In our Best of Funds Family series, we are focusing today on funds from Van Kampen Investments, one of the oldest and largest investment management companies in the US, which manages approximately $85 billion in assets. We are spotlighting five funds here: two fixed-income funds (Corporate & National Municipal), two sectoral equity funds (Utility and Non US) and one growth equity Fund.
Van Kampen Corporate Bond A (ACCBX) seeks both current income and capital appreciation. It was incepted in September 1971.
The fund invests a large proportion of its assets, between 60% and 100% in investment grade securities and focuses on corporate debt securities. It may invest up to 20% of its total assets in convertible securities, including convertible bonds and convertible preferred stocks. The fund may also invest up to 10% of its total assets in preferred stocks.
The fund has an expense ratio of 0.95% against a category average of 0.96%. As of August 2009, it has a portfolio turnover of 78% against a category average of 227%. The fund’s top holdings include General Electric Portfolio 5.625%, Goldman Sachs Group 6.15% and Citigroup 8.5%. As of November 2009, the fund had outperformed its benchmark index for the 1-year period and had recorded comparatively lower returns for the 3-year and 5-year periods.
Joseph Mehlman has been lead manager of the fund since December 2008. Mehlman has been associated with the investment advisor since 2002.
Van Kampen New York Tax Free Income A (VNYAX) was incepted in July 1994. The fund seeks to preserve the invested capital and also to provide a high level of current income exempt from federal, New York State and New York City income taxes.
New York municipal securities that are rated investment grade at the time of purchase constitute the fund’s major investments. At least 80% of its total assets are invested in securities rated investment grade at the time of purchase. The fund may also choose to invest up to 20% of its total assets in securities which are below-investment grade.
The fund has an expense ratio of 0.98% against a category average of 1.05%. As of September 2009, it has a portfolio turnover of 32% against a category average of 27%. As of November 2009, the fund had outperformed its benchmark index for the 1-year period and had recorded comparatively lower returns for the 3-year and 5-year periods.
Wayne Godlin has been lead manager of the fund since December 2007. Before joining Van Kampen American Capital in 1990, Godlin was with Hanifen Imhoff & Company.
Van Kampen Utility A (VKUAX) seeks to provide capital appreciation and current income. It was incepted in July 1993.
The majority of the fund’s assets are invested in a portfolio of common stocks and income securities issued by companies in the utilities sector. The fund may invest up to 20% of its total assets in cash and securities such as common stocks, income securities and money market instruments in other sectors. The fund may invest up to 35% of its total assets in foreign securities.
The fund has an expense ratio of 1.32% against a category average of 1.39%. As of September 2009, it has a portfolio turnover of 120% against a category average of 100%. The fund’s top holdings include Exelon, Duke Energy Corporation and Public Service Enterprise Group. As of November 2009, the fund had recorded lower returns than its benchmark index for the 1-year period but had outperformed the index for the 3-year and 5-year periods.
Michael Nolan has been lead manager of the fund since June 2008. Before his current assignment, Nolan was heading the European division of Morgan Stanley’s collateralized debt obligation operations.
Van Kampen Emerging Markets A (MSRAX) seeks long-term capital appreciation by investing primarily in equity securities of emerging-country issuers. It was incepted in July 1994.
At least 80% of the fund’s net assets are invested in securities issued by companies located or having significant business interests in emerging markets. The fund focuses on common stocks but may also invest in preferred stocks, convertible securities, warrants or rights to purchase common stocks and depositary receipts.
The fund has an expense ratio of 2.22% against a category average of 1.73%. As of September 2009, it has a portfolio turnover of 82% against a category average of 87%. The fund’s top holdings include Samsung Electronics Co Ltd, Itau Unibanco Banco Multiplo and Vale SA Preferred. As of November 2009, the fund had outperformed its benchmark index for the 1-year period, 3-year and 5-year periods.
Paul Psaila has been lead manager of the fund since December 1994. Psaila has been with Van Kampen since 1994.
Van Kampen Capital Growth A (ACPAX) seeks capital growth. It was incepted in July 1969.
The fund looks to invest in companies which show significant potential for capital growth. It may invest up to 25% of total assets in foreign securities and also look to invest in equity securities of real estate investment trusts.
The fund has an expense ratio of 1.28% against a category average of 1.33%. As of September 2009, it has a portfolio turnover of 28% against a category average of 112%. The fund’s top holdings include Apple Inc, Google Inc and Amazon.com. As of November 2009, the fund had outperformed its benchmark index for the 1-year period, 3-year and 5-year periods.
Dennis P. Lynch has been lead manager of the fund since June 2004. Lynch holds an MBA degree from Columbia University and has 15 years of investment experience.
Click here to see all the mutual funds offered by Van Kampen.
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