FBR Small Cap Financial Fund (FBRSX)

Investing in financial stocks is considered as value investment approach. One of these best rated financial sector equity mutual funds is listed below. This fund is recognized by Morningstar and US News as one of the best rated funds in Financials Sector.

FBR Small Cap Financial Fund (MUTF: FBRSX)

The FBR Small Cap Financial Fund investment seeks capital appreciation. This FBR fund typically invests most of net assets (>80%) in equity securities of small-cap domestic financial services companies. This fund focuses on financial services companies that invest in real estate, usually through mortgages and other consumer-related loans. The fund also may invest <20% of net assets in companies with larger market capitalizations or companies outside of the financial services group of industries. It is considered as non-diversified sector fund.

FBRSX Fund Details
FBR Small Cap Financial Fund (FBRSX)
FBR Small Cap Financial Fund details
  • Fund Inception Date: December 31, 1996
  • Ticker Symbol: FBRSX
  • CUSIP: 30246J208
  • Beta (3yr): 0.70
  • Rank in category (YTD): 81
  • Category: Financial
  • Distribution: 0.29%
  • Capital Gains: N/A
  • Expense Ratio: 1.51% 
  • Net Assets: $284.73 million
  • Number of Years Up: 9 years
  • Number of Years Down: 5 years
  • Annual Turnover Rate: 89%
updated on July 27th, 2011

This FBR fund has 0.25% 12b1 fee but it doesn’t have any sales load. The fund’s expense ratio is 1.51% per year. It also has a yield of 0.29% per year. The fund has been managed by David Ellison since 1996. As mentioned, this FBR fund is classified as financial sector equity mutual fund. The benchmark of this FBR Small Cap Financial Fund is NASDAQ Bank Index and Russell 2000 Index.

FBR mutual fundMorningstar has rated 5-star rating for FBRSX fund. Based on load adjusted return, this fund has returned 1.12% over the past year and 8.57% over the past ten years. The fund has its best performance year in 1997 with 58.36%. Its worst performance return occurred in 2007 with -22.18%. This fund has 0.71% of 5-year average return.

Investor will need $2,000 minimum balance for your regular brokerage account and $1,000 for retirement account (IRA) investment for investing in this FBR fund. This fund is available to many investors. Investors can purchase this fund through 84 brokerages, such as JP Morgan, T Rowe Price, Schwab Retail and Institutional, Dreyfus NTF, DATALynx, Td Ameritrade, Inc, Pershing Fund Center, Vanguard NTF, etc. The other class of this fund is Institutional Class (FBRUX).

This fund has a total of 68 holdings as of March 2011. The top ten holdings of this fund represent 23.9% of the total holdings. They are American Capital Ltd, Flushing Financial Corp., Bank United Inc, Washington Federal Inc, KKR Financial Holdings LLC, Associated Banc-Corp, Northstar Realty Finance Corp, Astoria Financial Corp, Northwest Bancshares Inc and OceanFirst Financial Corp Inc. As of July 2011, the top 10 sectors of this fund are Savings and Loans (33.1%), Banks (31.1%), Cash (9.8%), REITS (9.1%), Diversified Financial Services (5.4%), Insurance (4.3%), Investment companies (2.4%), private equity (2.2%), home builders (1.4%), and Commercial services (1.2%).

Investment risks include market risks, equity investments risk, temporary defensive positions, small cap investments, foreign investment risk, and non diversification risk.


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