Mutual Fund Equity Report fund seekers should not consider taking a look at Alpine Dynamic Dividend Institutional (ADVDX) at this time. ADVDX bears a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.
History of Fund/Manager
ADVDX is a part of the Aberdeen Funds family of funds, a company based out of Philadelphia, PA. Since Alpine Dynamic Dividend Institutional made its debut in September of 2003, ADVDX has garnered more than $103.95 million in assets. The fund is currently managed by a team of investment professionals.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. ADVDX has a 5-year annualized total return of 6.07% and it sits in the middle third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 12.23%, which places it in the middle third during this time-frame.
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, ADVDX's standard deviation comes in at 16.8%, compared to the category average of 19.14%. Over the past 5 years, the standard deviation of the fund is 17.98% compared to the category average of 16.87%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 0.91, so investors should note that it is hypothetically less volatile than the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. With a negative alpha of -3.97, managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
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, ADVDX is a no load fund. It has an expense ratio of 1.25% compared to the category average of 1.11%. From a cost perspective, ADVDX is actually more expensive than its peers.
While the minimum initial investment for the product is $1 million, investors should also note that there is no minimum for each subsequent investment.