SOURCE: Pekin Singer Strauss
|
October 22, 2009 11:00 ET
With a 25.5% One-Year Return, the Appleseed Fund Continues Strong Performance; Top-Ranked by Morningstar Among Midcap Value, Domestic SRI Equity Funds
CHICAGO, IL--(Marketwire - October 22, 2009) - The Appleseed Fund (NASDAQ: APPLX), a no-load
mutual fund that seeks to generate market-beating returns by investing in
sustainable, undervalued companies, was once again ranked by Morningstar as
the #1 returning U.S. midcap value fund among 401 funds for the 12 months
ended September 30, 2009, and the #1 returning socially responsible (SRI)
domestic equity fund for the same period out of 218 funds. The Fund also
was ranked by Lipper as the #1 midcap value fund for the twelve months
ended September 30, 2009 among 270 funds.
Appleseed returned +25.5% for the 12 months through September 30, 2009, as
compared with a -6.9% return for the S&P 500 Index. Year-to-date as of
September 30, Appleseed returned +46.6% as compared with a +19.3% return
for the S&P 500 Index.
"The stock market sell-off in late-2008 and early-2009 offered significant
opportunities for us to invest in what we considered to be high quality
companies at exceptionally low prices," noted Bill Pekin, one of the Fund's
portfolio managers. "With the market recovery throughout the late spring
and summer, a number of our holdings appreciated considerably from our
purchase price. While our recent performance has been gratifying, the true
test is long-term performance. Since the Fund's inception in 2006, the
Appleseed Fund has outperformed the S&P 500 Index by nearly 14% per year.
"We continue to seek out long-term value opportunities. However, we are
seeing fewer and fewer stocks in the current market that meet our
disciplined criteria for buying new investments. This phenomenon may
indicate that the market is currently overbought. As value investors, we
take a patient approach. We are happy to hold a larger-than-average cash
position while we wait for opportunities to appear." At September 30, 2009,
approximately 19% of the fund's holdings were in cash equivalents.
During the third quarter, the Fund took a new position in PetSmart, which
the Fund's managers characterize as a well-managed company and a leader in
the pet supplies retailing market. In addition, Pekin said that PetSmart
has been successful in adding services with attractive margins such as pet
grooming, medications and veterinary care, thereby finding mechanisms to
differentiate itself from other mass retailers. The Appleseed Fund also
initiated a position in Novartis, which Appleseed's managers feel is one of
the best-managed pharmaceutical companies in the world.
"We believe the health care sector, which comprises a significant
proportion of our equity holdings, has largely been left behind in the
market rally because of concerns about healthcare reform," said Pekin. "We
believe the impact on certain health care companies will be less than
feared, and the reality is that people are living longer and expect to
spend more on healthcare. In addition, we are pleased to be invested in
what we consider to be high quality health care companies whose products or
services are directed towards improving people's health and well-being."
The Fund also has a significant weighting in consumer discretionary and
consumer staples equities. "While there has been softness in consumer
spending, people need staples and appear to be making selective
discretionary purchases as economic conditions gradually improve,"
explained Pekin. "However, we remain conservative in our valuation
estimates, as we believe the U.S. economy will remain relatively weak while
consumers repay the debt that was accumulated during the credit bubble."
Pekin concluded: "We maintain our sharp focus on identifying well-managed
companies with pricing power, healthy free cash flow yields, strong,
transparent balance sheets, and which are priced at a significant discount
to our estimates of intrinsic value."
The Fund's past performance does not guarantee future results. The
investment return and principal value of an investment in the Fund will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than their original cost. Current performance of the Fund may be lower
or higher than the performance quoted. Performance data current to the most
recent month end may be obtained by calling 1-800-470-1029.
Information provided with respect to the Fund's portfolio holdings, sector
weightings, number of holdings and expense ratios are as of September 30,
2009 and are subject to change at any time. The statements of Fund
management represent their opinions as of the date of the release and may
change. Nothing contained herein is a solicitation to buy or sell a
particular security. Lipper Inc. -- A Reuters Company, is a nationally
recognized organization that ranks the performance of mutual funds within a
universe of funds that have similar investment objectives. Rankings are
historical with capital gains and dividends reinvested. Appleseed's #1
Morningstar ranking for both the socially responsible domestic equity fund
and mid cap value fund is based on its 1-year performance through 9/30/09
versus 218 other domestic equity SRI mutual fund classes and versus 401
other mid-cap value funds. Mid-cap investing involves greater risk not
associated with investing in more established companies, such as greater
price volatility, business risk, less liquidity and increased competitive
threat. PetSmart represented 4.8% of the portfolio and Novartis represented
4.9% of the portfolio on September 30, 2009.
You should carefully consider the investment objectives, potential risks,
management fees, and charges and expenses of the Fund before investing.
The Fund's prospectus contains this and other information about the Fund,
and should be read carefully before investing. You may obtain a current
copy of the Fund's prospectus by calling 1-800-470-1029. The investment
return and principal value of an investment in the Fund will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than
their original cost.
Distributed by Unified Financial Securities, Inc., 2960 North Meridian
Street, Suite 300, Indianapolis, IN 46208. (Member FINRA)