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Activa Value's New Look a Good Fit for 2000's Value Rally

A new management team has started to perk up this once-moribund fund.

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After suffering through years of mediocre perfomance, Activa Value (AMWYX) got itself a new manager and a whole new look at the end of 1999. A team of Wellington Management analysts led by Doris Dwyer Chu took the helm last December and immediately revamped the portfolio. Specifically, they brought its sector weightings in line with the Russell 1000 Value index's, boosting its financials weighting and cutting back in areas such as industrials and technology.

The fund's new look has paid off in spades in 2000. Its 33% financials weighting, led by winning picks such as Washington Mutual (WM), Cigna (CI), and American International Group (AIG), has led the fund to a 10.8% return for the year to date through December 22, 2000. The showing puts the fund in the top-performing quintile of the large-value category for the period. The fund also benefited from an underweighting in the hard-hit technology sector, and several strong picks in the utilities and energy arenas, including electric- and natural-gas utility Exelon (EXC). The latter, which is the product of a merger between Chicago's Unicom and Pennyslvania's PECO Energy, has seen its share price run up 98% thus far in 2000.

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Christopher Traulsen does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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