We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Columbia Disciplined Core A (AQEAX) a Strong Mutual Fund Pick Right Now?
Read MoreHide Full Article
Large Cap Blend fund seekers should consider taking a look at Columbia Disciplined Core A (AQEAX - Free Report) . AQEAX carries a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
AQEAX is classified in the Large Cap Blend segment by Zacks, which is an area full of potential. Targeting companies with market caps of more than $10 billion, Large Cap Blend mutual funds offer a stable investment choice; these funds are perfect for investors with a " buy and hold " mindset. Since blended funds mix large, more established firms into their portfolios, investors are exposed to both value and growth opportunities.
History of Fund/Manager
Columbia is based in Boston, MA, and is the manager of AQEAX. Columbia Disciplined Core A made its debut in December of 2004, and since then, AQEAX has accumulated about $3.85 billion in assets, per the most up-to-date date available. The fund's current manager, Brian M. Condon, has been in charge of the fund since May of 2010.
Performance
Investors naturally seek funds with strong performance. AQEAX has a 5-year annualized total return of 14.49% and it sits in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 15.28%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Over the past three years, AQEAX's standard deviation comes in at 9.64%, compared to the category average of 8.91%. Over the past 5 years, the standard deviation of the fund is 9.91% compared to the category average of 8.7%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should always remember the downsides to a potential investment, and this segment carries some risks one should be aware of. In the most recent bear market, AQEAX lost 53.67% and outperformed its peer group by 4%. This means that the fund could possibly be a better choice than its peers during a down market environment.
Even still, the fund has a 5-year beta of 1.02, so investors should note that it is hypothetically as volatile as the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. AQEAX has generated a negative alpha over the past five years of -0.19, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Exploring the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is primarily on equities that are traded in the United States.
The mutual fund currently has 81.07% of its holdings in stocks, and these companies have an average market capitalization of $160.93 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Finance
With turnover at about 64%, this fund is making more trades in a given year than the category average.
Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, AQEAX is a load fund. It has an expense ratio of 0.99% compared to the category average of 1%. Looking at the fund from a cost perspective, AQEAX is actually cheaper than its peers.
This fund requires a minimum initial investment of $2,000, while there is no minimum for each subsequent investment.
Bottom Line
Overall, Columbia Disciplined Core A ( AQEAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Columbia Disciplined Core A ( AQEAX ) looks like a good potential choice for investors right now.
Want even more information about AQEAX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Columbia Disciplined Core A (AQEAX) a Strong Mutual Fund Pick Right Now?
Large Cap Blend fund seekers should consider taking a look at Columbia Disciplined Core A (AQEAX - Free Report) . AQEAX carries a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
AQEAX is classified in the Large Cap Blend segment by Zacks, which is an area full of potential. Targeting companies with market caps of more than $10 billion, Large Cap Blend mutual funds offer a stable investment choice; these funds are perfect for investors with a " buy and hold " mindset. Since blended funds mix large, more established firms into their portfolios, investors are exposed to both value and growth opportunities.
History of Fund/Manager
Columbia is based in Boston, MA, and is the manager of AQEAX. Columbia Disciplined Core A made its debut in December of 2004, and since then, AQEAX has accumulated about $3.85 billion in assets, per the most up-to-date date available. The fund's current manager, Brian M. Condon, has been in charge of the fund since May of 2010.
Performance
Investors naturally seek funds with strong performance. AQEAX has a 5-year annualized total return of 14.49% and it sits in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 15.28%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Over the past three years, AQEAX's standard deviation comes in at 9.64%, compared to the category average of 8.91%. Over the past 5 years, the standard deviation of the fund is 9.91% compared to the category average of 8.7%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should always remember the downsides to a potential investment, and this segment carries some risks one should be aware of. In the most recent bear market, AQEAX lost 53.67% and outperformed its peer group by 4%. This means that the fund could possibly be a better choice than its peers during a down market environment.
Even still, the fund has a 5-year beta of 1.02, so investors should note that it is hypothetically as volatile as the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. AQEAX has generated a negative alpha over the past five years of -0.19, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Exploring the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is primarily on equities that are traded in the United States.
The mutual fund currently has 81.07% of its holdings in stocks, and these companies have an average market capitalization of $160.93 billion. The fund has the heaviest exposure to the following market sectors:
- Technology
- Finance
With turnover at about 64%, this fund is making more trades in a given year than the category average.Expenses
As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, AQEAX is a load fund. It has an expense ratio of 0.99% compared to the category average of 1%. Looking at the fund from a cost perspective, AQEAX is actually cheaper than its peers.
This fund requires a minimum initial investment of $2,000, while there is no minimum for each subsequent investment.
Bottom Line
Overall, Columbia Disciplined Core A ( AQEAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Columbia Disciplined Core A ( AQEAX ) looks like a good potential choice for investors right now.
Want even more information about AQEAX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.