Page 40 - Kiplinger's Personal Finance - November 2018

INVESTING
KEY DATA FOR OUR MUTUAL FUND PICKS
Kiplinger 25 funds are no-load; you can buy them without sales
THE KIPLINGER 25 UPDATE charges. For more about the funds, visit kiplinger.com/links/kip25.
Annualized total return Added to
We Pick a New Fund U.S. Stock Funds Symbol 1 yr. 3 yrs. 5 yrs. 10 yrs. Kip 25
Dodge & Cox Stock
DODGX 17.2% 16.1% 12.7% 10.7% May 2008
Fidelity New Millennium FMILX 18.7 15.0 11.5 11.9 May 2014
Mairs & Power Growth MPGFX 18.1 15.2 11.3 10.7 Jan. 2013
WE DON’T REMOVE FUNDS Roughly 50 stocks fill Parnassus Mid Cap PARMX 12.0 13.7 11.4 11.2 Aug. 2014
from the Kiplinger 25 the portfolio. Some names T. Rowe Price Blue Chip Growth TRBCX 26.4 19.8 17.7 14.2 May 2016
lightly. But after strug- have been in the fund for
T. Rowe Price Dividend Growth PRDGX 16.2 15.5 12.8 10.6 Oct. 2016
gling since late 2014, years, though the number
Homestead Small Com- of shares may change as T. Rowe Price QM US Sm-Cp Gro PRDSX 26.8 16.3 13.9 14.0 May 2015
pany Stock is out. To be stock prices rise or fall. T. Rowe Price Sm-Cap Value PRSVX 19.3 17.8 11.6 10.5 May 2009
fair, shares in small firms Knight Transportation, T. Rowe Price Value TRVLX 9.0 12.0 10.5 10.0 May 2015
were lackluster for part of for instance, is a 20-year Primecap Odyssey Growth POGRX 29.7 20.2 16.3 14.5 May 2017
that period. But even as holding. Last year, Larkins
Vanguard Equity-Income
small-cap stocks have re- sold some shares as excite- VEIPX 12.2 14.9 11.5 10.5 Jan. 2017
covered, Small Company ment grew about the truck- Wasatch Small Cap Value WMCVX 22.7 15.3 13.0 11.6 Nov. 2018
Stock has lagged its peers. ing company’s merger
International Annualized total return Added to
It’s time for a change. with Swift, a competitor. Stock Funds Symbol 1 yr. 3 yrs. 5 yrs. 10 yrs. Kip 25
In its place, we’re add- This year, Larkins added
ing WASATCH SMALL CAP to his holdings in the new AMG TimesSquare Intl Sm-Cap TCMPX 0.3% 11.4% 10.5% — May 2018
VALUE. Manager Jim Lar- firm, Knight-Swift Trans- Baron Emerging Markets BEXFX –8.6 8.9 4.2 — Oct. 2016
kins has been with the portation Holdings, after Fidelity International Growth FIGFX 4.8 8.9 6.6 7.3% Feb. 2016
fund since it launched in its shares tumbled. Reve- Oakmark International ‡ OAKIX –7.6 7.9 3.7 8.0 July 2017
1997, first as an analyst nues had dropped because
and as the manager since the firm is having prob- Specialized/ Annualized total return Added to
1999. (The fund, in fact, lems hiring enough driv- Go-Anywhere Funds Symbol 1 yr. 3 yrs. 5 yrs. 10 yrs. Kip 25
was partly his idea.) Since ers. Wall Street, says Lar- Vanguard Health Care VGHCX 12.4% 7.4% 14.2% 13.7% May 2016
he was named manager, kins, “is overly concerned Vanguard Wellington ‡ VWELX 9.2 10.7 9.0 8.7 May 2016
Small Company Value has about a temporary bump
returned an annualized in the road.” Annualized total return Added to
12.5%. The Russell 2000 Lately, Larkins has been Bond Funds Symbol 1 yr. 3 yrs. 5 yrs. 10 yrs. Kip 25
index, which tracks small- getting a little more defen- DoubleLine Total Return N DLTNX –0.3% 1.7% 3.0% — May 2011
company stocks, has re- sive. He added to existing Fidelity Intermed Muni FLTMX –0.1 2.1 2.9 3.3% May 2004
turned 8.7% annualized holdings in Arbor Realty
over the same period. Trust and National Stor- Fidelity New Markets Income FNMIX –6.7 5.5 4.6 7.0 May 2012
Small Cap Value is a de- age Affiliates Trust, two Fidelity Strategic Income FADMX 0.2 4.3 3.9 5.8 May 2018
parture for Wasatch, best real estate investment Met West Total Return Bond M MWTRX –1.3 1.2 2.4 5.2 May 2016
known for investing in trusts that he calls “in-
Vanguard High-Yield Corporate VWEHX 2.1 5.3 5.3 7.2 May 2016
fast-growing firms rather come proxies” because
Vanguard Sh-Tm Inv-Grade VFSTX –0.1 1.6 1.8 2.8 May 2010
than in firms with bar- they typically pay out at
gain-priced shares. Lar- least 90% of their earnings Annualized total return
kins piggybacks on the as dividends. REITs, Indexes 1 yr. 3 yrs. 5 yrs. 10 yrs.
firm’s detailed research which tend to suffer when S&P 500-STOCK INDEX 18.7% 16.5% 13.8% 11.2%
on high-quality growth interest rates rise, have
RUSSELL 2000 INDEX* 22.4 15.9 11.8 10.6
stocks. When a good one been shunned by many in- †
falters, he swoops in and vestors this year. “We’re MSCI EAFE INDEX 1.7 7.4 4.4 4.2
buys it at a discount. “Even kissing some frogs to find MSCI EMERGING MARKETS INDEX –4.3 10.9 3.2 4.3
the best firms spend some a handsome prince that BLOOMBERG BARCLAYS AGG BND IDX –1.4 1.5 2.5 3.6
#
time in the value wood- can deliver some stability
shed,” he says. Larkins in volatile times,” says As of September 14. ‡ New investors must purchase directly from the fund company.
*Small-company U.S. stocks. † Foreign stocks. # High-grade U.S. bonds. —Fund not in existence
calls Small Cap Value a Larkins. NELLIE S. HUANG for the entire period. SOURCE: © 2018 Morningstar Inc.
“fallen angel” fund. nhuang@kiplinger.com

62 KIPLINGER’S PERSONAL FINANCE 11/2018

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