Having trouble finding a Sector – Utilities fund? American Century Utilities Investor (BULIX) is a potential starting point. BULIX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Zacks categorizes BULIX in Sector – Utilities, which is a segment packed with options. Known for its stability, the utility industry is perfect for investors seeking low risk. Sector – Utilities mutual funds focus on companies that provide essential services to millions of people on a daily basis: think electric power, gas distribution, and water supply.
BULIX finds itself in the American Century family, based out of Kansas City, MO. American Century Utilities Investor debuted in March of 1993. Since then, BULIX has accumulated assets of about $266.92 million, according to the most recently available information. Yulin Long is the fund’s current manager and has held that role since December of 2010.
Of course, investors look for strong performance in funds. BULIX has a 5-year annualized total return of 6.43% and is in the bottom 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 7.02%, 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. Compared to the category average of 17.1%, the standard deviation of BULIX over the past three years is 18.07%. Looking at the past 5 years, the fund’s standard deviation is 17.62% compared to the category average of 17.5%. This makes the fund more volatile than its peers over the past half-decade.
With a 5-year beta of 0.63, the fund is likely to be less volatile than the market average. 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. BULIX’s 5-year performance has produced a negative alpha of -3.93, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.