Equity Income Fund Fact Sheet
Overall Morningstar Rating™
Morningstar Category: Large Value*Based on risk-adjusted returns among 1094 funds as of 10.31.2019.
Morningstar Style Box
Philosophy and Process
The Fund's management team utilizes fundamental analysis overlaid with top-down macroeconomic trends. They look for the best ideas that include companies with strong balance sheets that are reasonably valued and have shown market share/sales gains over time with a credible plan to continue such growth in the future. Valuation is key to the management of the Fund and the management team evaluates on the front end and buys basic businesses that are in demand all the time, have done well in past market downturns and where management has a vested interest in the value per share of the stock. The Fund represents a concentrated portfolio utilizing "best ideas" with typical number of holdings between 24 to 30 common stocks/ADRs.
Dividends matter to the management team and they only include companies that have raised their dividends for the last three consecutive years or for six of the last 10 years. They target stocks with dividend yields greater than 2%.
The fund invests primarily in dividend-paying securities but also in convertible securities in search of yield. These securities may be undervalued not performing as anticipated and its value could be negatively affected by a rise in interest rates. The fund may engage in writing covered call options. By selling covered call options, the fund limits its opportunity to profit from an increase in the price of the underlying stock above the exercise price, but continues to bear the risk of a decline in the stock. While the fund receives premiums for writing the call options, the price it realizes from the exercise of an option could be substantially below a stock’s current market price.
|Class A Shares||Class C Shares||Class Inst'l Shares||Class R Shares||Class R6 Shares|
|Subsequent Investment Min.*||$0.00||$0.00||$0.00||$0.00||$0.00|
|Max. Up Front Sales Charge||5.75%||N/A||N/A||N/A||N/A|
|Max. Deferred Sales Charge||N/A||1.00%||N/A||N/A||N/A|
Fund Performance as of 09.30.2019
|QTR||YTD||1 Year||3 Years||5 Years||10 Years||Since
|A Shares with 5.75% Sales Charge||-3.25%||10.93%||2.26%||11.04%||8.48%||10.88%||9.59%|
|A Shares without Sales Charge||2.65%||17.70%||8.48%||13.26%||9.78%||11.54%||10.02%|
|Lipper Equity Income Median||2.23%||17.53%||3.90%||9.68%||7.91%||10.84%||N/A|
The total expense ratios for Class A, C, and I Shares are 1.02%, 1.77%, and 0.77%, respectively. The gross expense ratio for Class R6* Shares is 0.77%. The net expense ratio for Class R6* Shares is 0.66%.
*The Administrator has contractually agreed to waive its administrative fees, pay Fund operating expenses, and/or reimburse the Fund to keep R6 shares Net Expense Ratio to 0.66% from February 1, 2019 through January 31, 2020. Performance would have been lower without limitations in effect.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit the performance summary.
The performance of the Equity Income Fund reflects the deduction of fees for value-added services associated with a mutual fund, such as investment management and fund accounting fees. The inception date for Class A Shares is 06/30/2004. The inception date for Class C Shares is 06/30/2004. The inception date for Class Inst'l Shares is 06/30/2004. The inception date for Class R Shares is 06/30/2004. The inception date for Class R6 Shares is 02/01/2018. The performance shown reflects the reinvestment of all dividend and capital gains distributions.
Top Ten Holdings as of 09.30.2019
|Discover Financial Services||4.63%|
|Home Depot, Inc. (the)||4.25%|
|Accenture PLC, Class A||3.99%|
|Verizon Communications, Inc.||3.85%|
|Crown Castle International Corp.||3.84%|
|Merck & Co., Inc.||3.52%|
Current and future portfolio holdings are subject to change and risk. Based on Market Value of securities.
Sector Allocation as of 09.30.2019
Allocations are based on the current weight to funds in the cited Sector. The composition of the fund's holdings is subject to change.
Growth of $10,000 as of 09.30.2019
The Growth of $10,000 chart is hypothetical based upon the performance of A Shares at NAV for the period ended 09/30/2019. It includes the reinvestment of dividends and capital gains.
Lipper Equity Income Category as of 09.30.2019
|1 Year||3 Years||5 Years||10 Years|
|Lipper Ranking / Number of Funds in Category||63/540||22/475||47/418||53/248|
|Lipper Quartile (Percentile)||1st (12%)||1st (5%)||1st (12%)||1st (22%)|
Morningstar Large Value Category as of 06.30.2019
|Overall Rating||1 Year||3 Years||5 Years||10 Years|
|Institutional Shares Morningstar Rating ™||--|
|Morningstar Ranking /
Number of Funds in Category
|1,090||52 / 1,217||20 / 1,090||29 / 944||106 / 693|
|Morningstar Quartile (Percentile)||1st (6%)||1st (4%)||1st (6%)||1st (22%)|
Risk/Return Statistics vs. Russell 1000® Value Index* as of 09.30.2019
Summary Statistics as of 09.30.2019
|Weighted Median P/E||19.81|
|Weighted Average P/B||2.70|
|Weighted Average Market Cap.||$160.65B|
*Annual Turnover Ratio is 12 month rolling calculation.
*Alpha, Beta, R-Squared, Standard Deviation, and Sharpe Ratio are based on a 10-year calculation.
*Click for a glossary of terms
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The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.