The original post remains, but you may want to cut to the chase and just look at the fund's top 25 holdings which represent 65% of the fund's total assets. Very, very interesting.
One of the nice things about this fund is the fact that the more speculative plays are offset by some very, very good big cap companies.
I am not making any investment advice, but over coffee, I would certainly mention to my friends to take a look at the fund. Here's the link: http://www.integrityvikingfunds.com/PortalIntegrityFunds/DesktopModules/ViewDocument.aspx?DocumentID=59 or click here.
The Original Blog
This is more for newbies than for seasoned investors. Do not take this as investment advice. I was just curious if I could find out more about a fund that was highlighted in Investopedia today.
Investopedia's Eric Fox highlights an open-end fund that he says is "levered to the Bakken."
The fund is the Integrity Williston Basin Mid-North America Stock Fund (ICPAX).
If you look at the Yahoo!Finance, you will see strange names associated with a fund that bills itself as a "Bakken fund." However, Yahoo!Finance has outdated information.
The following is outdated: According to Yahoo!Finance, the top ten (10) holdings which account for 47% of all assets (each of these are 4 - 6% of the total portfolio, each about 5% for round numbers) (this is outdated; these are no longer the top ten holdings of ICPAX, although still listed as such at Yahoo!Financial):
- Shaw Communications (SJR): cable and digital communications; based in Calgary, Canada.
- Ormat Technologies (ORA): geothermal energy; based in Reno, Nevada.
- Teleflex Incorporated (TFX): medical devices; based in Limerick, Pennsylvania.
- ESCO Technologies (ESE): metering for utilities; based in St Louis, Missouri.
- Hess
- Sigma-Adrich Corporation (SIAL): medical chemicals; based in St Louis, Missouri.
- Agrium Incorporated (AGU): agricultural products; based in Calgary, Canada.
- Techne Corporation (TECH): biotechnology; based in Minneapolis, Minnesota.
- Thermo Fisher Scientific Incorporated (TMO): biomedical equipment; based in Waltham, Massachusetts.
- Stillwater Mining Company (SWC): palladium, platinum mining; based in Columbus, Montana.
However, updated information shows something completely different: According to an on-line brokerage report, these are now ICPAX's top ten holdings (they account for 28% of ICPAX holdings). Each of these holdings represent about 2.75 to 3% of its total holdings (about 2.75% rounding off):
- EOG (3.04%)
- CLR( 2.90%)
- BHI: an oil-service company that operates worldwide (2.84%)
- CRR (Carbo Ceramics, Inc): operates worldwide (2.81%)
- AEZ (2.80%)
- BEXP (2.80%)
- WLL (2.80%)
- ENB (2.73%)
- OAS (2.73%)
- LUFK: an oil-service company that operates worldwide (2.66%)
Hess, by the way, has bought AEZ.
According to the report, 27% of the portfolio is large cap (I can't think of many large cap stocks with significant exposure to the Bakken) and 7% with giant cap (possibly SLB, XOM, HAL, COP with exposure in the Bakken). Small cap and micro cap make up 38% of the portfolio and that's where the bulk of Bakken companies are, I suppose, with some mid-cap companies.
It will be interesting to see the prospectus to see what makes up the rest of the portfolio (70% of the portfolio). Since some of the best "Bakken" companies are already listed, I have trouble thinking of thirty to fifty other companies that would be "Bakken." But I may be wrong. I will be watching for the new prospectus.
Other information:
According to Yahoo!Finance this fund has an expense ratio of 1.5% (category average: 1.47%) which includes a maximum front end sales load of 5.00% I assume the maximum would be incurred for smaller investments, which means one's investment is automatically reduced by 5% on the day the investment is made. It appears there is no "deferred sales load."
Link to current fund sheet;
ReplyDeletehttp://www.integrityvikingfunds.com/PortalIntegrityFunds/DesktopModules/ViewDocument.aspx?DocumentID=59
A link to current fund
ReplyDeletesheethttp://www.integrityvikingfunds.com/PortalIntegrityFunds/DesktopModules/ViewDocument.aspx?DocumentID=59
Thank you very much. Very, very interesting.
ReplyDeleteThe top 25 holdings represent 64% of the portfolios total assets, and is truly a Bakken-levered, energy rich mutual fund.
Clearly something for those who are bullish on the Bakken but don't want to do their own stock picking. The nice thing is that the more speculative holdings are balanced by some very, very good big cap companies.
a 5% sales load is *NOT* a decent thing to deal with.... I do not like that about it at all.
ReplyDeleterory
Thank you. That was one of the first things that caught my attention. That was one of the reasons I posted this: so new investors (and perhaps seasoned investors) would be aware of that.
ReplyDeleteI am definitely not defending this or arguing (I agree completely with you). But having said that, if one has limited amount to invest, and no clue as to what to invest in, this particular fund might be a way to go -- again, it's a stretch for me to say that when there's a load involved.
But if the Bakken grows like it could, the 5% might end up being a drop in the bucket.
(By the way, even with $8.95 commissions, if one invests a small amount, one could end up paying much more than 5% to get in and out of a stock. I see some folks eager to buy one share of Apple stock -- $8.95 for $300 is 3%. In and out is 6%. I have bought $300 worth of NOG at one time for a $8.95 commission -- that cost me 3 percent but I was eager to start accumulating.)
But even if you don't invest in the fund, looking at the holdings can give you some ideas on what to do.
Anyway, idle chatter. Thank you for commenting. I am in absolute agreement with you; the rest was just idle chatter.
The full portfolis as of the latest publication are available in the semiannual report.
ReplyDeleteLooks like fee advisors can order shares at NAV without a load otherwise breakpoints are available for load investors
ReplyDeleteThis is the best link I could find:
ReplyDeletehttp://portfolios.morningstar.com/fund/holdings?t=ICPAX®ion=USA&culture=en-US
It is a Bakken fund, no doubt about it. Top 25 holdings represent 68% of total portfolio, and each holding represents about 2.50 to 3.75 percent of the total portfolio.
It is interesting apportionment of companies. The biggest market cap companies comprise the same percent as the most speculative companies in the portfolio. For example, EOG's holdings represent 2.78 percent of total portfolio, and NOG's holdings represent 2.49 percent; Hess represents 2.27 percent. It looks like they literally took a list of all energy companies working in the Bakken (as well as a few energy and industrial companies outside the Bakken) and allotted 2.5% of their cash to each. The change in apportionment now is probably related to how the companies have performed in the market.
Idle chatter. Folks can go to the link and if they want more, request a prospectus and semi-annual report from the fund directly.
This will be a very interesting fund to follow. For some reason, I can't get it to show up in the Yahoo stock prices at the sidebar at the right.
ReplyDelete