The Yacktman Fund (MUTF: YACKX) is a big value, growth and income fund that seeks long-term capital appreciation and a little bit of regular income for mutual fund investors. Yacktman invests in a wide variety of domestic and foreign common stock, government notes, and corporate bonds.
The Yacktman fund, though diverse in holdings and mildly focused on income, best appeals to aggressive growth investors seeking longer-term gains that beat the market.
Here are the specifics for the Yacktman Fund for today’s mutual funds spotlight:
Investing Strategy: The Yacktman Fund targets companies of any size and business focus. When advisors purchase stock they target companies with one or more of the following three attributes: good business fundamentals, shareholder-oriented management, and a low share price. There’s no restriction on the amount of shares the fund may buy in any one security type or sector, and for that reason, the fund’s holdings often are not diversified. The makeup right now is 87.5% of the fund’s assets invested in common stocks and 12.5% is in cash.
Expense Ratio: With a 0.93% expense ratio the Yacktman Fund is relatively cheap compared to other funds in the category, even with a $75 transaction fee. It also has earned a Morningstar rating of 5 stars.
Top 5 Holdings: The top stocks in the Yacktman Fund include global media giant News Corporation A (NASDAQ: NWS) at 11.14%, PepsiCo, Inc. (NYSE: PEP) at 10.53%, consumer goods manufacturer Procter & Gamble Company (NYSE: PG) at 4.97% , software giant Microsoft Corporation (NASDAQ: MSFT) at 4.92%, and soft drink giant Coca-Cola Company (NYSE: KO) at 4.70%.
Returns: The fund’s 12-month return of 20.3% underperformed the broader marker’s 25% return over the same period. However, its 5-year return of 19.6% return outperformed the Dow Jones Industrial Average’s 13% 5-year performance, and was more than three-times better than the S&P 500’s near 6% return during the period.
Other Fund Statistics
- Total Assets: $5 Billion (as of 5/19/11)
- Minimum Investment: $2,500
- Fund manager: Donald A. Yacktman, Stephen Yacktman, and Jason Subotky
- Manager’s Tenure: Since July 1992, December 2002 and December 2009, respectively.
