If the equity markets have had a nice run since 2009, it’s been even better for Aquila Three Peaks Opportunity Growth Fund. For the five-year period ending on June 30, the S&P 500 Index returned a cumulative 120% while Aquila Three Peaks Opportunity Growth Fund had a cumulative total return of 148% based on the public offering price. The annualized total return over the period placed the Fund in the top 21% of its Lipper Mid-Cap Core category. We recently spoke with the fund’s co-portfolio manager Sandy Rufenacht about fiscally responsible companies, how long the equity bull market might last, and his unique approach to stock investing that incorporates his expertise in the high yield bond market.
Would you give us an overview of the fund?
It’s an equity fund that seeks growth by investing in what we believe to be the most fiscally responsible publicly-traded companies that are making positive balance sheet actions.
We’re looking for the same kinds of companies we seek in our companion strategy, the Aquila Three Peaks High Income Fund: companies demonstrating their fiscal responsibility by paying down debt and generating the free cash flow to do so—cash flow that ideally is earmarked for debt paydown through covenants. Read more “For Equity Growth, Rufenacht Seeks the Fiscally Responsible”
You will see a number of enhancements and changes as you explore the new site. Navigation has been simplified so that you can easily find the information you need, along with news and updates on our investment strategies. We’ve also freshened the appearance of the Aquila Group of Funds brand, implementing the new look across the web site and all documents available on the site. Be sure to see A Careful Approach for Today’s Markets which describes our overall investment philosophy, and the Aquila Group of Funds Guiding Principles. Read more “Welcome to the new Aquila Group of Funds web site”
The rate of income provided by a bond fund is affected by several variables and may be calculated in a number of ways.
Investors looking for an income-producing investment may choose a mutual fund which invests in bonds. There are a number of distinctions between bond funds which should be considered, one of which is the rate of income provided.
Fund Holdings and the Markets Change Daily
A mutual fund is a collection of many individual securities in which a number of individual investors share ownership. The investment manager of a bond fund may continually buy and sell individual securities as money flows into, or out of, the mutual fund, and as individual securities become more or less attractive based on the objectives of the fund and changes in the securities markets. Read more “Mutual Funds and Yield Calculations”
Within the high yield corporate bond market, it is feasible to implement a conservative investment strategy.
The high yield corporate bond market consists of bonds issued with a rating below investment grade, and those bonds that have been downgraded to a rating below investment grade.
Aquila Three Peaks High Income Fund pursues the investment objectives of the Fund while implementing a conservative high yield investment strategy. To explain the conservative strategy, and why an investor might find it appealing, let’s first look at characteristics of the high yield asset class relative to other asset classes. Read more “High Yield – A Different Approach”