Wellesley is actively managed by Wellington Management Co, which is an outside firm.
The prospectus says:
The remaining 35% to 40% of Fund assets are invested in common stocks of companies that have a history of above-average dividends or expectations of increasing dividends.
And later:
The Fund’s stocks are chosen primarily for their dividend-paying capabilities, but they must also have the potential for moderate long-term capital appreciation. The advisor looks for stocks of companies that either offer significant dividends now or expect to increase their dividends in the future. This income orientation leads the Fund to invest in stocks with higher-than-market-average dividend yields. As a result, the Fund's equity holdings are expected to have more of a value orientation than a growth orientation.
Therefore, the value tilt is by design and probably has been since the inception of the fund (54 years ago). You shouldn’t expect a fund to be something (i.e., the S&P 500) that it isn’t.
The prospectus says:
The remaining 35% to 40% of Fund assets are invested in common stocks of companies that have a history of above-average dividends or expectations of increasing dividends.
And later:
The Fund’s stocks are chosen primarily for their dividend-paying capabilities, but they must also have the potential for moderate long-term capital appreciation. The advisor looks for stocks of companies that either offer significant dividends now or expect to increase their dividends in the future. This income orientation leads the Fund to invest in stocks with higher-than-market-average dividend yields. As a result, the Fund's equity holdings are expected to have more of a value orientation than a growth orientation.
Therefore, the value tilt is by design and probably has been since the inception of the fund (54 years ago). You shouldn’t expect a fund to be something (i.e., the S&P 500) that it isn’t.
Statistics: Posted by Geologist — Thu Jun 20, 2024 6:49 am — Replies 4 — Views 461