2 Gold-Rated Funds With Resilient Portfolios
American Funds American Mutual and American Funds Washington Mutual both have competitive fees and veteran managers but differ in their ability to hold cash and bonds.
Alec Lucas: Investors looking for equity funds with resilient portfolios have two great options in Gold-rated American Funds American Mutual and Gold-rated American Funds Washington Mutual. Both have competitive fees and veteran managers who are skilled at using American Funds signature multimanager system, which divides each fund's asset base into separately managed sleeves of the overall portfolio. Other than high portfolio turnover, which is frowned upon, managers can run their sleeves in line with their own investment styles. Those styles, though, must adhere to each fund's mandate.
Here, too, there are lots of similarities. Both funds have risk-averse mandates dating to the 1950s that also preclude investment in companies deriving most of their revenue from alcohol or tobacco products. Both funds focus on domestic, blue chip, dividend-paying firms, capping investment in nondividend payers at 5% of assets.
Alec Lucas does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.