TeklaLife Sciences InvestorsFind Ratings Reports
- Last Ratings Update:01/31/2018
- Price as of 01/31/2018 :$20.44
- Net Assets:$466 Million
- Peer Rank:32 of 41
- Investment Rating:D-
We rate Tekla Life Sciences Investors at D-. Negative factors that influence this rating include a well below average total return. The fund invests approximately 84% of its assets in stocks and may be considered for investors seeking a Sector - Health/Biotechnology strategy.
POSITIVES AND RISKS
Total return ranks well below peers over the last three years. The Tekla Life Sciences Investors has returned an annual rate of 9.75% since inception. More recently, the fund has generated a total return of 14.86% in the last five years, 0.94% in the last three years, and 19.63% in the last year. How does that compare to other equity funds? In the last five years, it has outperformed 88% of them. It has also outpaced 22% of its competitors on a three year basis and 65% of them over the last year for the period ending 1/31/2018. On a year to date basis, HQL has returned 3.01%.
Downside risk has been above average. HQL has a draw down risk of -43.90%, which is the largest price decline experienced over the last three years. This fund has a three year standard deviation of 27.4%. This fund has experienced excessive volatility in its monthly performance over the last 36 months. As of 1/31/2018, the fund was trading at a price of $20.44, which is 5.3% below its 52-week high of $21.59 and 4.1% above its 52-week low of $19.64.
High expense ratio hinders performance. On total assets of $466.00 million, HQL maintains a high expense ratio compared to its Sector - Health/Biotechnology peers of 1.32% to cover all operating costs. Brokerage costs for the fund to buy and sell shares are not included in the expense ratio. As HQL 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 Tekla Life Sciences Investors has been managed by Daniel R. Omstead for the last 26 years. Over that period, the manager was able to capture more actual gains in excess of the expected return than just 3% of other fund managers.