- Last Ratings Update:03/31/2016
- Price as of 03/31/2016 :$20.28
- Net Assets:$201.62 Million
- Peer Rank:166 of 269
- Investment Rating:C+
We rate Flaherty & Crumrine Total Return at C+. Positive factors that influence this rating include a greater than above average total return and low price volatility. The fund invests approximately 6% of its assets in bonds and may be considered for investors seeking an Equity Income strategy.
POSITIVES AND RISKS
Total return ranks above peers over the last three years. The Flaherty & Crumrine Total Return has returned an annual rate of 7.78% since inception. More recently, the fund has generated a total return of 11.49% in the last five years, 7.18% in the last three years, and 9.74% in the last year. How does that compare to other equity funds? In the last five years, it has outperformed 75% of them. It has also outpaced 66% of its competitors on a three year basis and 87% of them over the last year for the period ending 3/31/2016. On a year to date basis, FLC has returned 8.48%.
Downside risk has been below average. FLC has a draw down risk of -18.05%, which is the largest price decline experienced over the last three years. This fund has a three year standard deviation of 12.3%. This fund has had moderate volatility in its monthly performance over the last 36 months. As of 3/31/2016, the fund was trading at a price of $20.28, which is 1.6% below its 52-week high of $20.62 and 2.2% above its 52-week low of $19.84.
High expense ratio hinders performance. On total assets of $201.62 million, FLC maintains a high expense ratio compared to its Equity Income peers of 1.80% to cover all operating costs. Brokerage costs for the fund to buy and sell shares are not included in the expense ratio. As FLC is a closed end fund, it has no front end or back end load.
Manager tenure and performance record are net positives. Substandard fund managers tend to be replaced, so a long tenure is usually a good sign that a fund is achieving its objectives. The Flaherty & Crumrine Total Return has been managed by Bradford S. Stone for the last 13 years. Over that period, the manager was able to capture more actual gains in excess of the expected return than 92% of other fund managers.
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