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Is Columbia Disciplined Core A (AQEAX) a Strong Mutual Fund Pick Right Now?
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Having trouble finding a Mutual Fund Equity Report fund? Well, Columbia Disciplined Core A (AQEAX - Free Report) would not be a good potential starting point right now. AQEAX possesses a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
AQEAX is a part of the Columbia family of funds, a company based out of Kansas City, MO. Since Columbia Disciplined Core A made its debut in December of 2004, AQEAX has garnered more than $3.77 billion in assets. The fund is currently managed by Raghavendran Sivaraman who has been in charge of the fund since December of 2019.
Performance
Of course, investors look for strong performance in funds. AQEAX has a 5-year annualized total return of 9.28% and is in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 10.2%, which places it in the middle third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Over the past three years, AQEAX's standard deviation comes in at 17.92%, compared to the category average of 14.81%. Looking at the past 5 years, the fund's standard deviation is 18.99% compared to the category average of 15.83%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 1, so investors should note that it is hypothetically as volatile as the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. AQEAX has generated a negative alpha over the past five years of -1.59, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Examining the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is largely on equities that are traded in the United States.
Right now, 78.23% of this mutual fund's holdings are stocks and it has a negligible amount of assets in foreign securities. The fund has the heaviest exposure to the following market sectors:
Technology
Finance
Turnover is about 46%, so those in charge of the fund make fewer trades than its comparable peers.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, AQEAX is a load fund. It has an expense ratio of 0.97% compared to the category average of 0.91%. AQEAX is actually more expensive than its peers when you consider factors like cost.
Investors need to be aware that with this product, the minimum initial investment is $2,000; each subsequent investment has no minimum amount.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Columbia Disciplined Core A ( AQEAX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and higher fees, this fund looks like a somewhat weak choice for investors right now.
For additional information on the Mutual Fund Equity Report area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into AQEAX too for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.
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Is Columbia Disciplined Core A (AQEAX) a Strong Mutual Fund Pick Right Now?
Having trouble finding a Mutual Fund Equity Report fund? Well, Columbia Disciplined Core A (AQEAX - Free Report) would not be a good potential starting point right now. AQEAX possesses a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
AQEAX is a part of the Columbia family of funds, a company based out of Kansas City, MO. Since Columbia Disciplined Core A made its debut in December of 2004, AQEAX has garnered more than $3.77 billion in assets. The fund is currently managed by Raghavendran Sivaraman who has been in charge of the fund since December of 2019.
Performance
Of course, investors look for strong performance in funds. AQEAX has a 5-year annualized total return of 9.28% and is in the bottom third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 10.2%, which places it in the middle third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Over the past three years, AQEAX's standard deviation comes in at 17.92%, compared to the category average of 14.81%. Looking at the past 5 years, the fund's standard deviation is 18.99% compared to the category average of 15.83%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 1, so investors should note that it is hypothetically as volatile as the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. AQEAX has generated a negative alpha over the past five years of -1.59, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Holdings
Examining the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is largely on equities that are traded in the United States.
Right now, 78.23% of this mutual fund's holdings are stocks and it has a negligible amount of assets in foreign securities. The fund has the heaviest exposure to the following market sectors:
- Technology
- Finance
Turnover is about 46%, so those in charge of the fund make fewer trades than its comparable peers.Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, AQEAX is a load fund. It has an expense ratio of 0.97% compared to the category average of 0.91%. AQEAX is actually more expensive than its peers when you consider factors like cost.
Investors need to be aware that with this product, the minimum initial investment is $2,000; each subsequent investment has no minimum amount.
Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.
Bottom Line
Overall, Columbia Disciplined Core A ( AQEAX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively weak performance, average downside risk, and higher fees, this fund looks like a somewhat weak choice for investors right now.
For additional information on the Mutual Fund Equity Report area of the mutual fund world, make sure to check out www.zacks.com/funds/mutual-funds. There, you can see more about the ranking process, and dive even deeper into AQEAX too for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.