Top Performing Convertibles Mutual Funds May 2013

The top performing convertibles mutual funds May 2013 are Fidelity Convertible Securities fund, Putnam Convertible Securities, etc. These convertible funds provide income for investors.

Convertible Bond Mutual Funds

Top Performing Convertibles Mutual Funds May 2013
Top Funds
Convertibles mutual funds are part of balanced funds. They invest primarily in convertible bonds and convertible preferred stocks. The portfolios provide investors a capital growth opportunity and regular income. The convertible bonds in the mutual fund allow the fund to convert the bonds into shares of stock. The funds act like stocks and like bonds; hence they are part of balanced fund.

Investors can buy this convertibles mutual fund from brokerage such as Vanguard, Fidelity, T. Rowe Price, and other brokers. This fund can be bought with as little as $1,000 or $250 for your investment account or retirement account. You can find the best performing convertibles mutual funds below.

These top performers are sorted based on its 1 year return (up to May 2013). You can find the fund review from this article. Other fund information can be found below such as expense ratio, Morningstar rating, fund’s NAV, managers, fund’s holdings, yield, etc.

The top performing convertibles mutual funds May 2013 are:
  1. Fidelity Convertible Securities fund (FCVSX)
  2. Putnam Convertible Securities fund (PCONX)
  3. Invesco Convertible Securities fund (CNSAX)
  4. AllianzGI Convertible fund (ANZAX)
  5. Columbia Convertible Securities fund (PACIX)
  6. Vanguard Convertible Securities fund (VCVSX)
  7. Lord Abbett Convertible fund (LACFX)
  8. Franklin Convertible Securities fund (FISCX)
  9. RBC BlueBay Global Convertible Bond I (RGCBX)
  10. MainStay Convertible fund (MCOAX)
  11. Victory Investment Grade Convertible fund (SBFCX)
  12. Calamos Convertible fund (CCVIX)
  13. Miller Convertible fund (MCFAX)
  14. Harbor Convertible Securities fund (HICSX)

Fidelity Convertible Securities fund (FCVSX)

Fidelity Convertible Securities fund - FCVSX
fund profile
Fidelity Convertible Securities fund utilizes its assets to purchase convertible securities and common stocks of domestic and foreign companies. This FCVSX fund has the largest total assets among all the funds in the list. The total net assets are $2.0 billion. It also has an expense ratio of 0.76%. The dividend yield is 2.59%. It has no transaction fee and no sales load fee. The fund is one of the Fidelity Fund Pick. Thomas Soviero is the current fund manager.

More: Best Convertible Bond Securities Mutual Funds 2012

Ranked with 2-stars and Neutral rating by Morningstar, the fund has 8.53% year-to-date return as of April 30, 2013. This top performing convertibles mutual fund has recorded 20 years of positive return and 5 years of negative return. The best 1-year total return was achieved in 2009 with 64.11%. The worst was occurred in 2008 with -47.78%. Based on the load adjusted returns, the fund has returned 10.24% over the past 3-year and 8.70% over the past decade.

As part of Fidelity fund family, it has a total of 85 holdings. The top 10 holdings represent 42.55% of total portfolio. They are General Motors, Wells Fargo, Ford Motor, MGM Mirage, Alpha National Resources, Citigroup Inc, Bank America, Continental Air, Peabody Energy and Tenet Healthcare Group.

Putnam Convertible Securities fund (PCONX)

Managed by Eric N. Harthun and Robert L. Salvin, this Putnam fund has a yield of 2.77%. Putnam Convertible Securities fund aim is to provide income and capital growth. It uses its assets to buy in convertible securities of U.S. companies. Convertible securities combine the investment characteristics of bonds and common stocks.

This PCONX fund was introduced to public since 1972. It has $694.3 million of total net assets. The annual expense ratio is 1.11% and the annual holdings turnover is 59.00% (as of April 11, 2013). This class A fund has a front-end sales load fee of 5.75%.

The mutual fund is rated with 3-stars rating by Morningstar. It has YTD return of 7.73%. The best 1-year total return was achieved in 2009 with 53.75%. The fund has a 5-year average return of 6.23%. The other classes are Class B (PCNBX), Class C (PRCCX), Class M (PCNMX), Class R (PCVRX) and Class Y (PCGYX). The fund uses BofA Merrill Lynch All U.S. Convertibles Index as the benchmark.

The top diversification across market sectors are Technology (18.9%), Financials (17.8%), Consumer Cyclical (17.5%) and Health Care (14.0%). The top asset allocation is 69.57% in Bonds and 25.58% in Stocks. The current fund’s shares price is $22.55.

Invesco Convertible Securities fund (CNSAX)

Invesco Convertible Securities fund - CNSAX
fund details
Invesco Convertible Securities fund is also investing in convertibles including lower rated fixed-income securities or junk bonds. The fund’s CUSIP is 00888W403. It is currently managed by Ellen Gold and Ramez Nashed. The total net assets are $1.1 billion. The expense ratio fee is 0.93%. The dividend of 2.18% is given in quarterly basis.

You can buy this top convertibles mutual fund from your brokerage for your retirement or 401k account. The minimum initial investment is $1,000 with $50 minimum subsequent investment. The fund’s NAV is currently $23.12 per share.

As one top performing convertibles mutual funds, it has 3-year beta risk of 1.05. Morningstar analysts rated this fund with 3-stars rating. The fund has recorded 10 years of positive return and 5 years of negative return since the inception. Based on the load adjusted returns, the fund’s performance is as below:
  • 1-year: 3.18%
  • 3-year: 8.15%
  • 5-year: 5.85%
  • 10-year: 7.51%
The top 5 holdings as of March 2013 are Gilead Sciences Inc (2.27%), Bank of America Corp (1.42%), Wells Fargo & Company (1.36%), MGM Mirage Inc (1.34%) and Avis Budget Group Inc (1.30%). The top holdings are Health Care Equipment (6.26%), Biotechnology (5.33%) and Semiconductors (4.88%).

AllianzGI Convertible fund (ANZAX)

This AllianzGI Convertible fund utilizes its assets to buy convertible securities, which include, but are not limited to, corporate bonds, debentures, notes or preferred stocks and their hybrids. This ANZAX fund has an expense ratio of 1.01% per year. The dividend yield is 1.29% per year. The total net assets are $1.4 billion. The portfolio managers are Douglas G. Forsyth and Justin Kass. The average turnover in Convertibles category is only 56.30%.

Ranked with 4-stars rating by Morningstar, this best performing convertibles mutual fund has YTD return of 9.38%. The investment style is Mid Blend. The fund’s benchmark is BofA Merrill Lynch All Convertibles Index. This Class A fund has just been incepted in 2010. The total return in 2012 was 11.59% and while in 2011, it is-2.59%. The 5-year average return was 8.28%.

More: Top Performer Convertible Securities CEFs July 15 2012

As of first quarter of 2013, the top holdings of this fund are Gilead Sciences Inc (2.14%), Micron Technology Inc (1.8%), General Motors Corporation (1.74%), Bank of America Corporation (1.65%) and United Technologies Corporation (1.50%). The top sector is Technology (20.55%).

Vanguard Convertible Securities fund (VCVSX)

Vanguard Convertible Securities fund - VCVSX
Vanguard fund profile
Vanguard Convertible Securities fund invests most of assets in U.S. and foreign convertible securities, which are hybrid securities that combine the investment characteristics of bonds and common stocks. The current fund managers are Larry W. Keelee, Jean-Paul Nedelec and Abe Ofer. The fund advisor is Oaktree Capital Management, L.P.

As one of the top performing convertibles mutual funds, its expense ratio is 0.52%. This fee is 58% lower than the category’s average expense ratio. The total net assets have $1.7 billion. It has a high dividend yield of 3.38%. The minimum initial investment is $3,000 for either brokerage or retirement (IRA) account.

This Vanguard fund has 4-stars and Gold rating from Morningstar. The YTD return as of April 30, 2013 is 7.45%. The best 1-year total return within 19 years of positive return was in 2009 with 40.81%. The worst was in 2008 with -29.79%.  The average maturity is 6.1 years and the average duration is 5.2 years.

The top 10 largest holdings represent 21.3% of total net assets as of March 2013. They are Micron Technology Inc, Cobalt International Energy Inc, Salix Pharmaceuticals Ltd, Omnicare Inc, SanDisk Corp, Jarden Corp, Hornbeck Offshore Services Inc, Brookdale Senior Living Inc, Hologic Inc and SEACOR Holdings Inc.

Fund Information

NoFund DescriptionTickerRatingAssets (MS)Expense RatioYield
1Fidelity Convertible SecuritiesFCVSX2$2,000.00.76%2.59%
2Putnam Convertible Securities APCONX3$694.31.11%2.77%
3Invesco Convertible Securities ACNSAX3$1,100.00.93%2.18%
4AllianzGI Convertible AANZAX4$1,400.01.01%1.29%
5Columbia Convertible Securities APACIX2$587.51.12%2.65%
6Vanguard Convertible Securities InvVCVSX4$1,700.00.52%3.38%
7Lord Abbett Convertible ALACFX3$484.41.07%2.65%
8Franklin Convertible Securities AFISCX4$1,100.00.90%3.42%
9RBC BlueBay Global Convertible Bd IRGCBXN/A$17.81.00%2.24%
10MainStay Convertible AMCOAX3$683.51.00%2.41%
11Victory Investment Grade Convertible ASBFCX2$18.11.44%0.54%
12Calamos Convertible ACCVIX3$1,200.01.10%0.28%
13Miller Convertible AMCFAX3$296.51.48%1.96%
14Harbor Convertible Securities InvestorHICSXN/A$163.41.20%2.12%

Convertible Funds Performance

NoFund DescriptionYTD Return %1 Year Return %3 Year Return %5 Year Return %
1Fidelity Convertible Securities8.53%14.82%8.54%3.95%
2Putnam Convertible Securities A7.73%14.27%8.27%5.37%
3Invesco Convertible Securities A7.90%13.40%8.46%7.57%
4AllianzGI Convertible A9.38%12.66%9.75%7.51%
5Columbia Convertible Securities A9.22%13.03%9.12%4.87%
6Vanguard Convertible Securities Inv 7.45%12.90%8.13%6.47%
7Lord Abbett Convertible A8.03%11.68%6.24%4.02%
8Franklin Convertible Securities A6.84%11.72%8.14%5.84%
9RBC BlueBay Global Convertible Bd I5.93%10.64%N/AN/A
10MainStay Convertible A7.60%9.12%6.66%4.92%
11Victory Investment Grade Convertible A7.30%8.96%5.67%1.75%
12Calamos Convertible A7.98%9.10%5.27%4.36%
13Miller Convertible A7.67%8.30%6.89%6.16%
14Harbor Convertible Securities Investor4.08%7.27%N/AN/A


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