Washington mutual fund investors are seeing substantial returns despite an unstable stock market, more than double that seen with S&P 500 index funds over five years. Washington mutual fund has an annual return of 8.0% which makes its investments stand out among competitors.
Performance data does not include 12b-1 fees, advisor compensation, or service provider payments which could alter total returns.
Investing Philosophy
This fund aims to generate income and provide opportunities for the growth of principal, in line with sound standard stock investing practices. To select its portfolio investments, the investment adviser uses professional judgment. When choosing companies for acquisitions, consideration will be given to their track records in paying dividends and growing earnings, in addition to using derivatives to enhance returns or reduce risks; asset allocation could also change according to market dynamics.
Fund returns may be subject to short-term volatility and potential losses during declining markets; investing for short periods is more likely to bring such losses about. Performance figures do not account for sales charges on Class A shares which amount to 5.75% of the maximum offering price; investors should carefully evaluate investment objectives, risks, charges, and expenses before investing; these details can be found in a fund’s prospectus or summary prospectus, available from your financial professional.
Washington Mutual Investors Fund remains one of the top performers among the 10 most extensive stocks mutual funds, despite recent market instability. Yet its managers don’t boast about it–their straightforward yet unassuming approach makes an ideal fit for investors who prefer an easygoing style and want an approachable company with which they feel secure investing their capital.
This fund’s investment philosophy is grounded in the belief that, over time, companies with solid fundamentals tend to be reasonably priced. To take full advantage of this phenomenon, the fund maintains low turnover — typically holding onto stocks for four years on average instead of one as is typical with typical mutual funds — which has enabled it to outshout S&P 500 and other broad stock indexes with relative ease. Furthermore, its strong preference is large-capitalization value stocks deemed unpopular or cheap compared to small capitalization growth stocks, whereas certain illiquid securities like derivatives and forward settlement securities may also be included within its scope of investment.
Stock selection
Investment advisers employ a rigorous search process when selecting stocks. Their advisors look for companies with solid fundamentals and an established financial history; additionally, they aim to keep volatility low and provide stable returns by investing in both stocks and bonds (typically 65% domestic stocks, 32% bonds, and 3% cash or other securities).
The fund has an illustrious history dating back to a court case following the Great Depression. Through the court decision, which led to what has come to be known as the “Eligible List,” investors were allowed to invest in securities that meet stringent financial criteria while having stable earnings and dividend records. Today, this list is maintained by investment advisers and used for selecting investments for inclusion into funds like CIGNA Mutual.
One of the key considerations in selecting a mutual fund is its expense ratio, which measures all operating costs associated with managing it, including fees paid to advisors and transfer agents. A higher expense ratio means lower returns.
AWSHX stands out by having an expense ratio that falls well below the category average, making it cost-competitive yet still offering superior levels of service.
Apart from looking at expense ratios, portfolio turnover rates should also be taken into consideration when selecting funds. A high portfolio turnover can cause higher expenses and reduced aftertax returns – but AWSHX stands out by having one of the lowest portfolio turnover rates of its category – making fewer trades than most comparable funds.
Mutual funds can be an effective long-term way of building wealth and protecting retirement savings. Working with a professional advisor, you can select the most suitable fund based on your specific goals and needs. Once you understand your objectives and risk tolerance, searching for your ideal mutual fund should become much more straightforward.
Expenses
Expenses are an integral component of mutual fund returns and can vary significantly between funds, greatly impacting your results as an investor. They can depend on factors like asset category and strategy as well as fund size. Smaller funds may incur greater operational expenses due to hiring more staff to handle an increase in assets within their portfolios; other variables could include the size of fund assets and any management fees charged against that portfolio.
The information shown is based on the most up-to-date available data about an underlying mutual fund, collective trust, or ETF (collectively referred to hereafter as the “fund”) with regards to holdings subject to change and may not represent all positions held. Performance figures represent past performance and should not be seen as indicative of future results. The investment objective of the fund is to generate current income while simultaneously growing principal consistent with sound common stock investing by targeting companies which pay or have the potential for dividend payments with low price-earnings ratios.
Gross Expense Ratio measures the percentage of fund assets spent on operating expenses and management fees. This includes costs such as accounting, administrator, advisor, auditor, board of directors, custodial, distribution (12b-1), legal, organizational professional registration, shareholder reporting transfer agency fees. However, it does not cover finder’s fees investor sales charges or brokerage costs.
WaMu began operations in downtown Seattle and Bellevue during the early 1980s. By mid-2000s, WaMu had more than 40 branch offices – its former headquarters at 1201 Third Avenue as well as WaMu Center were among them – however financial turmoil caused WaMu to file Chapter 11 bankruptcy protection in 2008, and JPMorgan Chase acquired most of their assets.
The Expense Ratio (ER) is a measure of annual expenses associated with each unit class in an investment option available through your John Hancock group annuity contract. It’s calculated by adding yearly gross operating expenses (excluding any front-end load charges ) for an investment fund and yearly net operating expenses associated with the subaccount in which you invest.
Returns
For optimal investment decisions, investors must know precisely the kind of returns they desire from their investments. Mutual funds offer one avenue towards realizing this goal. Some may prefer returns that closely mirror the market average, while others aim to surpass inflation or other benchmarks; either way, long-term annualized returns provide a good measure of an investor’s performance.
Finding the appropriate mutual fund depends on several variables, including investment objectives and risk tolerance. When making their selection, one should also take into consideration the purpose, time frame, and risks associated with the investment. If one’s primary aim is to build wealth over time then selecting a long-term fund with lower risks of loss may offer higher returns while still providing reasonable levels of income.
Morningstar RatingTM ranks funds according to their relative performance relative to those within their category. It uses the Morningstar Risk-Adjusted Return measure which accounts for variations in monthly returns while rewarding consistent performance based on consistent monthly returns over time. Using this system, funds in the top 10% receive five stars while those falling between 22.5% and 10% only receive four stars (or one star if applicable).
Performance data represents the change in net asset value over a specific time period, including dividend and capital gain distributions reinvestment and maximum offering price (MOP) returns minus deduction of sales charge of 5.75%. Returns calculated at net asset value (NAV) do not take into account fees such as advisor compensation and service provider payments, which can be substantial. When investing, investors should carefully consider a fund’s investment objectives, risks, charges, and expenses before investing. Fund prospectuses and summary contain this and other pertinent information, which can be obtained by consulting with a financial professional. 2019 Lipper, A Refinitiv Company. All rights are reserved; duplication or dissemination without written approval from Lipper is strictly forbidden. Lipper research ratings and data come from sources believed to be reliable but cannot guarantee the accuracy or completeness.
