Entertainment Properties Trust REIT, Aspen Insurance Holdings Ltd, Stanley Black & Decker Inc., JM Smucker Co and Affiliated Managers Group Inc. These top 10 holdings make up of 13.9% of total net assets.

Allianz NFJ Renaissance A (PQNAX)

The investment in Allianz NFJ Renaissance is looking for capital growth in long-time period as well to produce income. The major net assets investment is in common stocks of attractive-valuations-trading companies. This PQNAX fund may invest around 25% in non U-S securities and 20% in REIT. There is also chance of investing in other kinds of equity securities, including warrants, convertible securities and preferred stocks.

The fund manager of this fund is Paul A. Magnuson since June 8, 2009. There is an expense ratio of 1.26% per year. The performance of this fund is as below:

• 1-year: 19.93%
• 3-years: 1.53%
• 5-years: 2.02%
• 10-years: 5.53%

The minimum balance to invest in brokerage account of this domestic stock fund is $1,000. There is no IRA account available. This fund can be purchased from 102 brokerages include E TRADE Financial, Morgan Stanley Advisors, Pershing FundCenter, TD Ameritrade, Inc. and Merrill Lynch. The other class tickers of this fund are PRAAX, PQNBX, PQNCX, PREDX, PRNIX and PRNRX. Only PRNIX has no 12b1 fee and no sales load.

The top holdings of this mid cap value fund as of Feb 28, 2011 are Tidewater Inc. (1.29%), Nexen Inc. (1.23%), Noble Corp (1.22%), Valero Energy Corp (1.17%), Cliffs Natural Resources Inc (1.15%), VF Corp (1.15%), Yamana Gold Inc. (1.13%), El Paso Corp (1.12%), Nyse Euronext (1.12%) and Loews Corp (1.12%).

AllianceBernstein Small-Mid Cap Value A (ABASX)

AllianceBernstein Small-Mid Cap Value investment is looking for long-term capital growth. The majority net assets investment is in securities of small- to mid-capitalization companies. It invests in a diversified portfolio of equity securities 60 to 125 U.S. companies.


Since 2002, Joseph G. Paul has been the lead manager. This AllianceBernstein fund has 1.15% annual expense ratio. There is a 0.30% 12b1 fee and 4.25% of front end sales load.

The minimum balance to invest in this fund is $2,500 for either brokerage or IRA account. This fund can be purchased from 109 brokerages include Scottrade Load, Merrill Lynch, CommonWealth PPS, Edward Jones, Fidelity Retail FundsNetwork and Schwab Institutional NTF. This fund has returned 22.87% over the past one year. The other class tickers of this fund are ABSYX, ABBSX, ABCSX, ABSIX, ABSKX and ABSRX. Some classes have lower expense ratio and no 12b1 fee. And these other classes have no front-end sales load.

The top 10 holdings of this fund are Swift Energy Co. (1.27%), Southern Union Co. (1.25%), Health Net, Inc. (1.24%), General Cable Corp. (1.24%), Thomas & Betts Corp. (1.23%), Teekay Corp. (1.22%), CMS Energy Corp. (1.22%), Pepco Holdings, Inc. (1.20%), Dana Holding Corp. (1.20%) and NiSource, Inc. (1.20%).

Disclosure: No position For part 2 article and part 3 post, please check the link. Other US stock mutual funds:

• Artisan Mid Cap Value Investor (ARTQX)

No	Mutual Funds Description	Rank	Ticker	Assets	Yield	Morningstar Rating	Net Assets (Mil)	Expense Ratio	Min To Invest
1	Neuberger Berman Equity Income A	2	NBHAX	$383	3.91%	5	$965	1.16%	$1,000
2	MFS Mid Cap Value A	5	MVCAX	$729	0.55%	2	$863	1.25%	$1,000
3	Allianz NFJ Renaissance A	13	PQNAX	$787	1.22%	2	$840	1.26%	$1,000
4	AllianceBern Small-Mid Cap Value A	15	ABASX	$1,202	0.08%	3	$1,610	1.15%	$2,500

10 Best High Yield Bond Mutual Funds of 2011 Part 2

This is the second article about High Yield Bond Funds. The top funds include Fidelity High Income, T Rowe Price High Yield, Goldman Sachs High Yield A, etc. More fund review can be found in MEPB Financial.

Intro

To be ahead in interest yield hike, investor can invest in high yield bond especially high yield bond mutual fund. While this type of bond is riskier, this investment can be rewarding. Most of the high yield bonds have a low average duration (less than 5 years). This means the price movement of the bond is limited when the interest rate is raised by federal government. The following is my part 2 article about Top 10 High Yield Bond Funds of 2011. If you miss my first article, you can check it here, Top 10 High Yield Bond Fund Part 1.

Fidelity High Income

Fidelity High Income fund is the second Fidelity fund in this top 10 high yield fund list. The Fidelity High Income fund objective is to provide high current income and capital growth by investing in income-producing debt securities, preferred stocks and convertible securities, especially in lower quality debt obligations. The fund may invest in either domestic or foreign securities. It potentially invests in non-income producing securities like defaulted securities, common stocks, and companies in troubled or uncertain financial condition.

Fred Hoff is the lead fund's manager since 2000. Investor needs an initial investment of $2,500 to buy this fund in brokerage account or IRA. The annual expense ratio is 0.75%. This fund doesn’t have any 12b1 fee and front end sales load fee. It is offered by 66 brokerages. The easiest way to invest in any Fidelity fund is by opening Fidelity brokerage account.

As of March 2011, the fund’s yield is 6.92% per year. It also has a 4 stars rating from Morningstar. The fund has returned 16.60% over the past year and 8.60% over the past five year. If you invested $10,000 in this fund ten years ago, you would have $18,462 at present time. Top 6 major market sectors are telecommunications, energy, diversified financial services, healthcare, technology, and electric utilities. Top 10 debt holdings are Calpine Corp, ILFC, Avaya Inc, Thomson Learning TM, Nextel Communication, VWR FDG Inc PIK, Servicemaster, TL acquisition, and NCL Corp Ltd. There are 482 bond holdings. The debt portfolio diversifications include corporate bond (76%), bank debt (13%), cash (7.5%), and convertible preferred stock.

T. Rowe Price High-Yield

T. Rowe Price High-Yield fund investment seeks high current income and appreciation of capital. The fund usually invests >80% of assets in a diversified portfolio of high-yield corporate bonds, convertible securities, and preferred stocks. This high yield bonds usually consist of a lower rated below investment grade (BB and lower) debts. Its weighted average maturity is in 5 to 10 year range. The fund may invest in futures, swaps, and options.

This T. Rowe Price High-Yield fund is managed by Mark J. Vaselkiv, a vice president of T. Rowe Price Group Inc. The fund distribution rate is 7.49% per year. The fund expense ratio is 0.76% per year. You won’t find any 12b1 fee or any sales load in this fund. Its total net asset is $8.54 billion.

As of March 2011, the fund has returned 11.51% over the past three year and 7.98% over the past decade. For 2009, the fund annual return is 49.16%. The top 10 largest holdings are Ally preferred, CIT Group Inc, Clearwire Corp, E*Trade Financial Corp, First Data Corporation, Harrahs Operating Co Inc, Intelsat Bermuda Ltd, Lucent Tech, Ryerson Holding Corp, and Sprint Nextel Corp. The fund asset is allocated as follow domestic bond (79.3%), foreign bond (13.3%), domestic stock (2.7%), cash (2.4%), convertibles (1.3%), and preferreds (1.1%). The fund weighted average duration is 3.35 years. The fund weighted average maturity is 6.22 years.

MainStay High Yield Corporate Bond A

MainStay High Yield Corporate Bond fund objective is to provide current income and capital appreciation. The majority of fund asset (>80%) is invested in high-yield corporate debt securities (domestic and foreign corporate debts). These funds are rated by major rating agencies such as Moody's or Standard & Poor's ("S&P"). It may invest some of its asset (<20%) in common stocks and other equities.

The fund also has an annual expense ratio of 1.03%. It also has 0.25% 12b1 fee and 4.50% front end sales load fee. The fund lead manager is J. Matthew Philo. This MainStay fund also pays a yield of 7.04%. This yield is distributed monthly. The fund has returned 8.66% over the past year and 5.97% over the past 5 year.

Regular investor may also invest variety of classes for this fund. The other classes include MKHCX (class B), MYHCX (class C), MHHIX (investor class), MHYIX (class I), and MHYRX (Class R2). These classes may offer lower fees. You may have accessed through your IRA account, 401k account or some other brokerage accounts.

As January 2011, the fund effective maturity is 5.9 years and the fund effective duration is 3.4 years. The annual turnover rate is 41%. There are 493 holdings in this fund. The total net asset is $6.6 billion. The fund top sectors are consumer non cyclical, consumer cyclical, communications, energy, and financials. Top 5 corporate bond holdings include RRI Energy Inc, Intelsat Subsidiary Holding Co Ltd, Calpine Construction Finance Co and CCFC Finance Corp, Charter Communications operating llc or Charter Communications Capital Corp, and Crum & Forster Holdings Corp.

Goldman Sachs High Yield A

Goldman Sachs High Yield investment seeks current income as well as appreciation of capital. The fund normally invests >80% of net assets in high-yield which are non investment grade fixed income securities. It may invest <25% of total assets in obligations of domestic and foreign issuers which are denominated in currencies other than the U.S. dollar and in securities of issuers located in emerging countries denominated in any currency. The fund invests up to 20% of net assets in investment grade fixed income securities such as the US government, its agencies, instrumentalities or sponsored enterprises debts.

Since 2004, Robert Cignarella has been the lead manager of this fund. This Goldman Sachs fund can be purchased from 122 brokerages like Pershing FundCenter, Schwab Institutional Load Waived, Wells Fargo, Firstrade, etc.

The fund distribution rate is 7.25% per year. This yield is distributed monthly. The fund annual expense ratio is 1.05% per year. There is also 0.25% 12b1 fee and 4.25% front end sales load fee. The current total net asset of this fund is $6 billion. The minimum investment is $1,000 for brokerage account and $250 for IRA.
As of March 2011, the fund has returned 8.43% over the past three year and 5.93% over the past five year based on load adjusted returns. The option adjusted duration of this fund is 3.57 years. This Goldman Sachs fund also consists of 769 bonds. The top 10 corporate holdings include Intelsat, Sprint Nextel, HCA, CIT Group, AIG, Ford, Ally Financial, MGM Mirage, First Data, and Harrahs. Top 3 bond sectors are high yield bond (81.5%), non dollar bond (13.1%), and cash (5.4%).

Other Related High Yield Bond Funds:

• Top Performing High Yield Taxable Bond Funds 2011
• Top Performer High Yield Bond CEF: Pt 1

Northern High Yield Fixed Income Fund

The investment in Northern High Yield Fixed Income is pursuing for current income. The major net assets investment of this fund (>80%) is in lower quality bonds and other fixed-income securities. During certain temporary period, this fund may also invest all of its assets in higher quality securities for defensive reason. Although the main investment is in domestic issuers but it may also invest in foreign issuers in small amount. Richard J. Inzunza has managed this fund since 2007. Besides being the fund manager, he is as well the Vice President at The Northern Trust Company. This fund can be purchased from 82 brokerages include T. Rowe Price, Fidelity Institutional FundsNetwork, Schwab Retail and TD Ameritrade, Inc.

The fund distribution rate is 7.25% per year. The expense ratio of this fund is 0.89% annually which is quite low compared to the average (1.18%). There is no 12b1 fee as well as no sales load. The minimum balance to invest in this fund is $2,500 for brokerage account and $500 for IRA account.

As of January 2011, this Northern fund total net asset is $3.7 billion. It consists of 192 debt holdings. The average duration is 4.6 years and the average maturity is 8.1 years. Top 10 sector weightings include consumer cyclical (20.4%), communications (15.2%), consumer non cyclical (11.8%), financial institutions (11.4%), utilities (8.0%), energy (7.5%), capital goods (6.0%), technology (5.0%), basic industry (4.5%), and short term fund (4.2%). Top 10 bond holdings are Intelstat Bermuda, CIT Group, Gmac Inc, Ford Motor Credit Co Llc, Energy Future Holdings Corp, HCA Inc, AES Corp, White Mountains RE Group Preferred shares, US Foodservice Inc, and Qwest Cap.

Disclosure: No Position