Waddell & Reed International Grade Fund (UNCGX)

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Waddell & Reed International Grade Fund (UNCGX) is one of the best foreign large growth mutual funds. It invests in companies’ stocks of developed countries.

Waddell & Reed International Grade A (UNCGX)

The investment aim of Waddell & Reed International Grade fund is to provide capital growth. The mutual fund invests mainly in common stocks of foreign companies that are competitively well-positioned, gaining market share, have the potential for sustained and attractive long-term growth characteristics. It typically invests in issuers of developed countries, especially companies located in Continental Europe, the United Kingdom and Japan. It may also invest in emerging markets.

Fund Profile
    Waddell & Reed International Grade Fund
  • Fund Inception Date: June 2, 1970
  • Ticker Symbol: UNCGX
  • CUSIP: 930057799
  • Beta (3yr): 0.94
  • Rank in category (YTD): 34%
  • Category: Foreign Large Growth
  • Distribution: 1.56%
  • Capital Gains: 0%
  • Expense Ratio: 1.50%
  • Net Assets: $ 487.75 million
  • Number of Years Up: 30 years
  • Number of Years Down: 11 years
  • Annual Turnover Rate: 30%
Updated on 11/12/2012

This Foreign Large Growth fund was first introduced to public in June 2, 1970. It is managed by F. Chace Brundige. It also has a dividend yield of 1.56%. This yield is distributed in June and December. It has total net assets of $487.75 million. The annual expense ratio of this fund is 1.50%. This is slightly lower compared to the average in the Foreign Large Growth category. The fund benchmark is MSCI EAFE Growth NR USD.
Morningstar ranks this international stock fund with 3-stars rating. The year-to-date return is 9.60%. It also has 5-year average return of -0.56%. Among its 30 years of positive return, the fund has its best 1-year total return in 1999 with 57.03%. The worst 1-year performance was occurred in 2008 with -40.73%. Based on the load adjusted returns, the fund’s performance is as below:
  • 1-year: -1.66%
  • 3-year: 5.98%
  • 5-year: -1.75%
  • 10-year: 6.40%
If you are planning to invest in a brokerage account or retirement account, the minimum initial investment is $500. The minimum next purchase for brokerage account is $500 and $50 for retirement account. This fund is only available for purchase through a limited of 15 brokerages. They are Robert W. Baird & Co, Sun Gard Transaction Network, Protected Investors of America, Pershing Fund Center, UBS Financial Services Inc, etc. The other classes of this Waddell & Reed mutual fund are Class B (WAIBX), Class C (WAICX) and Class Y (WAIYX).

The top 10 holdings of this fund as of June 2012 are Apple Inc (5.8%), Telstra Corporation Limited (3.1%), Diageo plc (2.9%), Fresenius SE & Co (2.8%), Cognizant Technology Solutions Corporation (2.5%), Vinci (2.4%), Bayer AG (2.4%), InBev NV (2.3%), GlaxoSmithKline plc (2.2%) and LVMH Moet Hennessy – Louis Vuitton (2.2%).
According to the fund prospectus, the principal investments risks include company risk, emerging market risk, foreign currency risk, foreign securities risk, growth stock risk, management risk, market risk, etc.

Disclosure: No Position

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