Tri Continental Corporation
Find Ratings Reports- Last Ratings Update:02/29/2024
- Price as of 02/29/2024 :$29.65
- Net Assets:$1,577.03 Million
- NAV:$34.16
- Premium-13.2%
- Peer Rank:115 of 397
- Investment Rating:B-
- Performance:C+
- RiskB-
We rate Tri-Continental Corporation at B-. Positive factors that influence this rating include a greater than above average total return, low price volatility and low expense structure. The fund invests approximately 100% of its assets in stocks and may be considered for investors seeking an Equity Income strategy.
Total return ranks above peers over the last three years. The Tri-Continental Corporation has returned an annual rate of 9.59% since inception. More recently, the fund has generated a total return of 11.77% in the last five years, 7.87% in the last three years, and 14.86% in the last year. How does that compare to other equity funds? In the last five years, it has outperformed 83% of them. It has also outpaced 74% of its competitors on a three year basis and 66% of them over the last year for the period ending 2/29/2024. On a year to date basis, TY has returned 3.57%.
Downside risk has been below average. TY has a draw down risk of -26.83%, which is the largest price decline experienced over the last three years. This fund has a three year standard deviation of 15.6%. This fund has had moderate volatility in its monthly performance over the last 36 months.
Low expense ratio helps performance. On total assets of $1.58 billion, TY maintains a low expense ratio compared to its Equity Income peers of just 0.46% to cover all operating costs. Brokerage costs for the fund to buy and sell shares are not included in the expense ratio. As TY is a closed end fund, it has no front end or back end load.
Manager tenure is a net positive but performance record lags managerial peers. Substandard fund managers tend to be replaced, so a long tenure is usually a good sign that a fund is achieving its objectives. The Tri-Continental Corporation has been managed by David L. King for the last 14 years. Over that period, the manager was able to capture more actual gains in excess of the expected return than just 43% of other fund managers.