Baron Small Cap Fund (BSCFX)

One of important asset class for portfolio diversification is small cap growth. Barron Small Cap fund has been among the best fund in this class over the long term period. The fund has provided a slow and consistent approach to small cap investing. Cliff Greenberg has been the manager since its inception in 1997. This fund is also featured in Kiplinger’s 25 Best Mutual fund list. Most of the small cap fund can provide additional performance boost in your portfolio diversification, though higher return also meant higher risk.

Baron Small Cap (Ticker: BSCFX)

Baron Small Cap fund is looking for capital appreciation. At least 80% of its net assets are invested in equity securities. The investment is in the form of common stock of small-sized growth companies. These companies must have less than $2.5 billion of market capitalization measured at the time of purchase. This fund seeks to as well buy the securities that are expected to have a 50% value increase within two years judged by BAMCO Inc.

BSCFX Fund Details

Baron Small Cap fund details

• Fund Inception Date: September 1997
• Ticker Symbol: BSCFX
• CUSIP: 068278308
• Beta (5yr): 0.85%
• Rank in category (YTD): 52
• Category: Small Growth
• Distribution: 0.0%
• Capital Gains: 0.0%
• Number of Years Up: 10 years
• Number of Years Down: 3 years

updated on 5/10/2011

Top Performer High Yield Bond Closed End Funds CEF 2011

Closed End Funds or CEFs are traded like stock. It is traded in variety of global stock exchanges like New York Stock Exchange (NYSE), NASDAQ, etc. One of the CEFs categories is High Yield Bond Fund. You will find the top performer high yield bond closed end funds such as Pacholder High Yield Fund, PIMCO High Income Fund, Credit Suisse High Yield Bond, etc.

Top Performer High Yield Bond Closed End Funds

Finding fund to invest can be a challenge for any investors or traders. The challenge can become more daunting when you want to invest in closed end fund (CEF). Closed End Funds have been popular even before the introduction of Exchange Traded Fund (ETF). They are very similar but there are some differences. Both funds were traded in stock exchanges such as NYSE, Nasdaq, and AMEX. You can trade these funds like stocks. Both funds can be either a bond fund (fixed income fund) or stock fund (equity fund). The differences include:

• CEF only has a fixed quantity of shares after its initial IPO
• CEF market price can be traded either on premium or discount to its Net Asset Value (NAV)
• Most of the CEFs are actively managed by manager or advisor

The following article will look into the top performer high yield bond closed end fund 2011 (YTD). High yield bond can provide a steady income to investor. These high yield bond CEFs, also known as non investment grade bond CEFs, pay its distribution regularly either monthly or quarterly. These funds were rated based on its fund performance until May 6th, 2011. Most of these funds also use leverage to enhance its fund performance return. Several reasons to invest in high yield bond funds are:

• It pays higher distribution regularly
• It is less volatile than stock funds
• It can provide additional tools to combat an interest hike environment due to its low average duration bond

Note: These high yield bond funds may be more volatile than investment grade bond funds. The 10 Top Performer High Yield Bond CEFs 2011 (until May 6th, 2011) part 1 are:

1. Pacholder High Yield Fund (PHF)
2. PIMCO High Income Fund (PHK)
3. Credit Suisse High Yield Bond (DHY)
4. Pioneer Diversified High Income (HNW)
5. BlackRock Debt Strategies Fund (DSU)
6. DWS High Income Trust
7. First Trust Strategic High Income
8. Managed High Yield Plus
9. Western Asset High Income Fund II
10. Wells Fargo Advantage Income Opportunity

updated on 5/8/2011

You may also find my latest article, Top 10 High Yield Bond Closed End Funds of 2012.

Pacholder High Yield Fund

As the top performer high yield bond CEF (YTD: 17.63%), Pacholder High Yield Fund seeks to a high level of total return through capital appreciation and current income. The fund will invest most of its asset primarily in high yield lower, rated fixed income securities of domestic companies. The fund’s sponsor is J.P. Morgan Investment Management Inc.

As May 2011, the fund total net assets are $161 million with 26.66% effective leverage. The fund annual expense ratio is 2.37%. The fund market price is traded at 5.81% premium from its fund’s NAV. Morningstar rates this Pacholder High Yield fund with 4 stars rating. The fund is managed by William J Morgan (lead portfolio manager), James P Shanahan (portfolio manager), and James E Gibson (principal trader). There are 3 investment strategies such as

• The fund will invest in all types of high yield. High risk securities
• Fund will focus on value of individual bonds compare to broader market factors
• Focus on positive and negative credit development using regular discussion with senior management of issuer

As of April 2011, the fund’s top 10 holdings are Liberty Mutual Group, CoBank, JPMorgan Prime Institutional, NewPage Corp, Clearwire Corp, Unipac IX llc, MGM Resorts International, NRG Energy Inc, Michael Stores Inc, and Sprint Nextel Corp. The top 5 sectors are consumer discretionary (29%), Financials (13.1%), Industrials (11.2%), Materials (9.7%), and Energy (8.8%). The fund also pays a dividend of 8.7% per year. This dividend is paid monthly and recently it has been increase from $0.06 per share to $0.07 per share.

PIMCO High Income Fund

While famous for its bond mutual fund, PIMCO also provides variety of bond closed end funds. The PIMCO High Income fund objective is to provide high current income and capital appreciation. This PIMCO fund will invest most of its asset in corporate debt obligations and income producing securities. This is also one of the largest high yield CEFs in term of asset with $1.58 billion. The fund charges 1.24% annual expense ratio. The fund is managed by Bill Gross, the legendary bond manager, since 2009. The fund market price is traded at 49.7% premium from its fund’s NAV, this is a significant premium compare to other high yield bond fund.

This fund also receives 2 stars rating from Morningstar. As May 2011, this PHK fund yield is 10.29% per year. This dividend is paid monthly. Since its inception, the fund market price has returned 14.07%. As of April 2011, the fund top 10 sectors are insurance life (21.7%), miscellaneous (19.8%), banks (18.8%), non captive consumer finance (17.2%), electric utility (8%), non captive div finance (5%), insurance P&C (4.9%), wirelines (1.3%), airlines (1.2%), and automotive (1.2%). The fund consists of 349 bonds and it has 4.45 years average duration.

Credit Suisse High Yield Bond

As part of Credit Suisse Asset Management fund, the Credit Suisse High Yield Bond fund seeks high current income through investment in non investment grade US fixed income securities or debts. The fund is managed by duo managers, Michael Gray and Martha B. Metcalf. This closed end fund current total net asset is $302 million. The fund also charges 2.09% annual expense ratio including 1.55% baseline expense and 0.53% interest expense. The fund market price is traded at 4.85% premium from its NAV. It also has 3 stars rating from Morningstar.

Top 10 High Yield Bond Mutual Funds 2011

This high current yield fund market price has returned 33.31% over the past year and 8.56% over the past 5 year. The year to date performance is 15.11% (until May 6th, 2011). The fund top ten holdings are AMC entertainment, Real Mex Restaurant Inc, Energy Transfer Equity LP, MTR Gaming Group Inc, International Wire Group Inc, Ship Finance, Coffeyville Res llc, Jacobs Entertaintment, Comstock resources Inc, and PGS. As of November 2011, the top 5 sectors are High Yield Corporate bond (91.9%), Short term debt (10.1%), General Debt (2.9%), General Equity (0.8%), and Preferred shares (0.14%).

Pioneer Diversified High Income

The Pioneer Diversified High Income fund seeks high current income with capital appreciation through investment in preferred stocks, floating rate loans and insurance linked securities. The fund net asset is $237 million with 27.35% effective leverage. The annual expense ratio of this Pioneer fund is 2.23%. Since May 2007, this fund has been managed by Andrew Feltus, Charles Melchrit, and Johnathan Sharkey. The fund market price is traded at 7.33% premium from its fund’s NAV. This fund also receives 4 stars rating from Morningstar.

As May 2011, the fund yield is 8.52% per year. This dividend is paid monthly. Part of this dividend is return of capital (ROC), about 17%. Since its inception on May 2007, the fund market price has returned 9.91%. As of April 2011, the fund top 5 sectors are high yield corporate debt (40.90%), bank loans (24.6%), emerging market / international high yield (27.3%), event linked / cat bonds (15.9%), and commercial mortgage backed debts (1.7%). The fund consists of 420 bonds and it has 3.30 years average duration.

BlackRock Debt Strategies Fund

The BlackRock Debt Strategies Fund objective is to provide high current income to investor. This BlackRock closed end fund invests in lower rated corporate debt instruments (junk corporate bonds). The fund is managed BlackRock Advisor. This fund was formerly known as Debt Strategies Fund. The expense ratio of this BlackRock fund is 1.23% per year. It also has an effective leverage of 20.16%. The fund has returned 21.89% over the past year and 2.69% over the past five year. This fund is rated 2 stars by Morningstar.

Best High Yield Municipal Bond Mutual Funds 2012

As of January 2011, the top 5 industries are communications (16.6%), capital goods (15.4%), consumer non-cyclical (14.7%), consumer cyclical (14.7%), and basic industry (12.9%). Top 5 debt issuers include IntelSat, CPG International, CIT Group, Clear Channel Worldwide holdings, and Vodafone Americas. This fund has 362 holdings in its asset. The modified duration of this fund include 2.54 years.

Disclosure: No Position

Note: As discussed above, you can trade these CEFs using your brokerage. For best brokerages, please check my latest Best Brokerages 2012 page. more funds on my next article.

Fund Performance

For part 2 article, please check Top Performer Junk Bond CEF Part 2.

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

Oakmark Global Fund (OAKGX)

The following fund is one of the kiplinger’s 25 Best Mutual Funds. This fund received Gold award from Standard & Poor’s 2010 Mutual Fund Excellence Awards in Global Equity category. This fund also has one of the highest Morningstar rating (5-stars). Investing in this fund essentially provide investor an instant portfolio diversification in global stocks (US and Foreign stocks). Since it is a global stock fund, it has an above average Morningstar risk rating.

The Oakmark Global Fund (Ticker: OAKGX)

The Oakmark Global Fund investment is looking for long term capital appreciation. The majority fund asset is invested in common stocks of either U.S. or non-U.S. companies (i.e. foreign countries companies). Depending on the management strategy, this Oakmark Global Fund invests primarily in securities of U.S. companies and non-U.S. companies (between 25-75% each) located in at least three countries. A small amount of the net assets (<15%) is probably invested in securities of emerging market countries.

OAKGX Fund Characteristic

OAKGX Fund Details

• Fund Inception Date: August 1999
• Ticker Symbol: OAKGX
• CUSIP: 413838830
• Beta (3yr): 0.94
• Rank in category (YTD): 84
• Category: World Stock
• Distribution: 0.37% 
• Capital Gains: N/A
• Number of Years Up: 9 years
• Number of Years Down: 2 years
• Total Net Assets: $2.67 billion

Updated on 8/5/2011

Meridian Growth Fund (MERDX)

One of the most well known funds in Kiplinger 25 Best Mutual Funds list is Meridian Growth fund. This fund is not only because it has the highest Morningstar rating (5 stars), it also gets variety of recognition from financial magazines such as Money Magazine, Barron’s, Morningstar, Kiplinger, MarketScope, and Investor’s Business Daily. The following is the details about this best fund.

Meridian Growth (Ticker: MERDX)

As part of Mid Cap fund class, the Meridian Growth fund is seeking for capital growth in long-term. The fund invests its net assets in a diversified portfolio of U.S. Companies’ common stocks that are traded publicly. It invests in securities of companies with any capitalization across a broad range of industries including companies that have small total assets, earnings or revenues. Besides that, MERDX may invest up to a quarter (<25%) of its net assets in foreign companies’ securities, include emerging market companies.

MERDX Fund Details

Meridian Growth Fund

• Fund Inception Date: August 1984
• Ticker Symbol: MERDX
• CUSIP: 589619105
• Beta (3yr): 0.96
• Rank in category: 85
• Category: Mid-Cap Growth
• Distribution: 0.14%
• Capital Gains: 1.09% (last distributed in 2008)
• Number of Years Up: 23 years
• Number of Years Down: 3 years

updated on 06/01/2011

T Rowe Price Small Cap Value Fund (PRSVX)

T. Rowe Price Small Cap Value fund (Ticker: PRSVX) is one of best domestic stock mutual funds. It invests in small companies.

T. Rowe Price Small-Cap Value (Ticker: PRSVX)

T. Rowe Price Small-Cap Value fund objective is seeking for capital growth in long-term. The majority of the net-assets investment (at least 80%) is in companies with market capitalization within or below the range of companies in the Russell 2000 Index. Besides in U.S. common stocks, this PRSVX may also invest in other securities including foreign stocks, options, futures and bonds.

T Rowe Price Small Cap Value details

PRSVX Fund Details

• Fund Inception Date: June 1988
• Ticker Symbol: PRSVX
• CUSIP: 77957Q103
• Beta (3yr): 1.10
• Rank in category: 77
• Category: Small Blend
• Distribution: 0.66%
• Capital Gains: If there is any capital gain, it will be paid annually on December. Last capital gain was paid on December 2010.
• Number of Years Up: 16 years
• Number of Years Down: 6 years

updated on May 2017

Vanguard Selected Value Fund (VASVX)

Vanguard Selected Value Fund (VASVX), best U.S. stock mutual fund. Value investing is extremely popular among long term investors.

Many different studies have shown over the long term period, the value investing style will beat other investing styles like growth investing. The next fund best 25 Kip fund will be another Vanguard fund. This Vanguard Selected Value fund invests primarily in undervalued companies especially mid cap value stocks. A company is considered a mid cap, if the company has a market capitalization between $2 billion and $10 billion.

Vanguard Selected Value (Ticker: VASVX)

The investment in Vanguard Selected Value is looking for capital growth and income growth in long-term. It invests primarily in medium-size U.S. companies’ stocks. The consideration of the stocks selected are the undervalued stocks that are out of favor with investors and are trading at below average price related to earnings and book value.

VASVX Fund Details

• Fund Inception Date: February 1996
• Ticker Symbol: VASVX
• CUSIP: 921946109
• Beta (3yr): 1.03
• Rank in category: 48
• Asset Class: Domestic Stock
• Category: Mid-Cap Value
• Expense Ratio: 0.35%
• Distribution / Yield: 1.60%
• Capital Gains: If there is a capital gain, it will be paid on December
• Fiscal Year End: October
• Number of Years Up: 9 years
• Number of Years Down: 5 years

updated on May 2017

James P. Barrow has managed this Vanguard fund since March 1999. He is the principal and founding partner of Barrow, Hanley, Mewhinney & Strauss llc. As the primary investment advisor, Barrow, Hanley, Mewhinney & Strauss llc is managing 73% of fund assets. Some of the fund assets (about 24%) are also managed by other investment advisor Donald Smith & Co Inc (portfolio manager: Donald G Smith).

The fund has 0.47% yearly expense ratio while the average in the category is 1.36%. The fund is available in both brokerage and IRA account with the minimum initial investment of $25,000 and $100 of the minimum subsequent investment. There is neither 12b1 fee nor sales load fee applied. There are 76 brokerages in which this fund can be purchased include T. Rowe Price, Commonwealth, TD Ameritrade, etc.

The performance of the fund is 18.46% over the past one year, 5.36% over the past five years and 8.91% over the past ten years. The last dividend distributed in 2007 was 1.55%. VASVX fund has 4-star return rating from Morningstar. It has 6.82% of year-to-date return with a total of 9 years of positive return and 5 years of negative return. The best total return in 1-year was achieved in 2009 with 36.26%. The worst 1-year total return was experienced in 2008 with -35.49%. The fund also has a redemption fee of 1% if the fund is held less than 1 year.

• Year 2017: 5.73% (YTD)
• Year 2016: 16.34%
• Year 2015: -3.80%
• Year 2014: 6.36%
• Year 2013: 42.04%

The top 10 largest holdings has 21.8% of total net assets as of March 31, 2011 are Stanley Black & Decker Inc., Coventry Health Care Inc., Capital One Financial Corp, Discover Financial Services, Yamana Gold Inc., Willis Group Holdings plc, Murphy Oil Corp, Goodrich Corp, Seadrill Ltd and Micron Technology Inc. The top 3 equity sector diversifications as of December 31, 2010 are Financials (29.40%), Energy (11.30%) and Consumer Discretionary (10.90%). There are 64 different stocks in this fund asset. About 5.9% of fund asset is invested in foreign stocks holdings.

What is the risk you might ask?

Investing in any stock funds always involves investment risks like

• Stock market risk: price will rise and decline depending upon market condition.
• Value investment style risk: Since the fund invests in value mid cap companies, these companies may be more volatile than value large cap companies.
• Manager risk: Poor selection by fund advisor due to particular sector, category, group. This may cause the fund to underperform the fund index or other benchmark.
• Asset concentration risk: Since this fund may be less diversified, the fund may be volatile at the times.

Disclosure: No Position

Update from latest filing (11/30/2011):

The performance of this VASVX fund, based on the load adjusted return, is 17.80% over the past year, 4.91% over the past 3-years and 6.79% over the past 10-years. It has 5-stars rating from Morningstar. Since its inception, this fund has recorded 9 years of positive return (best in year 2009 with 36.26%) nad 5 years of negative return. The YTD-return is -2.99%.

As of September 30, 2011, the top 10 holdings of this Vanguard fund are Royal Caribbean Cruises Ltd, Constellation Energy Group Inc, Yamana Gold Inc, Discover Financial Services, Coventry Health Care Inc, Goodrich Corp, International Game Technology, Wills Group Holdings PLC, CenterPoint Energy Inc and Capital One Financial Corp. These top 10 companies represent 24.0% of the total net assets. The top sector holdings (stocks) are Financials (26.9%), Industrials (15.0%), Utilities (12.7%) and Consumer Discretionary (12.3%).

Note: This Vanguard Selected Value Fund (VASVX) was part of Kiplinger's 25 best mutual funds before.

If you are interested in other Kip 25 Best fund, please check my previous articles. If you need the Top 25 list, you can check my main page for details of these Kiplinger 25 best mutual funds.