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Trending: Three Top Performing Conservative Allocation Funds

calculated risk
MutualFunds.com analyzes the search patterns of our visitors every two weeks to find the top trending funds. By sharing these trends with our readers, we hope to provide insights into what the financial world is concerned about and how to position your portfolio.

First, we select the top trending category from more than 200 categories listed on MutualFunds.com based on the percentage increase in monthly viewership. Then we choose the top three funds with the highest one-year trailing total returns from the top trending category. To ensure a fund’s quality and staying power, we only look at mutual funds with a minimum of $250 million in assets and a track record of at least three years. We also remove mutual funds closed to new investors and not available for investment outside registered accounts such as retirement or 529s.

In this edition, we take a closer look at trending Conservative Allocation Funds for investors.

Rising inflation rates have many retirees concerned about their current income, as consumer prices posted their biggest annual gains in 31 years last month. Conservative allocation funds offer retirees and other income-focused investors an opportunity to grow income without resorting exclusively to bonds or chasing dividend stocks. Rather, these funds hold a mix of about three-quarters bonds and one-quarter equities.

Our breakdown of each fund includes vital aspects, such as one-year performance, performance from inception, fund expenses, investment strategy, and the fund’s management team’s profile, to give you an overview of how these funds hold up against their peers.

Be sure to check out the Conservative Allocation Funds page to learn more.

Trending Funds

1. Wells Fargo Diversification Income Builder Fund (EKSAX)

The number one fund on this week’s list is the Wells Fargo Diversification Income Builder Fund (EKSAX). It provided an exceptional trailing one-year total return of 11.08% with a 0.85% expense ratio and 3.68% yield, making it the highest yielding fund on the list.

The fund focuses on uncovering sustainable income opportunities among equity, fixed income, and hybrid asset classes. Meanwhile, the fund’s managers use a risk-budgeting framework to meet income, risk, total return, and liquidity objectives.

The fund is managed by Margaret Patel and Kandarp Acharya, who have an average tenure of about nine years. Ms. Patel has nearly 50 years of industry experience and 14 years in strategy, and regularly appears on CNBC, Bloomberg, Fox Business News, and various publications.

The fund’s portfolio holds 54% of its portfolio in fixed income and 35% in U.S. and non-U.S. equities. The fixed-income portfolio consists primarily of corporate BB-rated bonds with a yield-to-maturity of 4.29%. Meanwhile, the equity portfolio has a large-cap value tilt with an average price-earnings ratio of 14x and an average market cap of $75 billion.

Want to know more about portfolio rebalancing? Click here.

EKSAX
 

Source: BarChart.com

2. Chartwell Income Fund (BERIX)

The Chartwell Income Fund (BERIX) comes in second place. It generated a one-year trailing return of 10.91% with a 0.65% expense ratio and a 2.47% yield, making it the least expensive fund on the list.

The fund focuses on a value-oriented security selection process with up to 30% of its portfolio in dividend-paying stocks. On the equity side, the fund managers employ a bottom-up approach to identify value-focused mid-cap companies. The bond managers also use fundamental analysis to reduce downside risk by holding higher-quality companies.

The fund is managed by a team of seven, including Jeffrey Bilsky, Thomas Coughlin, David Dalrymple, T. Ryan Harkins, Andrew Toburen, John Hopkins, and Christine Williams. The group stepped in after the previous managers, George Cipolloni and Mark Saylor, unexpectedly resigned in February 2019, so their average tenure is just over two years.

The equity portfolio focuses on large-cap value stocks that pay a dividend yield. Meanwhile, the bond portfolio consists of 47% AAA securities, 17% BB securities, and 11% B securities with an average yield to maturity of 3.08%.

Find funds suitable for your portfolio using our free Fund Screener.

BERIX
 

Source: BarChart.com

3. Columbia Income Builder Fund (RBBAX)

The Columbia Income Builder Fund (RBBAX) rounds out the list. It has a one-year trailing return of 9.69% with a 0.97% expense ratio and 2.99% yield, making it the most expensive fund on the list.

The fund focuses on high current income and capital growth by investing in a diversified collection of asset classes. In particular, the fund looks at fixed income, dividend-paying stocks, REITs, convertibles, and alternative investments. The managers aim to maintain purchasing power by growing the net asset value above the inflation rate while using a dimmer-switch approach to make tactical asset allocation decisions.

The fund is managed by Gene Tannuzzo, CFA, and Alexandre Christensen, CFA. While Mr. Christensen joined this year, Mr. Tannuzzo has been with the fund for more than 11 years. Mr. Tannuzzo was previously a member of the municipal bond team and now leads the fixed income asset allocation committee and serves as lead portfolio manager for Strategic Income and Income Builder strategies at the firm.

The fund’s portfolio holds about 75% fixed income and 15% U.S. equities. The equity portfolio consists of large- to mid-cap value stocks with an average dividend yield of 2.47%. Meanwhile, the fixed income portfolio holds bonds with an average credit rating of BB and a yield to maturity of 3.01%. In addition to corporate bonds, the portfolio also includes securitized investments.

Learn more about different Portfolio Management concepts here.

RBBAX
 

Source: BarChart.com

The Bottom Line

Conservative allocation funds offer retirees and other income-focused investors an opportunity to boost their current income without exclusively investing in fixed income. Along with attractive yields, they provide a diversified source of income that may be more resistant to shocks than a bond-only or equity-only portfolio.

Want to generate high income without undertaking too much risk? Check out our complete list of Best High Yield Stocks.

Note: Data as of November 11, 2021.


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Receive email updates about best performers, news, CE accredited webcasts and more.

Popular Articles

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Find out why $30 trillon is invested in mutual funds.

Why 30 trillion is invested in mutual funds book

Why 30 trillion is invested in mutual funds book

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Find out why $30 trillon is invested in mutual funds.

Why 30 trillion is invested in mutual funds book

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Find out why $30 trillon is invested in mutual funds.


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calculated risk

Trending: Three Top Performing Conservative Allocation Funds

MutualFunds.com analyzes the search patterns of our visitors every two weeks to find the top trending funds. By sharing these trends with our readers, we hope to provide insights into what the financial world is concerned about and how to position your portfolio.

First, we select the top trending category from more than 200 categories listed on MutualFunds.com based on the percentage increase in monthly viewership. Then we choose the top three funds with the highest one-year trailing total returns from the top trending category. To ensure a fund’s quality and staying power, we only look at mutual funds with a minimum of $250 million in assets and a track record of at least three years. We also remove mutual funds closed to new investors and not available for investment outside registered accounts such as retirement or 529s.

In this edition, we take a closer look at trending Conservative Allocation Funds for investors.

Rising inflation rates have many retirees concerned about their current income, as consumer prices posted their biggest annual gains in 31 years last month. Conservative allocation funds offer retirees and other income-focused investors an opportunity to grow income without resorting exclusively to bonds or chasing dividend stocks. Rather, these funds hold a mix of about three-quarters bonds and one-quarter equities.

Our breakdown of each fund includes vital aspects, such as one-year performance, performance from inception, fund expenses, investment strategy, and the fund’s management team’s profile, to give you an overview of how these funds hold up against their peers.

Be sure to check out the Conservative Allocation Funds page to learn more.

Trending Funds

1. Wells Fargo Diversification Income Builder Fund (EKSAX)

The number one fund on this week’s list is the Wells Fargo Diversification Income Builder Fund (EKSAX). It provided an exceptional trailing one-year total return of 11.08% with a 0.85% expense ratio and 3.68% yield, making it the highest yielding fund on the list.

The fund focuses on uncovering sustainable income opportunities among equity, fixed income, and hybrid asset classes. Meanwhile, the fund’s managers use a risk-budgeting framework to meet income, risk, total return, and liquidity objectives.

The fund is managed by Margaret Patel and Kandarp Acharya, who have an average tenure of about nine years. Ms. Patel has nearly 50 years of industry experience and 14 years in strategy, and regularly appears on CNBC, Bloomberg, Fox Business News, and various publications.

The fund’s portfolio holds 54% of its portfolio in fixed income and 35% in U.S. and non-U.S. equities. The fixed-income portfolio consists primarily of corporate BB-rated bonds with a yield-to-maturity of 4.29%. Meanwhile, the equity portfolio has a large-cap value tilt with an average price-earnings ratio of 14x and an average market cap of $75 billion.

Want to know more about portfolio rebalancing? Click here.

EKSAX
 

Source: BarChart.com

2. Chartwell Income Fund (BERIX)

The Chartwell Income Fund (BERIX) comes in second place. It generated a one-year trailing return of 10.91% with a 0.65% expense ratio and a 2.47% yield, making it the least expensive fund on the list.

The fund focuses on a value-oriented security selection process with up to 30% of its portfolio in dividend-paying stocks. On the equity side, the fund managers employ a bottom-up approach to identify value-focused mid-cap companies. The bond managers also use fundamental analysis to reduce downside risk by holding higher-quality companies.

The fund is managed by a team of seven, including Jeffrey Bilsky, Thomas Coughlin, David Dalrymple, T. Ryan Harkins, Andrew Toburen, John Hopkins, and Christine Williams. The group stepped in after the previous managers, George Cipolloni and Mark Saylor, unexpectedly resigned in February 2019, so their average tenure is just over two years.

The equity portfolio focuses on large-cap value stocks that pay a dividend yield. Meanwhile, the bond portfolio consists of 47% AAA securities, 17% BB securities, and 11% B securities with an average yield to maturity of 3.08%.

Find funds suitable for your portfolio using our free Fund Screener.

BERIX
 

Source: BarChart.com

3. Columbia Income Builder Fund (RBBAX)

The Columbia Income Builder Fund (RBBAX) rounds out the list. It has a one-year trailing return of 9.69% with a 0.97% expense ratio and 2.99% yield, making it the most expensive fund on the list.

The fund focuses on high current income and capital growth by investing in a diversified collection of asset classes. In particular, the fund looks at fixed income, dividend-paying stocks, REITs, convertibles, and alternative investments. The managers aim to maintain purchasing power by growing the net asset value above the inflation rate while using a dimmer-switch approach to make tactical asset allocation decisions.

The fund is managed by Gene Tannuzzo, CFA, and Alexandre Christensen, CFA. While Mr. Christensen joined this year, Mr. Tannuzzo has been with the fund for more than 11 years. Mr. Tannuzzo was previously a member of the municipal bond team and now leads the fixed income asset allocation committee and serves as lead portfolio manager for Strategic Income and Income Builder strategies at the firm.

The fund’s portfolio holds about 75% fixed income and 15% U.S. equities. The equity portfolio consists of large- to mid-cap value stocks with an average dividend yield of 2.47%. Meanwhile, the fixed income portfolio holds bonds with an average credit rating of BB and a yield to maturity of 3.01%. In addition to corporate bonds, the portfolio also includes securitized investments.

Learn more about different Portfolio Management concepts here.

RBBAX
 

Source: BarChart.com

The Bottom Line

Conservative allocation funds offer retirees and other income-focused investors an opportunity to boost their current income without exclusively investing in fixed income. Along with attractive yields, they provide a diversified source of income that may be more resistant to shocks than a bond-only or equity-only portfolio.

Want to generate high income without undertaking too much risk? Check out our complete list of Best High Yield Stocks.

Note: Data as of November 11, 2021.


Sign up for Advisor Access

Receive email updates about best performers, news, CE accredited webcasts and more.

Popular Articles

Download our free report

Find out why $30 trillon is invested in mutual funds.

Why 30 trillion is invested in mutual funds book

Why 30 trillion is invested in mutual funds book

Download our free report

Find out why $30 trillon is invested in mutual funds.

Why 30 trillion is invested in mutual funds book

Download our free report

Find out why $30 trillon is invested in mutual funds.


Read Next