Investment Strategy
The Aston Balanced Fund generally invests between 40% and 70% of its assets in equity securities and between 30% and 60% in fixed income securities. Although the prices of fixed income securities fluctuate, the steady income flow they produce helps offset the potentially higher price volatility of the equity securities in the portfolio. The portfolio manager can invest in either dividend paying or non-dividend paying equity securities that offer growth or income potential.
Asset allocation varies according to the portfolio manager's assessment of which asset class offers the greatest potential for growth. The portfolio manager will diversify the Fund's investments among a variety of industries.
The portfolio manager uses a bottom-up approach and invests in a combination of securities that offer potential for growth including primarily large-cap dividend and non-dividend paying common stocks, preferred stocks and convertible securities. Companies for possible selection must pass an initial capitalization screen. The portfolio manager then identifies stocks of companies with the following characteristics compared to S&P 500 Index averages:
- Higher sales and operating earnings growth
- More stable earnings growth rates
- Lower debt-to-capital ratio
- Higher return on equity
- Market capitalization over $3 billion
The portfolio manager also considers the quality of company management and the strength of its position among its competitors. In addition, the portfolio manager assesses the long-term economic outlook and the risk/return of securities in allocating investments among industry sectors.
The portfolio manager uses a combination of quantitative and fundamental research, including risk/reward and credit risk analysis, in choosing primarily investment grade fixed income securities. The dollar-weighted average maturity of the bonds in the Fund is normally between three and ten years. Investments may include:
- U.S. government securities
- Corporate bonds
- Debentures and convertible debentures
- Zero-coupon bonds
- Mortgage/asset-backed securities
- Yankee bonds
The Fund may also invest in below investment grade securities.
Objective
The Fund seeks growth of capital with current income by investing in a combination of equity and fixed income securities.
Main Risks
Fixed income funds are subject to interest rate risk. The value of a fixed income fund will decline as interest rates rise.
| Fund Overview |
| Inception Date |
9/21/1995 |
| Ticker |
CHTAX |
| Cusip |
00078H364 |
| Load |
None |
| Fund Statistics (as of
6/30/2008) |
|
|
$25,187,538.03 |
| Expense Ratio |
1.31% |
| Turnover |
70% |
| Minimum Investment |
$2,500 |
| Average Weighted Coupon |
5.18 |
| Effective Maturity |
9.66 |
| Average Quality |
Aa3 |
|
|
| Sector Breakdown (as of
8/31/2008) |
| Information Technology |
16.31% |
| U.s. Government Agency Obligations |
15.92% |
| Consumer Staples |
15.47% |
| Corporate Bonds |
13.29% |
| Health Care |
11.33% |
| Energy |
9.80% |
| Cash Equivalents & Other |
6.08% |
| Consumer Discretionary |
4.96% |
| U.s. Government Obligations |
3.97% |
| Industrials |
3.68% |
| Financials |
3.10% |
| Asset Backed Securities |
0.06% |
Past performance does not guarantee future results. Investment return and principal value of mutual funds will vary with market conditions, so that shares, when redeemed, may be worth more or less than their original cost.
Expense Ratio. A fund's cost of doing business, expressed as a percentage of its assets and disclosed in a prospectus.
Turnover. The number of shares traded for a period as a percentage of the total shares in a portfolio or of an exchange.
Alpha. Measures the difference between a fund’s actual returns and its expected performance, given its level of risk.
Beta. The measure of risk which shows a fund’s volatility relative to an index.
R-Squared. The percentage of a fund’s movement that can be explained by movements in its benchmark index.
Standard Deviation. A statistical measure of the historical volatility of a mutual fund or portfolio, usually computed using 36 monthly returns. More generally, a measure of the extent to which numbers are spread around their average.
Sharpe Ratio. A risk-adjusted measure used to determine reward per unit of risk.