Allianz NFJ Small Cap Value Fund (PCVAX), with $7.4 billion in assets, is a highly diversified fund, given that it holds 136 stocks and only 19% of its assets are in the top 10 holdings.
It is up 23.7% this year and has a 10-year annualized return of 12.7%, tying for the best performance of the group. Ben Fischer has run the fund since its inception. It carries a 1.6% yield indicative of its investments in high-quality, dividend paying but, nevertheless, small-cap stocks.The industrial-materials sector is its biggest industry weighting at 25% of the fund and the company remains bullish on it. In the reporting period ending Nov. 30, it added a new stock, at 1.1% of the fund, in HudBay Minerals (HBM), which operates zinc and copper mines in northern Canada. Its shares are up 32% this year. Other than that, there were almost no significant purchases or sales in the top 25 holdings in the reporting period ended Nov. 30. Del Monte Foods (DLM), a processor of fruits and vegetables and the maker of 9-Lives cat food, is the fund's largest stock holding at 1.4% of the fund, and also one of its top performers, returning 65% this year. It got a big boost in November after reports that private-equity firm KKR was interested in acquiring it. Triumph Group (TGI) is the fund's top performer, gaining 84% this year. It designs and makes a wide range of aircraft components and subsystems. It has been an aggressive acquirer of other companies in its industry over the past few years and is also benefiting from a cyclical uptick in aircraft overhauls and new production.