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Is ClearBridge Select Fund A (LCLAX) a Strong Mutual Fund Pick Right Now?
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Any investors who are searching for Large Cap Blend funds should take a look at ClearBridge Select Fund A (LCLAX - Free Report) . The fund does not have a Zacks Mutual Fund Rank, though we have been able to explore other metrics like performance, volatility, and cost.
Objective
LCLAX is part of the Large Cap Blend section, an area that boasts an array of many possible options. Large Cap Blend mutual funds most often invest in firms with a market capitalization of $10 billion or more. By investing in bigger companies, these funds offer more stability, and are often well-suited for investors with a " buy and hold " mindset. Blended funds mix large, established companies into their holdings, which gives investors exposure to both value and growth at the same time.
History of Fund/Manager
LCLAX finds itself in the Franklin Templeton family, based out of San Mateo, CA. ClearBridge Select Fund A made its debut in September of 2013, and since then, LCLAX has accumulated about $256.62 million in assets, per the most up-to-date date available. The fund is currently managed by Aram Green who has been in charge of the fund since September of 2013.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 31.74%, and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 32.8%, 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. The standard deviation of LCLAX over the past three years is 23.82% compared to the category average of 16.29%. The standard deviation of the fund over the past 5 years is 19.17% compared to the category average of 13.41%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.09, the fund is likely to be more volatile than the market average. 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. LCLAX has generated a positive alpha over the past five years of 11.47, demonstrating that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, LCLAX is a load fund. It has an expense ratio of 1.39% compared to the category average of 0.95%. LCLAX is actually more expensive than its peers when you consider factors like cost.
Investors need to be aware that with this product, the minimum initial investment is $1,000; each subsequent investment needs to be at least $50.
Bottom Line
For additional information on this product, or to compare it to other mutual funds in the Large Cap Blend, make sure to go to www.zacks.com/funds/mutual-funds for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.
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Is ClearBridge Select Fund A (LCLAX) a Strong Mutual Fund Pick Right Now?
Any investors who are searching for Large Cap Blend funds should take a look at ClearBridge Select Fund A (LCLAX - Free Report) . The fund does not have a Zacks Mutual Fund Rank, though we have been able to explore other metrics like performance, volatility, and cost.
Objective
LCLAX is part of the Large Cap Blend section, an area that boasts an array of many possible options. Large Cap Blend mutual funds most often invest in firms with a market capitalization of $10 billion or more. By investing in bigger companies, these funds offer more stability, and are often well-suited for investors with a " buy and hold " mindset. Blended funds mix large, established companies into their holdings, which gives investors exposure to both value and growth at the same time.
History of Fund/Manager
LCLAX finds itself in the Franklin Templeton family, based out of San Mateo, CA. ClearBridge Select Fund A made its debut in September of 2013, and since then, LCLAX has accumulated about $256.62 million in assets, per the most up-to-date date available. The fund is currently managed by Aram Green who has been in charge of the fund since September of 2013.
Performance
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 31.74%, and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 32.8%, 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. The standard deviation of LCLAX over the past three years is 23.82% compared to the category average of 16.29%. The standard deviation of the fund over the past 5 years is 19.17% compared to the category average of 13.41%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
With a 5-year beta of 1.09, the fund is likely to be more volatile than the market average. 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. LCLAX has generated a positive alpha over the past five years of 11.47, demonstrating that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, LCLAX is a load fund. It has an expense ratio of 1.39% compared to the category average of 0.95%. LCLAX is actually more expensive than its peers when you consider factors like cost.
Investors need to be aware that with this product, the minimum initial investment is $1,000; each subsequent investment needs to be at least $50.
Bottom Line
For additional information on this product, or to compare it to other mutual funds in the Large Cap Blend, make sure to go to www.zacks.com/funds/mutual-funds for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.