CHICAGO, IL -- (Marketwire) -- 04/20/11 -- The Appleseed Fund (NASDAQ: APPLX), a value fund investing in sustainable, undervalued companies, has begun investing in Japanese companies, noting quality opportunities trading at what fund managers believe to be deep discounts.
The Fund also reported that for the three year period ending March 31, 2011, the Fund generated a 16.8% annualized return, versus a market annualized return as measured by the S&P 500 Index of 2.4%. As a result, Appleseed was recently ranked by U.S. News as the #1 fund in the Midcap Value category, with a rating of 9.3 out of 10.0.
Joshua Strauss, the Fund's co-portfolio manager, explained the Fund's recent investments in Japanese companies: "Our thoughts and prayers go out to the people who have lost loved ones or whose lives have been turned upside down by the earthquake. Having said that, we strongly believe in the resiliency and resourcefulness of the Japanese people and economy, and we are seeing numerous high-quality companies selling at a deep discount to their intrinsic value. Equities of many Japanese companies have been under pressure for many years, and the recent tragic events have triggered continued selling. In recent weeks, we have added two Japanese companies to Appleseed's investment portfolio.
"We are now invested in Mabuchi Motor, a manufacturer of small DC motors, and Rohm, which produces a wide range of electronic parts including energy-efficient LEDs, power modules and other semiconductor components. Both companies have strong balance sheets, sell products to customers all over the globe, and trade at a significant discount to our estimate of their intrinsic value. Both companies also maintain strong environmental sustainability programs. We view the risk/return profile of these investments to be quite compelling."
Strauss continued, "Our long-term goal is to beat the market by investing in undervalued, sustainable companies. We are currently looking closely at other companies in Japan, too, as we are seeing a number of quality Japanese businesses that are priced very attractively."
About the Appleseed Fund:
- The Fund is managed by Pekin Singer Strauss Asset Management, a Chicago-based value-oriented investment firm with over $800 million of assets under management.
- The Fund offers two share class options: the APPLX Investor Class and recently introduced APPIX Institutional Class.
- More information can be found on the Appleseed Fund website, www.appleseedfund.com.
- Through 3/31/2011, the Appleseed Fund generated a one-year return of 6.7% and an annualized return of 8.5% since the Fund's inception on 12/08/06. During that same period, the S&P 500 Index generated a one-year return of 15.7% and an annualized return of 0.4%. 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. The gross expense ratios of Investor and Institutional shares of the Fund are 1.64% and 1.39%, respectively, and the net expense ratios after contractual fee waivers are 1.31% and 1.06%, respectively. The advisor has contracted with the Fund to waive fees to maintain a 1.24% expense ratio for the Investor shares and a 0.99% expense ratio for the Institutional shares (excluding indirect expenses) through February 29, 2012. Mabuchi Motor represented 3.4% of the portfolio and Rohm represented 2.7% of the portfolio on March 31, 2011.
- Appleseed Fund was ranked #1 out of 122 mid-cap value companies through March 31, 2011 using an equal weighting of overall ratings provided by various third party data sources. Appleseed's score was 9.3 out of 10.0.
- Investments in international markets present special risks including currency fluctuation, the potential for diplomatic and political instability, regulatory and liquidity risks, foreign taxation and differences in auditing and other financial standards. Risks of foreign investing are generally intensified for investments in emerging markets.
- 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 or performance data current to the most recent month end 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.
- There is no guarantee that this or any investment strategy will succeed; the strategy is not an indicator of future performance; and investment results may vary. Distributed by Unified Financial Securities, Inc., 2960 North Meridian Street, Suite 300, Indianapolis, IN 46208. (Member FINRA)
Capital Insight Partners