Value Line - Funds

Domestic Bond Funds

Ann Marie Mendoza — 5/16/2012 12:00:00 AM

The Diversified Bond objective group, which includes domestic bond funds, posted a gain of 3.2% for the four-month period ended April 30, 2012. Overall, corporate debt securities posted solid returns for the first quarter, outperforming long-term U.S. treasuries. Corporate debt issues benefited from improving investors’ sentiment over the global market and positive U.S. economic data. Riskier debt securities, such as commercial mortgage-backed issues, performed well, too, as a result of improving credit fundamentals. There was also an increase in demand for municipal bonds, as demonstrated by the fact that the Barclays Capital Municipal Bond Index total return was up nearly two percentage points in March. This month, we will be looking at a few mutual funds from the Domestic Bond asset class that may be of interest to you.

T. Rowe Price Blue Chip Growth Fund

Robert J. Adamski — 5/7/2012 12:00:00 AM

T. Rowe Price Blue Chip Growth Fund’s objective is long-term capital growth. Income is a secondary objective.

The fund is managed by Larry J. Puglia, CFA, CPA, who has managed this fund since 1993, and has 22 years of investment experience.

In pursuit of this fund’s objective, Mr. Puglia normally invests at least 80% of its net assets in the common stocks of large and medium-sized blue chip growth companies. He selects from a list of companies that are well established in their industries and have the potential for above-average earnings growth. The fund may invest in securities of foreign companies; however, the manager intends to invest the fund’s assets primarily in U.S. securities. It may also invest in...

American Century Growth Fund

Robert J. Adamski — 5/2/2012 12:00:00 AM

American Century Growth Fund’s objective is long-term capital growth.

The fund is co-managed by Gregory J. Woodhams, CFA, who has helped direct this fund since 1997, has 31 years of investment experience, and E.A. Prescott LeGard, CFA, who has managed the fund since 1999, and has 19 years of investment experience.

In pursuit of this fund’s objective, the portfolio managers invest essentially all of the fund’s assets primarily in larger-capitalization equity securities. The fund may invest in securities of foreign companies, however the managers intend to invest the fund’s assets primarily in U.S. securities. Woodhams and LeGard do not attempt to time the market, and, under normal conditions, keep the fund...

Emerging Markets Stock Funds

Ann Marie Mendoza — 4/16/2012 12:00:00 AM

The Emerging Markets objective group posted a total return of 13.2% for the year-to-date period through March 31, 2012. Emerging Markets stocks performed very well during the first quarter, after a minor setback in the final months of 2011. Indeed, the MSCI Emerging Markets Index gained 13.7% (in the first quarter) outperforming the MSCI World Index, which covers developed countries, by three percentage points. Much of its success was boosted by a market rally in Latin American countries, such as Brazil, which cut key interest rates; as well as from an increase in the manufacturing sector in China. Also, the information technology sector was a bright spot in the emerging markets sector, particularly in China and India, as these countries increased their capital spending on projects to upgrade their I.T. infrastructure or subsidize development of their domestic telecom systems and internet connections. This month, we will take a look at a few mutual funds from the Emerging Market asset class.

MFS Growth Fund

Robert J. Adamski — 4/10/2012 12:00:00 AM

MFS Growth Fund’s objective is capital appreciation.

The fund is managed by Eric B. Fischman, who has directed this fund since 2002 and has 21 years of investment experience.

In pursuit of this fund’s objective, the portfolio manager invests at least 80% of the fund’s assets primarily in equity securities, including common stocks, preferred stocks, convertible securities, and foreign stocks that have ADRs. While there are no market capitalization restrictions, the manager focuses on companies with large capitalizations. The fund also focuses on investing in the stocks of companies it believes to have above-average earnings growth potential. The manager may also engage in ...

BBH Core Select Fund

Robert J. Adamski — 4/3/2012 12:00:00 AM

BBH Core Select Fund’s objective is long-term capital appreciation on an aftertax basis, with an emphasis on capital preservation.

The fund is managed by three portfolio managers. Richard H. Witmer Jr. has managed this fund since 2005 and has 35 years of investment experience; Timothy E. Hatch has managed since 2005 and has 15 years experience; and Michael R. Keller, CFA, has managed since 2008 and has nine years experience.

In pursuit of this fund’s objective, the portfolio managers invest at least 80% ...

Foreign Stock Funds

Ann-Marie Mendoza — 3/26/2012 12:00:00 AM

For the year-to-date period ended February 29, 2012, the Foreign Equity objective group posted a total return of 12.8%. The international stock market environment was volatile during the fourth quarter, due in large part to unresolved debt issues in Greece. However in the first few weeks of 2012, foreign stocks, especially in the European sector, were up after the Greek government approved austerity measures to control its debt in order to receive a bailout from the European Central Bank. The rally in the market was short-lived as investors remained concerned over the affect of these severe measures on the growth of an already weak economy. Some effects of the European crisis may have spread to the Asian markets. In fact, China recently cut its target growth rate to 7.5%, since the sluggish economies of both the U.S. and Europe have reduced exports from that nation. This month, we will take a look at a few mutual funds from the foreign stock arena that may be of interest to you.

Glenmede Large Cap Growth Fund

Robert J. Adamski — 3/7/2012 12:00:00 AM

Glenmede Large Cap Growth Fund’s objective is maximum long-term total return consistent with reasonable risk to principal. The fund is managed by two portfolio managers. Vladimir de Vassal, CFA, has 29 years of investment experience, and Paul T. Sullivan, CFA, has 20 years of experience.

In pursuit of this fund’s objective, the portfolio managers invest at least 80% of the fund’s assets in approximately 50 to 90 equity securities of U.S. large-cap companies. The fund defines large-cap as those companies with market capitalizations within the range of the Russell 1000 Index, which the fund identifies with a market capitalization range of between $1.6 billion and $411 billion as of May 31, 2011. The fund may also invest in initial public offerings, or IPOs.

Messrs de Vassal and Sullivan believe that an equally weighted portfolio of large-cap growth stocks...

Wells Fargo Advantage Large Cap Growth Fund

Robert J. Adamski — 3/6/2012 12:00:00 AM

Wells Fargo Advantage Large Cap Growth Fund’s objective is long-term capital appreciation.

The fund is managed by three portfolio managers. Bruce C. Olson, CFA, has managed this fund since 2002; Thomas C. Ognar, CFA, has managed since 2005; and Joseph M. Eberhardy, CFA,CPA, has managed since 2008.

In pursuit of this fund’s objective, the portfolio managers invest at least 80% of the fund’s assets primarily in equity securities of large-capitalization companies. The fund defines large-cap as those companies with market capitalizations within the range of the Russell 1000 Index, which was recently from $526 million to $384 billion. They may also invest up to 25% of the fund’s assets in equity securities of foreign issuers, through ADRs and similar investments.

Management invests in companies that it believes have ...

Small-Cap Value Funds

Ann Marie Mendoza — 2/15/2012 12:00:00 AM

The Small-Cap Value objective group posted a total return of 6.6% for the month ended January 31, 2012. For the final quarter of 2011, small-cap stocks outpaced large-cap issues, as the Russell 2000 Index was up almost two percentage points more than the larger-cap Russell 1000 Index. Meanwhile, value stocks posted stronger gains compared to growth stocks. During much of the fourth quarter, the United States stock market looked up. Indeed, the economy grew 2.8% in the December period, up one percentage point from the third quarter. The stock market rally continued into January, 2012, but lost a bit of steam towards the end of the month. Reports of consumer confidence diminishing due to increased oil prices and continued concerns over obtaining a job (despite the unemployment rate falling to 8.3% during the month, the lowest rate in three years), as well as whether a deal will be reached to prevent Greece’s government from defaulting, helped dampen investor enthusiasm for a time. This month, we will take a look at a few mutual funds from the Small-Cap Value asset class that may be of interest to investors...

American Funds Mutual Fund

Robert J. Adamski — 2/14/2012 12:00:00 AM

American Funds Mutual Fund’s objective is growth of capital, current income, and conservation of principal.

In pursuit of this objective, the fund invests at least 80% of its assets primarily in the common stocks of companies with medium to larger market capitalizations, though it is not strictly limited to a particular capitalization size. Management seeks companies that are leaders in an industry and also have above-average dividend payment prospects. They invest primarily in securities of issuers domiciled in the U.S. and Canada.

Since the fund has growth and income objectives, management invests in equity securities that have...

Principal MidCap Blend Fund

Robert J. Adamski — 2/7/2012 12:00:00 AM

Principal MidCap Blend Fund’s objective is long-term growth of capital.

In pursuit of this objective, the fund invests at least 80% of its assets in the common stocks of companies with market capitalizations similar to those of companies in the Russell Midcap Index. As of December 31, 2011, companies in this Index had a market capitalization range of between $200 million and $21.8 billion. As of the same date, the fund’s portfolio had an average market capitalization of $8 billion.

The fund invests in equity securities that have value characteristics, growth characteristics, or a combination of both...

Small-Cap Growth Funds

Ann Marie Mendoza — 1/19/2012 12:00:00 AM

The Small-Cap Growth objective group posted a loss of -4.9% for the 12-month period through December, underperforming the Large-Cap Growth objective group by 1.7%. For much of the third quarter of 2011, many stocks, including small caps, were down due to uncertainties caused by a continuing high unemployment rate and conflicting opinions on how the European debt crisis should be dealt with. Nevertheless, the central banks, including the European Central Bank, the banks of Britain, and the U.S. Federal Reserve, agreed to ease the debt crisis by injecting liquidity into the market. This action helped the market gain traction in the final weeks of 2011. Overall, the U.S. economy continues to grow (at a slow pace). Other positive news reported in late December includes the addition of 200,000 jobs added in the private sector, showing that the labor market appears to be recovering. This month, we will take a look at a few mutual funds from the Small-Cap Growth asset class that may be of interest to you.

In the high-risk section of our highlighted funds is DWS Small Cap Growth Fund (SSDSX)...

Merger Fund

Robert J. Adamski — 1/10/2012 12:00:00 AM

Merger Fund’s objective is to provide attractive risk-adjusted returns in virtually all market environments while preserving investor capital and minimizing volatility-based risk.

In pursuit of this objective, the fund invests at least 80% of its assets in companies involved in publicly announced mergers, takeovers, tender offers, leveraged buyouts, spin-offs, liquidations, and other corporate reorganizations. In each case, the fund purchases these securities at a discount to their expected value upon completion of the transaction, and uses a variety of hedging strategies...

Vanguard Wellesley Income Fund

Robert J. Adamski — 12/29/2011 12:00:00 AM

Vanguard Wellesley Income Fund’s objective is to provide long-term growth of income, a high and sustainable level of current income, and moderate long-term capital appreciation.

In pursuit of this objective, the fund invests approximately 60% to 65% of its assets in investment-grade fixed-income securities that it believes will generate a reasonable level of current income. The remaining 35% to 40% of the fund’s assets are normally invested in common stocks of companies that have a history of above-average dividends or expectations of increasing payouts. This investment objective, while somewhat conservative in a strong bull market, can provide very good relative returns when market conditions are weaker and uncertain.

Management selects investment-grade bonds...

Large-Cap Value Funds

Ann Marie Mendoza — 12/15/2011 12:00:00 AM

For the 11-month period ended in November, the Large-Cap Value objective group posted a total return of -3.99%. During the months of September and October, the stock market gave back some of its gain as the Sovereign Debt crisis worsened. However in November, the stock market rebounded just as the financial ministers of the European Union came to an agreement to bailout Greece as long as the Greek government passed measures to control its spending. Furthermore, Italy’s new prime minister devised similar plans to tackle Italy’s debt. Also, investor confidence was further boosted by reports that the unemployment rate dropped to 8.6% in November, along with an increase in consumer spending, which was likely a result of the upcoming holiday season. This month, we will take a look at a few mutual funds from the Large-Cap Value asset class that may be of interest to you.

Fifth Third Quality Growth Fund

Robert J. Adamski — 12/1/2011 12:00:00 AM

Fifth Third Quality Growth Fund’s objective is to provide growth of capital. Income is a secondary objective.

In pursuit of this objective, the fund invests at least 65% of its assets in the common stocks of growth companies. The goal is to find those companies selling below what management believes are their intrinsic values in order to deliver an attractive return. This is a relatively focused fund, owning 68 stocks as of September 30, 2011.

Most of its assets are typically invested in the equity securities of large- and mid-cap companies. These companies are mostly...

Meridian Growth Fund

Robert J. Adamski — 12/1/2011 12:00:00 AM

Meridian Growth Fund’s objective is long-term growth of capital.

In pursuit of this objective, the fund invests primarily in a diversified portfolio of publicly traded common stocks of U.S. companies. Under normal circumstances, the fund emphasizes growth companies. It may invest in securities of companies of any capitalization across a broad range of industries. The fund may invest up to 25% of its total assets in securities of foreign companies, including those located in emerging markets. This is a relatively focused fund, owning 54 stocks as of September 30, 2011.

Most of its assets are typically invested in the equity securities of mid- and small-cap companies. The companies held in the portfolio are mostly...

Large-Cap Growth Funds

Ann Marie Mendoza — 11/11/2011 12:00:00 AM

The Large-Cap Growth objective group posted a total return of -0.85% for the year-to-date period through October 31, 2011. The beginning of the third quarter did not start well. Volatility in the market continued to worry investors as the European sovereign debt crisis worsened and the U.S. credit rating received a downgrade from AAA to AA+. Conversely, a decrease in crude oil prices and fewer supply disruptions led to upticks in both consumer and business spending. Indeed, the government reported that the economy grew at the annualized pace of 2.5% for the third quarter ended in September 30, 2011, a big leap from an annualized gain 1.3% posted for the second quarter. With this positive news, along with a bailout agreement reached to prevent Greece from defaulting on its debt, the stock market rallied in October. This is reflected in the Russell 1000 Growth Index posting a total return of nearly 11% in October, ...

Intrepid Small Cap Fund

Robert J. Adamski — 10/26/2011 12:00:00 AM

Intrepid Small Cap Fund’s objective is to seek long-term capital appreciation.

In pursuit of this objective, the fund invests at least 80% of its assets in the common stocks of small-capitalization companies. The goal is to find small-cap companies selling below what management believes are their intrinsic values in order to deliver an attractive absolute return. This is a relatively focused fund, owning 42 stocks as of June 30, 2011.

Most of its assets are typically invested in the equity securities of...

Dreyfus Appreciation Fund

Robert J. Adamski — 10/24/2011 12:00:00 AM

Dreyfus Appreciation Fund’s objective is to seek long-term capital appreciation consistent with the preservation of capital, with current income as a secondary goal.

In pursuit of this objective, the fund invests at least 80% of its assets in the common stocks of large-capitalization “market leaders” with established records of profitability. Generally, management seeks out companies with market caps that are greater than $5 billion at the time of purchase. The goal is to find companies with...

Gold/Natural Resource Funds

Ann Marie Mendoza — 10/17/2011 12:00:00 AM

During the year-to-date period through September, the Energy/Natural Resources objective group posted a loss of -23.1%. At the beginning of July, the prices of natural gas and crude oil rose but, amid fears of another recession, political unrest in the Middle East, as well as the sovereign debt crisis in Europe, the prices of these energy-related equities fell for the duration of July and into August. Natural gas prices continued to fluctuate in August and September and ended each month with a decline. On the other hand, the Precious Metals asset class performed well in July and August. Gold became a popular choice among investors looking for...

Artisan Mid Cap Value Fund

Robert J. Adamski — 10/7/2011 12:00:00 AM

Artisan Mid Cap Value Fund’s objective is maximum long-term capital growth.

In pursuit of this objective, the fund invests at least 80% of its assets in the common stocks of undervalued, medium-sized U.S. companies. Specifically, the fund will not initiate a position unless the company has a market capitalization between $2 billion and $15 billion. It is a relatively focused fund, owning between 50 and 60 stocks. The fund chooses companies that have solid...

Delaware Select Growth Fund

Robert J. Adamski — 9/30/2011 12:00:00 AM

Delaware Select Growth Fund’s objective is to seek long-term capital appreciation.

In pursuit of this objective, the fund invests at least 80% of its assets in the common stocks of companies that are expected to grow faster than the U.S. economy. It is a relatively focused fund, owning between 40 and 60 stocks. While most of its assets are typically invested in U.S. common stocks, the fund may also invest up to 20% of assets in foreign stocks in keeping with its objectives.

As of June 30, 2011, common equities comprised about 96% of the fund’s portfolio (including about 5% non-U.S. equities), with the balance, about 4%, in cash and equivalents.

In selecting stocks, management employs a disciplined...

T. Rowe Price Dividend Growth Fund

Robert J. Adamski — 9/2/2011 12:00:00 AM

T. Rowe Price Dividend Growth Fund’s objective is to provide increasing dividend income over time, long-term capital appreciation, and reasonable current income.

In pursuit of this objective, the fund invests at least 65% of its assets in the common stocks of dividend-paying companies that are expected to increase their dividends over time and also provide long-term appreciation. While most of its assets are typically invested in U.S. common stocks, the fund may also invest in foreign stocks in keeping with its objectives.

As of June 30, 2011, common equities comprised about 95% of the fund’s portfolio (about 5% non-U.S. equities), with the balance, about 5%, in cash and equivalents.

In selecting stocks, management employs a disciplined investment strategy...

Neuberger Berman Mid Cap Growth Fund

Robert J. Adamski — 8/19/2011 12:00:00 AM

Neuberger Berman Mid Cap Growth Fund’s objective is growth of capital.

In pursuit of this objective, the fund invests at least 80% of its assets in the common stocks of mid-capitalization companies, defined as those with a total market capitalization within the market-cap range of the Russell Midcap Index at the time of purchase. As of May 31, 2011, this range was from $1.6 billion to $18.2 billion.

As of June 30, 2011, common equities comprised about 96% of the fund’s portfolio (about 6% non-U.S. equities), with the balance, about 4%, in cash and equivalents. The average market capitalization of the companies in the portfolio was $7 billion.

In selecting stocks, management employs a disciplined investment strategy. Using...

Dreyfus Tax Managed Growth Fund

Robert J. Adamski — 8/4/2011 12:00:00 AM

Dreyfus Tax Managed Growth Fund’s objective is long-term capital appreciation consistent with minimizing realized capital gains and taxable current income.

In pursuit of this objective, the fund invests at least 80% of its assets in common stocks. primarily in a diversified portfolio of equity securities, focusing on “blue chip” multinational companies with market capitalizations exceeding $5 billion at the time of purchase. The fund may also invest up to 10% of assets in foreign securities in the form of U.S. dollar-denominated American Depository Receipts (ADRs).

Auxier Focus Fund

Robert J. Adamski — 8/1/2011 12:00:00 AM

Auxier Focus Fund’s objective is long-term capital appreciation.

In pursuit of this objective, the fund invests primarily in a diversified portfolio of equity securities that are considered to offer growth at a reasonable price. Management may also pursue a blend of equity securities of growth companies and value companies. Depending on the economic environment and judgment of the fund managers, it may invest in either growth or value companies to the exclusion of the other. The fund may also invest up to 20% of assets in foreign securities. It may also invest in short and long-term debt securities, and convertible-debt securities. It may invest up 25% of its assets in below investment-grade debt, and U.S. Government/Canadian Government fixed-income securities. It may also engage in short sales, though use of this tactic is limited to 20% of assets.

Domestic Bond Funds

Ann-Marie Mendoza — 7/15/2011 12:00:00 AM

For the six-month period ended June 30, 2011, the Diversified Bond objective group, a subset of the larger Domestic Bond group, posted a total return of 2.6%. Overall, U.S. Treasuries lagged during the first quarter and into the second period, as a result of improving reports about the state of the economy as well as an uptick in the inflation rate. Meanwhile, U.S. corporate bonds along with high-yield bonds received a boost from positive corporate earnings. However, as news that the economy was growing at a slower pace than expected was released and the Greek debt crisis continued to spark fears of widespread turmoil in the financial market, nervous investors flocked to safer issues, which pushed Treasury yields lower. This month, we will take a look at a few mutual funds from the Domestic Bond model portfolio that may be of interest to you.

First Eagle Fund of America

Robert J. Adamski — 7/12/2011 12:00:00 AM

First Eagle Fund of America’s objective is capital appreciation.

To pursue this objective, the fund invests at least 80% of its assets in domestic equity and debt securities. These would also include preferred stocks, convertible securities, and warrants. It may use options, repurchase agreements, and derivatives to enhance returns. The fund may invest in foreign companies. As of May 31, 2011, international stocks comprised about 5% of the fund’s assets. Also, it may invest in companies of any size market capitalization. As of May 31^st, the fund was 93% invested in large- and mid-cap stocks, with the balance in cash and small-cap stocks.

In selecting companies, the fund uses a bottom-up/event driven approach to choose...

Prudential Jennison Growth Fund

Robert J Adamski — 6/27/2011 12:00:00 AM

Prudential Jennison Growth Fund’s objective is long-term growth of capital.

To pursue this objective, under normal market conditions, the fund invests at least 65% of its assets in equity and equity-related securities of companies that exceed $1 billion in market capitalization and have above-average growth prospects. The fund may invest up to 20% of its assets in foreign securities. In addition, the fund can invest in preferred and convertible securities, American Depository Receipts, warrants, partnerships and joint ventures, and real estate investment trusts.

In selecting companies, management uses...

Emerging Markets Stock Funds

Ann-Marie Mendoza — 6/27/2011 12:00:00 AM

For the year-to-date period through May, the Emerging Markets objective group posted a total return of nearly 2.04%, underperforming the Foreign Equity peer objective group by three percentage points. At the beginning of the first quarter of 2011, emerging market performance was lackluster due to investors’ negative sentiment over the uptick in the inflation rate as well as stronger currencies. However, toward the latter part of the first quarter and into the second quarter, emerging market stocks gained and performed roughly in line with the developed markets, helped by increases in the prices of oil and other commodities. This month, we will take a look at a few mutual funds from the Emerging Market model portfolio that may be of interest to you.

Reynolds Blue Chip Growth Fund

Robert J. Adamski — 6/1/2011 12:00:00 AM

Reynolds Blue Chip Growth Fund’s objective is long-term capital appreciation.

To pursue this objective, the fund invests at least 80% of its assets in common stocks of growth companies. Management seeks out companies that are well established in their industries and have a minimum market capitalization of $1 billion. The fund may invest in both domestic and foreign companies, with the latter generally being purchased through American Depositary Receipts, which are dollar-denominated securities of foreign issuers traded in the U.S.

In selecting companies, management bases investment decisions on company-specific

Dreyfus Research Growth Fund

Robert J. Adamski — 5/17/2011 12:00:00 AM

Dreyfus Research Growth Fund’s objective is long-term capital growth consistent with the preservation of capital. Current income is a secondary goal.

To pursue these objectives, under normal market conditions, the fund invests at least 80% of its assets in common stocks. The fund may invest up to 25% of its assets in foreign securities.

In selecting companies, management uses a fundamental, bottom-up research process to identify investments for the fund.

Foreign Stock Funds

Ann-Marie Mendoza — 5/16/2011 12:00:00 AM

For the four-month period ended April 30, 2011, the Foreign Equity objective group posted a total return of 7.7%, up by five percentage points from the previous month. Overall, foreign stocks performed well in the first quarter of the 2011. Much of this success was driven by reports of improving economic conditions as well as strong corporate earnings. The performance of foreign stocks had a slight reversal of fortune in March due to the earthquake that hit Japan, though the performance of stocks bounced back by the end of the quarter. This month, we will take a look at a few mutual funds from the Foreign Stock model portfolio short list that may be of interest to you.

Ivy Core Equity Fund

Robert J. Adamski — 5/13/2011 12:00:00 AM

Ivy Core Equity Fund’s objective is capital growth and income.

To achieve this objective, under normal market conditions, the fund invests at least 80% of its assets in equity securities, primarily in common stocks of large-cap companies with dominant market positions in their industries. The fund defines large-cap as companies with market capitalizations of at least $10 billion.

In selecting companies, the fund uses a “top-down” perspective to identify trends that would point to...

Lord Abbett Growth Opportunities Fund

Robert J. Adamski — 5/2/2011 12:00:00 AM

Lord Abbett Growth Opportunities Fund’s objective is capital appreciation.

To achieve this objective, under normal market conditions, the fund invests at least 65% of its assets in equity securities of mid-sized companies. The fund follows a growth style of investing and favors companies that show the potential for strong revenue and earnings growth. The fund invests predominately in domestic common stocks, although it may also invest in foreign, including emerging market, companies. It may also own preferred stocks, convertible securities, equity interests in trusts (including real estate investment trusts), partnerships, joint ventures, and limited liability companies. It may also use options and other derivatives...

Small Cap Value Funds

Ann-Marie Mendoza — 4/14/2011 12:00:00 AM

During the start of the new year, the economy continued to show signs of a recovery with the unemployment rate falling to 8.8%, a two-year low. It was reported that 216,000 jobs were added in March. Furthermore, companies continued to post gains in the first quarter, and consumer confidence appears to be improving. However, the market still remains fragile as the inflation rate increases and news of the turmoil in the Middle East caused investors to be jittery, which led to a slight downturn during the end of the quarter. Small companies fared particularly well compared to larger firms, as reflected by the total returns of the Russell 2000 Value Index outperforming the Russell 1000 Value Index by just over 1% both in February and in March. This month, we will take a look at a few mutual funds from the Small-Cap Value realm.

Franklin Small-Mid Cap Growth Fund

Robert J. Adamski — 4/8/2011 12:00:00 AM

Franklin Small-Mid Cap Growth Fund’s objective is long-term capital growth.

To achieve this objective, under normal market conditions, the fund invests at least 80% of its assets in equity securities of small-cap and mid-cap companies. For this fund, small cap companies are those within the market cap range of companies in the Russell 2500 Index. As of May 31, 2010, the market caps in this index ranged from $112 million to $5.3 billion. Mid-cap companies are those within the market cap range of companies in the Russell Midcap Index. As of May 31, 2010, the market caps in this index ranged from

Fidelity New Millennium Fund

Robert J. Adamski — 3/22/2011 12:00:00 AM

Fidelity New Millennium Fund’s objective is capital appreciation.

To achieve this objective, under normal market conditions, the fund invests at least 80% of its assets in common stocks. It may invest in securities of foreign issuers in addition to domestic issuers. In addition to common stocks, the fund may own preferred and convertible securities, as well as warrants, futures contracts, and exchange traded funds to increase returns and possibly hedge the portfolio.

In selecting stocks for the fund, management seeks to identify

Small Cap Growth Funds

Ann-Marie Mendoza — 3/14/2011 12:00:00 AM

Overall, the equity market continues to improve at a steady pace. Indeed, the unemployment rate dropped to 8.9% in February, the lowest since April 2009. It was reported that about 222,000 jobs in the private sector were added, a sign that companies have positive sentiment over the state of the economy. Furthermore, orders to manufacturers increased 3.1% in January. For the year-to-date period through December 2010, the Small-Cap Growth peer objective group posted a total return of 27 percentage points. During much of the fourth quarter, growth stocks’ performance was ahead of value stocks, as reflected when the Small-Cap Growth peer objective group outperformed the Small-Cap Value peer objective group by three percentage points. This month, we will take a look at a few mutual funds from the Small-Cap Growth model portfolio.

Blackrock US Opportunities Fund

Robert J. Adamski — 3/9/2011 12:00:00 AM

BlackRock US Opportunities Fund’s objective is to provide long-term capital appreciation.

To achieve this objective, under normal market conditions, the fund invests at least 80% of its assets in the equity securities of emerging capitalization companies, further defined as within the universe of the Russell Midcap Index. As of September 30, 2010, the median market cap of the portfolio was about $5 billion.

In selecting stocks for the fund, management seeks a diversified portfolio, primarily U.S. companies, that management believes have relatively attractive earnings growth potential as well as

Eagle Mid Cap Growth Fund

Robert J. Adamski — 2/1/2011 12:00:00 AM

Eagle Mid Cap Growth Fund’s objective is long-term capital appreciation.

To achieve this objective, under normal market conditions, the fund invests at least 80% of its assets in the equity securities of mid-capitalization companies. The fund’s portfolio managers consider mid-cap companies to be those that have market capitalizations that fall within the range of companies included in the Russell Midcap Growth Index. The range of market capitalizations within this index was between $37 million and $16.4 billion as of December 31, 2009. This is a very wide range, however,

Large Cap Growth Funds

Ann-Marie Mendoza — 1/12/2011 12:00:00 AM

After suffering through a second quarter correction, the stock market recovered in the final half of 2010. Much of its success was helped by the Fed’s decision to keep key interest rates low in order to stimulate the economy. Thus far, the economy continues to show signs of growth (although at a slow pace) with the manufacturing sector posting a 0.7% increase in orders in November. Furthermore, the unemployment rate fell to 9.4% in December. For the 11-month period through November, the Large-Cap Growth peer objective group posted a total return of 8.7%. The peer objective group outperformed the Large-Cap Value by almost four percentage points for the same period.

BlackRock Capital Appreciation Fund

Robert J. Adamski — 1/10/2011 12:00:00 AM

BlackRock Capital Appreciation Fund’s objective is to provide long-term growth of capital. To achieve this objective, the fund normally invests at least 65% of its assets in equity securities of companies that are considered to be medium to large cap at the time it makes its investment. Management defines a market cap of $2 billion or more as meeting this criteria.

In selecting stocks for the fund, management seeks a diversified portfolio

Buffalo Growth Fund

Robert J. Adamski — 1/4/2011 12:00:00 AM

Buffalo Growth Fund’s objective is long-term growth of capital. The fund normally invests its assets in domestic common stocks, preferred stocks, convertible securities, warrants and rights, of companies of any size. The fund may invest up to 25% of its assets in securities of foreign companies that are traded on U.S. stock exchanges.

In selecting stocks for the fund, management seeks a broad mix of companies across many industries that are expected to benefit

T. Rowe Price Small-Cap Stock Fund

Robert J. Adamski — 12/9/2010 12:00:00 AM

T. Rowe Price Small-Cap Stock Fund’s objective is to provide long-term capital growth.

The fund normally invests at least 80% of its assets in stocks of small companies. The fund defines a small company as one whose market capitalization falls within or below the current range of companies in either the Russell 2000 Index or the S&P Small-Cap Index, or below the three-year average maximum market cap of companies in either index as of December 31 of the three preceding years. The fund will not automatically sell or cease to purchase stock of a company it already owns just because a company’s market cap falls outside a previously targeted range.

Ave Maria Rising Dividend Fund

Robert J. Adamski — 11/9/2010 12:00:00 AM

Ave Maria Rising Dividend Fund’s objective is to provide increasing dividend income over time, long-term growth of capital, and a reasonable level of current income.

The fund normally invests at least 80% of its assets in the common stocks of dividend-paying companies that are expected to increase their payouts over time. This strategy also is expected to provide long-term growth of capital. Normally, all of the fund’s investments include common stocks, preferred stocks, and securities convertible into common stock. It may also invest in companies of all sizes.

Fidelity Contrafund

Robert J. Adamski — 10/11/2010 12:00:00 AM

Fidelity Contrafund’s objective is capital appreciation.

The fund seeks to achieve this objective by normally investing in a portfolio of common stocks. The companies in which the fund invests may include those whose value it believes is not fully recognized by investors. These include companies experiencing positive fundamental change, such as a new management team or product launch, a significant cost-cutting initiative, or merger/acquisition. Other companies may include those whose earnings potential has increased more than generally perceived, or those that have fallen temporarily out of favor for reasons that are considered non-recurring

Artisan Mid Cap Fund

Robert J. Adamski — 9/9/2010 12:00:00 AM

Artisan Mid Cap Fund’s objective is maximum long-term capital growth.

The fund seeks to achieve this objective by investing in a diversified portfolio of U.S. mid-cap growth companies. It employs a bottom-up investment process to construct a diversified mid-cap portfolio. This bottom-up process attempts to identify companies that possess characteristics that help protect a company’s stream of cash flow from the effects of competition. Often, these companies have low-cost production capability, dominant market share, or a strong brand name. The fund determines what a buyer would pay to buy the entire company, then determines at what discount to this value it would consider buying the shares.