There are plenty of choices in the Mutual Fund Equity Report category, but where should you start your research? Well, one fund that might be worth investigating is AMG Yacktman I (YACKX). YACKX bears a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
AMG Funds is based in Greenwich, CT, and is the manager of YACKX. The AMG Yacktman I made its debut in July of 1992 and YACKX has managed to accumulate roughly $8.02 billion in assets, as of the most recently available information. A team of investment professionals is the fund’s current manager.
Performance
Of course, investors look for strong performance in funds. YACKX has a 5-year annualized total return of 10.31% and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 11.31%, which places it in the top third during this time-frame.
When looking at a fund’s performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. YACKX’s standard deviation over the past three years is 19.22% compared to the category average of 21.49%. Looking at the past 5 years, the fund’s standard deviation is 15.79% compared to the category average of 18.97%. This makes the fund less volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 0.77, so investors should note that it is hypothetically less volatile than the market at large. Because alpha represents a portfolio’s performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. YACKX has generated a positive alpha over the past five years of 1.48, demonstrating that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, YACKX is a no load fund. It has an expense ratio of 0.70% compared to the category average of 1.09%. From a cost perspective, YACKX is actually cheaper than its peers.
Investors need to be aware that with this product, the minimum initial investment is $100,000; each subsequent investment needs to be at least $100.
Bottom Line
Overall, AMG Yacktman I ( YACKX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, AMG Yacktman I ( YACKX ) looks like a good potential choice for investors right now.
Your research on the Mutual Fund Equity Report segment doesn’t have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. Zacks provides a full suite of tools to help you analyze your portfolio – both funds and stocks – in the most efficient way possible.
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