YCG Enhanced Fund
Fund
YCGEX
Price as of:
$29.65
- $0.02
- 0.07%
Primary Theme
fund company
Name
As of 04/19/2024Price
Aum/Mkt Cap
YIELD
Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.
Exp Ratio
Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.
Watchlist
Vitals
YTD Return
2.9%
1 yr return
17.3%
3 Yr Avg Return
6.7%
5 Yr Avg Return
12.3%
Net Assets
$548 M
Holdings in Top 10
48.9%
52 WEEK LOW AND HIGH
$29.7
N/A
N/A
Expenses
OPERATING FEES
Expense Ratio 1.19%
SALES FEES
Front Load N/A
Deferred Load N/A
TRADING FEES
Turnover 18.00%
Redemption Fee 2.00%
Min Investment
Standard (Taxable)
$2,500
IRA
$1,000
Fund Classification
Fund Type
Open End Mutual Fund
Name
As of 04/19/2024Price
Aum/Mkt Cap
YIELD
Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.
Exp Ratio
Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.
Watchlist
YCGEX - Profile
Distributions
- YTD Total Return 2.9%
- 3 Yr Annualized Total Return 6.7%
- 5 Yr Annualized Total Return 12.3%
- Capital Gain Distribution Frequency Annually
- Net Income Ratio -0.34%
- Dividend Yield 0.0%
- Dividend Distribution Frequency Annual
Fund Details
-
Legal NameYCG Enhanced Fund
-
Fund Family NameYCG FUNDS
-
Inception DateDec 28, 2012
-
Shares Outstanding18823731
-
Share ClassR
-
CurrencyUSD
-
Domiciled CountryUS
-
ManagerBrian Yacktman
Fund Description
The Fund invests primarily in equity securities without regard to market capitalization that the Adviser believes will produce high, risk-adjusted, forward rates of return (i.e., the long-term annualized return that the Adviser believes a given security can achieve when purchased at the current market price). The Adviser believes the key is to invest in businesses that can compound capital at high rates of return for long periods of time. Businesses with this capability are extremely rare because competition and innovation drive down real pricing to the cost of capital, leaving little excess returns for investors. Therefore, the Adviser pays particular attention to identifying businesses with enduring pricing power, which the Adviser views as the single most important characteristic on which to focus.
The Adviser utilizes a proprietary framework to identify these rare businesses, which tend to possess the following characteristics:
Global Champions
•Deeply entrenched in the economic system
•Globally-networked brand or service
•Geographically-diverse revenue streams
•High market share
Enduring Pricing Power
•Ability to charge a large premium for products or services that are virtually identical to those of their competitors and maintain or grow that premium for decades while maintaining volume growth
•Capability to overcome deflationary pricing that comes as a result of competition and innovation
•Prefer global network economics where the value scales exponentially as the network grows
•More immune to disruption due to slow changing industry and/or difficult to replicate competitive advantages
Long-Term Volume Growth Opportunities
•Long runway of reinvestment at high rates of return
•Benefits from the growth in the global middle and upper classes
•Benefits from urbanization
•Pricing power combined with volume growth means they will be indexed to GDP growth or better
Ownership-Minded Management Team
•High family, founder, or other insider ownership
•History of treating minority owners fairly
•History of wise capital allocation decisions
•Proven track record of ignoring short-term Wall Street pressures
•Focus on aligning employee incentives with owners (principal-agent problem)
Conservatively Capitalized
•Can survive or even thrive in a deep recession
•Possess financial flexibility to fend off new and existing competitors
•Prefer businesses with high returns on tangible assets (thus not requiring leverage)
The Adviser then strives to construct a portfolio of these sustainably high returning businesses that the Adviser believes is both attractively priced and diversified across multiple dimensions including macroeconomic sensitivity, product category, and geography. The Adviser hopes to benefit from the superior economics of these businesses for many years to come.
Portfolio Construction
The Adviser believes that holding a relatively small number of stocks allows its “best ideas” to have a meaningful impact on the Fund’s performance. Therefore, the Fund is non-diversified and will hold fewer stocks than the typical stock mutual fund. The Adviser may invest more in its top choices than in investments it thinks are less attractive. At times, depending on market and other conditions, and in the sole discretion of the Adviser, the Fund may invest a substantial portion of its assets in a small number of issuers, business sectors or industries. Generally, the Fund will hold between 15 to 50 securities, not including options.
The Adviser may buy companies of any size market capitalization. If all else is equal, it prefers larger companies to smaller companies with regards to market capitalization.
The Adviser seeks to enhance the Fund's returns primarily through the sale of cash secured puts and covered calls. Thus, the Fund may write options on a portion of the Fund’s long equity portfolio as a means to generate additional income and to tax-efficiently enter and exit positions. The Fund will not use this strategy as a means of generating implicit leverage. In other words, if all put options were to be exercised, the Fund will generally have enough cash on hand to purchase the assigned shares. While the Adviser seeks to augment returns primarily through the sale of puts and covered calls, this “option enhancement” component may involve additional options strategies.
The Fund may invest up to 50% of its assets in foreign equity securities, including securities of companies located in emerging markets. The Adviser defines foreign equity securities as equity securities of issuers listed on non-U.S. exchanges. This 50% limit does not apply to investments in the form of American Depositary Receipts (“ADRs”) or any security of a foreign company that is listed and trades on a U.S. exchange. The Fund may, from time to time, have significant exposure to one or more sectors of the market. As of November 30, 2023, 30% of the Fund’s net assets were invested in securities of issuers within the financial services sector.
The Fund’s investments in debt securities may include U.S. Treasury notes and bonds, investment grade corporate debt securities, convertible debt securities, debt securities below investment grade (high yield or junk bonds), and foreign debt securities. The Fund may invest up to 20% of its assets in such debt securities, all of which may be in “junk” bonds, i.e., debt securities that are not investment grade securities. These types of bonds carry greater risk.
The Adviser generally sells securities of companies when the expected rate of return becomes inadequate, or if it believes there are better investment opportunities available, or if the securities no longer meet its investment criteria. The Adviser may write call options on specific stocks to exit a position or decrease its size. The Adviser will only write call options if it is willing to sell the stock at the exercise price.
YCGEX - Performance
Return Ranking - Trailing
| Period | YCGEX Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| YTD | 2.9% | -3.6% | 10.2% | 80.08% |
| 1 Yr | 17.3% | 0.0% | 41.3% | 74.52% |
| 3 Yr | 6.7%* | -13.3% | 53.2% | 47.97% |
| 5 Yr | 12.3%* | -9.7% | 105.9% | 41.19% |
| 10 Yr | 12.1%* | -0.3% | 20.3% | 16.02% |
* Annualized
Return Ranking - Calendar
| Period | YCGEX Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| 2023 | 27.6% | -42.6% | 47.4% | 4.87% |
| 2022 | -22.4% | -56.3% | -4.2% | 59.54% |
| 2021 | 16.1% | -27.2% | 53.7% | 54.93% |
| 2020 | 17.3% | -36.2% | 2181.7% | 21.42% |
| 2019 | 40.4% | -22.7% | 40.4% | 0.09% |
Total Return Ranking - Trailing
| Period | YCGEX Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| YTD | 2.9% | -3.6% | 10.2% | 80.08% |
| 1 Yr | 17.3% | 0.0% | 41.3% | 74.52% |
| 3 Yr | 6.7%* | -13.3% | 53.2% | 47.97% |
| 5 Yr | 12.3%* | -9.7% | 105.9% | 41.19% |
| 10 Yr | 12.1%* | -0.3% | 20.3% | 16.02% |
* Annualized
Total Return Ranking - Calendar
| Period | YCGEX Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| 2023 | 30.2% | -5.0% | 47.4% | 5.75% |
| 2022 | -22.4% | -36.8% | -2.2% | 92.87% |
| 2021 | 27.1% | 3.0% | 124.3% | 44.50% |
| 2020 | 17.3% | -15.8% | 2266.0% | 50.13% |
| 2019 | 41.2% | -0.4% | 241.3% | 0.53% |
NAV & Total Return History
YCGEX - Holdings
Concentration Analysis
| YCGEX | Category Low | Category High | YCGEX % Rank | |
|---|---|---|---|---|
| Net Assets | 548 M | 2.34 M | 1.55 T | 63.11% |
| Number of Holdings | 46 | 1 | 4053 | 84.46% |
| Net Assets in Top 10 | 250 M | 885 K | 387 B | 59.81% |
| Weighting of Top 10 | 48.89% | 0.3% | 112.0% | 9.85% |
Top 10 Holdings
- Microsoft Corp 7.19%
- Mastercard Inc 5.58%
- Amazon.com Inc 5.55%
- Moody's Corp 5.35%
- Copart Inc 4.75%
- Alphabet Inc 4.40%
- MSCI Inc 4.27%
- Verisk Analytics Inc 4.05%
- Aon PLC 3.93%
- Marsh McLennan Cos Inc 3.83%
Asset Allocation
| Weighting | Return Low | Return High | YCGEX % Rank | |
|---|---|---|---|---|
| Stocks | 98.54% | 0.00% | 124.03% | 60.28% |
| Cash | 0.84% | 0.00% | 99.06% | 59.18% |
| Bonds | 0.66% | -0.50% | 93.78% | 3.45% |
| Preferred Stocks | 0.00% | 0.00% | 2.38% | 97.49% |
| Convertible Bonds | 0.00% | 0.00% | 5.54% | 97.48% |
| Other | -0.04% | -13.91% | 100.00% | 99.37% |
Stock Sector Breakdown
| Weighting | Return Low | Return High | YCGEX % Rank | |
|---|---|---|---|---|
| Financial Services | 35.52% | 0.00% | 55.59% | 1.04% |
| Consumer Cyclical | 21.04% | 0.00% | 30.33% | 1.28% |
| Technology | 11.93% | 0.00% | 48.94% | 94.09% |
| Consumer Defense | 11.87% | 0.00% | 47.71% | 6.79% |
| Communication Services | 9.26% | 0.00% | 27.94% | 29.79% |
| Real Estate | 6.49% | 0.00% | 31.91% | 3.67% |
| Industrials | 3.89% | 0.00% | 29.90% | 98.24% |
| Utilities | 0.00% | 0.00% | 20.91% | 99.76% |
| Healthcare | 0.00% | 0.00% | 60.70% | 100.00% |
| Energy | 0.00% | 0.00% | 41.64% | 99.52% |
| Basic Materials | 0.00% | 0.00% | 25.70% | 99.92% |
Stock Geographic Breakdown
| Weighting | Return Low | Return High | YCGEX % Rank | |
|---|---|---|---|---|
| US | 92.19% | 0.00% | 124.03% | 87.13% |
| Non US | 6.35% | 0.00% | 62.81% | 5.97% |
Bond Sector Breakdown
| Weighting | Return Low | Return High | YCGEX % Rank | |
|---|---|---|---|---|
| Government | 35.11% | 0.00% | 100.00% | 1.23% |
| Cash & Equivalents | 0.00% | 0.00% | 100.00% | 99.76% |
| Securitized | 0.00% | 0.00% | 52.16% | 98.52% |
| Corporate | 0.00% | 0.00% | 100.00% | 98.52% |
| Municipal | 0.00% | 0.00% | 2.10% | 98.52% |
| Derivative | -0.04% | -3.07% | 18.04% | 99.45% |
Bond Geographic Breakdown
| Weighting | Return Low | Return High | YCGEX % Rank | |
|---|---|---|---|---|
| US | 0.66% | -0.50% | 93.78% | 3.45% |
| Non US | 0.00% | 0.00% | 10.46% | 97.41% |
YCGEX - Expenses
Operational Fees
| YCGEX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Expense Ratio | 1.19% | 0.01% | 16.07% | 26.62% |
| Management Fee | 1.00% | 0.00% | 1.89% | 98.66% |
| 12b-1 Fee | N/A | 0.00% | 1.00% | 20.66% |
| Administrative Fee | N/A | 0.00% | 0.85% | N/A |
Sales Fees
| YCGEX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Front Load | N/A | 1.00% | 5.75% | N/A |
| Deferred Load | N/A | 1.00% | 5.00% | N/A |
Trading Fees
| YCGEX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Max Redemption Fee | 2.00% | 0.25% | 2.00% | 60.87% |
Related Fees
Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.
| YCGEX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Turnover | 18.00% | 0.00% | 496.00% | 40.48% |
YCGEX - Distributions
Dividend Yield Analysis
| YCGEX | Category Low | Category High | YCGEX % Rank | |
|---|---|---|---|---|
| Dividend Yield | 0.00% | 0.00% | 26.27% | 99.84% |
Dividend Distribution Analysis
| YCGEX | Category Low | Category High | Category Mod | |
|---|---|---|---|---|
| Dividend Distribution Frequency | Annual | Annually | SemiAnnual | Annually |
Net Income Ratio Analysis
| YCGEX | Category Low | Category High | YCGEX % Rank | |
|---|---|---|---|---|
| Net Income Ratio | -0.34% | -54.00% | 6.06% | 92.31% |
Capital Gain Distribution Analysis
| YCGEX | Category Low | Category High | Capital Mode | |
|---|---|---|---|---|
| Capital Gain Distribution Frequency | Annually | Annually | Annually | Annually |
Distributions History
| Date | Amount | Type |
|---|---|---|
| Dec 15, 2021 | $2.760 | OrdinaryDividend |
| Dec 20, 2018 | $0.060 | OrdinaryDividend |
| Dec 21, 2017 | $0.069 | OrdinaryDividend |
| Dec 29, 2016 | $0.078 | OrdinaryDividend |
| Dec 30, 2015 | $0.056 | OrdinaryDividend |
| Dec 30, 2014 | $0.059 | OrdinaryDividend |
YCGEX - Fund Manager Analysis
Managers
Brian Yacktman
Start Date
Tenure
Tenure Rank
Dec 28, 2012
9.43
9.4%
Brian founded YCG, LLC in 2007. He is the President and Chief Investment Officer and serves as Portfolio Manager for the YCG Enhanced Fund. Prior to foundingYCG, Brian was an Associate at Yacktman Asset Management, the adviser to The Yacktman Funds. He joined them in June 2004 from Brigham Young University where he graduated cum laude with a B.S. in economics and an M.B.A with an emphasis in finance.
Elliott Savage
Start Date
Tenure
Tenure Rank
Dec 28, 2012
9.43
9.4%
Elliott is Portfolio Manager of the YCG Enhanced Fund. He joined YCG, LLC as partner in 2012. Prior to joining the firm, Elliott was a Senior Analyst at Highside Capital Management, a long/short equity hedge fund located in Dallas, Texas. Before Highside, Elliott worked as an investment banker in the Global Chemicals Group at Salomon Smith Barney in New York. Elliott graduated with distinction from the University of Virginia with B.A.s in both economics and cognitive science and a minor in biology.
Tenure Analysis
| Category Low | Category High | Category Average | Category Mode |
|---|---|---|---|
| 0.04 | 39.02 | 7.23 | 2.42 |