Q. What do you think of my shares of American Century Equity Growth Fund?
More Top Picks Shears Plant
–P.J., via the Internet
A. It’s a disciplined fund whose team of managers employs computer models to select stocks likely to beat the Standard & Poor’s 500.
Although it owns stocks from that index, the team also buys shares outside of it if its models indicate greater opportunity lies elsewhere. It has been competitive over the long haul and generally less risky than the index, though its recent performance hasn’t been up to par.
The $2.8 billion American Century Equity Growth Fund (BEQGX) gained 8.5 percent over the past 12 months to rank near the midpoint of large-growth and value funds. Its three-year annualized return of 12.5 percent puts it in the top one-fifth of peers.
“What we like about the managers is that they keep it simple and play to their strengths,” said Dan Culloton, analyst with Morningstar Inc. in Chicago. “They don’t try to shoot the lights out but have modest goals and target consistent returns year in and year out.”
Experienced lead managers William Martin and Thomas Vaiana emphasize low-valuation stocks with solid growth rates and price momentum. They score stocks according to their criteria and make purchases accordingly. The fund’s portfolio turnover is higher than average.
This fund could be a decent core holding, Culloton believes. It is more growth-oriented than the American Century Income and Growth Fund, which uses the same model but emphasizes different factors.
Financial services comprise nearly one-fourth of assets in American Century Equity Growth Fund. Other significant groups are health care, energy and industrial materials.
This “no-load” (no sales charge) fund requires a $2,500 minimum initial investment and, as is the case with most computerized funds, it has a relatively modest annual expense ratio of 0.67 percent.
Q. I have some old stock certificates of mining companies. How do I determine if they have any value?
–D.T., via the Internet
A. Don’t get your hopes up. Over the years I’ve heard from owners of hundreds of mining stock certificates discovered in desks and attics.
Since countless mining companies went bankrupt early in the last century, most of these are financially worthless. Occasionally, however, some historic or artistic value can make a certificate collectible.
To research a company, start on the Internet to see if you can find out what happened to it. Next, contact the transfer agent on the back of the certificate, if it still exists. Check with the secretary of state’s office in the state in which the firm was incorporated.
Books available in public libraries, such as “Moody’s Industrial Manual,” could help.
If you’re willing to pay a fee of $39.95 per company, Scripophily.com (888-786-2576) will research your certificate to see if it has any value. If it fails to uncover what happened to the company, it won’t charge you. If it likes your certificate as a collectible, it may offer to buy it.
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Andrew Leckey is a Tribune Media Services columnist. E-mail him at [email protected].