Value Line’s Health objective group is a fairly small, yet surprisingly diverse, collection of mutual funds. Clearly, the funds in this category invest the vast majority of their assets in healthcare and related businesses. That said, there are a number of variations within what would seem an otherwise narrow space.
Value Line’s Aggressive Growth objective group is, by design, fairly broadbased. It is meant to house any equity fund that invests predominantly in higher-risk common stocks or that has a stated policy of maximum growth without regard to income or time horizons. This clearly covers a lot of ground.
The Value Line Convertibles objective group covers mutual funds that invest the majority of their assets in an unusual and relatively obscure asset class—convertible bonds and convertible preferred stocks. Indeed, convertibles are a mixture of a bond (or a preferred stock) and a warrant to purchase common stock in the issuing company. This creates a hybrid security with both bond and equity-like features.
Value Line’s Corporate High-Yield objective group is made up of mutual funds that invest in lower-rated corporate bonds in pursuit of high current income. These bonds are often referred to as “junk,” though that name’s implications are, overall, more negative than this segment of the market deserves. Below-investment grade is another term often associated with these types of bonds. Typical names in this objective group include the terms high-yield or high-income, though some, as noted, use below-investment grade. Many funds here have a secondary objective of capital appreciation.
Value Line’s Diversified Bond objective group consists of funds that invest in a mix of corporate and government fixed-income securities in pursuit of current income. The definition is broad by design, as it is meant to include bond funds that, effectively, can go anywhere in the fixed-income space.
Value Line’s Energy/Natural Resources objective group contains funds that have a stated policy of investing at least 50% of their assets in oil and natural gas, energy services (including oil and gas drilling), chemicals, and forest products. Generally speaking, most funds in this group will have substantially more than half of their assets invested in these industries.
Value Line’s European Equity objective group is comprised of mutual funds that are mandated to invest at least 50% of their net assets in equity securities of European companies, though most typically have more than that amount invested in the region. The funds in this category normally have a broad focus, without highlighting any specific country within Europe. There are, of course, a select number of funds, such as Fidelity Nordic Fund (FNORX), that break this mold. Three top-performing funds over the past nine months ended September 30, 2011 are Virtus Greater European Opportunity Fund (VGEAX), DWS Europe Equity Fund (SERAX), and Invesco European Small Company Fund A (ESMAX).
Value Line’s Financial Services objective group is a collection of funds that has the stated policy of investing at least 50% of assets in common stocks of financial services and related companies. Functionally speaking, most funds in the group have a much higher percentage of assets allocated to this sector. One might suspect that such a narrow mandate would result in a group that owns very similar investments, but that isn’t necessarily the case. While all funds in this objective group reported losses for 2011, three top-performing funds over the past nine months ended September 30, 2011 are Fidelity Select Consumer Finance Portfolio (FSVLX), Mutual Financial Services Fund (TFSIX), and Royce Financial Services Fund (RYFSX).
Value Line’s Global Equity objective group consists of mutual funds that can own stocks from any country in the world. This is very different from the Foreign objective, in that Global funds can own U.S. stocks while Foreign funds specifically cannot. This is an important distinction about which investors using an asset allocation model should be aware, as the domestic component of a Global fund can throw off certain allocations if the fund’s portfolio isn’t properly accounted for in the larger asset allocation plan.
Value Line’s Growth objective group is by far the largest such sector under review. It is broadly constructed on purpose, taking into consideration any fund that has a primary objective of capital growth. Income can be a secondary objective. Weeded out are funds that follow more-specific mandates, such as capital growth by investing in small and mid-cap companies or sector-oriented funds. To fine-tune what is an extremely diverse composite of funds, we use peer groups.
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Mutual Fund Screen: Top Performing Health Funds Through November 30, 2011
Value Line’s Health objective group is a fairly small, yet surprisingly diverse, collection of mutual funds. Clearly, the funds in this category invest the vast majority of their assets in healthcare and related businesses. That said, there are a number of variations within what would seem an otherwise narrow space.
Mutual Fund Screen: Top Performing Aggressive Growth Funds Through October 31, 2011
Value Line’s Aggressive Growth objective group is, by design, fairly broadbased. It is meant to house any equity fund that invests predominantly in higher-risk common stocks or that has a stated policy of maximum growth without regard to income or time horizons. This clearly covers a lot of ground.
Mutual Fund Screen: Top-Performing Convertible Funds Through October 31, 2011
The Value Line Convertibles objective group covers mutual funds that invest the majority of their assets in an unusual and relatively obscure asset class—convertible bonds and convertible preferred stocks. Indeed, convertibles are a mixture of a bond (or a preferred stock) and a warrant to purchase common stock in the issuing company. This creates a hybrid security with both bond and equity-like features.
Mutual Fund Screen: Top-Performing Corporate High-Yield Funds Through September 30, 2011
Value Line’s Corporate High-Yield objective group is made up of mutual funds that invest in lower-rated corporate bonds in pursuit of high current income. These bonds are often referred to as “junk,” though that name’s implications are, overall, more negative than this segment of the market deserves. Below-investment grade is another term often associated with these types of bonds. Typical names in this objective group include the terms high-yield or high-income, though some, as noted, use below-investment grade. Many funds here have a secondary objective of capital appreciation.
Mutual Fund Screen: Top Performing Diversified Bond Funds Through September 30, 2011
Value Line’s Diversified Bond objective group consists of funds that invest in a mix of corporate and government fixed-income securities in pursuit of current income. The definition is broad by design, as it is meant to include bond funds that, effectively, can go anywhere in the fixed-income space.
Mutual Fund Screen: Top Performing Energy and Natural Resources Funds Through September 30, 2011
Value Line’s Energy/Natural Resources objective group contains funds that have a stated policy of investing at least 50% of their assets in oil and natural gas, energy services (including oil and gas drilling), chemicals, and forest products. Generally speaking, most funds in this group will have substantially more than half of their assets invested in these industries.
Mutual Fund Screen: Top Performing European Equity Funds Through September 30, 2011
Value Line’s European Equity objective group is comprised of mutual funds that are mandated to invest at least 50% of their net assets in equity securities of European companies, though most typically have more than that amount invested in the region. The funds in this category normally have a broad focus, without highlighting any specific country within Europe. There are, of course, a select number of funds, such as Fidelity Nordic Fund (FNORX), that break this mold. Three top-performing funds over the past nine months ended September 30, 2011 are Virtus Greater European Opportunity Fund (VGEAX), DWS Europe Equity Fund (SERAX), and Invesco European Small Company Fund A (ESMAX).
Mutual Fund Screen: Top-Performing Financial Services Funds Through September 30, 2011
Value Line’s Financial Services objective group is a collection of funds that has the stated policy of investing at least 50% of assets in common stocks of financial services and related companies. Functionally speaking, most funds in the group have a much higher percentage of assets allocated to this sector. One might suspect that such a narrow mandate would result in a group that owns very similar investments, but that isn’t necessarily the case. While all funds in this objective group reported losses for 2011, three top-performing funds over the past nine months ended September 30, 2011 are Fidelity Select Consumer Finance Portfolio (FSVLX), Mutual Financial Services Fund (TFSIX), and Royce Financial Services Fund (RYFSX).
Mutual Fund Screen: Top Performing Global Equity Funds Through August 31, 2011
Value Line’s Global Equity objective group consists of mutual funds that can own stocks from any country in the world. This is very different from the Foreign objective, in that Global funds can own U.S. stocks while Foreign funds specifically cannot. This is an important distinction about which investors using an asset allocation model should be aware, as the domestic component of a Global fund can throw off certain allocations if the fund’s portfolio isn’t properly accounted for in the larger asset allocation plan.
Mutual Fund Screen: Top-Performing Growth Funds Through August 31, 2011
Value Line’s Growth objective group is by far the largest such sector under review. It is broadly constructed on purpose, taking into consideration any fund that has a primary objective of capital growth. Income can be a secondary objective. Weeded out are funds that follow more-specific mandates, such as capital growth by investing in small and mid-cap companies or sector-oriented funds. To fine-tune what is an extremely diverse composite of funds, we use peer groups.