Mutual Funds Show Weakness in Infrastructure
The collapse of a bridge in Minneapolis last week tragically punctuated years of warnings about deterioration of the nation's transportation infrastructure.
It now seems inevitable that there will be serious efforts to prevent future death and destruction. However, mutual fund investors wishing to participate in the rejuvenation of the U.S. highway system will find that they have few options.
Just as the condition of the nation's roads and bridges has been neglected by their keepers, mutual funds have generally neglected to invest in companies that are likely to be called upon the save the roadway system.
The accompanying table summarizes investment by funds in 10 selected companies that would likely supply the engineering, equipment, materials and construction work in the rebuilding of the nation's highway system:
- Caterpillar (CAT)
- Cemex (CX)
- Chicago Bridge and Iron (CBI)
- Fluor Corp. (FLR)
- Granite Construction (GVA)
- Hanson (HAN)
- Jacobs Engineering Group (JEC)
- Lafarge (LR)
- NCI Building Systems (NCS)
- URS Corp. (URS)
|Funds With Exposure to Selected Transportation Infrastructure Stocks
Here are funds' holdings of these selected companies
|Name, ticker and TheStreet.com Ratings grade*||No.||% of Portfolio||Value ($million)||Year-to-date return (%)||12-mo. total return (%)|
|Transamerica Premier Balanced Inv (TBAIX) C-||3||10.2||40.1||6.101||12.281|
|DF Dent Premier Growth (DFDPX) B||3||8.8||10.0||10.641||16.181|
|Fidelity Select Constn & Housing (FSHOX) D-||5||8.8||13.8||-3.093||13.958|
|TA IDEX Transamerica Balanced A (IBALX) D+||3||8.6||17.6||5.658||12.588|
|Muhlenkamp Fund (MUHLX) D+||2||8.0||179.4||-2.639||6.371|
|Transamerica Premier Equity Inv (TEQUX) C-||2||8.0||54.5||6.039||14.663|
|Transamerica Premier Divers Eq Inv (TPVIX) C||2||7.7||17.0||8.221||17.555|
|HSBC Investor Growth & Income B (HSGBX) C||2||6.9||3.3||9||18.831|
|TA IDEX Transamerica Equity B (ITQBX) D+||2||6.5||112.3||5.042||14.155|
|New River Core Equity Fund (NRVCX) C+||2||6.5||0.5||4.669||15.081|
|ING Neuberger Berman Partn Portf S (INBSX) U||3||6.3||26.3||3.853||17.672|
|CGM Focus Fund (CGMFX) C+||1||6.2||155.4||30.355||26.456|
|Oak Assoc-White Oak Select Gr Fd (WOGSX) E||1||6.1||26.0||12.74||26.548|
|BNY Hamilton Multi-Cap Equity Fd (BKMCX) C||2||5.9||3.7||3.072||10.544|
|Rydex Series-Sector Rotation C (RYISX) C+||6||5.6||16.9||10.728||22.942|
|AIM Mid Cap Basic Value A (MDCAX) B||2||5.6||15.5||9.906||24.367|
|Brandywine Advisors (BWAFX) C+||3||5.4||13.8||13.894||25.3|
|Neuberger Berman Partners Inv (NPRTX) B+||3||5.3||233.5||4.477||18.514|
|Commonwealth-Real Estate Securities (CNREX) B||3||5.2||0.8||-5.169||8.563|
|JPMorgan Latin America A (JLTAX) U||1||5.2||56.8|
|Aston/Optimum Large Cap Opp Cl N (AOLCX) U||2||5.2||0.1||16.633|
|WesMark Small Company Growth (WMKSX) C-||1||5.1||2.1||8.437||17.204|
|New River Small Cap Fund (NRVSX) C+||1||5.1||2.9||8.867||16.447|
|Dow 30 Premium & Dividend Income (DPD) B-||1||5.1||11.6||0.56||13.31|
|PowerShares Dynamic Bldg & Cons (PKB) B||4||16.3||3.3||18.37||35.46|
|* "U" is unrated.
Source: TheStreet.com Ratings (data as of 7/31/2007).
Only 23 open-end funds, one exchange-traded fund and a single closed-end fund hold cumulative positions of 5% or more in the 10 selected infrastructure companies.
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